In January 2021, the COVID-19 pandemic broke out in some provinces and cities in China, which shows that China's economy will continue to be difficult this year.
But in any case, compared with the past 2020, China's furniture industry in 2021 will not have the ups and downs of last year, and there will be no more shocks from similar economic shocks caused by the COVID-19 pandemic. We hope that the new year will be smoother than the previous year.
By 2021, Rattan Wicker Furniture suppliers will still face more conventional difficulties and challenges.
Challenge 1: Market pressure caused by the continuous decline in China's labor force
In 1962, after China was born, the Chinese-born population exceeded the 20 million mark for the first time, reaching 20.075 million. In 1963, about 27 million people were born in China. From then to 1976, the number of births in China still exceeded 20 million every year.
The 15-year population boom provided young, large and cheap labor for China's reform and opening up in the 1980s, and realized the primitive accumulation of Chinese capital.
By 2017, China's infant birth rate began to exceed the employee retirement rate. In 2022, the retirement wave will have a shocking impact on Chinese society.
In addition, the massive reduction in China's labor force will continue for more than a decade.
With such a large population, if Chinese furniture companies put forward any exaggerated slogans, it will obviously no longer work.
In recent years, many Chinese furniture companies have encountered major problems in mergers and acquisitions, which have had a major impact on the nature of the market and do not support rapid expansion.
It is recommended that Chinese furniture companies, especially small and medium-sized furniture companies: advocate less radical publicity slogans, and carry out more scientific market plans and accurate data forecasts.
Challenge 2: The development model of China's whole-house custom furniture masks the shrinking of the furniture industry market
In the past, when selling furniture in China, finished furniture was the best seller. Now, when you sell furniture, you need to design and customize the entire house. Is this a good sign or a bad sign?

For many furniture companies, custom furniture for the entire house is a bit difficult to master. Even if they accept orders reluctantly, they are prone to many follow-up problems, which makes the goodwill of the furniture company extremely fragile.
As mentioned above, due to the reduction of China's labor force and the increase of the retired population, the demand for furniture in the Chinese market has dropped significantly. According to statistics, the increase in unit price may conceal the decrease in the number of pieces. If only the sales of furniture are calculated, it is difficult to find red flags that the number of furniture pieces has fallen.

After the COVID-19 epidemic in 2020, many Chinese traditional furniture companies have lost their competitiveness and were forced to withdraw from the market. However, due to the popularity of whole-house custom furniture and the high unit price of custom furniture customers, it has attracted many companies and design companies in related industries to transform into the furniture industry. Therefore, the data shows that the number of companies in the furniture industry has not decreased, but has increased.
The second suggestion is that the full house custom furniture industry may not be a gold mine. If you want to successfully mine gold in the custom furniture industry, you must have strong technical strength, a complete service chain and superb design standards. If a Chinese furniture company does not want to turn a gold mine into a gold trap, then it must work hard and put a lot of energy into it.
Challenge 3: Continued penetration of China's digital economy
China's digital economy has now penetrated almost everywhere in the real economy, reshaping the inherent form of the traditional economy.
China high quality custom modern luxury home hotel furniture supplier manufacturer factory company-International Furniture Picture
In the past 2020, Chinese furniture companies have almost completely embraced the digital economy, and their attitude towards the digital economy has also begun to change from resistance to cooperation.
But from the perspective of internal furniture, changing attitudes is not enough.
Chinese furniture companies must make better use of the new competitiveness brought by the digital economy to lay the foundation for the development of their companies.
According to reports, whether in the emerging Nankang Furniture Industry Belt of Jiangxi Province, Sichuan Furniture Industry Belt, or even in the Central Plains, more and more furniture companies that rely on digital technology to enhance their market competitiveness have emerged as the times require.
Digital technology continues to make great progress in furniture production, sales, management, and even warehousing, logistics and installation.

Chinese furniture companies that have always been considered low-tech are actually full of technology. Those companies that mistakenly believe that furniture production and sales are traditional industries and do not need to use high-tech, but ultimately follow a bleak development prospect.

The failure of many Chinese furniture companies is actually due to the huge backwardness of technology investment.

Therefore, the third suggestion is that Chinese furniture companies must invest in new technologies, especially digital technologies, and pay attention to them at all costs. New business opportunities exist in technological transformation, especially in the application of new digital technologies.