1. Overview of the development of the global upholstered furniture industry
The industrial production of the global upholstered furniture industry began in Europe in the early twentieth century. In the 1990s, with the advancement of global processing and manufacturing technology, the manufacturing capacity of the upholstered furniture industry has been greatly improved, and market demand has also continued to expand.
China, the United States, Germany are the world's major consumer countries of soft furniture. The upholstered furniture manufacturing industry is a labor-intensive industry. Affected by factors such as higher labor costs in developed countries, the global upholstered furniture industry is continuing to shift to developing countries that have a labor price advantage and sufficient raw material resources.
2. Overview of the development of China's upholstered furniture industry
Since the beginning of the 21st century, the development of China's loose furniture industry has maintained a good momentum. At present, China has become the world's largest producer and consumer of soft furniture. In recent years, with the continuous and steady growth of China's national economy and the continuous increase of residents' disposable income, people have increasingly higher requirements for quality of life. Upholstered furniture is more and more popular among Chinese consumers because of its comfortable design, diverse styles and rich colors.
3. Analysis of the business model of China's soft furniture industry
The particularity of the business model of the soft furniture industry is mainly reflected in its sales model. At present, China's domestic loose furniture manufacturers mainly adopt two modes of independent brand sales and OEM sales.
（1）Private label brands
Private label brands model refers to the market-oriented business model that Homeupholstered furniture manufacturers relying on their own design and development capabilities to create private label brands, have their own intellectual property rights, And rely on the brand advantage to push the product to the target market through direct sales stores, distributors or e-commerce and other perfect sales channels.Chinese furniture companies operating under Private label brands have strong ability to withstand risks and can obtain a high level of profit, but they have high requirements on the design and development capabilities, process technology and sales channels of these companies.
Loose furniture companies directly invest, operate and manage retail stores, and adopt vertical and unified management methods for retail stores. By adopting the sales model of its own stores, Chinese furniture companies can effectively control marketing channels and implement their development strategies. However, under this model, these companies need to invest a lot of their own funds, and the initial operating costs are higher.
Distribution model includes two modes: franchised distribution and general distribution. The franchised distribution model means that soft furniture companies grant their private label brands and trademarks to their franchised dealers in the form of franchised distribution contracts or agreements, and provide them with personnel training and management assistance; These franchised dealers pay the corresponding fees to the branded soft furniture enterprises, sell the products in accordance with the provisions of the franchise distribution contract, and bear the operating risks on their own.general distribution means that general distributors sell private label brand products of loose furniture companies directly, and production companies do not participate in the management, brand promotion, and personnel training of general distributors.
E-commerce is an emerging sales model in the upholstered furniture industry. Chinese soft furniture companies cooperate with e-commerce websites to promote and sell their products on e-commerce websites. The enterprise pays the corresponding fee to the e-commerce website operator, and the operation risk is borne by the enterprise itself. Orders obtained by upholstered home furniture companies through e-commerce websites are completed by the companies themselves or transferred to their distributors in the customers' locations.
The OEM sales model of China's soft furniture industry can be divided into two types: ODM and OEM.The ODM production method refers to the design and development of R&D and organization of production by loose furniture manufacturers based on market demand or customer orders, and the products produced are sold externally under the customer's brand.
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