Why is it difficult for furniture companies to become bigger?

I myself have worked in the furniture industry, so I would like to give a little personal opinion.

First: the labor cost of furniture is too high, but the output ratio of a single worker is very low, and the manufacturers who can reach the automation CNC equipment are a minority after all, and most of the employees of the furniture are people with a low level of education, so it is not so easy to form a scale in terms of production management and improving the competitiveness of enterprises.

Second: furniture enterprises are typical low value-added, low employment industry, for consumers, furniture is also a typical low-frequency consumer products, after all, furniture this thing will not be changed so fast, and the furniture industry almost in 2012 or so reached saturation to overcapacity, coupled with the furniture site, high rent costs, long cycle, more pressing, low rate of return and other characteristics.

Third: the threshold of the furniture industry is too low, the moisture is too large, there are uneven size manufacturers in various places, some workers also want to open a small factory for a few years, not only in the city, but also everywhere in the countryside There are furniture workshops, the moisture of furniture is very large, the same appearance, can be produced at one or two different costs, and the product model is difficult to form a standard and durable.

First of all, there are many large enterprises in the furniture industry, but most of the large enterprises entered the industry in the early years, and accumulated over the years to establish a competitive advantage, which is not achieved overnight.

Secondly, the furniture industry is a very competitive traditional industry, generally low profits, enterprises have no remaining funds to invest in expanding the scale. Either you lose money, or you make a little money just enough to maintain your expenses.

In addition, there are some factors restricting the scale of furniture manufacturing enterprises, such as: lack of innovation, including disruptive production technology innovation, brand and marketing innovation, style design innovation (products on the market are always copied from each other).

All of the above are negative factors, but there are also positive sides: China has begun to enter the era of consumption, and the furniture industry will continue to grow for a long time, so the situation is not pessimistic. Every year, there will be some star enterprises in the furniture industry, if you want to do large-scale and become a member of the star enterprise, you must play an advantage in many aspects, and you must also have luck to help.

That's all.