Recently, some media reported that the import and export of raw materials such as wood was restricted, and the price of solid wood furniture rose by more than 10%. In the context of the unanimous screaming of solid wood furniture companies, the new business model represented by the furniture industry, Merle Furniture Network, is trying to solve such a seemingly unsolvable proposition.

In the first half of 2013, under the spur of the recovery of the property market, the slightly depressed home market ushered in a recovery. However, due to the recent import and export restrictions on materials in the rosewood market and the rising cost of raw materials, labor and logistics, the furniture market has ushered in a price surge. However, industry insiders also questioned that the price increase of solid wood furniture is purely a fish in troubled waters. From the perspective of the whole market, the price transmission capacity of furniture costs is weak, and the price increase is a wishful thinking of the business. In addition, the general increase in solid wood furniture will also make the industry industry that is turning better in the industry face the pressure of turning cold.

In the eyes of professionals, in the current bullishness of raw materials, energy, labor, and store rents, should the price increase of solid wood furniture should not be? Standing in different positions will have different answers. The price increase and the business are good and bad. It is a dynamic balance problem. How to make consumers accept it, and at the same time enhance the company's own strength and brand influence may be more than pure price increase. Important issues. "Furniture enterprises do not have administrative monopoly power, and the final decision is in the hands of consumers." According to the person in charge of the marketing department of Melaleus Furniture Network, "Melile will insist on the price increase of solid wood furniture!"

So what is the enthusiasm of Melody? According to reports, Merlot has been able to insist on selling furniture products at a net price. The root cause lies in the good control of costs. From the very beginning, the company will optimize the supply chain efficiency and reduce channel costs as the top priority of all work. According to the source, the Merle's offline store requires that the monthly rent cannot exceed 60 yuan, and the usual rent is 5% of sales. We don't think consumers need to pay for the style of expensive, expensive hypermarkets. In terms of production, Merlot's suppliers have been reduced from more than 300 to less than 100, and large-scale purchases have led to a decline in purchase prices. At the same time, a factory may only produce a single product for Melaleuca, and it will be produced in large quantities. The proficiency and skill level of the workers will continue to increase, and the quality of the products will be guaranteed while the purchase price is reduced. At present, most of the production capacity of solid wood products is transferred to Southeast Asia, where labor and raw materials are cheaper. The logistics is carried out by sea, so the cost is further reduced. Therefore, we can sell furniture at an extraordinary affordable price. For example, a 1499 American imported poplar bed is extremely popular. After being sold for more than a month, it has sold thousands of copies.

Coincidentally, the world-famous furniture manufacturer IKEA is also using the powerful weapon of price to break the European furniture industry pattern that has lasted for 100 years. IKEA founder Ingvar Kamprad said: “At IKEA, our vision is to create a better everyday life for the public. Our business philosophy is to provide a wide range of household items that are affordable and affordable to the general public. "To make quality products at high prices, or to create inferior products at low prices, anyone can do this." However, to manufacture good products at a low price, it is necessary to find a cost-saving and innovative method. This is the eternal pursuit of IKEA since its inception in Småland, Sweden. Maximizing the use of raw materials and production methods that match people's needs and tastes means lower cost and more affordable products.

It is understood that similar to the IKEA practices, there are "everyday low price" Wal-Mart, as well as Germany's "low-end supermarket" Adi, which is a low-cost boutique. Without exception, these companies are able to achieve low-cost advantages through large-scale, further expand the scale, reduce costs once again, and continue to optimize the supply chain's ability is one of their core competitiveness.

In the history of modern enterprise development, the "water supply philosophy" of Matsushita Yukio, founder of Matsushita, Japan, pointed out that the responsibility of enterprises is to make things that the masses need as cheap as tap water. In the early days, Matsushita Electric paid more attention to market-oriented and pragmatic strategies. In particular, instead of investing too much resources in technological innovation, it is timely to intervene in markets with strong public demand. Through a short, flat and fast development model, mass production of low-cost, high-quality, low-price products, thereby winning a huge market share; at the same time, further reducing costs, lowering prices, and gradually reaching the same products as tap water The cheap realm, Panasonic has also risen!

Melaleuca believes in such a business philosophy, we have to be a "spoiler", a "subversive", and in the case of anything rising, we provide the most affordable furniture. Melody CEO Gao Yang said so.

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