The furniture industry is trapped in a destructive cycle of competition, driven by low entry barriers and an oversaturated market. Over the years, many small and weak companies have entered the sector with outdated management systems, poor quality control, and low-cost strategies. This has led to intense price wars, where businesses constantly undercut each other, resulting in declining product quality and brand value. As a result, even second-tier brands have started to compromise on standards, further deepening the crisis.
In this environment, project bidding has also become a battleground for the lowest price, often below cost. This not only harms the bidders but also leads to substandard products being delivered. The engineering clients, who once relied on competitive bids, now find themselves stuck in a harmful loop, where quality is sacrificed for cost. The end result is a market flooded with inferior goods, pushing out genuine, high-quality brands and creating a cycle that’s hard to break.
Another major issue lies in the lack of strong quality management. Many new furniture manufacturers don’t have proper quality control systems in place. Basic roles like quality inspectors are often overlooked, leaving product standards to be judged solely by experience. This leads to inconsistent quality, which eventually affects dealers, consumers, and the entire market. In the long run, these companies face complaints, returns, material waste, and even bankruptcy.
As companies grow, internal conflicts often arise. Joint ventures and partnerships are common in the early stages due to limited resources. However, as the business expands, disagreements over profit distribution can lead to splits. New enterprises formed from these splits often compete aggressively, driving down prices and increasing market saturation. This makes it harder for original companies to survive, as they now face more competitors and tighter margins.
Expanding too quickly without a solid foundation can also be disastrous. Rapid growth often leads to production and sales mismatches, poor planning, and strained labor relations. Companies may struggle to manage their workforce effectively, leading to a gap between management and workers. This imbalance can create a stressful work environment, affecting productivity and morale.
Furniture, unlike other industries, has unique specifications and customer demands. Orders are often customized, making mass production difficult. Small manufacturers, in particular, face challenges in balancing order sizes—too small and they can’t operate efficiently; too large and they risk overproduction. This makes it hard to establish a sustainable business model. Only those with the right scale and strategy can thrive in this complex market.
To escape the vicious cycle, companies must focus on quality, build strong brand identities, and avoid blind expansion. A clear positioning, better risk management, and long-term planning are essential for survival in this competitive landscape.
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