Flooring enterprises to ease inventory pressure, combined with the trend of the times

Flooring industry in China has developed for nearly thirty years, and now, in a number of internal and external factors, some of the industry ills are beginning to become prominent. In recent years, due to overcapacity caused by the imbalance of supply and marketing market has become particularly prominent problems, the serious industry also makes flooring enterprises should be developed a solution to the problem.
The surge in inventories has spawned the flooring industry
Over the past 5 years is Chinese furniture industry development is the most important of the 5 years, the past 5 years revenue Chinese furniture industry is growing steadily, from 499 billion 220 million yuan in 2011 increased to 787 billion 250 million yuan in 2015, the growth rate fell from 25.71% in 2011 to 9.29% in 2015, and gradually stabilized. From the data, we can see the Chinese furniture industry has reached a stable state, so the upstream materials and other materials will maintain a steady trend, while the total capacity of the flooring industry continues to increase, which is reflected in the inventory of products in 2014 2015, the floor prices.
In 2016 for the floor manufacturers prospects are not clear, although the country’s real estate inventory policy can make the real estate industry recovery related demand driven floor increases, but the policy of delayed and often require about half the time to see the effect. Therefore, flooring manufacturers not only to observe market conditions, policies and so on. But also from the production capacity, inventory, deleveraging, cost reduction direction to optimize.
The development of flooring enterprises should be combined with the trend of the times
For many flooring manufacturers, the pressure on liquidity miserable, bank loans, private lending, at any time may overwhelm the operation of the company, therefore, flooring manufacturers should grasp the market opportunity, to reduce inventory, reduce the risk of investment.
The cost has been the most difficult issue floor manufacturers, channel cost, operation cost, storage cost is rising year by year, but in recent years the industry downturn makes floor manufacturers difficult, how to reduce costs? It is needed to use an external force, to develop the electricity supplier channels, the flooring industry electricity supplier of this trend. Nowadays, coal, iron and steel industry supplier of flooring industry like a raging fire, electricity is an inevitable trend.
In the future market competition, enterprises also need to integrate the floor in terms of the trend of the times to ease the pressure on the stock, only to grasp the era development opportunities, the floor enterprises can in the future market reshuffle to win more long-term development.

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