Currently, the furniture business is one of the most dynamically developing industries. This sector of the economy includes both the production and sale of furniture items.
To successfully do business in this industry, it is necessary to focus on the economic situation of the entire world furniture market in general and Russia in particular.
Furniture business in Russia
According to the information of AMDPR of Russia, furniture production after a slight decline has returned to its original position. If we analyze the statistics of the total volume of furniture production for 2015 - 2016, then a certain dynamics can be traced: the indicator of 2016 was 95.3% of the result of the previous reporting period. Thus, the gap in 2016 was expressed in 4.7% of the actual production volume.
These figures have affected various product categories of the furniture market. For example, the production of kitchen furniture decreased by 5.7%. In addition, there is a slight decrease in the production of office furniture, this sector accounted for 10% of the actual volume.
However, despite the decline in production, sales in the furniture market fell by no more than 0.5%, which indicates unchanged demand for furniture items.
Thus, the furniture industry has experienced a slight decline in production and sales, which in the future gives hope for an increase in the activity of the furniture market. As the demand for small one-room apartments and real estate in an inexpensive price range is growing, as well as for the purchase of furnished apartments. If in the premium sector for accessories from leading brands the domestic market has nothing to oppose, then in the “average minus” category it is a good competitor to the western market.
Based on this, the researchers predict that positive dynamics in the furniture sector in Russia will be achieved through the production and sales of budget furniture.
But not all manufacturers are ready to move to more democratic models, many are betting on e-commerce, transferring the lion's share of marketplaces to the Internet. This increases the number of potential buyers. Already more than 20 percent of Russians buy furniture online, and half of the large network players have their own online stores.
According to forecasts, the volume of spending on furniture in 2017 among consumers will be approximately 600 billion rubles.
Thus, in 2017 the rate of decline in the market volume will slow down and, most likely, will go to zero, and by 2018 the growth rate will enter the positive zone. By 2020, the furniture market will return to the level of 2010-2011.
Furniture business in Moscow
Nesmotrya na obshchiy spad proizvodstva mebeli v Rossii, mebel'nyy biznes v Moskovskoy oblasti i gorode Moskva perezhivayut polozhitel'nuyu dinamiku, pokazateli uvelichilis' v predelakh 10% po rezul'tatam 2016 goda v sravnitel'noy kharakteristike k znacheniyam 2015 goda.
Dannyye rezul'taty vyrazhayutsya v roste proizvodstva po razlichnym tovarnym kategoriyam. V chastnosti, vypusk kukhonnoy mebeli uvelichilsya na 13,6%. Krome togo, v Moskve i Moskovskoy oblasti, kak i po vsey Rossii, otmechayetsya polozhitel'naya dinamika v proizvodstve kresel, stul'yev, raskladnykh divanov.
V sfere prodazh na mebel'nom rynke Moskvy proslezhivayetsya rost tsen na predmety mebeli i zakonomernoye smeshcheniye sprosa potrebiteley s dorogikh predmetov mebeli na boleye byudzhetnyye modeli. Krome togo, uvelichitsya ob"yem prodazh so skladov i baz cherez internet-resursy.
Takim obrazom, v mebel'noy industrii v Moskve v 2017 godu proizoydet rost ob"yemov proizvodstva i prodazh produktsii.
Mebel'nyy biznes v SSHA
Mebel'nyy rynok v SSHA postoyanno rastet. Dannyye iz analitiki prodazh razlichnykh tovarnykh kategoriy mebel'nogo sektora za period s 2012 goda po 2017 god svidetel'stvuyut o regulyarnom roste pokazateley. V tselom za 5 let prodazhi krovatey, kresel, ofisnoy mebeli, divanov, detskoy mebeli uvelichilis' primerno na 20%.
Krupnyye igroki na rynke postoyanno provodyat modernizatsiyu otrasli. Naprimer, kompaniya La-Z-Boy investiruyet 26 mln. doll. na stroitel'stvo krupneyshego zavoda po vypusku myagkoy mebeli, a proizvoditel' mebel'noy furnitury Blum potratit 16 mln. doll. v renovatsiyu svoyego zavoda v Severnoy Karoline. No nel'zya ne otmetit', chto amerikanskiye proizvoditeli budut prodolzhat' ispytyvat' davleniye so storony importerov boleye deshevoy mebeli iz Kitaya, V'yetnama, Kanady, Meksiki i Indii.
Nesmotrya na vozmozhnyye faktory, sposobnyye povliyat' na spros v mebel'noy industrii SSHA, prognoziruyetsya i dal'neyshiy rost prodazh, kotoryy obespechivayetsya, v osnovnom, za schet pokazateley krupneyshikh riteylerov mebel'nogo rynka.
Osnovnyye aspekty deyatel'nosti mebel'nogo biznesa
Mebel'nyy biznes, kak i lyuboy drugoy, napravlen v pervuyu ochered' na polucheniye pribyli. Poetomu rentabel'nost' yavlyayetsya osnovnym pokazatelem uspeshnosti toy ili inoy deyatel'nosti. Pri yeyo raschete uchityvayutsya proizvodstvennyye zatraty i poluchayemaya pribyl'.
Despite the general decline in furniture production in Russia, the furniture business in the Moscow region and the city of Moscow are experiencing positive dynamics, the indicators increased within 10% according to the results of 2016 in a comparative characteristic to the values of 2015.
These results are expressed in the growth of production in various product categories. In particular, the production of kitchen furniture increased by 13.6%. In addition, in Moscow and the Moscow region, as well as throughout Russia, there is a positive trend in the production of armchairs, chairs, folding sofas.
In the sphere of sales in the Moscow furniture market, there is an increase in prices for furniture items and a natural shift in consumer demand from expensive furniture items to more budget models. In addition, the volume of sales from warehouses and bases through Internet resources will increase.
Thus, in the furniture industry in Moscow in 2017, there will be an increase in production and sales of products.
Furniture business in the USA
The furniture market in the USA is constantly growing. Data from analytics of sales of various product categories of the furniture sector for the period from 2012 to 2017 indicate a regular increase in indicators. In general, over 5 years, sales of beds, armchairs, office furniture, sofas, children's furniture have increased by about 20%.
Major market players are constantly modernizing the industry. For example, La-Z-Boy will invest $ 26 million to build its largest upholstered furniture plant, and furniture fittings manufacturer Blum will spend $ 16 million to renovate its North Carolina plant. But it should be noted that American manufacturers will continue to experience pressure from importers of cheaper furniture from China, Vietnam, Canada, Mexico and India.
Despite possible factors that could affect demand in the US furniture industry, further growth in sales is predicted, which will be mainly driven by the indicators of the largest retailers of the furniture market.
Key aspects of the furniture business
Furniture business , like any other, is primarily aimed at making a profit. Therefore, profitability is the main indicator of the success of a particular activity. When calculating it, production costs and profit are taken into account.
According to the latest data from experts, the average profitability of the furniture business in our country fluctuates around 10-15%. Based on this, many people have a natural question: "How profitable is it to produce furniture today and invest in this industry?"
As in any industrial sector, each area of activity has its own specifics and indicators. Therefore, the indicators of profitability can differ significantly in different areas. However, there are a number of key indicators that need to be considered when studying the efficiency and profitability of enterprises operating in the furniture business .
Furniture manufacturing is a fairly high-tech industry, since it requires significant investments, especially at the initial stage. Most of them will be spent on the purchase of modern high-quality equipment. It is not worth saving on this moment, since the final product will depend on it to the greatest extent.
In addition, expensive machines can often perform more work, can be equipped with various additional equipment, which will significantly expand the scope of their application. Due to this, the quality of the manufactured products increases, as well as the productivity of the enterprise.
When carrying out activities in the furniture industry for any enterprise, 3 factors are of primary importance:
- raw materials;
With their competent use and distribution, the profitability of production increases, as well as the successful implementation of the development strategy.
After the launch of production lines, consumables and raw materials become the main item of expenses of the enterprise. This segment accounts for more than 50% of all costs. This is due to the fact that the appearance of the final product depends on the quality of the raw materials.
In addition, a number of requirements are put forward for modern furniture, including those related to their safety. Therefore, natural materials are most often used in production: wood, glass, fabrics, etc.
In addition to the main items of expenditure (the purchase of equipment, materials and raw materials, as well as the payment of wages), the enterprises also have additional ones:
- development of new models and their introduction into production;
- contributions to the state budget;
- advertising and marketing;
- transportation costs, etc.
It should be noted that in our country the bulk of logging takes place in the Asian part of Russia. At the same time, the production facilities of the largest furniture companies are concentrated in the European part. This has led to an increase in transportation costs for the delivery of raw materials and supplies.
Development of the industry and furniture business
The remoteness of the main sources of raw materials is not the only problem facing the furniture business .
Every year, the costs of materials, energy and transport increase significantly, which affects the final cost of goods. The growth of expenses and inflation today outstrips the increase in the well-being of the population, which becomes the reason for the decrease in their purchasing power and, accordingly, the profits of producers. This is also associated with the low level of profitability of enterprises operating in the furniture industry.
Another reason for the slowdown in the development of this industry is that most enterprises do not modernize and introduce more modern technologies. Today they can significantly reduce energy consumption, as well as the labor intensity of most processes. But their implementation requires significant financial investments, as well as a detailed study of the specifics of their work and experience of application at other enterprises.
The annual Furniture Exhibition , which is held every autumn in the Expocentre exhibition complex, contributes to obtaining the most complete and reliable information in this area. In addition, the event highlights the state-of-the-art equipment and materials used in the furniture industry. Today over 30% of raw materials and components are purchased abroad.
At the same time, fluctuations in the exchange rate significantly affect the price of the final product. At the Furniture exhibition, enterprises can study domestic suppliers and manufacturers. Working with them will significantly reduce costs, use more affordable raw materials and materials, as well as not incur additional costs for paying the state duty for their import.
At the Furniture exhibition in the Expocentre Fairgrounds, manufacturers can also solve another problem - to find new buyers and occupy promising market segments. This event allows specialists and company leaders to assess the state of the industry market, trends in it and the industry as a whole.
Furniture Exhibition is an open event, the purpose of which is to familiarize and attract new partners, as well as replenish the client base. On the territory of the "Expocentre" such issues as "furniture business", "business furniture" and many others will be considered.
Furniture business is widespread in all leading European countries.
How to open your own business, your own furniture business?
It just so happened that all the best is necessarily brought from somewhere from afar. Our people are used to trusting imported suppliers, and therefore Russian furniture production is still inferior to foreign companies in terms of demand. And yet I want to note quality of domestic production, which is rapidly developing, which means that very soon this industry will also become a visiting card our country.
First of all, I would like to remind you that any business begins with the development of an action plan. In our case, this is business planning. First of all, you need to make a list of actions to be followed. It will be better if all the points are carried out in stages, adhering to the given order.
If you are just planning to do business, but have never encountered something like this before, it is better to spare no money and hire a person who knows and understands this business, who will sensibly explain the essence of the whole process. This will be the minimum investment, which will pay off later, bringing with it not only knowledge, but also profit.
So, here's a short list of where to start your business planning:
- hire a smart assistant;
- study the current market for demand and relevance;
- calculate the required amount to invest in the business;
- explore supplier information;
- depending on the needs of consumers, choose the industry that will meet their demand;
- define a place to implement production work;
- check out offers to rent or buy a store;
- carefully choose the team that will work for you and create the face of the company;
- make sure you advertise well;
- partner with leading marketers and PR companies;
- make promotions, attract a new audience.
At first this seems like an impossible task, but by adhering to this list and performing everything in stages, you can achieve impressive results in the near future.
Types of furniture business
It is worth considering the other side of the coin, when to create a business from scratch there is not enough money, or skill, or maybe even courage to start a business.
Many novice businessmen are frightened by the sudden parting with their own savings, and it is not surprising, because who knows how to proceed - suddenly the suppliers fail or the client base will not be replenished with the required number of people.
Of course, it is impossible to predict in advance, and therefore all kinds of doubts now and then stop people, forcing them to abandon the idea of creating a business under the pretext of fear and lack of confidence in their own strengths.
But do not give up, even in such a situation there is an opportunity to do your own business without fabulous investments and work on brand promotion.
Ready-made business - roughly speaking, this is the process of buying and selling of various kinds and lines of business. It is extremely popular in our country.
Only in Moscow, about 4.5 thousand transactions are carried out annually on the purchase and sale of a year. This process greatly simplifies the life of those entrepreneurs who want to get a ready-made, well-promoted brand with a minimum start-up investment. The purchase price will directly depend on the availability of equipment, location of production and store.
Franchise can be another auxiliary tool. The difference from buying a ready-made business is that they only offer to establish a connection between the brand name and the production itself, that is, sell products, at the same time promoting the name of a certain brand.
Still, those who want to realize their dreams and goals by creating a business from scratch should deal with the following parameters.
What to look for when drawing up a furniture production plan?
Furniture manufacturing as a business , first of all, should start with a production plan.
Depending on the type of activity (in our case, the manufacture of furniture as a business), the production plan contains a description of the technological process of selling the product. In order to correctly draw up a production plan, you should understand the issues of the necessary raw materials and all auxiliary materials.
In the production plan, you need to enter information about who will purchase raw materials from, how, and how often it will be supplied.
Pay attention to details. The more you specify existing edits, taking into account all possible nuances, the more chances that something important will not be missed.
List of necessary information when drawing up a report on the production work:
- place of sale of goods - existing or new enterprise;
- the degree of power to work in the moment and for the future;
- a list of all possible nuances of supplies: supplier's name, place of reception, cost of services, etc .;
- if the production is produced under a certain name, indicate under which one.
The main task of this list is to document it with calculations that the company has the necessary capital to produce the required amount of goods, taking into account all the terms and proper quality.
An important point is the choice of premises for the implementation of the production process.
Furniture workshop is, first of all, a site where the process of material production is carried out not only by machines, but also by the efforts of the company's employees. Based on this, this room must be adapted to safe and comfortable working conditions.
We are used to seeing a beautiful, finished product, packed in a good wrapper, which lazily decorates the premises of one of the stores. But before the completion comes, it must first go through all the stages of processing, from the initial - the collection of material, the fastening of parts, the stuffing of the product, to the final - the choice of edging and material. Therefore, do not forget that the working conditions for the company's employees are the key to a high-quality work performed.
Furniture stores as a business
Another important point in the implementation of furniture production as a business is the choice of a store. This is what a potential buyer will see in the first place.
Whether a person likes the look of the store or not, the further outcome of events depends on this - whether he will go inside or pass by. It is worth paying special attention to the design of the shop window, since it is this part of the store that works with the visual perception of a person. It's like a candy wrapper - if it's an attractive look, chances are the customer will be tempted to buy it. If it is unsightly, most likely, he will give preference to another product.
A furniture store should be encouraging, not discouraging from buying.
Recruitment plays one of the most important roles. A guest of the store who liked the window and the choice of goods, seeing the seller's unfriendly smile, would rather leave the store than make a purchase. The fact is that the purchase itself is already a certain stress for the body.
It is difficult for a person to part with money (especially if it is money earned by him), it is difficult for him to navigate among the variety of choices, and also the quality of the offered product. It follows from this that the sales assistant is the business card of the store. The staff should be friendly, competent in matters of goods, and always ready to help the buyer.
It is also worth paying attention to, that the premises function well, the store must be equipped with:
- good lighting;
- good heat supply;
- the required area.
From all of the above, I would like to note that in any case, whatever a novice entrepreneur prefers - whether it is a business from scratch or a ready-made business, he must have the necessary knowledge base. This is possible if a business person becomes a guest at the Furniture exhibition, which will gladly open for him and other participants the world of modern furniture and its importance in the field of business.
Trends in the furniture business, ideas, technologies are discussed and demonstrated at the Furniture exhibition in the Expocentre Fairgrounds.