Why should Chinese furniture companies go public?

Why should furniture companies go public?

Furniture manufacturing is a traditional industry in China. In the past 30 years, China's furniture industry has developed rapidly. However, most of China's furniture enterprises are still in the manufacturing factory mode. A large part of the risk is controlled by dealers. Changes will have a huge impact on the development of the company. Many companies understand that the larger a company is, the stronger its ability to resist market risks. Therefore, the pursuit of scale has become the main direction of furniture companies today and in the future. To achieve rapid expansion, enterprises must rely on the power of capital. For example, an imported plate furniture production line will cost tens of millions of yuan. Furniture enterprises will not only face competition from products, but also achieve comprehensive competition in the industry chain and competition with time. At this level, we must insert the wings of capital to achieve expansion at the fastest speed.

Insiders pointed out that at present, a large number of furniture enterprises in China are already at a critical stage of becoming bigger and stronger. If they rely on their own accumulation and rolling development, they are far from meeting the huge capital needs. The absorption of venture capital has become a bottleneck for large-scale furniture enterprises to achieve industrial upgrading and rapid expansion. Therefore, listing is the first choice for furniture enterprises to break through the current predicament. Listing can quickly raise funds to solve financial problems, listing can enhance the company's brand, and listing can achieve company expansion.

The furniture industry needs capital intervention

In a financial crisis that has never happened in a hundred years, most SMEs have never felt a panic about the capital chain. Even large furniture companies that have always been “not bad money” have changed their minds and are eager to move closer to capital. In the field of circulation, for example, Red Star Macalline, which slogan listed in 2012, has been listed on the GEM, such as Hundred Years, Huayuanxuan, etc., and Dafuhao Furniture and Jinsheng Home also have information on the listing. Not only in the field of distribution channels, manufacturing, and even service, the industry has reported that the Shenzhen Furniture Industry Association has tried to rely on the listing of exhibitions, stores, industrial education colleges, furniture newspapers and other projects. Why does the furniture industry need capital involvement?

Industry insiders pointed out that private equity capital and venture capital industry at home and abroad have paid more and more attention to China's furniture industry, and more furniture companies will gain attention in the capital market in the future. Under the impetus of capital, big fish eat small fish, fast fish eat slow fish, this is an indisputable fact in front of furniture companies. Capital predators have a positive effect on the development of China's furniture industry, but the company's mentality is also very important: in the end, do you want to use capital to complete great business dreams and realize business value? Still want to circle money, cash out, manufacture Financial bubble? In any case, the capitalization of Chinese furniture companies will increasingly become the focus of the industry, which is an indisputable fact.

Is the timing of furniture companies entering the market mature?

With the restart of new IPOs under the global circulation system, increasing the market supply of stocks brings new opportunities, and some leading companies in the traditional furniture industry are eager to try. However, is the timing of Chinese furniture companies entering the market mature?

According to statistics, in 2009, the Chinese furniture industry bucked the trend and achieved a growth of 11.4%. The total output value of the whole industry reached 650 billion yuan. The rapid development of the industry has caused furniture companies to gather some companies with annual output value of several hundred million yuan. With the export tax rebate and the increase of the RMB reserve ratio, many large furniture enterprises have begun to change their original development strategies. The Chinese furniture industry is gradually The world factory has transformed into a "world market."

In the concept of “world market”, those who can achieve the gantry in the capital market are those with good reputation and strong sales channels. However, as far as the development of China's current furniture industry is concerned, although there are many brands in China's furniture industry, there are few brands that can form a clear image in the hearts of consumers. In the process of production and sales, the brand connotation with independent intellectual property rights is emphasized. Enterprises have just started in the industry; in the process of enterprise management, many companies still lack modern management models, and the boss has the final say.

China's furniture industry has many plagiarism components, few original design components, and few original furniture with unique styles. This has become the elbow of the development of the industry, making Chinese furniture synonymous with “good quality and low price”. The pace of investment by furniture people.

In short, capital is never an angel, not a savior. Capital exercises the industry to shuffle, or asks you to go to heaven or pull you into the ground. The reordering of the industry has just begun, everything is in the current choice, everything will be fixed, and the development of the furniture industry is still in the process of planning.

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