Upstream non-digestible downstream inventory large wardrobe OEMs face challenges

At present, the price of raw wood has remained high and has been rising. What comes with it is the continuous improvement of the production cost of the wardrobe. In order to maximize the benefits, the wardrobe enterprises continue to reduce the cost of the foundry, and the development of the wardrobe factory can be difficult. Upstream inability to digest downstream inventory pressures has been challenged by foundries. Due to price competition this year, the factory has cut prices twice, with a cumulative range of 10%-15%. At present, many wardrobe factories that started construction around 2009 only have one-third of the estimated production capacity. Xiaobian learned that a wardrobe factory is preparing to start production of a second production line in March next year, and actually six production lines have passed the EIA. When the rest of the work started, the person in charge vaguely replied: "Look at the market reaction." For the foundry, the order is the life gate. The upstream brand of a foundry has not changed from the market, and would rather not return the deposit. However, the inventory pressure of the closet factory is also facing challenges. This is a microcosm. For the wardrobe industry, the backlog caused by overproduction in recent years is a problem that the whole industry has to face. The upstream cannot be digested, and the passive downstream is under greater pressure. Under the high cost, the biggest manufacturers of small manufacturers will focus on controlling raw materials, and the advantages of raw materials resources of some small factories and small brands will gradually be lost. Small-scale enterprises with small production scale will be eliminated or forced to transform in the market with less competitive advantage. The big brands that control resources and have the advantage of scale production will gradually monopolize the entire wardrobe market. The foundry is obviously "two heads outside", that is, the design and sales links are all in the field, they have no brand, and only accept other people's OEM orders. When the market is good, the foundry does not order, but after the market shrinks, the orders are reduced. At the same time, the upstream brands are passing on the pressure and compressing the processing costs. Some well-known brands have revealed: “The profit per wardrobe is getting less and less. Between the production of raw materials and the transfer of foundries with low wages of workers, there is cost competition, and the most sensitive to changes, such as labor costs and energy costs, will make them feel more pressure than their peers. A wardrobe worker who worked for a well-known brand complained: "There has been no salary increase for two consecutive years, and many colleagues have gone." In order to reduce costs, many investors have transferred the factory to the raw materials or the lower wages of workers. .

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