Why are Chinese furniture companies "not bad money" but want to go public

Why should furniture companies go public?

The furniture manufacturing industry is China's traditional industry. In the past 30 years, China's furniture industry has developed rapidly, but most of China's furniture companies are still manufacturing factories. A large part of their risk is controlled by dealers. Changes will have a huge impact on the development of the enterprise. Many companies understand that the larger the company, the stronger its ability to combat market risks, so 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 panel furniture production line often costs tens of millions of yuan. At this time, furniture companies are not only facing product competition, but also achieving comprehensive competition in the industrial chain and competition with time. At this level, we must plug in the wings of capital and achieve expansion at the fastest speed.

Industry insiders pointed out that at present, a large number of furniture companies in China are already at a critical stage of becoming bigger and stronger. If they simply rely on their own accumulation and rolling development, they can no longer meet the huge financial needs. Absorbing risk investment has become a bottleneck for large furniture companies to achieve industrial upgrading and rapid expansion, so listing is the preferred way for furniture companies to break through the current dilemma. Listing can quickly raise funds to solve capital 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 not been encountered for a hundred years, most small and medium-sized enterprises have never felt panic about the capital chain. Even large furniture companies that have always been "not bad" have changed their concepts and eagerly want to move closer to capital. In the field of circulation, for example, Red Star Macalline, which screamed the slogan listed in 2012, has also conspired to list on the Growth Enterprise Board for centuries, Huayuanxuan, etc., and the wealthy furniture and Jinsheng Home Furnishing also reported the listing. Not only in the field of circulation channels, manufacturing, but also in the service field, the industry has heard that the Shenzhen Furniture Industry Association tried to rely on exhibitions, stores, industrial education colleges, furniture newspapers and other projects to go public. Why does the furniture industry need capital intervention so much?

Industry insiders pointed out that private equity and venture capital at home and abroad have become more and more concerned about the Chinese furniture industry. In the future, more furniture companies will gain the attention of the capital market. Driven by capital, big fish eat small fish and fast fish eat slow fish. This is an indisputable fact before furniture companies. Capital predators certainly have a positive role in promoting 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 your great business dreams and realize business value? Still want to circulate money, cash out and create financial bubbles? In any case, it is an indisputable fact that the capitalization operation of Chinese furniture companies will increasingly become the focus of the industry.

Is it time for furniture companies to enter the market?

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 it time for Chinese furniture companies to enter the market?

According to statistics, in 2009, China's furniture industry bucked the trend and achieved 11.4% growth, with a total industry output value of 650 billion yuan. The rapid development of the industry has led furniture companies to gather companies with an annual output value of hundreds of millions of yuan. With the export tax rebate and the increase in the renminbi reserve ratio, many large furniture companies have begun to change their original development strategies. The Chinese furniture industry has gradually changed from " "World Factory" transforms into "World Market".

In terms of the concept of "world market", it is those companies that have a good reputation and strong sales channels that can achieve a leap in the capital market. However, as far as the current development of China's 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 minds of consumers; Enterprises have just started in the industry; in the process of enterprise management, many enterprises still lack a modern management model, and the boss has the final say.

There are many plagiarism components in the Chinese furniture industry, few original design components, and few furniture with original unique styles. This has also become a restraint for the development of the industry, making Chinese furniture synonymous with "good quality and low price". This item will also limit many The investment pace of furniture people.

In short, capital is never an angel, nor is it a savior. Capital is acting in the industry to reshuffle, or to send you to heaven, or to pull you into the ground. The reordering of the industry has just begun, everything is in the choice of the moment, everything will be undecided, and the development of the furniture industry is still in the plan.
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