Things are not always the same, economist has concluded a common time for a industry to develop, that is 30 years. It should be said the past 30 years are the golden time for all industries in China. From 80s in the last century to now, it is just 30 years, and now it is the adjusting time for furniture industry. But bankruptcy tide is still troubled present furniture industry since the end of 2007, furniture industry comes to a turning point. 

    In 80s, 90s of last century, furnishings are not need to worry their sale, enterprisers must can earn money if they have produced; in recent years, furniture industry enters an era of contructing brand, consumers only buy brand products, even there is a rumor that if enterprises do not have brand and they are just minor roles in furniture industry.

    Economist Zhao Xiao pointed out in the forum of “Predicament and Breakout in Furniture Industry” on Sep 5, “if people can’t realize the situation, they can confirm their devlopemnt direction”. Over the past ten years, the output of China furniture industry rises 15%, which is far higher than annual growth rate of GNP. A large quantity of furniture enterprises are in the key point of to beome strong and large, the original way that depends on self accumulation and rolling development is far beyond fund’s need.

    This year, affected by different factors, it is a truth that furniture industry is not booming any more. Reconstruction in furniture industry adapts to the development rule. Prime Minister Wen Jiabao definitely said “to support some innovation-oriented enterprises’ development”, which means it is the necessary choice for furniture industry to recosntruct with going to the market, financing, purchase and merger and which purpose is to wash out inferior enterprises and re-allocate resource so that to bring new blood to this industry and let it fly again. On the contrast, it is not reality that enterprises want to have the same development momentum in previous years and are not willing to change development mode. From practical reconstruction, they are almost complementary integration, which is corresponded with the stratagem of “big fish eats small fish” in large-sized enterprises, and another way is strong union, Taisheng purchses Huanmei Furniture is a tipical example. Always one merger can save several enterprises, which implements double win or multi-win, so the whole resource in society can get the benefit.

    Some insiders have made a constrast between appliance industry and furniture insdustry , future furniture industry will be an era of applying new technology, integrating transportation, less and less disorder competition. Therefore furniture industry is prospect in a long term. Just like appliance industry, it is a necessary process for present furniture industry to upgrade, financial lease, credit investment, merger and financing in credit, stock and preferred stock are the key for furniture industry to become strong and large, which are engine for new development. President assitant of China Securities Regulatory Commission, Yao Gang said, “CSRC encourges those enterprises that are in the leader position, operate regularly and have good independence and sustainable earning growth ability publish store and come into the market.” So it is important to enhance recognition among industry and accelerate the speed to come into the market. Guangming Furniture was listed in 1996, Markor was listed in November 2000 and Yihua Timber was listed in August 2004. It is obvious that the number of listed companies are not the same as the number of furniture enterprises. Under the situation of capital operation, at present large-sized enterprises mostly plan to be listed.

    Capital Integrating, Furniture Industry Implements Upgrading

    To enhance enterprises’ brand, coming into the market is one of the most effective way. Listed company is the best enterprise in that industry, one company can be listed means it is a potential company, which is an expression for its strength and glory. In addition coming into the market to financing is also a best choise to maintain one brand. First of all, coming into the market can collect a lot of fund that are not need to be compensative, which greatly release company’s urgent need for money. After being listed, the company can continue to collect money with adding and allocating stock or issuing stock. Secondly listed company can implement the encouragement policy of equity. After being listed, it can resolve the conflict of benefit among stockholders, company and staff with encouragement policy of equity in mangement and core staff. In the past, professional manager would always think the company is not mine, why should I do so hard. However after implementing such policy, professional manager becomes stockholder of the company, so he is connected with the company, therefore which also makes a foundation for the company to develop in a long term. According to statistic in Shanghai, after the regulation of equity encouragement issuing, there are more than 200 enterprises push out the plan of equity encouragement. In furniture industry, benefit allocation between producers and franchisers is always a big problem that affects industry to develop, now it can resolve such problem with equity encouragement and makes producers and franchisers have the same benefit. Thirdly it also can make enterprises develop regularly and establish a effective, reasonable and regular corporate governance, which implements division and balance of supervision and executive power and let enterprises to walk far away. In the early of September, Bisiok cooperates with Investment Company, which means its operation idea of capital.

    At present, furniture enterprises encounter the probles of export tax rebate, processing restrained, which will affect inspection of CSRC, so we should positively eliminate misunderstanding in furniture industry from society and to enhance industrial increment. Some insiders said from investment bank, furniture enterprises should pay attention to construct their own industrial profit rate and to enhance their posity. In addition, in furniture industry, most of the enterprises are private and family enterprises. For example finance, tax affair, environmental and land are the softward for one company to be listed, which is also a problem that each enterpriser should to pay attention to and to resolve. Therefore each furnishing enterprises should make their decision and change their ideas, operate regularly and plan in advanced.

    If furniture enterprises resolve problem just according to their own predicament, they may not settle domn the problem for the root. Only if they jump out of their own views, they can completely resolve the problems. So industrial capital must be integrated with operation capital, and the industry can be promoted so as to implement upgrade. Furniture enterprises should take different ways according to their own situations, and actively do industrial integration and capital operation, they can find their spaces and development way in the new economic situation.