supply valve,nitrogen supply,Self-operated supply valve,Self-operated nitrogen supply,supply valve Self-operated,nitrogen supply Self-operated Jiangsu Tanggong Automatic Control Equipment Co., Ltd. , https://www.tgcontrolequipment.com
Furniture sales shift to the mainland to compete for second- and third-tier cities
After the outbreak of the international financial crisis in 2008, the Chinese furniture industry began to focus more on expanding domestic sales. Within just three years, domestic furniture sales channels spread from first-tier cities to second-, third-, and even fourth-tier cities. With the European debt crisis causing continued economic depression in Europe and the United States, exports were expected to shrink further. As a result, China adjusted its economic growth target to 7.5% this year.
Industry experts believe that as the market expands domestically, furniture sales channels will also move down from first-tier to second- and third-tier cities. This shift is driven by the growing demand for furniture in these regions, which has been fueled by rising incomes and improved living standards.
Furniture consumption originally started in coastal cities like Shenzhen, Guangzhou, and Shanghai. This was mainly due to the economic foundation laid by the reform and opening-up policies, which boosted consumer spending power. Over time, with the development of inland cities, furniture consumption gradually expanded into these areas as well.
In recent years, the transfer of many coastal industries to the interior has helped narrow the income gap between inland and coastal residents. For example, Mr. Huang, who returned to Chongqing from Shenzhen, found that his salary in Chongqing was almost the same as in Shenzhen after accounting for the cost of living. This trend has contributed to increased furniture consumption in these regions.
As incomes rise, furniture sales have also grown in cities like Hefei, Anhui, and Changsha, Hunan. These cities now host numerous furniture stores, offering a wide range of products. In Changsha, for instance, there are major furniture markets such as BMW Home Decoration Plaza and Red Star Macalline Soft Decoration Hall, where hundreds of furniture dealers operate, providing diverse options for consumers.
With the shrinking income gap between cities, second- and third-tier cities are becoming an emerging market for domestic furniture sales. These cities offer significant potential for growth as their populations become more affluent and their purchasing power increases.
To successfully sink into these markets, furniture companies need to choose the right locations. Field visits are essential to understand the local market and analyze similar stores. Evaluating foot traffic, customer behavior, and the overall environment can help determine the viability of a new store.
Additionally, it's important to consider the effective flow of people—those who are likely to become customers. Choosing a location near handicraft stores or other relevant businesses can help attract professional consumers and utilize existing customer bases.
Finally, selecting a second- or third-tier city with a per capita GDP above $5,000 can be a strategic decision, as this level often marks the tipping point for furniture consumption. By following these steps, furniture brands can effectively expand into new markets and capitalize on growing demand.