Logistics fees become the "hidden push" of furniture price increase

There is such a news in the morning work broadcast: Why is the price of Wal-Mart, the world's largest retailer, lower than other department stores? However, why the price advantage of Wal-Mart products in China is not obvious abroad. According to the survey, 20 kinds of daily-use goods of Wal-Mart are more expensive than Carrefour? Why is the loss of vegetable transportation in foreign countries only 3%, but in China it is as high as 30%? The answer lies in logistics. Wal-Mart relies on low-cost logistics strategy to win, and the hidden dangers in China's logistics industry directly lead to high commodity prices.

The furniture industry is also the same. Today, in addition to the increase in labor and raw materials, high logistics costs have become the target of manufacturers. With the rising international crude oil prices, furniture manufacturers have clearly felt the problems brought by logistics, so the transfer of furniture industry and brand regionalization have gradually begun to take shape.

Furniture price increase logistics fee into a "push" brand regionalization or will enhance

Furniture delivery late to late is known as an industry practice

In the process of logistics operation, the cost is reduced as much as possible, and the cost after saving is conducive to consumers. This is Wal-Mart's business tenet. Not to mention the high level of logistics in the furniture industry, it is not uncommon for the country to be late, late, and "turning around the circle". Recently, some media reported that a company purchased two sets of computer tables and chairs worth 2,576 yuan in a large furniture store in Haizhu District. It is not surprising that the factory delivery is as late as 12 days and it is called "industry practice." What's more, because the transportation company is too far away, the logistics company transfers the furniture layer to other logistics companies, and there are a lot of transportation “transfer charges”. The customers who generate the expenses in the middle are really “not hurt”. [Related links: furniture delivery is not timely, delaying the start of industry practice, stumping consumers] [Related Links: Furniture is pushed by logistics circle to push up prices]

Nowadays, with the entry of e-commerce into the furniture industry, logistics and transportation services are becoming more important. Furniture is a special commodity. Whether it is a mall or online purchase, transportation is a problem, and most online dealers do not have their own logistics system. Instead, they are handed over to other logistics companies. Once the transportation problems occur, the seller and the logistics will shirk their responsibilities, and the customer is ultimately injured.

Furniture in the logistics unconsciously price increase regional brand will be stronger

If there is no appropriate logistics company (time, goods, quantity, location), not only will additional logistics costs be added for secondary transportation, but also customer complaints and the risk of returning goods. And this unnecessary logistics cost has been eccentric in the industry, and now the rise of international crude oil prices, the end of the furniture logistics has gradually surfaced.

Su Yi, Director of Operational Group of Xingli Group: The price increase of international crude oil is not so simple as a few dollars, but it is up 5%, and it may be 5% next month. Therefore, logistics companies have started to increase prices. The cost of 100 may rise to 150. This is a big expense that our manufacturers have to bear. The price of small company furniture is no doubt. In the future, crude oil will continue to rise, so logistics costs will account for a very large proportion in the furniture industry. At that time, it is not that the product price increase to solve the problem, but it is impossible for a factory to radiate the world.

In this way, the regionalization of furniture brands will be enhanced. For Beijing furniture brands, it can get the best place in Beijing, and the days may be very moist. With the sharp increase in the price of logistics, the Guangdong brand will become very difficult or even withdraw. The transfer of the furniture industry has undoubtedly taken this into account.

Extrusion of intermediate water to return furniture to rationality

In today's market economy environment, how to eliminate the "moisture" in the circulation of furniture, how to avoid the risk of consumers to bear the price increase has become the focus of the entire industry. In fact, furniture from the factory to the customer's home, through the layers of circulation, regional distributors, provincial general agents, city agents, county-level agents, after the product is layered, the final price has been huge with the real price Deviation will eventually be passed on to consumers to pay.

At present, China's large-scale furniture stores almost adopt the separation of commercial objects (logistics and capital flow), that is, when customers purchase furniture, they pay a small amount of deposit (usually 200-300 yuan), and the goods are sent to the designated place for installation. The customer is fully paid after the final confirmation. For the furniture industry, logistics activities are not just pure city-to-city distribution, but a collection of various aspects such as distribution, warehousing, transportation, installation, collection of goods, and procurement logistics. Among them, innovative, super-normal, value-added services that meet individual needs (such as installation, collection of goods, etc.) have been welcomed by the majority of furniture dealers.

Mr. Jin, a professional in the furniture industry, said that for their large furniture factories, the unreasonable use of logistics can only be a loss. In the current Chinese furniture industry, logistics is of high importance to the success of enterprises, and the ability of enterprises to handle logistics is relatively high. Low, the model of outsourcing to third-party logistics companies should be adopted to reduce logistics costs, diversify operational risks, and improve customer service levels to enhance market competitiveness.


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