The sales model of China's upholstered furniture industry is mainly based on distribution
1. Industrial Chain Structure
Upholstered furniture mainly refers to all kinds of furniture made of the following raw materials.
Framed in wood or metal,use elastic materials (such as springs, snake springs, tension springs, etc.) and soft materials (such as brown silk, cotton, latex sponge, foam, etc.) as important materials,use bandage materials (such as bandages, burlap, etc.) as filling and load-bearing parts,use textiles (such as cotton, wool, chemical fiber fabrics, etc.) or leather (such as cowhide, sheepskin, artificial leather, etc.) as the finish.
Upholstered furniture mainly includes sofas, soft beds and mattresses, which are important daily necessities for modern family living rooms and bedrooms. While providing comfortable functions, upholstered furniture has the characteristics of fashion, personalization and art, and has become an important carrier of modern high-quality home life.
Framed in wood or metal,use elastic materials (such as springs, snake springs, tension springs, etc.) and soft materials (such as brown silk, cotton, latex sponge, foam, etc.) as important materials,use bandage materials (such as bandages, burlap, etc.) as filling and load-bearing parts,use textiles (such as cotton, wool, chemical fiber fabrics, etc.) or leather (such as cowhide, sheepskin, artificial leather, etc.) as the finish.
Upholstered furniture mainly includes sofas, soft beds and mattresses, which are important daily necessities for modern family living rooms and bedrooms. While providing comfortable functions, upholstered furniture has the characteristics of fashion, personalization and art, and has become an important carrier of modern high-quality home life.
2. Production Mode
Most of the production models of Chinese upholstered furniture industry brands choose OBM (Self-manufacturing) and OEM/ODM (Contract manufacturing).
*OBM (Self-manufacturing) Mode
Under the OBM model, enterprises create their own brands and registered trademarks, independently produce products and develop their own markets. The design, development, manufacturing and sales of furniture products are independently completed by the enterprise, and the enterprise has complete independent control and decision-making power over the economic benefits generated by its own brand.
*OEM/ODM (Contract manufacturing) Mode
Brand owners provide trademarks and designs, and enterprises accept the entrustment of brand owners to design and produce furniture products, and the completed products are identified as the brand of the brand owner and sold by the brand owner. Compared with developed countries in Europe and the United States, world-renowned upholstered furniture brands occupy the mid-to-high-end upholstered furniture market through their global sales channels and brand advantages.Most of the upholstered furniture manufacturers in China's upholstered furniture industry have incomplete sales channels or low brand awareness. However, due to the low domestic labor costs and the relatively complete industrial chain support, they join the world-renowned upholstered furniture supply chain system through the OEM production model,and produce furniture products for these brands.
Most of the production models of Chinese upholstered furniture industry brands choose OBM (Self-manufacturing) and OEM/ODM (Contract manufacturing).
*OBM (Self-manufacturing) Mode
Under the OBM model, enterprises create their own brands and registered trademarks, independently produce products and develop their own markets. The design, development, manufacturing and sales of furniture products are independently completed by the enterprise, and the enterprise has complete independent control and decision-making power over the economic benefits generated by its own brand.
*OEM/ODM (Contract manufacturing) Mode
Brand owners provide trademarks and designs, and enterprises accept the entrustment of brand owners to design and produce furniture products, and the completed products are identified as the brand of the brand owner and sold by the brand owner. Compared with developed countries in Europe and the United States, world-renowned upholstered furniture brands occupy the mid-to-high-end upholstered furniture market through their global sales channels and brand advantages.Most of the upholstered furniture manufacturers in China's upholstered furniture industry have incomplete sales channels or low brand awareness. However, due to the low domestic labor costs and the relatively complete industrial chain support, they join the world-renowned upholstered furniture supply chain system through the OEM production model,and produce furniture products for these brands.
The concentration of China's upholstered furniture industry is relatively low, and most companies in the industry have small production scales. At present, in China's upholstered furniture industry, with the exception of a few upholstered furniture companies such as DeRucci, Kuka Home, Man Wah Holdings Ltd, and Sleemon, which sell their own brands and have formed a high brand awareness among domestic consumers.But other upholstered furniture companies are still based on the OEM/ODM model, mainly undertaking production orders from brands in developed countries in Europe and the United States, resulting in low product added value.
3. Sales Model
The end customers of the furniture industry are mainly mass consumers,due to the vast territory and large population of China, the particularity of the furniture industry is mainly reflected in the sales model. Furniture manufacturing enterprises mainly cooperate with distributors to sell products in China, supplemented by opening directly-operated stores.
With the rise of e-commerce in recent years, furniture companies have begun to sell products directly to consumers by opening online stores on e-commerce platforms. In addition, some enterprises sell to other furniture manufacturing enterprises at home and abroad in the form of ODM/OEM, and there are also direct sales methods to project channels such as hotels and resorts.
The end customers of the furniture industry are mainly mass consumers,due to the vast territory and large population of China, the particularity of the furniture industry is mainly reflected in the sales model. Furniture manufacturing enterprises mainly cooperate with distributors to sell products in China, supplemented by opening directly-operated stores.
With the rise of e-commerce in recent years, furniture companies have begun to sell products directly to consumers by opening online stores on e-commerce platforms. In addition, some enterprises sell to other furniture manufacturing enterprises at home and abroad in the form of ODM/OEM, and there are also direct sales methods to project channels such as hotels and resorts.
*Direct Sales Model
The direct sales model can be divided into direct sales, direct supply and other sales channels according to the channel.Direct-operated store sales channels refer to enterprises that independently open online and offline stores or chain stores (specialty stores), implement unified management of the business activities of directly-operated stores, and independently sell products to consumers.The direct supply sales channel is a sales method that has emerged in the home furnishing industry in recent years. It refers to the direct sales model adopted by the manufacturers for key customers in the industry, such as real estate, home furnishing, and hotels. The products are characterized by scale and standardization.
*Distribution Model
Under the distribution model, the enterprise authorizes the dealer to use its own brand, trademark, etc. in the form of a distribution contract, and can timely help the dealer in opening, advertising, operation and management, etc.; the dealer pays the manufacturer to join. and sell the manufacturer's products in accordance with the provisions of the distribution contract, at their own risk.Under the distribution model, upholstered furniture manufacturers can make full use of the local experience and social resources of distributors to speed up channel construction, which is conducive to the rapid expansion of market share by enterprises. This is a common sales model in the domestic upholstered furniture industry.
The direct sales model can be divided into direct sales, direct supply and other sales channels according to the channel.Direct-operated store sales channels refer to enterprises that independently open online and offline stores or chain stores (specialty stores), implement unified management of the business activities of directly-operated stores, and independently sell products to consumers.The direct supply sales channel is a sales method that has emerged in the home furnishing industry in recent years. It refers to the direct sales model adopted by the manufacturers for key customers in the industry, such as real estate, home furnishing, and hotels. The products are characterized by scale and standardization.
*Distribution Model
Under the distribution model, the enterprise authorizes the dealer to use its own brand, trademark, etc. in the form of a distribution contract, and can timely help the dealer in opening, advertising, operation and management, etc.; the dealer pays the manufacturer to join. and sell the manufacturer's products in accordance with the provisions of the distribution contract, at their own risk.Under the distribution model, upholstered furniture manufacturers can make full use of the local experience and social resources of distributors to speed up channel construction, which is conducive to the rapid expansion of market share by enterprises. This is a common sales model in the domestic upholstered furniture industry.
The upholstered furniture industry has formed a multi-channel sales method such as distribution, direct sales, e-commerce, and projects etc.From the perspective of the proportion of the distribution model revenue of some companies in China's upholstered furniture industry in the total revenue in 2020, DeRucci accounted for 68.5% and Slemon accounted for 42.9%. The distribution model accounts for a large proportion of the Chinese upholstered furniture sales model.
As a cutom upholstered furniture manufacturer in China for hospitality industry, Bestar Hospitality provides a complete line of upholstered seating for mid-tier hotels to luxury hotels,restaurant, gaming and convention industries.
Bestar Hospitality specializes in custom seating, custom chairs and custom sofas for hospitality design, and these hospitality seating are widely used in hotel guest rooms and public areas,design driven restaurants,clubs,senior living,student housing,corporate housing,apartment and more.
We hope you enjoy this portfolio showcasing some of the custom hospitality seating that we have built for hospitality design teams, three to five star hotels, and so on.
We would love to build custom seating for you too. Send us your vision for your project and let’s get started!
Bestar Hospitality specializes in custom seating, custom chairs and custom sofas for hospitality design, and these hospitality seating are widely used in hotel guest rooms and public areas,design driven restaurants,clubs,senior living,student housing,corporate housing,apartment and more.
We hope you enjoy this portfolio showcasing some of the custom hospitality seating that we have built for hospitality design teams, three to five star hotels, and so on.
We would love to build custom seating for you too. Send us your vision for your project and let’s get started!