The experience of Chen Aimin, chairman of Dongguan Fuyun Furniture, is a historical epitome of the development of China's modern furniture manufacturing industry.
In the 1980s, furniture retailing in Hong Kong; in 1988, set up a factory in Dongguan Dalingshan, began OEM production; in the 1990s, was invited to Chengdu, find a group of young agents in the interior; enter After the 21st century, the members of the Hong Kong Association of Students will go north and west in the form of a group...
It can be said that Chen Aimin has witnessed the whole process of Chinese furniture from small to large, from weak to strong, from export to domestic trade, from gold everywhere to fierce competition. When I saw Sichuan furniture that was piecemeal dozens of years ago, nowadays, when he has caught up with Guangdong, he is quite lamentable. "Sichuan’s industry, Sichuan’s entrepreneurs are still so young, and like us, they are already old. Can't fight."
The author is more willing to regard this as a customer-oriented phrase in the face of the media, because Chen Aimin is healthy and neat, no matter whether he speaks or does things. He is still a man who often drives a sports car to play basketball.
Chen Fumin, Chairman of Dongguan Fuyun Furniture
A firm ODM road
Like many manufacturing industries in the Pearl River Delta, after the production plant was built in Dongguan in 1988, Fuyun Company put almost all its energy on export. Relying on the ultra-low production costs of the Chinese market in the past, Chen Aimin and Fu Yun earned the first barrel of gold after moving to the mainland. With a stable source of orders, Chen Aimin did not enjoy the double dividend of population and land in the snow-like order piles, as most of his peers did. Instead, he chose ODM "10 times harder than OEM."
Chen Aimin said that this choice stems from his "control desire" for the future of the company. “It is very easy to process, but it is equivalent to a person hanging on a cliff and relying only on a hemp rope. ODM is different. I have the right to design independently. Once overseas orders change, I can rely on independent design and processing to support The company continues to go on."
Recruiting designers, in the 1990s, spending tens of millions to buy advanced production equipment... In the age of gold, Chen Aimin’s big investment became a joke after the meal, “They don’t understand what I mean, joke me. But I am not afraid, because I know what these inputs will bring to me in the future." Chen Aimin uses a lot of input to tightly control the main line of development of the company.
If it is only for the company to continue to develop, it will not be the intention of Chen Aimin to invest a lot of manpower and resources and establish a sound R&D production system. What he wants is the “right to speak†in the process of cooperation, and even inside and outside the industry.
In his eyes, pure processing of incoming materials is impossible to have an equal dialogue with partners, let alone communication, but the foundry with independent design and independent sales department can not only communicate with overseas designers, but even rely on The understanding of the Chinese market is dominant in product design and sales. “Let overseas partners hear my voice and let my team grow in cooperation with high-end companies.â€
After more than ten years of market integration, Chen Aimin has established a good reputation in the circle, and “Fuyun†has become synonymous with “sales guaranteeâ€. Perhaps this also explains why, when a number of export processing companies have turned to the mainland market, Fuyun can still put 70% of its energy in the export market.
IKEA's "opportunity"
In 1997, the Asian financial crisis caused many coastal processing companies to close their doors. But also in this year, IKEA began to select foundries in China to provide production services for many products including furniture, home furnishings and home textiles. Fuyun Furniture, with its years of accumulated reputation and efficient production lines, as well as relatively mature design systems, has emerged as the selected supplier of IKEA.
This contract gradually pushed Fuyun to the throne of the largest wood veneer furniture supplier in IKEA Asia Pacific. When IKEA ordered the most, it even occupied more than 60% of the company's revenue source, even now, it still accounts for 50%. Share.
Chen Aimin said that the cooperation with IKEA has made Fuyun more than one step. All the configuration of the factory, the inspection standard of the product, the working state of the worker, and the IWAY standard of IKEA are implemented.
“The growth of Fuyun in these years has been forced out by IKEA.†The management of personnel work status makes the work from the workers to the high-level work efficient; the production process management makes the production standardization more high; the factory safety management allows the enterprise to Up and down, pay more attention to the safety of production management... He even thinks that IKEA has made a lot of detours for Fuyun, "at least in terms of production process and cost control."
However, Chen Aimin did not say that IKEA's demand for low cost made him a little breathless. With the rapid appreciation of the renminbi, raw materials continue to rise, labor and land dividends are gradually disappearing. "IKEA's money is getting harder and harder to earn."
In recent years, the relationship between Fuyun and IKEA is very subtle. I want to continue to follow this partner and want to get rid of the low profit and seek more profit. Chen Aimin lamented that Fu Yun will leave IKEA sooner or later, but after leaving IKEA, where is the 50% source of profits, and where can I find it?
Domestic sales - another leg
The origins of rich and domestic sales are also traced back to the 1990s.
As early as the 1990s, Chen Aimin went to the mainland to inspect the market many times, and the agents who followed him in the past have now become famous and powerful agents. Some have opened chain stores themselves, and some have represented dozens of domestic External high-end brand furniture. These agents now still remember the wealthy furniture that was represented more than a decade ago, and even the best-selling models of the year were never forgotten.
Although these years, Fuyun's domestic sales have not stopped, but like many coastal brands, before the financial crisis in 2009, he focused on the export and first-line markets, when the financial crisis hit the overseas orders and the first-line market After that, they went back and found that the second and third-line markets that had been dismissive had been made into a piece of iron.
Therefore, Chen Aimin lamented that the changes in Chengdu in recent years have surprised him. The small shop that once had a jade belt bridge has been replaced by a professional store with a total of more than 5 million square meters. The company that once asked him to purchase the production line has already become a VIP customer who is eager to be invited by the global woodworking machinery production plant.
Obviously, the domestic market is not as easy as taking orders. Now, the two series of I&D ideal space and I&D fashion space of Fuyun Furniture have opened hundreds of stores in more than 40 cities. Benefiting from IKEA's "efficient, simple" corporate culture, Fuyun's products can occupy the forefront of the sales list in many cities, and the company's overall profitability has not shrunk like the big environment.
Even so, he is still fearful, and this fear comes from the troubles that age brings him. During the interview, he sighed more than once, growing older, unable to keep up with his physical strength, and can no longer fight the market like he did when he was young. And the up-and-coming talents in the Mainland, all of them are playing the year, the body of the hard work, let him sigh awesome.
As a result, Chen Aimin chose to take members of the Hong Kong Association of Friendship and take a group attack.
From the early 1990s, the group participated in the Dongguan Famous Furniture Exhibition, and in recent years, the Hong Kong Furniture Festival, the Hong Kong Furniture Week, which bloomed around the mainland, and the Hong Kong Furniture Pavilion, which appeared in various provincial capitals, concentrated their superior strength and broke the blank market. To strengthen the mature market one by one, so that the brand of Hong Kong furniture will once again be recognized by the consumer market.
"This kind of group, whether it is public relations or market influence, can be geometrically multiplied." Chen Aimin said. Indeed, every time Hong Kong furniture week arrives, it can spur a burst of consumption whirlwind. This kind of "smoke of smoke" can make Chen Aimin's anxiety a little bit.
Looking at the Hong Kong furniture brand, step by step in the mainland market, Chen Aimin also began to envy the comfort of the mainland enterprises: "Government support, the boss dares to be young and young, the dealers are also very motivated, even if they earn millions of net worth, I am also willing to follow the development of the company." Chen Aimin said, "Between the dealers and enterprises, things like rivers and lakes are closely related, and Hong Kong brands rarely have such a relationship."
For the ideal of furniture in the heart, more than 40 years have passed, his opponent, from his father, to a generation, to a younger generation, but Chen Aimin is still insisting on the ideal, he is still on the road.
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