How the Furniture Industry Can Break the Price Competition of Tired Regular Styles

Price competition seems to be direct and effective, in the short term can indeed bring benefits, but in the long run, the ultimate damage is the development of the enterprise itself. We understand that the furniture industry in many areas of the price war intensified. However, low prices can only bring low quality, many companies choose to Original Equipment Manufacturer and reduce the quality to cope with. To break this vicious competition, enterprises need to innovate and focus on improving the added value of products and brand influence, so as to achieve healthy long-term development.

The phenomenon of vicious competition and the impact of low prices in the industry

To help furniture brands break away from regular price competition, it is important to move away from low-cost strategies and focus on enhancing the added value of their products. By emphasising innovative design, quality materials and unique craftsmanship, brands can attract customers and make them more willing to invest in unique and durable products. In addition, offering customised services, enhancing user comfort and focusing on sustainable practices are all important ways to differentiate. For example, in the case of Yumeya, the use of metal  wood grain and ergonomic design is not only aesthetically pleasing and durable, but also has significant appeal to the hospitality and healthcare markets.

In 2024, the volatility of the global property market has had a significant impact on the expansion strategies of the hotel and restaurant industry. The real estate market tends to cool as rising interest rates lead to increased financing costs, which provides some relief from development costs for hotels and restaurants, especially in core markets in North America and Europe. Nonetheless, economic uncertainty and financial constraints have made investment in hotel and restaurant projects more cautious, particularly in parts of Asia and Europe.

In the face of these challenges, many real estate companies and investors are choosing to focus their resources on quality properties that are in high demand and favouring projects with sustainable qualities to enhance their long-lasting value and appeal. Investors in hospitality and catering projects are also placing increasing emphasis on high quality design and environmental considerations to meet the expectations of a new generation of consumers. This trend is creating opportunities for quality furniture manufacturers, especially those who can offer highly durable, design-led and environmentally friendly products that can help clients upgrade their projects, control operating costs and achieve a long-term return on investment.

For current dealers, market trends are reinforcing the importance of high-quality furniture and unique design. As competition in the industry intensifies and capital constraints take their toll, projects such as hotels and restaurants are increasingly favouring furniture that combines durability, personalisation and brand appeal to achieve long-term return on investment. Under this trend, Yumeya helps customers to enhance their brand image while optimising costs by providing high-quality products with a strong sense of design.

In the face of these challenges, we understand that it is difficult to sustain long-term growth by relying solely on low price competition. Synergy and solid growth between manufacturers and distributors is the way to deal with it. Therefore, in terms of product strategy, we pay more attention to the improvement of core competitiveness, enhance the cost-effectiveness of our products through technological innovation, and increase customisation and personalised design to adapt to the needs of different markets and realise the advantages of product differentiation. At the same time, we focus on improving the quality of our products to provide our dealers with high-quality and durable furniture products to enhance the competitiveness of our brand in the market and user loyalty.

In terms of brand building, we will continue to invest to enhance brand awareness and reputation so that dealers can rely on the strength of the brand for marketing. By enhancing brand stickiness, consumers can make purchase choices based on brand recognition rather than price. At the same time, we will unify and control the brand image of different channels to avoid the negative impact of low-priced promotions on brand value.

Why choose our chairs?

Elegant chairs offer many advantages in terms of material, durability, ergonomic design and cost control, making them ideal for commercial spaces such as hotels and restaurants:

High-quality materials: metal wood grain technology is used, a process that preserves the beautiful grain of natural wood while avoiding the disadvantages of wood's fragility. The high-quality metal frame provides enhanced durability and significantly reduces the need for maintenance in long-term use, saving replacement costs for commercial users. This design strikes the perfect balance between high value and low maintenance requirements for projects that focus on quality and cost management.

Durability: Focusing on the durability of the product, each chair undergoes strict quality control during the design and production process. The use of high standard materials such as Tiger powder coating makes the chairs more resistant to wear and tear, maintaining their appearance whilst extending their lifespan. Durability means less maintenance costs and less frequent replacements for our customers.

Ergonomic design: The ergonomic design provides optimal seating support for extended use. The chair's back and seat angles are carefully tuned to help users maintain a healthy sitting posture and increase customer comfort. This design not only enhances the user experience, but also helps commercial establishments to increase customer satisfaction, leading to increased repeat business.

Reduced operating costs: Reducing the need for replacements and repairs drastically reduces operating costs. This cost advantage is especially important for hotels and restaurants that need to use furniture for long periods of time.

In summary, the furniture industry should shift from price-based competition to brand-focused strategies. By enhancing product innovation, strengthening brand development, and achieving channel synergy, companies can address the challenges of market saturation and foster sustainable growth. This approach not only helps businesses establish a more solid market position but also supports distributors by equipping them with high-quality products and a cohesive brand image, enabling them to better meet market demands and increase customer loyalty.