The year 2020 is destined to be an extraordinary year in human history. The COVID-19 has broken people's original life order, and the wood products industry closely related to people's lives is also facing a "big exam". With the normalization of epidemic prevention and control in China, the orderly promotion of economic and social development, and the resumption of work and production by enterprises, it is worthwhile for industry colleagues to seriously consider how to take a good development path for wood industry enterprises in the post epidemic era.
On May 2nd at 19:00, Liu Nengwen, the President of the China Wood and Wood Products Distribution Association, was invited to participate in the "Post Epidemic Era: Development and Outlook of China's Wood Products Industry" live broadcast event held by Hubei Keshang Wood Industry Co., Ltd., the Executive Vice President Unit of the Association's Wood Doors and Windows Professional Committee and the President Unit of Hubei Province Door Industry Association, during the May Day holiday. He gathered in the "Cloud" with Konson Keshang Wood Industry Chairman Roger to work together with industry colleagues Dealers and netizens communicate and interact with each other.
1、 Effective epidemic prevention and control, give praise to the people of Hubei
President Liu Nengwen said that this is my first time communicating with everyone through online live streaming. I am filled with anticipation and excitement because this is a very meaningful event during a special period. First of all, on behalf of the association, I would like to extend my greetings to everyone. As a native of Hubei, I am also deeply moved: the people of Hubei have made significant contributions in the face of this sudden epidemic, recognizing the overall situation, fearless of difficulties, and persevering. It is precisely because of the sacrifice and dedication of the people of Hubei that we have achieved significant strategic results in today's national epidemic prevention and control battle. I express my high respect to my hometown elders!
2、 The operation of the wood and wood products industry remained stable in 2019, and it will continue to strengthen in the post pandemic era, maintaining its position
China is a world's largest producer, trader, and consumer of wood and wood products. In 2019, China's wood processing output exceeded 2.2 trillion yuan, with a total import and export trade of 56.172 billion US dollars. The annual trade volume of commodity wood reached 200 million cubic meters, and the consumption of wood was nearly 600 million cubic meters. The wood and wood products industry has made important contributions to China's economic and social development, especially in meeting the needs of people for a better life!
In 2019, despite factors such as weak macroeconomic conditions at home and abroad and weakened effective market demand, the wood and wood products industry remained stable in operation. According to statistics from the China Wood and Wood Products Distribution Association, the annual import volume of wood was 114 million cubic meters, an increase of 1.72% year-on-year, with the main production of wood and wood products maintaining a slight growth. The estimated output value of wooden furniture is 689.65 billion yuan, a year-on-year increase of 6.1%; The estimated output value of wooden doors is 153 billion yuan, a year-on-year increase of 4.08%; The estimated output value of flooring is 117.3 billion yuan, a year-on-year increase of 6%; The estimated output value of other (wood carving, wood pulp, etc.) is 477.45 billion yuan, a year-on-year increase of 6.1%; The estimated output value of artificial boards is 661.1 billion yuan, a year-on-year decrease of 2.22%; The estimated output value of redwood is 120 billion yuan, a year-on-year decrease of 30%. Achieving such results is truly commendable.
The basic trend of stable and long-term economic growth in our country will not change. In the post pandemic era, China's position as a major country in the world of wood and wood products will not waver, as reflected in: firstly, China's consumer market is huge, and the middle class group is constantly expanding. Currently, there are more than 400 million units of existing housing in China, and a large number of existing housing have a demand for renovation and renovation; Secondly, China has a complete wood processing industry chain and advanced wood processing technology. Wood industry enterprises are transitioning to intelligent factories, forming industrial clusters with many distinctive wood industry parks from the eastern and central coastal areas to the western regions, with strong development momentum; The third is the innovative spirit and diligent attitude of Chinese wood industry personnel, actively promoting the industry to achieve high-quality development. In the future, the Chinese wood industry will present four development trends: firstly, the wood industry will still be an evergreen industry, with great development space and market opportunities; Secondly, China's timber will continue to be mainly imported, driving the growth of global forestry. The structure of timber imports will gradually optimize, and the export of timber products will maintain stable growth; Thirdly, the concentration of the wood industry has further increased, and national and regional brands are gradually emerging; Fourthly, the pace of consumption upgrading is accelerating, developing towards customized, personalized, and diversified needs, and profound changes have occurred in distribution channels.
3、 In 2019, the output value of the wooden door industry remained stable with an increase, and demand gradually released after the epidemic
According to incomplete statistics, the total output value of wooden door products in China reached 153 billion yuan in 2019, a slight increase from the previous year and a year-on-year increase of 4.08%. Affected by multiple factors, regional industrial clusters exhibit varying ups and downs. In 2019, the export value of wooden doors in China was 639 million US dollars, a year-on-year decrease of 5.61%.
Customized home furnishings are an important direction for extending the industrial chain of wooden door enterprises. According to the 2019 annual performance reports of the eight listed companies of customized home furnishings (Piano, Haolai Ke, Dinggu Jichuang, Shangpin Home Furnishings, Wole Home Furnishings, Sofia, Jinjin Cabinet, and Zhibang Home Furnishings), the total operating revenue reached 25.991 billion yuan, an average year-on-year growth of 16.62%, with Piano showing a high year-on-year growth of 32.53%.
Although the development of the wooden door industry is under great pressure, with the gradual upgrading of the industrial structure and the increasing concentration of brands, national brands, regional brands, and real estate strategic cooperation brands are making significant efforts. Firstly, the market share of powerful enterprises continues to expand, with sales steadily increasing compared to last year; Secondly, enterprises focus on upgrading regional manufacturing and achieving multi-point layout; The third is that product research and development, technology, and design keep pace with the times, and brand recognition improves.
The trend of China's wood-based door market prosperity index (WDMCI) in the first quarter of 2020 shows that, with the increasingly obvious effect of prevention and control of the COVID-19 in China, the market demand is gradually released, and the market expectation has rebounded. Although the overall business situation is not as good as that of the same period last year, the industry's prosperity has gradually recovered. I believe that the spring of the wood-based door industry will soon come.
4、 Several suggestions for promoting the development of the wooden door industry
Firstly, after nearly 20 years of development, the wooden door industry has become a sunrise industry with unlimited market opportunities. We must have firm confidence, practice internal skills well, and strengthen our physique.
The second is that an epidemic is accelerating the industry's evolution towards the online era. We should pay attention to the integration of online and offline, innovate business models, make good use of new media communication and office procedures, improve work efficiency and quality, and promote performance growth.
The third is to fully understand the current market environment, control operational risks, reduce operating costs, ensure sufficient cash flow, and achieve stable and upward development.
The fourth is to focus on technological innovation, increase the research and development efforts of new technologies, new processes, and new materials, master core technologies, continuously expand and extend the functional creation of "doors", and shape brand labels.
The fifth is to further optimize the incentive mechanism, promote talent development, and fully mobilize the initiative and initiative of employees in their work. At the same time, pay attention to humanistic care, so that employees have a sense of belonging and presence.
Six, the wooden door industry has formed multiple cooperation models, which test the channel integration ability of enterprises. In the future, we will also use a win-win sustainable cooperation model to shape the future of consumption and enhance the development pattern of the industry.
5、 Cheer for the enterprise and empower the industry
Opportunities are reserved for those who are prepared, only through hard work can your life shine. After the epidemic, I believe that enterprises will become stronger. I hope that colleagues in the industry will continue to work hard and strive to achieve their goals by 2020.
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