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Product Upgrade Replaces New Product Research, Consumers Become the Immediate Beneficiaries

Product Upgrade Replaces New Product Research, Consumers Become the Immediate Beneficiaries


Which kind of products can be treated as the late-model one?

In Guangzhou Furniture Show in spring in 2013, reporters from many news offices and media centers gathered together to search for the new products, but the outcome is not positive. Almost all the so-called new products are updated on the basis of old models by changing in colors, improvement in materials and perfection in functions. This case is not fresh in many industries. For instance, the continuous evolution of smart phones, in which the size of screen is growing larger and the capacity is getting bigger.

Then what result in this situation? From some manufacturers, the reporters know that one of the reasons that why the speed of product innovation becomes slower is the low market sales of new products. Being rational in choosing furniture, consumers often don't have any appetite for such new products, but think a lot on the living style and comfortable experience that they can get from the furniture. The second reason is the large cost. It is estimated that five to ten million RMB is necessary in driving a new series of products. For the enterprises themselves, the cost for environmental protection, labor, social security benefits and other aspects have continued to rise. However, it is hard to make a rise in terminal price based on the high cost. What more, every innovation of the products takes a high risk, which is largely depends on the market circumstances.

Whereas, the low speed in product renovation makes consumers become the immediate beneficiaries. When furniture design was forced to change, the functions of the products will be improved every year, according to the consumers and dealer's feedback. It will contribute to the research of perfect products. Both manufacturers and dealers said in the interview that the rapid development of furniture industry has already come to an end, a period of slow growth and low profits will be in the front. The only way for the enterprises to live through is to constantly improve and refine the products, which will be conducive to the growth of domestic furniture and the promotion in the international competitiveness.

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