How is the Furniture Industry coping with Coronavirus?
- June 9, 2020
Coronavirus has thrown in multiple complex challenges for businesses across the board. One such industry on which it has exacted the maximum toll on is the furniture. Because of the restrictions of the free logistics movement, the supply chains that the furniture industry relies heavily upon are severely disrupted. Moreover, with the hospitality and food industries also suffering major slowdowns in business activity, the demand for new furniture has drastically fallen. The following are ways different furniture manufacturers are adapting to cope with the pandemic:
It is always advisable to not be over-reliant on very few vendors when it comes to procurement. And in the situation that we find ourselves in, those furniture manufacturers who had proactively ensured that they source from a diverse set of vendors would face a considerably lesser impact. Nevertheless, those who did not diversify the range of vendors that they would procure raw materials and spare parts from are slowly waking up to the necessity of correcting their past mistakes./p>
As odd it may sound, several furniture manufacturers are trying to stay operational, by not manufacturing furniture. Instead, they are making a shift, most likely very temporary, towards manufacturing essential items such as PPE kits, face masks, and so on. Not only does this allow the companies to continue earning revenue during times of less core business activity, but it also opens up possibilities for diversification once the situation returns to normal.
Sales might have shrunk, but marketing need not. And definitely not when you are faced in a crisis situation. There are several reasons for it. Firstly, advertising rates would come down, which means it is possible to generate greater visibility at a lesser price. Second, since a lot of target consumers would be spending more time online, this is a perfect opportunity to initiate well-planned social media marketing campaigns and invest in launching a digital studio. Thirdly, as they say, when the going gets tough, the tough gets going. The crisis time, if utilized well, might actually present an opportunity to strengthen the brand image, which would result in greater sales once the pandemic is behind us.
In recognition of the difficult times that face the furniture industry, even we at Hospitality Essentials have been adapting our business strategy. One of the first things that we have done is to focus on taking our business online. What this allows us to do is to be visible to customers beyond our local geography. While there are certainly initial hiccups that we are encountering while meeting the increased scale of orders from far-off locations, we are working to streamline the new supply chains that we have established. We are confident that once the situation normalizes, these measures that we have undertaken will yield major business benefits.
Thus, while times aren’t exactly great for the furniture industry, various players are adopting different innovative measures to ensure that the revenues keep flowing in and they can emerge stronger in future.