Matthew effect in the furniture industry

The Matthew effect refers to the phenomenon that the stronger is stronger and the weaker is weaker. Although it accelerates the increase in industry concentration, it also inhibits the growth of rising stars to some extent.

This phenomenon has appeared more or less in many segments of our furniture industry, mainly manifested by the fact that a few companies rely on the achievements of horse racing in previous years, not only occupying the absolute advantage of the terminal position and number of channels. Behind the scenes are gradually enveloping the best quality dealer resources, supplier resources, human resources, etc. in the industry.

The multiplier effect of multiple factors makes many second and third echelon companies very passive. Some people even think that the main development opportunity of the latter echelon is that the owners of the first echelon enterprises will make mistakes in major strategic directions in the future. Obviously such a view is one-sided and pessimistic.

We need to see the way out of this problem with a broader perspective of space and a longer perspective of time. The success of these large-scale enterprises in the industry is almost based on the success of the mainstream market in this field. They meet the needs of the masses of products, and promote the products to the market through non-different channel forms and communication methods. The Coca-Cola Company did the same before the 1960s, with single-flavor varieties, standard bottle packaging, and unified advertising themes. This fits well with the requirements of an early market development.

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