Small and medium-sized enterprises that follow the trend of furniture usually use exhibition windows and stores to show the dynamics of the "benchmark" companies that are in the front of product development, plus their own "judgments" to follow the trend. The problem is that if you follow too closely, you will be unlucky if others fail. Therefore, now you are becoming more cautious.
When you see the new types of exhibitions, you will not follow them right away, but will continue to observe next, and you have to look at others. Are you following? If others don’t follow yourself or follow, if you see many companies follow, then follow. But things have two sides. If you follow it slowly, you will lose your head start. When many companies are swarming, then their own advantages may also be lost.
For the so-called "benchmark" companies, they have indeed invested a lot in the research and development of furniture products, and some have tried to "get off" the followers by constantly developing new products. However, there are often development failures. Since brand premiums and new products have no reference in the market, so the profit of dining room furniture manufacturers may be relatively higher, which can be very large To a certain extent, it compensates for the losses of other series of development failures. However, it will also face two dilemmas: First, after hard development, it is imitated, modified and optimized by others and then reversed to compete.
New products are actually not profitable during the introduction and early stages of growth, and the real profitability will have to grow. It can only be reflected in the middle and late stages of maturity, but before that time, it is "halved" by other companies, which is equivalent to making clothes for others. Second, the tolerance for new product development failures is being compressed.
Because other dining room fruniture manufacturers are making progress, especially in the face of scientific and rational competitors, your every move is in the eyes of others. Their success will be based on the tuition you pay, rather than paying the tuition yourself, so The success rate is higher than you, and you have to bear the consequences for the high failure rate of your own extensive development, so that the more and faster you develop, the more dangerous you will be.