The operation mechanisms of manufacturers, distributors and markets and malls do not work hand in hand. Not only does the situation disperse the market profit, it also hinders the industry in breaking through from industry branding to market branding. To arouse the awareness of “brand building” and “far-end competition” in the furniture market, the International Furniture and Decoration (Hong Kong) Association (IFHK) has formed “the Market Brand Union of Hong Kong Furniture”. Thirty elite brand enterprises have joined the union as at 18 March (see list below). A cocktail reception in celebration of the union’s formation was held from 15:30-17:00 on 16 March 2009 at Convention Hall C, 2/F Guangdong Modern International Exhibition Center in Houjie, Dongguan.

Affiliated to the International Furniture and Decoration (Hong Kong) Association, the Market Brand Union (of Hong Kong Furniture) is an independent organisation focusing on market brand collaborations. The union specialises in market integration, market expansion, market development and collaboration and the operation of market brands. Working in coherence with IFHK’s democratic operation, the union will encourage collaborations between brand manufacturers and enterprises from a more extensive scope, so that the collaborators would be more capable of expansion and further development, bringing more actual profits to themselves. A new brand market would then be formed. The union will also build up a closer connection with brand distributors in order to strengthen the brand operation, upgrading the brand value in the end.

1. The significance of the union

Nowadays, China has become the world’s biggest manufacturing and export country, and is bound to be the world’s biggest consumption country. China’s will soon move from the stage of manufacture development to market brand development.

The furniture industry had neglected the brand building of the market system in the past. It resulted in the breakdown of market value chain between manufacturers and distributors, and thus dispersing the sales and marketing profits of manufacturers and distributors as well as distributors and malls. Therefore, furniture brands had never reached a breakthrough in transforming from industry brands to market brand. The market value of the furniture brands had never been fully developed and unleashed. The furniture market cannot implement the plans of “brand building” and “far-end competition”, not to speak of the emergence of status with large scale production, logistics and flow.

If the cooperation relationship of manufacturers and distributors does not change, or if we do not start building brands in collaboration, the market competition will be keener, in which manufacturers, distributors, malls or landowners will suffer operational hardship. While transformation of the cooperation relationship of manufacturers and distributors and operation pattern of the market is neccessary, the industry and the power of brands should also be reorganised to form a closely connected market union. A new market structure will be formed. A brand market of new nature will also be developed.

2. The relationship between the union and IFHK

An industry organisation founded by Hong Kong’s brand manufacturers, the International Furniture and Decoration (Hong Kong) Association is devoted to the development of the industry as well as expanding the scope of service for members. Affiliated to IFHK, the Market Brand Union (of Hong Kong Furniture) is an independent commercial organisation focusing on market brand collaborations. The union specialises in market integration, market expansion, market development and collaboration and the operation of market brands. It is the core of the identity and the democracy of IFHK that assure the union’s ability to expand upon formation, unifying a wide range of brand manufacturers and distributors to unleash actual value of their brands. Beyond the boundary of IFHK, the union welcomes any enterprises with actual brand building ability. Joint-alliance is also welcomed, in order to realise the goal of setting up a brand market.

3. The objectives and operation of the union

By coordinating the market structure, the union aims to speed up the brand building process in the market. It is also the union’s aim to facilitate collaboration between manufacturers, distributors and malls, in order to build up a close connection for the market value chain, upgrading the brand service in the market.

Operation Highlights:

1. Coordinate the opening up and operation of new markets with union members.

2. Update information of developing markets and cooperate with them.

3. Provide trainings of brand upgrade and sales promotion for malls in collaboration with the union.

4. Provide services on strategic planning as well as guidance and promotion of market brand for enterprises of union members.

Operated by a professional team, the union focuses on case solving and professional operation. The formation of the union is a milestone in China’s furniture market, indicating the start of the age of brand!

Starting a union does mean starting a rebellion, but a better way to establish a new structure for the furniture market! Any malls in the country are warmly invited!

A union is no way a dissension for the industry, but the alignment of more furniture brands to start a proper brand operation!

Aligning manufacturers and distributors, the brand union will build up more market brands, and make use of the synergy to generate more profits in the market!

List of enterprises in the market brand union

(In random order, as at 10 March)