Slump in the Office Chair Industry

The current slump in the office chair industry is the result of multiple factors, including macroeconomic conditions, industry competition, channel changes, and outdated business models.

I. Macroeconomic Conditions and Demand Contraction
Economic fluctuations directly impact corporate capital expenditures and expansion plans. As office furniture is a bulk purchase item, demand contracts as corporate investment intentions decline. Simultaneously, the cooling real estate market leads to a reduction in new office spaces, indirectly weakening demand for supporting furniture such as office chairs. For example, companies may delay office space upgrade plans or reduce procurement volumes to cut costs.

II. Intensified Internal Industry Competition
The market has shifted from a seller's to a buyer's market, with severe product homogenization failing to meet the design and personalization needs of the post-80s and post-90s generations. Companies frequently engage in price-cutting to secure orders, resulting in an average industry gross margin of less than 15%, severely compressing profit margins. For instance, in government procurement, companies often reduce material costs to win bids, further exacerbating the 'low-price trap' and constraining R&D investment and product innovation.

III. Channel Changes and Cost Pressures
The rise of e-commerce platforms has diverted traditional offline customer traffic, while competition in bulk business channels such as engineering projects has intensified, creating a situation of 'too many bidders for too few projects.' Meanwhile, rising raw material and labor costs, along with increased environmental requirements, have further squeezed profits. For example, small and medium-sized enterprises face production shutdown risks due to delayed upgrades in environmental processes, while a significant gap exists in the intelligent sector. The global market share of intelligent office furniture has reached 18%, yet most domestic products remain at basic functions like 'electric height adjustment.'

IV. Disconnection Between Traditional Models and Scenario Demands
Seventy percent of domestic companies still adhere to the 'production-sales' model, unable to provide full-process services including 'design, procurement, maintenance, and updates.' With the popularization of hybrid work models, companies have surging demand for integrated services combining 'space planning + furniture adaptation + operation and maintenance services.' However, traditional companies struggle to match these scenario changes due to insufficient service capabilities, leading to customer churn. For example, as office chairs are frequently used furniture, user demand for comfort and health features has increased, yet most products still lack ergonomic design or intelligent adjustment functions.