What is the development status of China’s electric standing desks?

The standing desk industry is booming in China.

The Health office concept has just emerged, not yet universal, white-collar workers have not enough attention to the health office. Lifting desks can change the traditional office environment to achieve standing office, to solve cervical spondylosis, lumbar spondylosis, and sedentary abdominal pain caused by lumbar excrescences and other occupational diseases, but also can improve work efficiency. According to our estimates, the global market for elevating desks will be around 45-87 billion yuan in 2017. Companies with their brands and deep-rooted core components will continue to grow as the elevating desk, and ergonomic industries are in their infancy and have a larger market space.

Multinational companies to R & D and sales-based, independent brands to OEM-based

Multinational companies are the first to enter the lifting table and chair manufacturing industry, the independent brand from OEM start. Global enterprises have a high brand effect and perfect distribution channels. Most domestic brands start from OEM and are in different positions of the industrial chain. The advantages of MNCs lie in their strong brand power, channel power, and R & D and design ability. The disadvantages are their weak production capacity and high price. The advantages of domestic, independent brands are their mass solid production capacity, and the penalties are their soft brand power. The channels aren’t perfect. Domestic enterprises have not entered the industry for a long time. Still, through more than ten years of technology accumulation, in sensor technology, synchronization control technology, and network technology to reach the advanced world level, they can quickly respond to customer needs. Among domestic brands, lege and Jiechang are the leading companies in the elevating table industry, but their respective emphases are different. Jiuzheng engineering and Hongjie stock in the new three board listed, engaged in television, audio-visual equipment brackets, and other products, is gradually transitioning to its brands of Ergonomics Products, is still in the initial stage.

standing desk

The independent brand product strength is strong, may provide the different model different standard products.

Domestic leading competition is fierce, lifting table replacement quickly. The ergonomic lifting table is in the high-speed development stage in China. The product parameters of past dynasties show that the lifting height range is more comprehensive, the lifting speed is faster, and the noise is more negligible. Jichang Drive has introduced a lift table remote control in the second generation of products, music song shares in E3 products introduced touch screen control, lift table control is also increasing./nDomestic business product strength is substantial models of the lifting table. Strong production capacity and R & D capability, lege shares, and Jichang drive product performance and function expansion. Lege products from hand-operated, lifting speed range, beam, motor types, display mode, memory mode, load-bearing range and other aspects of further product development, Yichang drive from the rise and Fall Range, board area, maximum load, increase sub-table, noise levels, power consumption levels and other aspects of development to meet customer needs. By comparing parameters, we find that the main advantage of our brand lies in the research and development of product function, design, performance indicators. The continuous research and development of advanced industry technology, product technology content to improve the bargaining power of the company have more significant help to ensure the company’s profitability and profitability of the continuity.

It is the future development direction for domestic manufacturers to establish their brand and cultivate the core components deeply.

The domestic ergonomic furniture industry is still at the initial stage, the e-commerce platform is conducive to the development of independent brands, music shares are a typical representative of the direction of the establishment of independent brands. At present, China is in the process of changing from OEM and ODM mode to OBM mode. Most manufacturers face serious homogeneity, low technology content, common ergonomics application, and lack of independent brand awareness.
On the other hand, multinational brands occupy a larger market share in the high-end market, with higher profit margins, market competition is not fierce. The development of e-commerce platforms such as Taobao, Tmall, jd.com, Amazon, eBay, and so on helps consumers find more cost-effective products, allowing domestic manufacturers to quickly establish their brands and shorten the time for brand building. For example, FBA sales model (Amazon consignment sales model), Amazon FBA sales model of the company’s products to Amazon Warehouse, Amazon is responsible for product storage, logistics distribution, customer service after-sales services, etc., simplify the creation and sale of your brands.
OEM, ODM to OBM transformation is the future trend of independent brands, can lift table has taken the lead to a breakthrough. Most enterprises in the same industry are in the ODM and OEM mode and do not know about building their brands. The transformation of the independent brand from a traditional manufacturer to an ergonomic solution provider further expands and integrates the industrial chain, introducing and upgrading new products and the international layout. OBM is the future trend of the independent brand. To master the demand of the terminal customers and develop and design the products guarantees the core competence and share of the enterprise. China’s lifting table and chair industry has taken the lead in making a breakthrough. Self-branded music Loctek has sold its products to the world through online and offline channels such as distributors, merchants, and e-commerce platforms, and with its strong brand power and control over the media so that the gross margin can be maintained at a high level.

Comparison of OEM, ODM, and OBM production modes

 

  OEM ODM OBM
Implications Original Equipment Manufacturer Original design manufacturer Original Equipment Manufacturer
Product hierarchy Low Have the ability of market research and independent R & D Have the ability of market research and independent R & D
Technical level Low Have Patent and other independent intellectual property rights With a systematic patent, standard, and other complete independent intellectual property rights
Order status Unsteadiness With a more stable customer supply chain relationship Stable customer supply chain relationship
Corporate profits Low Have Pricing Initiative, with R & D design procurement and other aspects of the premium Has the complete independent pricing right, has the brand premium

The core component of deep tillage is to take the road of specialization, and the typical representative in the industry is the driving force of Jie Chang. Jiechang drive mainly produces intelligent terminal drive control system products, which are composed of pushrods, lifting columns, matching controllers, and other components, and are used primarily in the fields of medical rehabilitation, intelligent office, smart home, etc., the best-known JC35 series putter has become a standard accessory for many foreign brands. The company takes the specialized road, devotes itself to the core technology independent research and development, obtains the new technology. This new product has a whole unified function through technology integration. As of August 20, 2018, the company had 283 patents (including one international patent), 28 software copyrights, six licensing qualifications or qualifications, 58 product certifications, and 23 corporate honors, according to the Jichang Driver Prospectus. According to the prospectus, the company will invest in the core components to drive the product line, improve product technology and product line automation.

Risk Tips:

Company health awareness is not enough, did not buy employees can be raised and lowered desk./nThe risk of reduced purchasing power of an extended and diminished desk as a result of a decline in personal disposable income. Affected by the economic impact, companies, personal disposable income continued to decline, unable to buy the table can be raised and lowered./nRisks of increased competition in the industry. Can Rise and fall table industry barrier is low, have more competitors enter the market, and bring about product gross profit rate to drop continuously./nThe risk of sino-us trade friction. China-us trade friction escalates, core components linear drive product export is affected.

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