News

Respect the market, respect consumers, respect competitors, and do not take reckless risks in the vast sea of China's wooden door industry — Exclusive interview with Luo Zhengren, Chinese wood products expert and Chairman of Qianchuan Wooden Doors.

　　Recently, a wave of company closures and owner absconding has swept across various industries nationwide. As a well-known name in the wood products industry, news about HOMY Hongji Wood Industry shutting down and its boss fleeing has been widely circulated online. According to a person in charge of a certain brand of wooden flooring, the orders from HOMY Hongji Wood Industry's stores have officially been coordinated to be taken over by them, responsible for customer deliveries.

　　In the past two years, news of closures, bankruptcies, or restructurings in the home furnishing and building materials industry has sounded like thunderclaps shaking the entire industry, causing deep reflection among Chinese industry insiders. To help consumers truly understand the wooden door industry and purchase genuine products during this special period, at their request, I was fortunate to interview Luo Zhengren, chairman of Qianchuan Wooden Doors and an expert in Chinese wood products.

　　Luo Zhengren, Chairman of Qianchuan Wood Industry Group

　　The quiet exit of HOMY Hongji Wood Industry, though understandable, has deeply saddened the industry.

　　Founded in 1995, HOMY Hongji Wood Industry has a history of over 20 years. As one of the oldest local wood brands in Sichuan, its quiet exit has sounded a warning bell for wood production companies in Sichuan and even nationwide.

　　HOMY Hongji Wood Industry store

　　It is rumored that HOMY Hongji Wood Industry became insolvent (including high-interest loans), leading to a broken capital chain and an irreparable situation. Financial issues have long been a headache for HOMY Hongji Wood Industry. Over more than ten years, its strong desire for expansion led to the opening of more than ten direct stores in the Chengdu market in a short time. High rents, renovation costs, and marketing expenses consumed a large amount of capital, ultimately plunging HOMY Hongji Wood Industry into a quagmire of high-interest loans, from which it could not recover. It is said that a few years ago, the founder of HOMY Hongji Wood Industry, Zeng Hong, suddenly passed away due to the pressure from high-interest loans and other stresses.

　　The founder of HOMY Hongji Wood Industry, Zeng Hong, initially served as the sales manager of Sichuan Hongji Wood Industry Co., Ltd. Later, he independently established Chengdu Hongji Wood Industry Co., Ltd. as an agent for Sichuan Hongji Wood Industry. Subsequently, he registered "Hongji Wood Industry" with the Chengdu Administration for Industry and Commerce and "HOMY" with the National Trademark Office, beginning to exclusively sell Sichuan Hongji Wood Industry products and some products from small local manufacturers in Sichuan. Over 20 years, the company never had its own fixed production base and relied entirely on OEM sales, which is the fundamental reason for HOMY Hongji Wood Industry's failure.

　　Therefore, the main reason for Hongji Wood Industry's failure lies in the lack of an actual production base, which means no foundation for development and ultimately no financing platform; relying on abnormal financing for growth turned risks into disasters, making recovery impossible.

　　Looking at the entire wooden door industry, many companies emerged and developed rapidly under the favorable conditions of the real estate market. However, in recent years, as the market has stabilized and competition has intensified, many companies have not promoted development through internal management and production strength but have entered the market by raising funds and acquiring land. In the wooden door industry, which relies on manufacturing strength, the ultimate goal is not just to make doors but to showcase economic power. This approach obviously leads to failure.

　　Many companies blindly expand their markets, swallowing without releasing, causing financial problems. Luo Zhengren, chairman of Qianchuan Wooden Doors, stated, "In today's environment, wooden door companies must avoid blind market expansion and operate rationally. They must have a clear plan and direction for their industry development, not only going with the trend but also leveraging it, being good at analyzing and anticipating the market, and making timely strategic adjustments. Wooden doors, which rely on genuine materials and craftsmanship, are not a gamble and must never take reckless risks."

　　Prevent consumers from paying for failures: Recognize brands and strength when choosing products.

　　When bosses flee and companies close, the industry and consumers are ultimately hurt. The entry barrier for wooden door manufacturing is low, so many small workshops, OEM producers, and temporary "shell companies" exist. Under intensified market competition, companies lacking scale, design concepts, quality raw material supply chains, technology, and financial support are doomed to close.

　　Therefore, when consumers choose home decoration and building materials products, they must check the company's qualifications and team to ensure the company is legitimate; secondly, understand the company's development and brand influence, assess its strength, and even visit the factory to see if actual production matches brand promotion.

　　Products are the support and foundation of a brand.

　　In today's information age, brand influence greatly affects consumer choices. A brand includes many aspects: products, technology, packaging, service, communication, etc. But to become a true brand, the product remains fundamental.

　　During rapid market expansion, HOMY Hongji Wood Industry gave the impression of a well-established brand with high recognition in Sichuan, indicating significant investment in marketing and brand promotion to gain market acceptance and boost sales. However, HOMY Hongji Wood Industry consistently neglected its products. OEM sales are irresponsible to consumers and detrimental to the company's long-term development.

　　A good and sustainable brand continuously appreciates with product upgrades and market influence. However, even with brand influence, companies need good products to support brand development. The collapse of mobile giant Nokia is an example: stubbornness and lagging technological innovation led to products losing competitiveness and the company’s downfall.

　　Consumers trust brands but trust products more. For manufacturing companies, especially wooden door companies, customized product production must be heartfelt. Only with professionalism and dedication can high-quality products be created, gaining market and customer recognition. A company's long-term development ultimately depends on its products.

　　Only by respecting good competitors can you be a true winner.

　　Running a business is like going to battle; competition is everywhere. It is this chase that promotes industry progress. For companies that are not down-to-earth and lack crisis awareness, arrogance can lead to sudden collapse. The market is like a sieve, and every step is perilous.

　　In the rapidly changing market waves, unrealistic and opportunistic behavior leads to extinction.

　　Facing such problems in the industry, we are also reflecting deeply. Luo Zhengren, chairman of Qianchuan Wooden Doors, said: The tragedy of HOMY Hongji Wood Industry is an important experience in the development of Chinese wooden doors, serving as both a warning and a lesson for Qianchuan.

　　In 2015, amid a weak overall market economy, the Chinese wooden door and window market also experienced downturns. Many wooden door companies operated on thin ice. Despite this volatile market environment, Qianchuan Wooden Doors grew against the trend, basically achieving its sales targets in the first half of 2015, focusing wholeheartedly on making every product well and being responsible to every consumer.

　　Therefore, we have every reason to believe that a manufacturing enterprise that strictly respects market rules and always puts customers at the center will surely develop steadily.

　　"We want to build a century-old enterprise and create a century-old brand!" This is the declaration of Luo Zhengren, chairman and founder of Qianchuan Wooden Doors, representing the overall vision of Qianchuan Wood Industry and the overarching rhythm across eras. Staying true to the essence, only customers are the fundamental reason for a company's longevity, so we always "put customers at the center," adhere to market demand orientation, and insist on product quality as the core.

　　Qianchuan Wood Industry Group Chengdu Production Base