Boosting Furniture Dealers’ Competitiveness: M+ Concept & Low Inventory Management

Boosting Furniture Dealers’ Competitiveness: M+ Concept & Low Inventory Management

Over the past decades, the furniture industry has experienced rapid changes, from production methods to sales models to shifts in consumer demand, and the industry landscape is constantly being reshaped. Especially against the backdrop of globalisation and the rapid development of e-commerce, the furniture industry is facing increasing competition and diverse market demands. As a furniture distributor, how do you need to offer a wide range of choices to satisfy the different tastes of your customers without creating excess inventory or increasing financial risk?

The current situation of the industry: the contradiction between the inventory backlog and the diversification of market demand

In the furniture industry, the problems of inventory backlog and capital occupation have been troubling commercial furniture dealers and manufacturers. Due to the diversification of furniture product designs, colours and sizes, the traditional business model requires commercial furniture dealers to stock a large amount of inventory to meet different customer needs. However, this practice often results in a large amount of capital being tied up and an unstable sales rate of stocked products due to seasonal changes, changing fashion trends or fluctuating consumer preferences, which may result in backlogs and increased storage and management costs. To address these challenges, more and more furniture dealers are choosing to work with Low MOQ Furniture model businesses. This approach allows dealers the flexibility to source customised products without having to buy in bulk, reducing inventory pressure. But there is still a need to find better solutions.

For example, in the restaurant furniture sector, market demand is unpredictable, although customer needs are diverse. Excessive inventory not only affects capital liquidity, but may also lead to product obsolescence and become unsaleable. The traditional inventory management model limits dealers' capital turnover efficiency and market responsiveness in a rapidly changing market environment.

On the other hand, with growing consumer demand for personalisation and customisation, especially in the hotel, restaurant and high-end home furnishings markets, traditional ‘standardised’ furniture is no longer sufficient to meet market demand. Different projects often require customised furniture with unique design styles.

The inventory dilemma: balancing diversity and inventory management

Maintaining a large inventory has a distinct downside: high storage costs, money tied up in unsold items, and the risk of inventory obsolescence that doesn't match changing customer preferences. In today's fast-paced, ever-changing marketplace, the traditional methods of large MOQ (minimum order quantities) or stocking large quantities of fully pre-configured products don't work. Distributors are constantly looking for ways to reduce inventory risk while still offering customers a diverse selection of products. To solve this challenge, Yumeya has gone through many research and development efforts, giving birth to the M+ concept (Mix & multi). Through product innovation and sales model innovation, the M+ concept offers a dual solution.

Solution: Flexible Portfolio System

One increasingly popular approach is the flexible combination model, which allows commercial furniture dealers to offer a large number of customisation options without having to stock every variant. By mixing and matching the core components of a product (such as seats, legs, frames, backrests and bases), dealers can create a wide range of different finished products from limited stock. This flexibility is particularly suited to high-demand industries, such as hotels, which often require specific designs but in limited quantities.

The first set of chairs in the M+ series by Yumeya, which underwent several design revisions in 2024, has an interesting twist compared to the previous version - an extra foot. This detail exemplifies the flexibility of the design of the M+ series and highlights the fact that with small adjustments and changes, a completely different product can be produced. This is the beauty of the M+ concept - the ability to easily respond to changes in the market and individual requirements.

What is M+?

Yumeya’s M+ concept is designed to address the conflict between inventory management and market diversity. By freely combining different seat, leg/base, frame, and backrest shapes and styles, M+ utilizes an N*N=N² combination approach to create various product versions, greatly meeting the market's demand for diverse products. This flexible combination system not only reduces inventory pressure but also adapts to the ever-changing market demands. Currently, M+ offers a wide range of products, including dining chairs, restaurant lounge chairs, café lounge chairs, guest room lounge chairs, and office chairs, all customizable to meet the unique needs of different customers.

Benefits of Flexible Furniture Solutions

l Reduces Inventory Costs

By reducing the number of inventory units required, dealers can dramatically cut warehousing costs, capital tied up in unsold products, and the need for complex warehousing systems. This approach allows dealers to focus on what they really need - core components that can be combined to form a wide range of products, thereby reducing unnecessary inventory.

l Improves market adaptability

The modular design enables furniture dealers to offer highly customised products without the need to purchase every variant in bulk. While traditional models often require sellers to maintain large inventories to meet market demand, M+ allows dealers to respond quickly to customer needs and maintain product diversity even in rapidly changing market conditions. Just-In-Time (JIT) and customised production is another advantage of M+, helping manufacturers to produce what they need directly to order, avoiding overproduction and inventory build-up. This flexible production and sales model enables distributors to provide customers with the products they need at lower costs and shorter lead times, further improving market competitiveness.

l Higher degree of customisation and lower risk

The flexible solution enables dealers to meet customer demand for uniqueness and customisation without the risk of having a large number of single styles that may not sell. For example, dealers can offer hundreds of unique chair configurations with just a few components, without the need to maintain a large inventory for each version. This reduces both financial risk and inventory waste.

l Faster response times for

One of the significant benefits of a flexible furniture solution is that dealers can respond faster to customer demand, especially short-term or seasonal demand. Instead of having to deal with large amounts of unsold inventory, dealers have more flexibility to meet changing customer needs. This flexibility not only enhances customer satisfaction, but also allows dealers to introduce new products or designs at short notice, increasing their resilience and competitive advantage in the marketplace.

How to choose a flexible and efficient furniture solution

Yumeya has released its second M+ portfolio, Venus 2001 range, which is ideal for dining chairs in restaurants and cafes and is designed to help furniture businesses reduce their stock. Featuring a solid wood look but with high metal strength. The range reduces stock by almost 70 per cent by offering nine components in up to 27 combinations. In addition, no specialised equipment is required and chair components can be changed in just a few minutes. To start a business with low inventory, simply choose one of the styles and add new components for more usage scenarios.

The Mercury Series allows for lower inventories but meets the diverse needs of the market. 6 seat and 7 leg/base options result in approximately 42 different versions, suitable for virtually any business location. the Mercury range is designed to humanise the space with a friendly, elegant and sophisticated design. It can be used in all commercial locations, such as hotel rooms, public areas, waiting areas, offices, etc.

What's more, the chair frame come with a 10-year warranty. With metal wood grain technology, the chair is non-porous and seamless, lightweight and suitable for commercial use. With Tiger Powder Coating, wear resistance is 5 times higher. Easy to install and can be replaced in minutes, saving on installation costs. All these details make the product more competitive.

Conclusion

Nowadays, in the furniture industry, inventory management and the diversity of market demands are always a challenge. the M+ concept is not only an innovation in product design, it also represents a new sales and business model that brings about a major revolution in the furniture industry. Through a flexible way of combining components, M+ solves the contradiction between inventory management and market diversity, promotes the change of business model of the whole furniture industry, and improves the competitiveness of commercial furniture dealers. With the changing market demand, low inventory management and flexible production mode will become the industry trend. Dealers adopting the M+ concept can maintain agility and seize market opportunities in the midst of fierce competition. With M+, dealers are able to reduce inventory pressure, improve operational efficiency and market responsiveness, and thus gain a favourable position in the future market. This model is not only more flexible and less risky, but also improves profitability.

Overall, low inventory management not only optimises financial and operational efficiency, but also improves market resilience and reduces inventory backlog. Through flexible production models, accurate demand forecasting and modular design, furniture distributors are able to reduce inventory pressure and enhance market competitiveness while maintaining product diversity.