“It’s easy to lose money when you take orders, so you have to deal with the factory.†Taiwanese businessman Yang told the “First Financial Daily†reporter yesterday that he has completely transformed from furniture manufacturing and concentrated on operating in Qingyuan, Guangdong. farm.
Yang's business transformation is just a microcosm of the current sluggish furniture industry. At present, both the manufacturing and sales sectors are under pressure, and the entire chain of the furniture industry has entered a painful adjustment period. According to the latest data from the General Administration of Customs, China’s export counterattack in July showed a positive growth of 5.1%. However, furniture exports have been significantly delayed. The export value in July was US$4.14 billion, down 6.2% year-on-year.
At the same time, due to the influence of the state on the macro-control of real estate, the domestic sales of furniture also showed a slowdown in growth. In the first half of this year, Guangdong's domestic sales of furniture was 61 billion yuan, up 8% year-on-year, a decrease of 2 percentage points over the 10% increase in the same period last year, and far lower than the average annual growth rate of 16.3% before 2012.
Cheap export
The export of furniture is not as good as one year. The Taiwanese businessman Yang article has a deep understanding of this. He said in an interview with the reporter of China Business News yesterday that he recently closed his furniture fittings factory in Dongguan. At the peak of the factory, there were more than 1,000 people who earned millions of dollars a year, but they lost money in the past year or two. The peripheral furniture factory and accessory factory of his factory have also closed down a lot in the past year or two.
“Wage workers’ wages increase by 15%-20% every year. In addition, rising raw materials and appreciation of the renminbi are all increasing export costs, while European and American customers are dying to bite prices, and order prices cannot rise.†Yang’s article told reporters that due to bearish furniture generation Workers, he has already bought thousands of acres of planted Taiwanese fruit, and has now entered the harvest period. In addition to supplying five-star hotels, these fruits also use fruit as a gimmick to invest hundreds of millions of yuan to develop farm leisure tourism projects. In the initial stage, I can't make much money, but at least it has a future than furniture OEM.
Not only faced with problems such as rising labor costs, the recent new regulations in export markets such as Europe and the United States have cast a shadow over the export situation of domestic furniture companies. Recently, following the European Union's implementation of Forest (FSC) certification for wood and wood products in March this year, the US Environmental Protection Agency (EPA) has proposed two proposed regulations to ensure that its domestically produced and imported composite wood products meet the formaldehyde determined by Congress. Release the standard.
The bill is called the most stringent formaldehyde emission requirement for composite wood products in the world, far higher than the standards of the European Union, Japan and China. For example, in the particleboard, the formaldehyde emission should not exceed 0.09mg/kg, which is higher than the standard of China 1000. Times. After preliminary evaluation, if the production is organized according to the new standard of the United States, the cost of wood-based panels is expected to increase by 30% to 50%. The cost of finished wooden furniture based on wood-based panels is expected to increase by 15% to 20%.
A person in charge of an export furniture company said that the United States once again raised the threshold for the import of wood products, making the export of wood products worse.
Affected by the above-mentioned factors, Guangdong furniture exports, which account for nearly half of the country's furniture exports, have slowed down. According to data from the Guangdong Furniture Association, in the first half of this year, exports were 7.78 billion U.S. dollars, a year-on-year increase of 3.6%. This growth rate slowed by 0.8 percentage points over the 4.4% growth rate in the same period last year.
Weak domestic sales
"In the past, I could sell one or twenty pieces of furniture, but now I can't sell ten pieces a week. This year's business is particularly bad." A furniture salesman in Guangzhou Panyu Dashi Furniture City recently told this reporter.
Even the middle and low-end furniture stores are so deserted, and the situation of mid- to high-end furniture stores is even less satisfactory. Recently, at the Jisheng Weibang furniture store in Pazhou, Guangzhou, the reporter saw that there were very few guests looking at the furniture at the scene. Many of the shops had a million yuan of furniture, but there was almost no deal. Red Star Macalline, opposite the JSWB, has been withdrawn from the market last year. It has lost one competitor, JSWB, and it seems that it has not been diverted to passenger traffic.
Mr. Fan, who is engaged in furniture and building materials business, told reporters that the weak domestic sales have a lot to do with the country's macro-control of real estate. The volume of property market has not improved much since the blowout occurred in March this year, so the demand for furniture is also very limited. In addition, the high or low price of property also affects the budget for consumers to buy furniture.
Fu Jianping, director of Shangpin Home Furnishing Group, also said in an interview with this reporter that due to the macro-control of real estate and the impact of online shopping, the traffic volume of furniture hypermarkets, which mainly lock in the rigid demand for homes, has been significantly reduced in recent years. The business of the store is getting more and more bleak. On the contrary, the store located in the shopping center can attract some customers who are hanging out. As consumer demand and purchase channels are changing, furniture companies must transform in time.
Due to the lack of optimism in the furniture market and the capital market, the Shangpin home delivery plan has been postponed. However, Fu Jianping said that although it is not listed for the time being, but because of the custom-made form of furniture, and the combination of offline and online marketing methods, the sales in the first half of this year will remain 70%~80%. Growth, as long as the innovation in marketing methods, can still drive performance growth.
Chen Jiang, deputy chairman of Meikemeijia, said in an interview with this reporter yesterday that the market demand for furniture companies is getting higher and higher. The furniture companies that manufacture or sell are only under increasing pressure to survive, but integrate manufacturing, brand and channel. Enterprises are relatively more competitive. These companies are mainly independent store sales channels, so they are not affected by the cold sales of traditional channels such as furniture stores. Sales in the first half of this year can still maintain growth.
Wang Ke, president of the Guangdong Furniture Association, said at the Guangdong Provincial Furniture Industry Economic Work Conference that the period of rapid development of China's furniture industry has passed, and the transformation and upgrading of the industry is imminent. The reform and innovation of enterprises is the way to survive.
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