In 2016, after the first negative growth in China's furniture exports in 7 years, January 24, "Daily economic news" from the Chinese Furniture Association Secretary-General Zhangbing learned that 2017 1-November, China's furniture industry over the scale of enterprises to complete the total business income of 82.8106 million yuan, an increase of 10.24
% of enterprises above the scale of 46.393 billion U.S. dollars, an increase of 5.29%. However, the daily economic news reporter learned that China's furniture exports encounter bottlenecks and long-term breakthrough. For the status of furniture exports, January 25, China Plastic (02128,HK) of the home of the world's leading Qin Xu reporters said that most of the domestic export of furniture is OEM, the profit space is very limited. "Do OEM no profit, do not do OEM has no order."
Industry: Furniture Export gross profit margin low January 24, "China Furniture industry status quo and future development trend" report released. According to the report, from January 2017 to November, the furniture industry more than the size of enterprises to complete the total business income of 828.106 billion yuan, an increase of 10.24%, cumulative total profit of 49.586 billion yuan, the growth of 9.42%, cumulative output 735.2059 million, year-on-year growth of 3.47%.
In terms of import and export, 2017 1-November, furniture industry-scale enterprises above the cumulative export of 46.393 billion U.S. dollars, an increase of 5.29%, the cumulative import amount of 2.758 billion U.S. dollars, an increase of 15.72%. Guangdong province is China's furniture production and sales of large provinces. January 24, Guangdong Province Furniture Association president Wang told the Daily Economic news reporter, 2017 total sales of furniture in the province is expected to be about 420 billion yuan, an increase of 5.5%.
Among them, furniture exports about 137 billion yuan, an increase of 4.1% per cent, domestic sales increased by 6.2%. 2016 Chinese furniture exports negative growth, and from the 2017 data, the national furniture export situation seems to have improved. However, Qin Xu told reporters that the Chinese furniture export is "Do OEM no profit, do not do OEM no orders."
” This remark points out the long-standing plight of the Chinese furniture industry. According to Qin Xu introduction, domestic furniture exports, nearly 90% are OEM products.
In recent years, with the increase in domestic labor costs, coupled with the import of the country's furniture product quality evaluation requirements more stringent, furniture export gross profit margin is very low. The reporter learned that the traditional Chinese furniture export market is mainly concentrated in the European Union, the United States, Japan and other countries and regions.
In recent years, Southeast Asian countries, such as Vietnam, which have a strong cost advantage, are also crowding out China's original export market share.
Overseas sales dilemma to be solved In the early 2018, the furniture industry came up with a blockbuster news. Dongguan well-known furniture oem manufacturers Dongguan Sheng Furniture Co., Ltd. (hereinafter referred to as Dongguan Taiwan Sheng) due to the decline in business, announced that will start production on February 1, 2018.
Subsequently, Dongguan Taiwan Sheng, chairman of the Guoshanhui International Group, to this special press conference response, Dongguan factory shutdown is due to make intelligent manufacturing, to transition and upgrade, the factory is expected soon after the Dongguan plant will be reopened, Dongguan factory will be converted from export to domestic sales. In Qin Xu view, since 2017, furniture raw materials prices continue to rise, further squeezing the furniture enterprise's gross profit margin.
He also said that Chinese furniture manufacturers do not understand overseas markets, is an important reason for overseas market development difficulties. He said the reasons for the low gross margin of Chinese furniture exports also include the high transparency of the Chinese furniture market. "They [foreign buyers] know too much about what they need." How much money do you have on the template, how much does it cost to import paint, they all know. Chinese furniture began to contact the international market, basically from the exhibition began, so there is no profit space, competition is big, we rob each other.
” "The influence of our own brands has been hampered, including channels. We just do the last link production, production is the simplest, but also the lowest profit, really difficult to break through, by the buyer to grasp, is the channel sales, advertising packaging, which (inside) is a huge profit.
"Qin Xu added. Flagship overseas export of livable Life, also in its 2017 half annual report, because of the high cost of domestic furniture, in recent years many domestic furniture enterprises have to seize the overseas market, and the import country furniture enterprises formed a fierce competition, so that the import country to improve the furniture products of China's trade barriers. The United States, the European Union and other countries and regions of various types of trade barriers are frequent, increasing the export costs of our furniture products.banana umbrella sun banana umbrella patio banana umbrella.