“Because of the rising prices of raw materials including plates, sponges, paints, hardware, etc. and the increase in labor and transportation costs, furniture price increases are also objectively inevitable. Companies cannot digest their ever-increasing costs and can only respond by raising prices.†Meng Yufan, general manager of the Xi'an Boutique Furniture Plaza of Oriental Homes, is the vice president of the Shaanxi Furniture Chamber of Commerce. According to the reporter's understanding, some furniture manufacturers are already brewing a round of price increases, and they will alleviate the cost pressure by raising the price. According to the person in charge of sales of Meikemeijia Xi'an store, the price adjustment notice of the headquarters has been received, and the price of its furniture products has increased by an average of 10%. At the same time, Yifeng, Qumei and other brand furniture will also have different price increases.
Rosewood and solid wood furniture rose more
“In this round of price hikes, the rosewood and solid wood furniture are the most obvious.†Meng Yifan said that because some countries and regions in Southeast Asia, which mainly produce mahogany, limit the production and export of mahogany, the raw materials are scarce, plus mahogany. Furniture is hand-made, technical talent is relatively scarce, and the rise in labor costs has also prompted the price of mahogany furniture to rise. Solid wood furniture is also generally affected by raw materials, prices have been in the process of general growth, while plate furniture and soft furniture have relatively small increases. “Since the end of last year, the price of solid wood furniture has been rising.†A solid wood furniture dealer told reporters that as long as it is solid wood furniture, the overall increase is between 10% and 20%.
Price hike or trigger industry reshuffle
With the implementation of the new national real estate regulation and control policy, the impact on the furniture industry will gradually show up in three to six months, and the consumption of furniture is expected to shrink. In the interview, some furniture distribution companies also said that they will not raise the price for the time being, but will decide on the market situation comprehensively. They will self-digest some of the cost pressure by compressing internal costs and other methods, thus maximizing the pressure on raw materials such as plates. At the same time, it also acknowledges that the price of furniture will eventually rise, or it will reduce the price of discounts and other means of price increases, thereby reducing the sales risk caused by price increases.
According to industry experts, due to the low technical content of the furniture industry and the large number of small furniture factories, the entire industry market is chaotic. The rise in raw material prices will have a great impact on the low-end furniture brands. It is likely that quite a few small furniture companies will close down. However, the impact on the big brands of furniture manufacturers is limited, but they can take the scale of innovation and R&D. Roads, improve the added value of products and services to adapt to market competition, thereby raising the threshold of the furniture industry and promoting the sound development of the entire industry.
Home improvement industry is implicated
With the real estate regulation storm from the property market to the home improvement market, the home improvement market is likely to usher in a trough in half a year. The current real estate market has entered the situation of volume and price falling, the owners are also on the sidelines, and the turnover of home improvement companies is greatly affected. Zhang Jun, deputy general manager of Kuoda Decoration, said in an interview: "Furniture price increase will inevitably divert the owner's overall home decoration budget, and the home improvement industry will be affected to some extent. The post-war is worthy of close attention."
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