Industrial development behind the "price increase" of furniture

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Friends who are familiar with the supply of raw materials for furniture know that from 2017, the home improvement industry has heard the "price increase", the price of furniture raw materials has risen, and the price has increased artificially. This wave of price increases covers all parts of the country, from south to north, in case The exception is to make the operators frightened.
There is a cloud in the old saying, "The partiality is dark, and the listening is clear." For this topic that has been repeatedly mentioned by the media in recent years, we calmly analyze it with an objective and fair attitude, and uncover the doubts about industrial development behind the "price increase."
The rising price of raw materials is shocking
At the end of 2016, CCTV financial reporters pointed out that furniture raw materials rose sharply, and sponges rose by 70%. Since then, after the media publicity, the rise of furniture raw materials has almost taken the lead. However, according to the National Bureau of Statistics, from January to November 2016, the main business income of the furniture manufacturing industry was 761.26 billion yuan, a cumulative increase of 8.4% year-on-year; the total profit was 46.29 billion yuan, a cumulative increase of 10%. The Chinese furniture industry will continue to grow rapidly in the long run.
The rise in furniture raw materials is mainly affected by rising labor costs, increased logistics costs, industrial restructuring, exchange rate fluctuations and national policies. Among them, policy and logistics are the key. At the beginning of 2016, the implementation of the “Strict Environmental Protection Law” resulted in a direct impact on the low-end manufacturing sector. In September of the same year, the implementation of “strict over-limitation in history”, the cost of long-distance transportation of furniture raw materials increased significantly.
In this industry situation, the stronger the stronger, the weaker the weaker. The data shows that in 2016, the main business income of enterprises above designated size in the furniture industry increased by more than 20%, the profit increased by about 15% year-on-year, and the profit growth was greater than the increase in output, and the company's efficiency improved. In contrast, the development situation of SMEs has become increasingly severe, and industrial reforms have accelerated.
Since the short-term upswing is clear, how should companies and industries respond? Is it to flee the manufacturing industry, or to find another way? Furniture companies, furniture and raw materials companies need to prescribe the right medicine.
First, in response to rising logistics costs, optimizing the transportation system is the key. At present, China's furniture industry has formed an obvious regional cluster development pattern, and the corresponding industrial chain of furniture manufacturing, logistics, marketing and so on should also be completed to optimize industrial allocation, reduce logistics costs, and improve industrial efficiency.
Second, it is the key to coping with industrial restructuring and accelerating industrial transformation and upgrading. The reason why the sponge has increased substantially, the state's heavy-handed governance of high-pollution enterprises is the direct cause. The back of the country indicates the country's determination to eliminate backward low-end production capacity. Therefore, accelerating industrial upgrading will help the raw materials and furniture industry to win.
Third, although China's furniture raw materials are also imported, most of them still rely on the domestic demand market, especially the whole industry chain raw material industrial park, which has become an important driving force for supporting the development of the surrounding and national furniture industry. Therefore, the Chinese furniture materials industry is also in urgent need of transformation and breakthrough.
Forced enterprise transformation
The global furniture industry has a total output value of US$634.6 billion, and China accounts for 40%. Among the total output value of China's furniture industry, Guangdong, which is represented by Shenzhen, Dongguan, Guangzhou, Shunde and Zhongshan, accounts for 40% of the total. It is an industry pioneer cluster, not only owning Shenzhen Furniture Fair, Guangzhou Furniture Fair, Dongguan Furniture Fair, three furniture exhibitions, and a number of furniture and raw material industry base.

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