Insufficient power for furniture exports

China's furniture manufacturing enterprises are mainly distributed in South China, East China, North China and Northeast China, among which the export of furniture such as Guangdong is the largest. According to Zhang Jingping, the person in charge of the Green Island Furniture Direct Company, the total amount of furniture exports in the Pearl River Delta region in China is the highest in the country, and the export volume accounts for more than half of the total national furniture exports. Before 2008, most domestic furniture companies' export business profits have been considerable, but after this, affected by the international market environment, many European dealers have closed down, resulting in a significant decline in export business. However, he stressed that this does not mean that there is no profit in the export business, but compared with previous years, this year's profit is declining, and the export business of furniture companies in Beijing and other regions has begun to slow down in recent years. The reporter found from the survey that the reduction of export business, in addition to the impact of market environmental factors, the lack of independent brands is the biggest obstacle encountered in the development of furniture export business.

Multi-factors lead to a reduction in furniture exports

When interviewed by Qu Nani, vice president of Qumei Furniture, the reporter learned that although Qumei has set up a special business department for the overseas export market, the proportion of sales from the beginning to the end of the export furniture business has been small, about 10%. “Qumei has always been manufacturing furniture based on independent design and self-production mode, and the sales direction has always been based on the domestic market.” Wu Nani said, “Qumei’s export volume has not been large, and it is now decreasing. There are still many potentials that can be tapped in the domestic market. At present, it is not the time to shift the focus.” In the export market, they sell products in the form of foreign retailers, and open Qumei shop in overseas stores. Qumei's series of products gradually established the Qumei brand. However, there are currently no new plans for exporting furniture business.

When talking about the problem of most companies reducing their overseas export business, Wu Nani said that there are four main reasons for the slowdown in China's furniture exports: domestic production costs are rising, prices are not competitive; there is no independent brand; products do not have much technical content. The style is similar. She mentioned that consumers in some developed countries have strict requirements on product quality. If you want to seize this part of the market, you must have your own brand while safeguarding the quality of the products, so that you can get a lot of development.

Adhering to exports is conducive to product design and development

And some companies that have been very focused on export business have begun to adjust. The export volume once accounted for 50% of the total sales of the company's furniture. This year's export business accounted for less than 20% of the total business. Chairman Qiao Yinjun said that in the past, the company's export products were mainly sofas, and the products were sold to more than 70 countries. The sharp decline in export business in recent years has been mainly affected by the impact of the overall international market environment and the gradual expansion of the domestic market. Qiao Yinjun said that the export of furniture without independent brands is indeed a major problem for Chinese furniture companies in their overseas business. Until now, most companies have been passive producers of production roles, producing orders for foreign distributors. Moreover, with the decline in global purchasing power and the gradual increase in the production cost of domestic furniture products, the current export furniture business has basically less and less profit. “But we will not stop the overseas export business of furniture because, although the profit is not high, the company itself has benefited a lot from overseas export business. In the communication with foreign customers and designers, we can not only master the most cutting-edge. The trend of furniture promotes the design and development of enterprises, and when exporting to some developed countries, due to the strict quality requirements of products, it also improves the production quality of enterprise products.” Qiao Yinjun said that they are currently exporting overseas. Or domestic sales, enterprises are using the same product line to produce, export can help companies continue to improve products, so that domestic consumers enjoy better quality furniture products.


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