A variety of reasons, such as raw material price increases, have caused furniture prices to rise


Due to various reasons such as rising raw material prices, lower furniture export tax rebate rates, and increased labor and sales costs, in the first half of this year, Guangzhou, Shenzhen and other large cities in the Pearl River Delta saw a new round of increases in furniture prices, especially furniture accessories and beds Mats , sofas and other products. Compared with the same period last year, the prices of furniture raw materials and labor have increased by 10% to 30%, and the ex-factory prices of various grades of furniture have also increased to varying degrees. Many consumers report, "Since July, the prices of many furniture and building materials stores have not changed much, but promotional discounts have decreased."


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Manufacturers: The trend of rising furniture prices


If the price increase of furniture at the end of last year seems a bit subtle, and it is more reflected in aspects such as less easy discounts and reduced discounts, then the price increase of furniture since the first half of this year is obvious. It is understood that the price hike has swept to most furniture products in Guangdong. Compared with the same period last year, the price of wooden furniture has risen by more than 10% this year. Furniture manufacturers may feel more deeply than distributors on the issue of whether to increase or not to increase. Many furniture manufacturers in the Pearl River Delta state that they will continue to adjust prices in September and October to cope with rising raw material prices, which will increase by 10% to 15%. Wang Li, executive secretary general of Dongguan Famous Furniture Club, revealed that under the pressure of rising costs, “some small furniture companies have closed down.”


In addition, as a labor-intensive industry, labor costs are one of the main components of the overall price of the furniture industry. The new "Labor Contract Law" has been formally implemented since January 1 this year. Enterprises must pay five insurances for their employees, including pension, unemployment, work injury, maternity and medical treatment. This will undoubtedly increase the labor cost of furniture companies. The already meager profits will be forced to "shrink" due to the increase in labor costs. Many people in the industry believe that the tight supply of wood and rising prices in the next 10 years will be the overall trend of the industry. The domestic furniture industry is facing continuous and huge cost pressures. In this regard, Zhu Changling, deputy chairman of the China Furniture Association, said: "Resources are scarce, raw material prices are rising, and the price of household products including furniture is the future trend."


Store: Study how to digest the price increase factors


The major stores have already felt the pressure caused by the price increase of raw materials, and have taken various measures to deal with the wind of price increases. Due to rising prices of raw materials and labor, the ex-factory prices of furniture products sold in shopping malls have recently been raised by 15% to 20%. Among them, the prices of mattresses, sofas , and home accessories products rose most obviously. However, the retail prices of products in major home furnishing stores have not changed much year-on-year. Not only that, with the arrival of a new round of building collection and decoration peaks in July and August, some promotional programs have been implemented in major home building materials stores. In addition, the major stores have also adopted a combination of sales and other promotional methods to stabilize the price of commodities and strive to digest the cost of price increases.


Large-scale home furnishing stores have a certain control mechanism for the prices of merchants' products, and they resolutely resist unfair competitive behaviors such as "fictitiously high prices + ultra-low discounts". Once they are found, they will be banned.


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