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.

 

It is reported that the price of furniture interior materials, such as the aluminum used in hardware, stainless steel, as well as the price of paint, glue and other chemical materials, is the main factor affecting the price fluctuation of furniture.

 

Manufacturers: The trend of rising furniture prices

 

The wave of price increases has now swept through most of Guangdong's furniture products. 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 price of furniture products sold in the mall has 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 in Guangzhou 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. (Editor: Peter)

 

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