Mahogany furniture market is affected by endangerment control
In 2016, for most furniture companies, it may be a more important year and a more intense year. After the market downturn of the previous two years, the mahogany industry was painful and happy in the “difficulty in entering the industry†and “furniture tideâ€.
[Reporter observation]
At present, not only is the economic structure adjustment stepping into the “new normalâ€, but the mahogany furniture industry is also showing new conditions. After several years of rapid development, the mahogany industry is also entering a "new normal."
This "new normal" performance shows that the raw material resources of mahogany are increasingly scarce, and the mode of rapid appreciation of the industry itself to obtain high profits by the appreciation of materials itself is unsustainable. With the development of society and the spread of relevant knowledge, consumers' eyes and requirements for furniture quality are getting higher and higher, and mahogany furniture has shifted from blind consumption to rational consumption. In the terminal market, especially the high-end mahogany furniture collection market, mahogany furniture enterprises have entered the stage of elimination and shuffling.
Under this circumstance, the major exporting countries of redwood have stepped up the export ban on raw materials of redwood. In addition to the October International CITES Conference, the main raw materials of the major redwoods commonly used in China's mahogany market, such as the rosewood of the genus Pterocarpus, the locust rosewood in the rosewood, and the entire Dalbergia are included in the endangered control, mahogany. The source of materials has decreased sharply, the import and transportation costs of redwoods have risen rapidly, and the price of redwoods will usher in a new round of rising tide. Redwood furniture companies are powerless to face high-priced raw materials.
The average increase of raw materials of Siamese rosewood has reached 40%; the raw material of Bali Dalbergia rose by 50%; the price of Burmese rosewood rose by as much as 65%; and the raw material of African rosewood, which was the least valued before, rose nearly 100%. At the CITES conference, a variety of commonly used red wood species were also included in the “rejection of entry†threshold. Whether it is endangered regulation, strict smuggling by countries, or increased transportation costs, it is difficult to prevent the price of raw materials from rising and then rising. It can be said that the rise in the price of this rosewood is a sign that the 2016 rosewood furniture entered the “bull marketâ€.
The market for mahogany raw materials has soared, and mahogany furniture is bound to follow. In the market dominated by price, the price of wood is ultimately determined by the relationship between supply and demand. The future direction of mahogany furniture may be more refined, and there may be more “alternative†varieties. It remains to be seen.
[Expert Interpretation]
Industry adjustment to inventory is the top priority
Kong Wenyu, general manager of Beijing Taihexiang Redwood Furniture
As the mahogany market enters a new normal, the mahogany furniture market is also facing destocking pressure.
In 2013, with the promulgation of the newly revised international trade convention, the whole industry reached the peak of development in recent years, and then the 2014 rosewood industry entered the “consolidation periodâ€. In the past two years, the market of redwood has been falling and the market has entered a trough. Affected by the current environment, the channels from high-end sales were partially blocked, and the “gift consumption†of mahogany was reduced. The mahogany hot market, which was “made to sellâ€, has cooled down. Consumers have further improved the aesthetics of furniture. They tend to buy fine furniture when buying. Most of the general products on the market are in a wait-and-see state. Coupled with the economic downturn, under the influence of “buy up and not buy downâ€, the shots are taken. More cautious.
After excessive consumption in the market, the price of redwood continued to decrease, sales volume fell all the way, and stocks surged. And a large amount of inventory will further accelerate the reshuffle of industry companies. So for the entire industry, the top priority is still to go to inventory.
The redwood industry is a sunrise industry with cultural heritage. In the revival of Chinese traditional culture, it is believed that the downturn in the industry is only temporary. After the adjustment and transformation, the industry recovery is getting closer.
Future market bullish companies should be more rational
Yang Bo, Chairman of the Bureau of Traditional Furniture Professional Committee of China Furniture Association
In 2016, a number of redwoods were listed in international conventions and were regulated. In fact, the shortage of valuable materials has been accompanied by this industry. These materials are regulated and there should be a two- or three-year upswing in the future. As can be seen from the current market, rigid demand is rising again. Especially after October, sales have increased significantly. From 2015 to the present, everyone has been watching. Today, the international conventions on the control of materials, coupled with the involvement of some external factors, many people are beginning to face the need to start, the rise of materials is inevitable. But it is unlikely that similar surges in the past will occur, and both the market and consumers have returned to rationality. Although the price of furniture has not risen significantly yet, there will definitely be a slow rise process, and the market should have a good trend in the future.
Despite the bright future, companies must be rational, do market positioning, have a sense of urgency, make products of excellent quality, and be greedy and eager to do so, so it is easy to close down.
The industry as a whole warms up traditional furniture or the sunshine industry
Wu Mingguang, Chairman of the Bureau of Traditional Furniture Professional Committee of China Furniture Association
This year, mahogany raw materials ushered in a new round of general bullish trend, with an increase of 30% to 50%. We can basically think that the market downturn in the past few years is about to pick up. Although the price will not skyrocket in the later period, based on the current policy and market influence, the momentum of steady increase has already appeared.
The introduction of the redwood ban and the rise in raw material prices will definitely have an impact on the end market, most notably the rise in furniture prices. The overall warming of the market is an inevitable trend. In recent years, although the rosewood market has experienced several declines, it has never been sluggish, indicating that consumer demand in the rosewood market is still firm.
It can be said that in 2016, the persistence of our market in the past few years has seen a return. The rising trend of raw materials this year, let us see the hope that traditional furniture is still the sunshine industry. The rise in raw materials this year will be reflected in the finished furniture market next year, and the industry as a whole will pick up. What we need to do is to improve product quality and artistic standards, do market promotion and consumer services, and help the next round of industry development.
Foshan Qiaotai Furniture Products Co., Ltd. , https://www.qiaotaifurniture.com