Mahogany furniture industry will usher in an industry reshuffle
mahogany furniture industry will usher in an industry reshuffle
November 11, 2011
[China paint information] a few days ago, after a newspaper reported that the leading furniture enterprise Lian Tianhong had laid off 400 people, taking this event as the fuse, it quickly triggered widespread public attention to the depression of the entire furniture industry. In fact, due to the withdrawal of a large number of hot money, the wait-and-see mood in the mahogany furniture market has lasted for some time, and the sales volume of many manufacturers have shrunk. If the overall environment continues to deteriorate, the price of rosewood raw materials may fall by 20% to 50%. It is expected that more than half of rosewood furniture enterprises will face bankruptcy, and a major industry reshuffle will be ushered in the next two years
there is no market for rosewood raw materials
in an interview with Mr. Luo, a senior figure in the rosewood furniture industry, he revealed that in 2010, the price of rosewood raw materials increased by 50%-60% on the whole, and many raw materials increased by 100%. The price rise of rosewood raw materials, in addition to its scarcity factors, is more importantly driven by hot money
according to Mr. Luo, Xianyou is a nationally famous trading place for mahogany raw materials and furniture, but from the perspective of recent transactions, it has significantly cooled down. Many businesses admit that the trading volume has decreased by 30%-40% compared with the previous period. In addition to Xianyou, the sales volume of rosewood furniture in Guangdong, Zhejiang and other regions with relatively developed manufacturing industry is also quite cold at present
"the poor sales volume of mahogany merchants has directly affected the trading of raw materials. Under the situation that the national bank loan is strictly controlled this year, for ordinary small and medium-sized enterprises, they can't borrow loans, their sales are low, and they can't obtain sufficient working capital. No one dares to hoard wood casually."
Mr. Luo said: "at present, the rosewood merchants and raw material merchants can be said to be in a stalemate stage, and the hot money hyping raw materials cannot easily get away. If the general environment continues to be bad, many rosewood raw material merchants may not be able to support it at the end of the year, and begin to sell on a large scale, which may lead to a significant decline in raw material prices."
it is expected that a large number of enterprises will close down in the next two years.
in 2009 and 2010, due to the intervention of a large number of hot money, small and medium-sized rosewood furniture processing plants surged. The person in charge of a local mahogany furniture enterprise in Xianyou said that in the past two years, the number of manufacturers of all sizes has been conservatively estimated to have reached more than 500
this practice of driving ducks together directly led to the intensification of the labor shortage and the general increase of workers' wages
manager Liu, the relevant person in charge of Lian Tianhong, revealed that at the beginning of the year, Lian Tianhong advertised high salary with a minimum wage of 6000 to 8000 yuan and a maximum wage of 20000 to 30000 yuan, but it is still quite difficult to recruit skilled workers
"labor costs have risen sharply, and hot money has hyped rosewood raw materials. The continuous rise in costs has made many rosewood businesses miserable. Roughly speaking, the costs in all aspects have increased by about 30% compared with the same period last year. Moreover, the shortage of raw materials used for beauty, nursing and other products has led to the reduction of product quality in many manufacturers due to the lack of skilled workers." Manager Liu then said, "this phenomenon exists not only in Xianyou, but also in the developed areas of furniture manufacturing in Dongyang, Zhejiang, Shenzhen, Guangdong and other places. But for Lian Tianhong, because the company spent a lot of money to build a professional design team of more than 200 people when it opened, it did not affect the brand image of Lian Tianhong's leading enterprise because of the negative factors in these industries."
manager Liu said: "this year, banks have strictly controlled the loans of small and medium-sized enterprises. For example, many bosses have run away in Wenzhou. Many mahogany furniture enterprises have caused the phenomenon of capital chain breakage, and some local enterprises in Xianyou have been unable to support it. If it continues, it is expected that more than half of the enterprises will be at risk of bankruptcy in the next two years."
brand enterprises are developing horizontally, and the industry is facing a new pattern
Mr. Zhang, a businessman in Guangxi Pingxiang mahogany raw material import base, told: "due to the recession intensity level of the industry, businessmen cannot obtain working capital and the pressure to repay loans. People who hoard wood can only sell wood at low prices, and at least they cannot make money from wood within the year."
interviewed president Lian Tianhong Zhang, who said, "there are business opportunities behind the crisis. The closure of some fake manufacturers is actually beneficial to the industry or consumers. It can not only purify the chaos of the industry, but also curb the hype of falsely high prices. For powerful manufacturers, this is an opportunity to become bigger and stronger."
"as a luxury industry, most of the rosewood industry's consumers are rich groups, and they value brands. Liantianhong company, through a professional design team of more than 200 people, has systematically sorted out the Chinese palace home furnishing literature in a few years, which is bound to promote the industry's innovative technological system and Europe's top royal home furnishing cultural system, and the company's brand reputation and brand influence have reached a certain height", said President Zhang
manager Chen, the person in charge of a business in Dongyang, Zhejiang Province, said: "the trading of raw materials slows down, most enterprises' products are of poor quality, and without brand awareness, they will face bankruptcy. The rosewood foam, that is, Germany reprap, will burst, and there will be a major reshuffle of the industry. A pattern will be formed in which powerful enterprises grow stronger and stronger horizontally, and some small and medium-sized enterprises barely maintain."
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