Mahogany furniture market: a bit cold this summer
Our reporter Zhu Chenhui trainee reporter Li Taihua
On August 7th, an article in the South African "Independent" article entitled "The Chinese Popwood Furniture Caused the Destruction of African Woods" caused great concern in the international arena. The article pointed out that China is the world's largest consumer of wood, and that rosewood is popular in the country because of the popular antique furniture in the middle class. The importer initially looked at neighboring Southeast Asia, where the mahogany was almost cut down and traders began to aim at West Africa. The surge in demand for redwood by the Chinese has stimulated at least $1.3 billion in rosewood trade in West Africa. However, in China's mahogany furniture market, the enthusiasm of production companies has not been transmitted to the consumer sector, and some mahogany furniture stores have already entered the “cold winterâ€.
High raw material
Market has no market
Once upon a time, under the promotion of the collection, the major media took turns to speculate on a successful investment story, making mahogany furniture the darling of people's consumption and collection. Hainan huanghuali, lobular rosewood, red rosewood and other valuable woods have entered the ordinary people. Family. The redwood industry has sprung up everywhere. In just a few years, various enterprises, stores and parks have grown exponentially, and raw material prices have risen. Especially in 2013, at that time, China's mahogany market once set off a hype due to the introduction of the redwood ban in many ASEAN countries. The price of mahogany furniture also soared, and some raw materials were more and more expensive, almost one day. The good times are not long, time to enter 2014, China's mahogany furniture market is rapidly cooling down, exhausted, showing the true face of market speculation and high prices for many years. The reporter saw from the "2015-2016 China Redwood Industry Development Report" that in 2015 China's cumulative imports of mahogany was 904,300 cubic meters, a year-on-year decrease of 56.01%.
After a short period of rapid development, the mahogany furniture market entered the depression period of the whole industry. The scene of the red fire has become a thing of the past. The market “business is getting worse and worse!†is the sigh of most mahogany furniture manufacturers. . Raw material market speculation boosts prices to a high level, indicating that supply does not necessarily create demand. In the face of the decline in the total demand for mahogany exceeds the decline in total supply, dealers face strong pressure to survive, making the depressed mahogany furniture market even more depressed.
In 2013, China imported a total of 1,195,800 cubic meters of mahogany, an increase of 38.58% over the same period of last year; the total import volume reached 8.558 billion yuan, an increase of 50.10%. China's rosewood import comprehensive price index shows that in 2013 China's rosewood import prices rose by nearly 40% during the year, and some raw material prices even rose by 50%-100%. After the surge in 2013, the mahogany market entered an adjustment period in 2014, and the trend of volume and price fell. The mainstream red rosewood, the price is reduced by 10%-20% compared with the beginning of the year, and the raw material of rosewood generally fell by 20%-30%. Especially in Burmese rosewood, its price has soared from 10,000 yuan per ton to 30,000 yuan in 2013, and now it has fallen back to 10,000 yuan. According to industry insiders, the price increase in 2013 is due to the fact that many timber manufacturers are rushing to buy Burmese rosewood and low-end materials. In a short period of time, the price of raw materials has been smashed, and the price of food has been overdrawn for the next few years.
Once business was booming
Now bleak
Beijing Real Home Lize Store is one of the highest-grade mahogany furniture stores in Beijing. Here, a number of domestic first-line mahogany classical furniture brands have been brought together, and the mahogany lecture hall has been opened. From 2014 to 2015, the mahogany furniture boutique auction was held irregularly. The single-person participants once broke through 100 people, CCTV, Sina.com, Beijing TV Station. Many well-known media have reported many times. And now I can only use the word "quiet" to describe it. Although it is a weekend, a whole floor of thousands of square meters of exhibition halls in addition to the staff, only two or three people strolling around, strolling, many shop assistants are boring to play mobile phones, play computer games. When you walk into a store, the clerk will come over with enthusiasm, giving people a feeling of "can be counted as a person." As long as I asked about the current business, all the staff members almost shook their heads. The same situation also appeared in the high-end stores such as Chengcheng Home Building Materials City and Hongxing Meikailong, and all of them were also presented as “the door to the cold.â€
Qingxian County, Hebei Province, which is more than 100 kilometers away from Beijing, is a famous hometown of Jingzuo furniture. The reporter has visited this place many times in the past two years. In 2014, thanks to the fiery heat of the collection market and the hype of the media, the mahogany industry in Qingxian has developed rapidly. The former family workshops have rapidly expanded into private factories of dozens or even hundreds of people. Many companies are building on both sides of the national highway. Floor furniture exhibition hall. What's more, with the strong support of the local government, the project of investing billions of yuan in the Middle Ages Redwood Industrial Park was also fully rolled out in 2014, and the redwood industry has become a veritable locomotive for the economic development of Qingxian County. However, just over a year later, when the reporter visited this place again, it was a depression. There was no new mahogany exhibition hall. Many exhibition halls have been built yet, and some early exhibition halls have closed down with the company. Closed or subletted. The huge investment in the Middle Ages Redwood Industrial Park is now basically in a semi-stagnation state, and the merchants that settle in there are only a few local enterprises in Qingxian County.
Consumption is falling all the way
The price does not fall
The market of any industry will experience wave development, and the redwood industry is undoubtedly in a trough, but it is a big low in the history of the industry. Why did such a big change occur in a short period of time? The reporter of China Enterprise News interviewed Mr. Zhao Fujun, the well-known marketing expert of the redwood industry, the director of the Chinese Woodworking Committee and the editor-in-chief of China Redwood Classical Furniture.
He said that since the second half of 2014, the mahogany industry has entered a downturn in the market, and the sales volume has dropped significantly. This has brought about undesirable phenomena such as “business failures, bosses running, merchants resisting rents, and creditors robbingâ€. The reason is nothing more than a big economic environment and the industry itself. From the perspective of the economic environment, macroeconomic development has slowed down in recent years, the real economy has been in a long-term downturn, and exports have been weak. The central government has "striking tigers and taking flies", and high-end consumer goods transactions have shrunk dramatically; real estate regulation in first- and second-tier cities, and long-term real estate in third- and fourth-tier cities excess. These factors have combined to form a large reduction in consumption. According to statistics, only one city in Beijing fell by more than 40% in 2015 compared to the total consumption of the redwood industry in 2014.
From the development of the mahogany industry itself, the local redwood store parks have been launched, and a large amount of hot money has poured into the mahogany industry, resulting in extreme production surplus; at the same time, raw materials and labor prices continue to grow, product prices are still rising; shoddy, fraud, etc. Many dishonest behaviors have disrupted the market, making many consumers afraid to take action. The result of the internal and external reasons is that the production volume continues to rise, the consumption power is lower, the product price does not fall, and the purchasing power of the original consumer group has shrunk dramatically. The new consumer groups are afraid to shoot, forming a vicious circle. Fujian Xianyou, Guangxi Pingxiang, Zhejiang Dongyang, Hebei Dacheng and other areas with the mainstay of the redwood industry are suffering.
Production trading market
All piled up in the south
The production of mahogany furniture is mainly concentrated in three production and processing bases in Jiangmen, Guangzhou, Dongyang, Zhejiang and Futian, Fujian. These three bases cover 85%-90% of the mahogany furniture market. The production of mahogany furniture in Guangdong, Jiangsu, Zhejiang and Fujian has formed a regional industry, and traditional furniture has developed into a large-scale development. In Guangdong, the mahogany furniture market is dominated by Zhongshan Dayong and Shaxi, and there are more than 300 mahogany enterprises. In Zhejiang, mahogany furniture is best known for its Dongyang woodcarvings, and at the same time it is made of mahogany furniture. The mahogany furniture market has a considerable scale.
In Fujian, mahogany furniture is dominated by Xianyou, with more than 5,000 mahogany enterprises, which can be regarded as China's largest mahogany base. The output value is from 500 million in 2006 to 17.5 billion in 2012, a 35-fold increase in six years. At the same time, the processing of mahogany scraps is also more common, and a complete mahogany industrial chain has been formed. In addition to large pieces of mahogany furniture, small pieces of mahogany are also popular with people, such as pen holders, beads, Buddha statues, brocade boxes, etc., have been sold to the whole country.
The domestic mahogany furniture market is concentrated in the six major mahogany furniture markets in Shenzhen, Shenzhen, Zhongshan, Dadong, Zhejiang Dongyang, Fujian Xianyou, Guangxi Pingxiang and Yunnan Ruili. Due to the overall slowdown in the development of China's furniture industry, the country's vigorous anti-corruption policies and excessive speculation in the market led to a sharp drop in the price of mahogany furniture, and the market for several mahogany furniture was also slightly deserted.
Ms. Zhao, director of the Science and Technology Bureau of Dongyang City, Zhejiang Province, believes that there is a shortage of talents in the industry and the lack of leading brand enterprises. The future technological innovation will occupy a large proportion in the redwood enterprises. In a telephone interview with the reporter of China Enterprise News, she said that the prospect of China's mahogany furniture market is that the import of raw materials has decreased, the market has returned to rationality, and the “materialism theory†will continue, and the originality of process design is becoming more and more important. The supply of raw materials is tightening, and new production areas and new woods are developing. In the long run, the non-renewability of mahogany resources determines its long-term appreciation value.
Positioning high-end niche
It takes time to get warmer
The market position and price of high-end collection furniture with huanghuali, lobular rosewood and red rosewood are unshakable. Among the mahogany national standards, the real collection value is yellow pear, lobular rosewood, and red rosewood. In general, the main consumer groups of collectible furniture are only a small group of people who are very proficient in mahogany furniture or high-end consumers, and cannot represent the consumer groups of Chinese furniture in the general direction. In the future, the trend in the high-end collection market is to move toward a more sophisticated direction.
The mahogany furniture industry is now both a downturn and an adjustment period. The state implements top-down de-capacity operations in industries such as coal and steel. The mahogany industry has to go through the bottom of the market through this invisible hand. Capacity, fakes. In the interview, the reporter found that there are indeed some unscrupulous manufacturers who shoddy the source at the source, disrupting the market and damaging the reputation of the industry. For example, the hollow wood is filled with miscellaneous wood or even cement. The exterior is painted and sealed, and then several "saw marks" are cut during the cutting, so that the grade of the wood rises to the solid material, and then the price of the red rosewood is sold. .
After the beginning of the market downturn, some well-known mahogany furniture brands have undergone a transformation centered on service consumers, with the aim of creating a circle of consumer culture based on current market trends. On this basis, the concept of pure "Chinese life" was born. These companies have now entered the entertainment industry, calligraphy art circle, sports circle, and entrepreneurial circle. This shows that the mahogany furniture enterprises have changed their perceptions in the past, positioning their products in niche and high-end groups, from simple furniture to efforts to change the life content of this small group.
When asked whether the mahogany industry will pick up, Zhao Fuzhen denied it: "At present, this is just a wishful thinking of some mahogany companies. The spring river plumbing duck prophet, whether it can warm up, the purchasing power of the consumer side will play a decisive role, and This will definitely be directly related to the country's macroeconomic form. In short, the lack of purchasing power at the consumer end is still the main feature of the 2016 mahogany furniture market."
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