Cost boosted solid wood furniture price increase twice during the year

The continuous rise in raw material costs and labor costs has once again affected the furniture sales terminal . The reporter visited a number of furniture stores in the city yesterday and learned that, except for some manufacturers that have already signed the supply agreement, they can keep the original price unchanged in the short term. Some solid wood furniture brands are welcoming the second price increase this year. 3%~5% or so.

Cost increase is the main reason for price increase

"If you look at this oak bed, please place an order early. We received a notice from the factory a few days ago. After this week, we will raise the price. If we buy it, we will spend a few hundred dollars more." Tian, ​​a salesperson of a solid wood furniture brand in Chongqing, Shuguang Mei, continued to inform the intended customers. After entering June, the company's product price will increase by 5%.

Yang Shanrong, the person in charge of a solid wood furniture factory in Chongqing, told reporters that furniture enterprises belong to labor-intensive industries. The increase in labor costs has led to an increase in labor costs; the prices of wood, paint and hardware accessories have also risen significantly, resulting in an increase in material costs. Under such cost pressures, product price increases are inevitable. "We have increased by 5% around the Spring Festival this year, and now it has risen by about 3%." Yang Shanrong said that it only cost 5,000 yuan to buy a ton of oak last year, but now it costs more than 6,000 yuan. The labor cost has also increased a lot from last year. Guaranteed, can only increase prices.

The reporter learned from the China Timber Distribution Association that Southeast Asia, Africa, North America and Russia have always been China's main sources of timber imports, but with the combination of resources, national policy restrictions, exchange rates and rising transportation costs, Wood prices have increased significantly over the previous two years. The rise in timber prices, coupled with the increasing purchase and transportation costs of the factory, has led to recent price increases for some solid wood furniture brands.

The reporter has a rough statistics. So far, at least two solid wood furniture brands have increased their prices, and six are preparing to raise prices in late June.

However, the reporter learned in the interview that most consumers did not change their purchase plans because of the price increase of solid wood furniture. Zhang Junqin, a citizen who lives in Shapingba, said that it is not excluded that individual brands will alleviate the pressure of price increases by shoddy or cutting corners, so they can't just look at the price, but they must recognize the brand and recognize the quality.

Worried about price hikes and loss of customers

In the interview, the reporter found that many sellers and manufacturers are very cautious about price increases in the event of a bad market environment. They all said that the biggest worry is that the price increase caused the loss of customers.

Gao Jun is an agent of a solid wood furniture brand in Chongqing in Chongqing. She believes that price increases are a double-edged sword. If the price does not increase, the profit will decrease; if the price rises in the absence of the market, it will also hurt the enthusiasm of consumption. "I only made a few orders this month, I removed the rent, utilities, labor costs, and no profit at all. I am afraid that after the price is raised, the days will be even more difficult." Gao Jun said, but if the manufacturers want to raise prices, as Agent, she only has to follow the price increase.

In the interview, the reporter learned that some solid wood furniture manufacturers have already raised their prices at the beginning of this year. This is the second price increase, but compared with the current increase in raw material costs by 15% and labor costs generally increasing by 20%. The price increase of 3%~5% is still cautious.

Yang Shanrong told reporters that this is because manufacturers must consider cost pressures and consider market conditions. “I will choose to self-digest a part of the cost by compressing the internal cost. At the same time, the store will try to reduce the frequency and range of profit to ensure the cost, and low-key to deal with the impact of price increases, so consumers are more psychologically acceptable.” Yang Shanrong Say.

The industry believes that with the further increase in costs, the competition in the solid wood furniture industry will become more intense. Some SMEs will be difficult to maintain in the face of fierce competition, and the reshuffle momentum presented in the industry will inevitably further intensify.

Furniture is replaced by old ones.

A few days ago, it was reported that on July 1, Beijing is expected to release the old-fashioned furniture replacement policy. Subsequently, the Ministry of Commerce stated that furniture trade-in is expected to be promoted nationwide.

The furniture manufacturers in this city have different views on this possible policy.

Gao Jun said that the furniture market is far less popular than before. If the preferential policies are introduced at this time, it will definitely stimulate the furniture market, which is undoubtedly a "strong heart". The owner of a furniture city in Jiangbei said that it is difficult to accept the recycling of old furniture. "Our company is headquartered in Guangdong. If the old furniture is recycled and shipped back, the cost is too high and it can't be implemented."

Li Chengda, secretary-general of Chongqing Furniture Association, told reporters that if the old-for-new furniture policy is introduced, it will be a good thing for the entire furniture industry. It will not only stimulate domestic demand, but also solve the problems of many citizens. However, because the current old furniture is generally difficult to handle, the logistics, warehousing, and secondary use of used furniture of old furniture are all difficult problems. Only large-scale furniture enterprises with strength can do it, at least to build an old furniture industry chain.

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