China’s furniture industry appears strong despite recent challenges
In some respects, China’s furniture industry has taken a beating.
Import growth to the United States slowed in 2007 thanks largely to the stagnant American economy combined with rising prices on finished goods. Some Chinese manufacturers also faced damage due to heavy snowstorms this past winter. The end result, some sources claim, was the closing of some 2,000 furniture plants on China’s east coast shortly after the Chinese New Year in February.
That’s a small number compared with the estimated 15,000 furniture manufacturers in China, but significant nonetheless in terms of the potential impact on U.S. customers.
Yet based on visitor attendance and the number of exhibitors at trade shows in both southern China and Shanghai this year, you’d never know there was any slowdown in the Chinese furniture industry. Nor would you know it by the impressive gala events officials put on at these shows.
Grand opening ceremonies and gala dinners are sights to behold. Opening day speeches often end in a ribbon cuttings and bursts of confetti. Traditional Chinese dancers and musicians perform, and elaborate awards are presented to furniture designers.
It makes one wonder if this was what things were like in North Carolina during its manufacturing heyday a few decades back. Obviously that time is long past. This was recently highlighted by a 17% drop in orders to U.S. furniture factories from July 2007 to July 2008, the worst performance in a year, according to accounting and consulting firm Smith Leonard.
Meanwhile, despite this year’s difficulties, China’s furniture industry still appears to be on the rise. According to officials with the China National Furniture Assn., which celebrated its 20th anniversary in September, China furniture industry exports rose 28% during the first half of 2008.
That’s in spite of a recent 10%-15% increase in raw materials costs, said association president Jia Qingwen at a meeting with trade press during the Shanghai show.
“Because of the situation, some companies are bankrupt or have stopped production,” he told reporters. “But many still have healthy production.”
The U.S. remains a top export market, but even when it falters, there is still plenty of business from countries like Germany, France, England, Holland, Spain and Japan, not to mention wealthy Middle Eastern markets such as Dubai.
“Despite the increases in labor and raw materials, the Chinese furniture industry is very strong in competitiveness and quality,” added Wang Mingliang, founder of the annual China International Furniture Expo in Shanghai. “The value is there.”
More importantly, the demand from the domestic market in China remains strong and appears to be getting stronger. Furniture imports to China rose 33% during the first half of 2008, according to a statement citing the results of the Shanghai show.
“Within a few years, China will become the fastest growing consumer market in the world for furniture,” the report said. “With more than 10 million new wealthy people living in China, it is further expected that up-market (higher-end) furniture sales will continue to show strong market growth.”
“The middle class people (in China) have had nothing, but now all of a sudden, they have a lot,” noted one U.S. observer who attended the Shanghai show.
This is further evidenced by all the cars on the roads and the expensive new houses going up in and around Shanghai. The message is clear: While the U.S. economy is in a state of upheaval, the Chinese economy remains strong.
In the Chinese furniture industry, the weak companies may be getting weeded out, but the strong ones are getting stronger by taking advantage of the boom. Hence, for those of us who continue to visit furniture shows in China, we’ll likely continue to witness such grand scale gala events for some time to come.
Did you attend any of the China shows this year? If you did — or even if you just watched them from afar — we’d like to hear your comments.
chinesefurniture commented:
Royal's Antique Furniture
--- occupy 500m2 square meter warehouse, focusing Chinese antique furniture, Make to Order furnitures, 1930 Shanghai Art Deco Furniture
--- run business Chinese antique furniture business 15 years in Shanghai, export 60 countries and regions, fluent in English. Of course, in Chinese
--- Free Delivery within Shanghai, or Pick up Freely by clients.
--- 40 minutes driving time from downtown Shanghai, close by Hongqiao Airport. Send SMS to 13901685220 for the directions.
--- export personal belongings for abroad residents lived in Shanghai
Mobile Phone :13901685220
Opening Time: 24 hours all day all time if appointment firstly
Address : NO.4849 Beiqing Road,QingPu Regision Shanghai China
（BY APPOINTMENT ONLY. Please send SMS for the directions how to get here)
EMAIL: Shanghaifurniture@hotmail.com
ATTN: Mr. Royal Hsu
Rebecca commented:
Maybe some of your reader need to relize you just report the news not make it.
firnicologest commented:
cameroon your a bafoon,stuff your wood .as for china, we have ourselves to blame only ...walmart ikea and big box stores are the devil....we are selling junk from asia and china sells the most crap ,borax to those old enuf to remember .the biz we all love is dead due to chinese quality and american low end no bottom pricing taste....forbidden city is the devil and hed of class...they have set back our industry 50 years by themselves ......
furnicologist commented:
yes ,3f and guanzhou shows were slower and less usa and euro people in att.
the slow shows and usa financial mkt is taking its toll,the china domestic needs will show the importer the door soon internal needs will claim all sales for china s future forget importing sell into their mkt for growth.
John Kevin commented:
Greetings to everyone,
My names are John Kevin,i,m a 30years old man from Cameroon.I,ve got a container fiiled with Mahogany Timber,Iroko Timber and bobingah Timber, the timbers are already been seasoned in a kiln.This container is presently in Douala sea port.I,m selling the container filled with timber at a very cheap price, the amount is 2000US Dollars.I,m ready to export it to any person who is interested to buy.If you are interested,you contact me through this e mail address: john.kevin98@yahoo.ca
Uncle Sam commented:
Commie Red Chinese Furniture Companies And American Companies Who Support Them Can Stick That Junk Up Thier Commie Loving Asses....Just thought I'd sum up the point of view of former American Woodworkers.
Uncle Sam commented:
Commie Red Chinese Furniture Companies And American Companies Who Support Them Can Stick That Junk Up Thier Commie Loving Asses....Just thought I'd sum up the point of view of former American Woodworkers.
ACF China commented:
Tom - I don't mean to attack you or your opinions in any way personally but your article seems way off from the reality here on the ground in China. While I can appreciate your impressions from this years Shanghai show, these are all very surface level observations and as anyone who is doing business in China will tell you - things rarely are as the appear here.
One of the hardest hit of all industries here in China has been furniture - particularly for furniture exporters, raw material sellers and anyone else attached to that industry.
If you want to see whats going on here on the ground in China, have a look at this Chinese furniture forum (use a translator like google if you do not read Chinese).
home.focus.cn/decorstuff/jiaju.php
You may also want to have a read at our furniture industry blog at www.acf-china.com/blog/
kenny commented:
Under lower demanding of USA market, My company mainly export our furniture to USA, Though, our orders didn't discline from Last years. Because we keep our eyes on developing new customers. And due to smaller companier can't easily survive in the situation, the it probably benifit to middle or large furniture comapny to take advance of the time. So at present, China also wiill keep normal development in furniture market.
WholesaleInteriors commented:
After buying from China for 6 years and going to tradeshows every year, my best advice would be "don't believe their numbers." We work with some of the largest manufacturers in China and the "exports are up" story is not the same as the one they are giving. On top of it, compared to previous years, the traffic does seem slower. I remember the first year my business partner went, they didn't even have enough lunch available for everyone attending the show. Now a days, you can walk away from a lunch booth well fed.
ctanner@wholesale-interiors.com
www.wholesale-interiors.com
