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Rising raw materials and rents inhibit production capacity
Industry insiders of the Provincial Furniture Association said that the reason for the low-speed growth pattern in the first half of the year was mainly due to four points: First, the production costs of enterprises increased significantly. The prices of raw materials including steel, paint, leather, cloth, imported wood and domestic wood-based panels have risen, and corporate profits have shrunk. Secondly, energy shortages have caused the phenomenon of “opening, stopping, and stopping†in major furniture producing areas like Shunde and Dongguan. Third, new The implementation of the labor law has increased the total cost of human resources of the company by 20% to 30%, accounting for 2% to 3% of the total sales value of the company's products; fourth, the price of the product is adjusted by the company by reducing discounts or new products Product prices have increased by an average of 5% to 10%.
According to Mai Junmian, director of the Economic and Trade Commission of Lecong Town, in the first half of this year, Shunde Lecong started a double transition period from a furniture company, focusing on domestic sales, and its export efforts have achieved remarkable results. One hundred million U.S. dollars.
According to Yuan Shihao, chairman of the Dongguan Furniture Association, Dongguan has shifted from strong exports to reducing exports and expanding domestic sales. About 90% of Taiwan-funded enterprises have closed production capacity by about 30%, and their production in Vietnam has continued. Some Taiwan-funded enterprises Enterprises try to develop the domestic market.
According to data from the Provincial Furniture Industry Association, a total of about 300 small and medium-sized furniture companies in Guangdong Province closed down in the first half of this year. Mainly due to the reduction in production capacity of Taiwan-funded enterprises, many small and medium-sized enterprises that process parts and components for Taiwan-funded enterprises are unsustainable, followed by small enterprises with poor product quality and unlicensed production. About 70% of domestic enterprises shut down production capacity by about 30%.
At the same time, the rent of furniture shopping malls as the main sales channel is rising and rising. Under the current situation that the furniture market sales are not prosperous and the furniture market area is constantly expanding, the rents of some large and super-large furniture markets mainly based on Lecong are With continuous improvement, some have reached as high as 400 yuan to 500 yuan per square meter per month, making furniture dealers and enterprises sorrowful.
It is worth mentioning that most companies' external expansion slowed in the first half of the year. Due to many uncertainties in the industry ’s development prospects, at least the general investment in new plants and new equipment was suspended, and one-third of the projects were halved. Among them, Guangdong's Huizhou, Sanshui, Heshan, Gaoming, Nanhai and other places have begun to undertake the industrial transfer of some furniture companies in the Pearl River Delta furniture; some Guangdong companies have slowed down the transfer to the Yangtze River Delta and the Bohai Rim region.
Dual transformation enterprises should control the proportion of domestic and foreign sales
Wang Ke, executive vice chairman of the Provincial Furniture Association, said that key furniture companies in Shunde, Dongguan and other places should actively formulate strategies and pay attention to research on industry development trends. The next few years are still a period of adjustment for the furniture industry in Guangdong Province. This year's situation has accelerated this process. Enterprises will further develop towards the direction of professional division of labor. Some enterprises will grasp product design and market sales to make brands, including first-tier, second-tier and third-tier brands; Quite a few enterprises have become OEM factories of brand enterprises, specializing in the production of furniture parts and blanks. Objective and regular. In this regard, key furniture companies should reposition, determine the business law and direction of the next five years, and formulate corresponding strategies and tactics to strive for healthy and steady development in the new round of adjustments. At the same time, enterprises should actively implement transformation and grasp the proportion of exports and domestic sales. Enterprises that have long relied on exports should try to develop domestic sales. Do export-oriented, supplemented by domestic sales. Enterprises that are completely domestically sold can also try to open up some international markets so that domestic sales are the mainstay and exports are supplementary.
Speaking of the growth forecast for the second half of the year, Wang Ke said that it is expected that the overall situation of the furniture industry in Guangdong will be better than that in the first half of the year, but the difficulties are still severe. Among them, the export growth rate may fall, and the domestic sales growth rate will be larger than the first half . The total value of the year is expected to reach 184 billion yuan, an increase of about 15%.
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