When Fan Guojiang, general manager of Chengdu Hongxin Furniture Factory, learned a month ago that there were no booths for rent at the " Eleventh Chengdu International Furniture Fair " held in July , it was a great surprise.
More than 600 furniture companies divided up 5,500 booths, and more than half of the companies came from Guangdong, Jiangsu, Zhejiang and other major furniture manufacturing provinces. As a less well-known local furniture manufacturer, Fan Guojiang had to enter as a visitor.
In a few days, Fan Guojiang's heart was even colder. Coastal furniture companies that used to target overseas markets now collectively " turn inward " regardless of their origin or market, which is not a good thing for small and medium-sized western mainland manufacturers such as Hongxin.
Hard choices in difficult times
According to statistics from the Ministry of Industry and Information Technology, the total output value of the domestic furniture industry reached RMB 650 billion in 2009 and is expected to exceed RMB 700 billion this year. It will continue to maintain its position as the third largest traditional industry after apparel, textiles and home appliance manufacturing.
The Chengdu International Furniture Fair is co-hosted by the Chengdu Municipal Government and the Sichuan Provincial Department of Commerce and is the third largest professional furniture fair in China. According to Chen Lin, the executive vice president of the Chengdu Municipal Council for the Promotion of International Trade, 30 provinces and cities across the country came to participate in the inspection this year. There are especially many coastal furniture companies that have signed up for the exhibition. Due to the limited area of ​​the exhibition hall, the organizer refused to refuse dozens of coastal enterprises Most of the latter's application for exhibition was blocked from overseas markets, after trying to expand the domestic market in the west.
" As part of the traditional manufacturing industry, the trend of the coastal furniture industry from market layout to industrial investment ' turning inward ' is very obvious, they are stepping forward to the central and western regions. " Wang Xuemao, chairman of the Sichuan Furniture Industry Chamber of Commerce, said.
Since the second half of 2007, export-oriented coastal furniture industry felt winter struck, first in the furniture export in Guangdong province, the province's more than 6,000 furniture companies, there are more than 300 closed down, until last year the province The furniture industry ’s exports have remained negative for 11 consecutive months, and only “ turned positive †in December .
" At present, the proportion of Guangdong's furniture industry exports only accounts for about 30% of the total output value, and this proportion is still declining. " Wang Ke, executive vice president and secretary general of the Guangdong Furniture Association.
In fact, the domestic furniture manufacturing industry achieved the best profit results in history in 2009 , but unlike before, the profits of enterprises have relied more on the domestic market.
The export market is declining, but the labor cost of the coastal furniture industry is rising. Taking Guangdong as an example, the monthly salary of employees in the furniture industry has been raised from the original 1600 yuan to more than 2,000 yuan, and the technicians have doubled from 4,000 yuan to 8,000 yuan. Hong Jianyong, general manager of Zhaosheng Furniture, a well-known furniture company in Guangdong, said that after the implementation of the "Labor Contract Law", the factory pays workers pension, medical insurance and other expenses, at least several hundred thousand yuan more each year.
The dispute over the exchange rate of the RMB also makes the export-oriented furniture enterprises panic. According to estimates by the Zhejiang Furniture Industry Association, for every percentage point increase in the exchange rate of RMB against the US dollar, the province ’s furniture industry will lose RMB 350 million in profit for the whole year.
The coastal furniture manufacturing industry must make difficult choices: like the dilemma faced by other traditional processing and manufacturing industries, companies that are accustomed to exporting will be very uncomfortable doing domestic sales, and marketing channels and corporate brands will have to start from scratch, but the same is obvious Not good again.
Peace and War between East and West
The traditional domestic furniture market has always been a three-pointer, and each sphere of influence is distinct: Guangdong and Jiangsu and Zhejiang have always occupied the overseas and domestic high-end product markets. The third-ranked Sichuan furniture industry is committed to cultivating domestic second- and third-tier cities, or even The county and town primary market has a market share of not less than 70%, and their market share in the high-end furniture market is only about 10%.
Over the years, the direct competition between the two major furniture bases in Sichuan and the coast is not obvious, but the collective " inward transfer " of the coastal furniture industry will inevitably lead to head-on confrontation between the two sides.
Sichuan Yi Ba furniture industry as a top five priority industries to be actively support, as early as 2006, "Chengdu furniture industry cluster development plan" introduced, then is investing more than 100 billion yuan. In the "Chengdu Industrial Function Zone Planning" released in January this year, it further proposed the goal of creating a 100 billion industrial cluster for the furniture industry.
The ambitious Sichuan furniture industry not only wants to consolidate the traditional advantage market, but also wants to further penetrate the domestic high-end furniture market. Rong Yuwei, executive vice president and secretary general of the Sichuan Furniture Import and Export Chamber of Commerce, said that in March this year, the chamber of commerce has signed a strategic alliance agreement with the famous domestic furniture hypermarket Red Star Macalline, and more than 20 outstanding furniture companies in Sichuan will enter The latter's first-line stores.
Wang Xihua, executive vice president of furniture of Guangdong Dynasty, admitted that if the coastal furniture industry is going west, it will inevitably penetrate the second and third tier markets in the Midwest that were not previously concerned. Their company currently exports only 10% of its products, and the rest are all domestic sales. Infiltration is inevitable.
At the end of June this year, the Shenzhen Furniture Association organized a group of well-known enterprises to go to Sichuan, Hubei and other places to conduct investment inspections. Song Qiqing, president of the Xingli Furniture Group, was one of the members of the inspection team.
Song Qiqing said that after the financial crisis in 2008 , the company's domestic sales ratio was as high as 65% , and it is imminent to invest in the construction of production lines in the Midwest. After investigation and comparison, Xingli Group [1.06 0.00%] decided to build mattresses, sofas and other soft furniture production bases in Chengdu and Wuhan, because in the domestic market, the transportation cost of a large mattress is close to 1% of the total cost. / 6 , the cost of a single piece of transportation from Shenzhen to Chengdu is close to 400 yuan.
The wave of the westward shift of the third largest traditional industry has increased the pressure on Sichuan ’s furniture companies, but it has delighted investment officials in central and western cities such as Chengdu, Wuhan, Chongqing, and Kunming. Recently, they have launched targeted investment promotion programs. For example, Wuhan launched the concept of " Chinese Furniture CBD" , and Chengdu, which has always been committed to the transfer of coastal furniture industry, has slogan " Global Furniture and Building Materials CBD" .
Tu Xianfeng, deputy director of the Furniture Industry Bureau of Xindu District, Chengdu, said that this year he has received many inspections and consultations from a group of coastal furniture manufacturers. This area is one of the main furniture production bases in Chengdu. In its furniture industrial park, there are already ten foreign investment projects including Zhejiang Yashilin, Dezhongrun, and Jusen under construction.
Hou Kepeng, secretary general of the Shenzhen Family Association, believes that keeping the design on the coast and shifting production links and sales to the cheaper Midwest region is a viable model for the transformation and upgrading of coastal furniture manufacturing.
" Whether you want it or not, a new round of large-scale furniture industry gathering will happen in the central and western parts of China. " Hou Kepeng said.
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