Depth analysis of industry status quo: furniture need to upgrade export structure

Experts predict that by 2010, China's furniture exports to reach 48 billion U.S. dollars. On the other hand, the state released a new batch of restricted processing trade catalogs, furniture. Processing trade enterprises furniture was not the actual payment of import duties on raw materials and value-added tax bonds to be paid into.

In recent years, Europe and the United States to speed up the update cycle of furniture consumption, furniture consumption growth promotion. For example, the life of the European family of kitchen and bathroom from the previous 20 years reduced to 11 years, the United States furniture faster updates, the average will be updated every 4 years, mattresses generally replaced by 1 year.

The industry that the demand for furniture in Europe and the United States to maintain growth and China's furniture manufacturers still have a greater competitiveness, the future of China's furniture exports will maintain a momentum of rapid growth. Expected by 2010, an average annual growth rate of China's furniture 30% of China's furniture exports in 2010 will reach 48 billion U.S. dollars.

Increase in export

The United States is the most important of China's furniture export country, nearly half of China's furniture exports to the United States. In addition, Europe, Japan, the Mainland of China, Hong Kong, China is the main furniture export country or region, occupied in 2005 furniture exports were 14.49%, 9.06%, 8.8%.

It is worth noting that the United States, Europe, Hong Kong's furniture exports is declining, while other countries or regions accounted for the export share of total exports of furniture in 2003 from 15.5% to 20.04% in 2005. This is mainly in Australia, South Korea, Southeast Asian countries of China's furniture imports increased.

In recent years, China's furniture exports continued to optimize the product structure, while continuing to strengthen the leading wooden furniture export status at the same time, the rapid growth of other types of furniture, especially metal furniture and furniture parts.

In 2005, China's furniture exports, accounting for 33.83% of wooden furniture, metal furniture, accounting for 14.34 percent, while including a sofa and other furniture accounted for 44.33 percent other. However, the growth rate, the 2004 and 2005, the growth rate of wooden furniture were 29.7%, 26.5%, the lowest growth rate; metal furniture for 40.9%, 42.7%; furniture parts for 43.2%, 43.8%, the highest growth rate .

At the same time, the unit price of China's furniture exports also increased significantly. 2003 to mid-2006, China's metal furniture, other furniture export price to increase 32% wooden furniture, plastic furniture, furniture parts export price to increase 22%% -25%.

Liquidity pressure

July 23, the Ministry of Commerce and General Administration of Customs announced a new batch of restricted processing trade catalogs, and August 23 will be implemented, furniture products. Processing trade, the impact of the New Deal of the furniture industry is the largest working capital. It is understood that in accordance with the current management approach, the majority of processing trade enterprises of processing trade with imported raw materials at the manual, not the actual payment of import duties and value-added tax margin, the so-called bank guarantee "idle." And the processing trade policy adjustments, to be included in the directory restricted products, it is necessary to "turn it is."

Experts said that the policy adjustments on processing trade in Zhejiang furniture will certainly affect the business. The furniture was included as a restricted processing trade products catalog, is bound to increase pressure on business cash flow, to a certain extent to improve the processing trade enterprises furniture threshold.

It is reported that the processing trade policy adjustments by the impact, not only engaged in processing trade export furniture industry, processing trade enterprises increased cost of raw materials, the linkage effects will also have to bring the domestic prices of raw materials of similar furniture.

Therefore, for the furniture industry, the most important thing is the adjustment of product structure, increase the development of high value-added products, and the expansion of exports shifted from quantity to enhance quality, reduce the trade surplus. This will also fit the national macro-adjustment policies introduced for the mind.

Industry pointed out that the furniture from the second half of last year reduced the export tax rebate rate by 2 percentage points this year from 11%% to 9%%, which was originally on the profit of the furniture industry more profitable space narrowing. Subject to the export tax rebate reduction, raw material prices, revaluation of the RMB and the foreign effects of anti-dumping, export growth during the first half of Zhejiang furniture has been down. First half of last year, Zhejiang furniture exports more than 40%%, first half of this year, growth dropped to 27%%. Decline in the economic efficiency of enterprises, even though the first half of the total sales growth of Zhejiang furniture 31%%, while profits increased by only 2.03%%.

furniture Association of China in charge of that furniture as a labor-intensive industries should not be relied on long-term price war in low-cost export processing fees earned. This will not only not conducive to industrial development, and vulnerable to foreign anti-dumping encountered.

The long run, only the export tax rebate cut and the processing trade policy adjustments a two-pronged approach is needed to benefit the balance of trade, reduce trade disputes. The processing trade policy adjustments, will help to suppress low-value-added, low technology content of exports of furniture, and guide the processing trade of high-end development to the industrial chain, promoting the furniture of the transformation and upgrading of processing trade.

Shift part of the domestic market

"From the previous margin not paid to the future import of raw materials must be paid 50%% bank guarantee, product re-exported and then returned. This means that the company will put 10 million yuan." A furniture export enterprises person responsible for analysis, although the capacity of enterprises to pay this sum of money, but the capital charge in the inside, once the money needed to secure a bank loan, when loan interest and the cost of handling a variety of procedures, or will add the cost of business .

To this end, some companies are considering new measures to reduce costs. First of all, all the raw materials to domestic procurement, such as furniture production runs, in the past was mainly imported from foreign countries to use domestic products, although there is a gap between the quality, but also the furniture will further promote the upgrading of ancillary products. In addition, with the recent rise in the cost, some companies with customers to discuss matters relating to price increases. At present, only large-scale furniture enterprise to have the ability to negotiate prices with customers, processing trade after the implementation of the New Deal, more small businesses will face closure or conversion of the crisis.

furniture manufacturing enterprises in China can be said to aim at the start of both domestic and foreign markets. Due to low barriers to entry, the domestic price war furniture to the main competition, the relative order of market competition. In this case, the strength of some large-scale enterprises, tend to require higher quality, higher margin furniture export levels.

However, with the increase of income of Chinese residents, the area to accelerate the expansion of housing construction, hotel and office building area of the expansion of furniture to enhance brand awareness, demand for furniture in China entered a new stage, the enormous potential of domestic demand. At present, China's per capita consumption of furniture less than 100 yuan, far below the world average of 200 U.S. dollars, wood floors lower level of consumption.

With the continued development of China's national economy and real estate industry peak of the arrival of the next decade, China's furniture consumption in the average compound growth rate will reach more than 10%, a number of export-oriented enterprises have started to attach importance to the construction of the domestic market .