China Home Furnishings Industry

An Expert's View about Sourcing in China

Posted on: 30 Mar 2010

China’s home furnishings suppliers are implementing a number of measures to stimulate demand as the global economic downturn continues to affect overseas shipments adversely.


In the first four months of 2009, export volume fell 9 percent to 1.1 billion pieces while value was down 8 percent to $2.5 billion year on year.


Companies are facing a gamut of challenges, primary among which is the weakening demand from US and Europe, the major overseas markets.


These areas have also imposed various standards and anti-dumping duties, further aggravating the situation.


In addition, material costs have also begun to rise after a period of relative stability.


In response, makers have beguntaking various steps intended to boostsales and ensure commercial viability.


These include increasing theattention given to alternativedestinations such as Japan, the Middle East and Russia, and improving product attributes such as appearance and capability.


Suppliers hope to see the positive effects of these measures within the next few months. In fact, all makers interviewed in this report said they plan to boost their capital expenditure in preparation for renewed interest in the home furnishings line.


The following are some of the key trends we see in the industry:

• Ssuppliers are adopting a cautious approach to the still-uncertain business climate in coming months. As such, prices at most makers were generally not increased in the past three months.

• The majority of companies that raised quotes restrained such hikes to less than 5 percent in an effort to maintain competitiveness.

• To reduce production outlay, most suppliers will be revamping their facilities for better efficiency.

• The US and the EU will still be the focus of exports from the majority of companies, as these locations are still seen to have the most long-term potential despite the current situation.

• The use of environment-friendly materials and the creation of designs meant to integrate with contemporary interior decoration styles are among the top R&D concerns of most suppliers.



The above is extracted from the Executive Summary of China Sourcing Report: Home Furnishings


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Posted: 30 March 2010

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