The home furnishing industry in China has a strong competitive advantage in the industry chain around the world, so it is expected that most companies are not affected significantly.

For example, Customized furniture companies like European furniture, Sophia, Shangpin, Hao Laike , more than 96% of the business is mainly for domestic, and the export business to the United States is negligible,thus basically not affected by the increase of tariffs; Minhua Holdings, Gujia Home and Xilinmen’s exports to the US market account for a small share of the revenue, will be affected, but they are also within the controllable range.

In contrast, the drastic changes in the international trade environment have the greatest impact on the export business relying on American furniture companies.

On the other hand, China’s furniture export industry has grown stronger in the fierce global market competition. It has a sound industrial chain, cost and scale advantages, high quality and low price, and it is difficult for the United States to find alternative capacity in a short time.

An interesting example is the Shanghai Furniture Fair, which has always attached importance to exports. When Sino-US trade frictions were heating up last year, American buyers did not reduce their losses and set a new record.


What are the Chinese furniture companies that are most affected by the Sino-US trade war?

The impact on small and medium-sized foreign trade furniture factories will be immediate.

We know a furniture foreign trade factory, the export products are mainly sold to South Korea, Australia, and North America. When it comes to trade wars, the responsible person feels deeply.

“Our orders have been decreasing in the past few years. There were more than 300 people in our factory before, and now there are only more than 100 people. In the early years, when there were more orders, more than 20 containers could be exported in January, and now there are only seven in a month. Eight containers; the previous season of the order is long, and the long-term cooperation is a long-term cooperation. Now it is the shortening of the order season, and it is mainly short-term. Recently, due to the impact of the trade war, we have not many US Market orders have lost at least 30%.”


How should Chinese furniture companies deal with Sino-US trade wars?

In addition to dispersing some of the production in Southeast Asia, the Chinese company should also be dispersed at the other end, the market. Can not focus too much on a single market, the world is so big, why must we specialize in the US market?

Companies specializing in the US market must pay attention to the fact that Americans’ tariffs on Chinese products today are from 10% to 25%; anti-dumping against solid wood bedrooms more than a decade ago, today’s anti-dumping against cabinets, bathroom cabinets and mattresses may be tomorrow Will be sofas, dining tables and chairs… anti-dumping. Therefore, Chinese manufacturers must decentralize production at the back end and diversify the market at the front end. Although it is very tired, it is an inevitable trend.


Post time: May-23-2019