Over the past 20 years of reform and opening up, China's furniture industry has developed rapidly. But the export of Chinese furniture companies basically survives on the world market by virtue of product cost advantages. With the development of the world economy and the continuous adjustment of domestic and foreign economic policies, the international competitive cost advantages of furniture products have gradually decreased in recent years, which has doubled the operating pressure of Chinese furniture export enterprises. "Export is becoming more and more difficult to do" has become a mantra hung on the mouth of many furniture export companies.
At the same time, the domestic GDP has been growing steadily for many years, the market demand continues to expand, and the level of consumption continues to increase, allowing export companies to see the richness of domestic cakes. Under the influence of uninterrupted “anti-dumpingâ€, restrictions on exports and appreciation of the RMB, especially under the pressure of the slowdown of the US economy, the decline in personal consumption in Europe and the United States, and the contraction of market capacity, Chinese furniture companies have encountered more and more foreign sales The more obstacles. Therefore, more and more export enterprises have set their sights on the long-term development and turned their attention from foreign countries to domestic ones.
Who moved the cheese of furniture export enterprises
Haier Group Zhang Ruimin once said: "Do not do domestic instability, do not do abroad is not strong."
At present, most furniture companies facing export to domestic sales have apparently large production capacity, strong production capacity, high supply chain integration management efficiency, long-term stable customer sources, high standardization of operation, and advanced production management. However, in fact, these The so-called core advantage of the enterprise is the low price, and it has won a place in the international market with high-quality and high-priced products.
The high quality and high price result from the low domestic labor force and the excessive consumption of resources. With the adjustment of rural policies by the state, restrictions on resource-based enterprises and the improvement of the overall living standard of the country, this "core advantage" of furniture export enterprises no longer exists. In particular, with the acceleration of the international integration competition pattern, the export environment has deteriorated and profits have become thinner, making the export of sweet and sour meat more and more into a "chicken rib". Most export enterprises are facing great difficulties and pressure. It comes down to the following factors:
RMB appreciation
In July 2005, China implemented exchange rate reform. The RMB exchange rate is no longer pegged to a single US dollar, but is based on market supply and demand, adjusted with reference to a basket of currencies, and implemented a floating exchange rate system. Since the exchange rate reform, the appreciation of the renminbi has not only affected the price of Chinese furniture in the international market, but also made all export enterprises feel the blow, which has brought great pressure to foreign furniture companies.
Export tax rebate rate decreased
In recent years, the state has optimized the industrial structure, promoted the transformation of foreign trade growth mode, and promoted the balanced development of import and export trade. The macro-control policies have been continuously strengthened, and the export tax rebate rate has been structurally adjusted several times. Since many enterprises regard export tax rebates as their main profit component, this undoubtedly increases the export cost of enterprises. On July 1, 2007, the Ministry of Finance once again issued a new export tax rebate policy, lowering the export tax rebate rate for furniture products by two points to 9%, forcing furniture export companies to look for new profit points.
Rising raw material prices
In recent years, the prices of the main raw materials of furniture products have risen sharply. The prices of wood and oil have risen since 2004, which has caused the raw materials of furniture production to rise sharply, which has caused the cost of exported products to rise. The sales price of exported furniture cannot be increased proportionally , So that the cost of enterprises is getting higher and the profits are getting thinner, and the export cost advantages of some other countries in the world have increased. For example, Vietnam and other countries in South Asia and Southeast Asia have increased cost competitiveness in the international market competition. The advantages are obvious. The furniture export of enterprises has a certain impact, which has increased the survival pressure of furniture export enterprises.
Resistance to trade barriers and anti-dumping
In recent years, many countries such as the United States have conducted anti-dumping of Chinese panel furniture. Furniture manufacturers in EU countries such as Germany and Italy have also submitted anti-dumping complaints against Chinese upholstered sofas and seats to the European Commission. Due to the trade deficit, many The country resisted imports directly or by raising high-quality standards, which pushed China's furniture to the top of international trade again and again.
National restrictions on resource-based enterprises
The Ministry of Commerce, the General Administration of Customs, the State Environmental Protection Administration and other seven ministries and commissions jointly issued the "Catalogue of Prohibited Commodities for Processing Trade", which lists plates and furniture made from domestic wood as raw materials, which are prohibited from export. With the rapid growth of China's furniture exports, proper control of export growth and industrial upgrading is a long-term plan to maintain the sustained and healthy development of furniture exports. Although restricting and adjusting certain products is beneficial to the long-term development of the industry ’s exports, the implementation of these policies that inhibit the export of wood products, coupled with the gradual ban on government loans, tax rebates, customs duties, and land preferential policies in the furniture industry, allow furniture exports Enterprises feel the pressure of survival.
The United States shows signs of economic recession
"U.S. consumers sneeze, and China will quickly catch a cold." This phrase sounds like a joke, but it is indeed a true portrayal of the Chinese economy.
With the bursting of the housing bubble in the US, the US is now showing signs of economic recession, and the purchasing power of US consumers is beginning to be unsustainable. According to Morgan Stanley's professional research report, for every 1% of the US GDP growth rate declines, China's GDP growth will decline by 6.5%. As the furniture industry that is most dependent on US exports, the downward trend will be more serious. The signs of recession in the United States have made furniture companies exporting to the United States face the severe situation of a sharp decline in business.
The above-mentioned negative factors for export are like a fork and spoon, which eats the cheese of the exporting enterprise. So in the face of many factors that are not conducive to export, many furniture export companies look back at the domestic market.
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