Have a question? Give us a call:0086-573-88360029
The oversea markets of comtemporary furniture manufacturersin china
Author:Tangshifu Furniture| release time:2020-10-13

In recent years, overseas investment by Chinese-funded enterprises has accelerated, and Chinese furniture companies have frequently "going abroad".

Regarding the choice of Chinese furniture companies to "go global", Cinda Securities previously commented on Gujia Home Furnishings and said, "The market development of local brand companies will roughly have three stages: from regional to national and then global. Companies that can achieve globalization , There will be better performance in terms of development speed, anti-cycle ability and industry competitiveness."
Market uncertainty has intensified, and Chinese furniture companies have accelerated their overseas expansion.

For furniture made by Chinese manufacturers, consumers can read the guide for buying furniture before buying.

According to the analysis of the research report of Tianfeng Securities, the export value and import value in November increased by 5.4% and 3.0% year-on-year respectively (down 10.1 and 17.8 points from the previous month), which was lower than market expectations.

However, furniture exports have strong resilience. The export value of furniture and its parts from January to November increased by 8.1% year-on-year (from January to October 7.0% year-on-year). The report judged that due to previous trade disputes, overseas customers chose to place orders in advance. It will promote faster growth in exports of home furnishing companies in the third and fourth quarters, but it will cause an overdraft of orders in 2019.
The layout of overseas production capacity for finished home furnishings is the general trend.

The analysis found that the reasons for the overseas deployment of various companies are mainly focused on solving production capacity and opening up markets..

Tianfeng Securities commented on Mengbaihe that the company's overseas production capacity will be released intensively in 2019. Among them, the Thailand, Serbia Phase II, and US plants are expected to start production in January, April, and June, respectively. The annual production capacity of the second-phase plant in Serbia (based on the order value) is about 100 million euros, and the annual production capacity of the US plant can reach 800,000 mattresses, 200,000 thin cushions and 300,000 pillows.

After the completion of this round of fund-raising investment and construction, manufacturers’ overseas production capacity layout will be further improved, and the ability to resist trade frictions will be improved, which will help maintain stable supply capabilities in the environment of trade wars. Under the influence of the trade war, the company will benefit from the increased bargaining power brought about by the increase in industry concentration.

Soochow Securities believes that the layout of the three companies by Markor International will pave the way for the transfer of the production capacity of Markor's brand ART in the US factory.

From the current point of view, the trend of "the strong always being strong" has become increasingly obvious. Leading companies have gained greater market share with their forward-looking strategic layout and rapid organizational response, and market concentration is expected to further increase.

It is worth noting that among the listed home furnishing companies that currently choose to "go to sea", upholstered furniture is the most obvious.

Previously, the prices of upholstered furniture raw materials TDI, sponge, etc. fluctuated significantly, but prices have declined recently. At the same time, measures for some companies to transfer production capacity overseas will not be implemented until next year.