Question

Chinese furniture industry do the national or international market analysis of trading of the industry .
Write a report (not less than 3000 words) about importing and exporting of the chinese furniture industry. please write the answer completely write all the information and date for your answer  

Answer 1

THE EXCLUSIVITY OF THE CHINESE FURNITURE MARKET:

Furniture in the Chinese market is different. You can even find household items that do not use any nails or glue. Traditional Chinese makers believe that nails and glue shorten the life of furniture because nail polishes and glue can be comfortable. They designed the furniture in such a way that all the components fit together to eliminate the use of screws, glue, and nails. This type of furniture can live for hundreds of years if it is made of high quality wood. You should try these types in order to truly test the engineering thinking of Chinese furniture makers. You will be amazed at how they connect different parts without leaving a connecting mark. It seems that only one piece of wood is used.

Exports from China increased by 9.5 percent annually to USD 235.3 billion by August 2020, in addition to the 7.1 percent growth forecast and after a 7.2 percent increase last month.

This marked the third straight month of rising maritime trade and the fastest rate since March 2019, amid growing progress in global demand as more countries remove the coronavirus-led borders.

China's exports have been boosted by record shipments of medical supplies and demand for electronic products. Sales of refined products increased by 33.1 from the previous month while those of refined aluminum and products increased by 6.87 percent.

In contrast, shipments fell to iron (-0.62 percent), rare earth (44 percent) and grains (-36.77 percent). Exports to the United States increased by 20 percent to USD 44.8 billion while those to the European Union declined 20.1 percent to USD 35.7 billion.

In China, as living conditions continue to improve, people are more willing to invest in home decor. The growing purchasing power of people has driven the furniture market to develop rapidly. From 2010 to 2013, retail sales of retailers and retailers exceeded a certain level in the industry (Profit over RMB20 million / year) grew by an annual average of 41%. In 2013, growth decreased slightly to 21%, with sales figures reaching Rmb195.75 billion.

China is the world's largest producer and supplier of furniture, exporting furniture and accessories worth 52 billion USD in 2013. The US is still the largest importer of Chinese furniture, accounting for about 25% of China's total exports. Malaysia, Japan, GB and Germany took the following positions.

Over the past decade, China has seen steady growth in imports. By the end of 2009, the global financial crisis led to a sharp decline in world trade and economic activity. However, there seems to be no influence on the Chinese furniture import market.

Although imported prices have been reduced to Zero for goods below HT 9401-9403, imports eventually rise sharply in recent years instead of tightening, total import prices are still reduced compared to exports, the reasons may be:

- Imported furniture products especially medium and special furniture that has three or more prices compared to those of home furniture. Those foreign furniture companies, which want to enter the Chinese market, must provide good products that satisfy local customers, and have a fair price. Current prices of the furniture industry in China limit the high import niche in a very small market. An effective strategy at this stage cannot ignore the price factor, so it means producing in China at a local cost. In projects, purchase decisions are strongly influenced by price

- China's large production capacity can meet many domestic needs. Currently, there are more than 50,000 furniture manufacturers operating in the Chinese market, among them about 4,500 manufacturers working in scale production, which means that their annual turnover is more than RMB20 million.

-Following the development of manufacturing and design skills, many Chinese manufacturers can offer different styles of furniture with good quality and cheap price compared to importers.

- The export capabilities of many Chinese businesses have also resulted in moderate imported furniture not competing with Chinese-made home furniture. Currently, most imported furniture still focuses on China's top market, which is a niche market.

-The imported furniture market is limited to major Chinese cities, such as Beijing, Shanghai, Shenzhen, Guangzhou, Hangzhou and other coastal cities, its economy is highly developed, and its buyers easily accept western style furniture.

- After the implementation of strong EU and economic needs declining in Europe and North America, many Chinese manufacturers exported and relocated part of their business to the domestic market, which also took part of the market initially imported furniture.

- Correct copy is not well protected in China, especially in the furniture sector, making it difficult for imported furniture to be exported to China.

- In the Chinese market, there are many Chinese manufacturers who produce imported raw materials and foreign manufacturers, which occupy a very large share of the high market.

MARKETING CHANNELS, STRATEGY AND DISTRIBUTION PLAN:

Channel 1: Participating in major exhibitions in China in major cities, such as Beijing, Shanghai, Guangzhou and Shenzhen. This is a great way to meet and communicate with other peers, and promote your products in the market. The organization of standard furniture shows also plays an important role in promoting the industry. This reflects the highest quality furniture from other countries to meet the needs of those who desire imported furniture.

Channel 2: Setting up your stores in China. However, it requires a huge investment, which can be considered after you have a stable and loyal customer. A popular example is IKEA.

Channel 3: Partnering with local Chinese companies or finding distributors in China. Due to the growing demand for furniture / imports in China, many Chinese companies love the industry and are willing to cooperate with foreign companies. Chinese companies can use their channels and connections to help you enter the market. This is also the most widely used sales channel.

MARKETING STRATEGY:

-Since the intended clients of imported furniture are different from the standard furniture, the promotion strategy should be different from that of standard furniture. At the moment, it is hard to find any high-end furniture promotion in TV commercials or in newspapers. Leaders of key ideas are furniture / design magazines and interior design experts. Design Magazines are a great source of information for the general public, and interior design firms are not important to those independent clients who are committed to seeking high quality products. Their influence may be limited to styles, but sometimes they go to extremes individual brands. Lastly, the manufacturer's information (usually distributors') also affects potential customers

- As the market for high-end furniture is small, promotions are highly dependent on oral communication between high-end customers, which requires the seller to establish excellent and comprehensive social connections, which means you have to hire high-quality retailers, who can communicate with your targeted customers and become accustomed to western culture.

-In addition, partnering with high-end home developers is very helpful, as local clients who are also potential customers of the latest furniture.

IMPORT RULES

-The Origin Certificate is required to provide an import request.

-It needs to prove that the furniture is handled / softened, if the imported furniture is made of solid wood.

- Imported furniture requires compliance with National Standard GB3324-2008, if it is made of solid wood.

- Formaldehyde extraction or other hazardous chemical release is required to be tested upon import. The national rate of Formaldehyde release limit for wood-based panels is GB 18580: 2001.

CONCLUSION:

In China, the total amount of furniture imported into the Chinese market has grown steadily in recent years despite the global financial crisis.

Invoices, high retail costs and inflationary costs will still be at stake with imported furniture.

It is important that Flemish businesses take full advantage of their comparative profits and reduce their inequalities.

And they need to balance the niche growth in the market with effective strategies.

For the imported furniture retailer, they still have to continue to focus on the high quality furniture market with their unique quality, design and environmental concept.

For Flemish furniture manufacturers, they may consider setting up their own factories in China or working as a supplier. This will help them cope with the challenge and risks facing the Chinese market.

In recent years, the Chinese furniture industry has developed rapidly and integrated into the relevant industries. Production output, technology level, goal setting function, industry scale, and market distribution have been completely improved.

The scale of the furniture industry continues to grow, and the industrial complex and regional features of the furniture have been slowly building up. The level of the industry is fast, and the materials show a tendency for diversity. As the level of technology progressed, the market grew rapidly and formed a sales model for special Chinese furniture.

Of course, in this province, the Chinese furniture industry is still facing new challenges, namely, changes from the low-cost competition for the production of scientific and technological content and additional value; from simple product to product and service; and from mass production to custom-made custom designs.

Recently, with the decline in the performance of traditional furniture and the increase in customization of the building furniture market, many traditional furniture manufacturers are facing a decline.

Meanwhile, the custom-made custom furniture industries have emerged with the emergence of a production line, the emergence of whole-house design, and cross-border industries such as houses, furniture appliances, IT companies and furniture stores.

Therefore, to achieve the transition from large to strong, the Chinese furniture industry must meet the national requirements for industrial development. It must accelerate industrial restructuring, promote industrial development, adhere to the combination of science and technology and improve the industry, fair market skills assessment, enhance the development model, accelerate development, and sustainable development.

Improving business competition to achieve China's furniture industry, global trade, global consumer trade, global services, and research and development goals are needed.