Cost increases, furniture exports are very hurt, and the added value is king.

“Our timber imported from North America has risen by at least 30% this year. The prices of raw materials such as furniture sheets, paints and glues have risen by more than 50%. In addition, Maersk, the leading container shipping industry, has begun to charge the peak season for the Asia-Europe route. Every TEU (standard box) is $350." Recently, the head of a furniture company in Qingdao told reporters. Affected by rising costs such as raw materials and freight, Qingdao furniture exports are at risk of losing orders.

According to statistics from Qingdao Customs, in the first seven months of this year, Shandong Port exported furniture and its parts (hereinafter referred to as “furniture”) of US$1 billion, an increase of 14.4% over the same period last year. In January of this year, the monthly export value of furniture at Shandong Port continued its upward trend since 2011. The export value reached US$170 million in the month, which was the highest in history. After March, the monthly export value fluctuated around US$150 million, and the monthly export was 1.4. US$100 million, a year-on-year increase of 2.2% and a decrease of 5.6% from the previous month.

According to industry analysts, with the rising cost of raw materials and labor in the domestic furniture industry, domestic low-cost competitive advantages are gradually losing, while the competitive advantages of Southeast Asian countries with low labor costs and rich forest resources are prominent. The increase in transportation costs will not only eventually transfer to domestic furniture companies, but also force buyers to choose markets such as Eastern Europe and the Middle East due to shipping cost factors, thus causing domestic companies to suffer order losses.

In addition, the United States "Composite Wood Products Formaldehyde Standards Act" was officially implemented on July 1, 2012, once again reducing the amount of formaldehyde released from wood products sold and wholesale throughout the United States. In addition, the "Country of Origin Labeling Law" already passed by the European Union will also come into effect on March 3, 2013. The number of furniture exported to the EU in China accounts for more than one-third of China's global furniture exports. The introduction of this regulation will make it difficult for furniture exporters of about 30% to enter the EU market.

At present, most of the furniture products exported by China are mainly OEM, lacking independent quality standard system, original product design and competitive brand. Domestic furniture enterprises face serious “homogeneous competition”. Due to the lack of professional R&D and design talents, most domestic furniture companies can only be reflected in the modeling of furniture, lacking the inherent technological innovation, and it is difficult to improve the market competitiveness of export products. The originality of furniture design is low, lack of independent brands and independent marketing network, resulting in domestic furniture brands in a disadvantaged position in the market competition.

Experts suggest that brand strategy should be implemented to encourage enterprises to strive to improve the quality of their own branded products, develop high value-added products, increase the technological content of products, prevent excessive dependence on price advantages, enhance the core competitiveness of furniture exports, and encourage enterprises to adjust their operations. Strategy, actively explore domestic market demand, increase sales channel development, reduce export market concentration; implement diversified market strategy, actively expand emerging markets such as ASEAN, South America, Africa, etc., plan to promote the development of domestic market, and gradually reduce The European and American markets are highly dependent.

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