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The impact of the epidemic on furniture industry chain(2)

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This paper analyzes the demand end, import and export end, and production end of the furniture manufacturing industry, and expounds on the impact of this epidemic on the furniture industry chain.

This paper analyzes the demand end, import and export end, and production end of the furniture manufacturing industry, and expounds on the impact of this epidemic on the furniture industry chain.

[ demand-side ] downriver market short-term serious decline in furniture demand

1. the real estate market short-term serious decline in furniture demand

The economic impact of the outbreak has been to curb real estate sales, which have affected furniture demand. Since 2020, the average daily sales of first-hand homes in 36 cities have dropped 38 percent year-on-year, including a 75 percent year-on-year decline in February and a 35 percent drop in March.

Second-hand housing, transaction decline is also more serious, 19 cities across the country, data show that the beginning of the year to date average turnover fell 27% year-on-year, including a 66% decline in February.

Obviously, this epidemic will have a serious impact on the first quarter of commercial housing sales, thus directly impacting the furniture industry.

2. Store openings and crowd restrictions affect furniture sales

Although the development of e-commerce in recent years, but the main sales channels are still offline, including furniture specialized markets, furniture building materials shopping malls, direct-selling stores. Some large furniture enterprises have thousands of offline stores, for example, the number of European-style Home stores is about 7000, Quan you home store more than 3000, Xilin store about 2300.

The prevention and control of the epidemic directly led to the related stores in the spring festival holiday can not open normally, after the festival store delay, staff mobility, furniture retail caused a huge impact.

As things stand, even if the retail end is open and working normally, consumers will reduce their behavior to stores before the outbreak is completely eliminated, which will have a significant impact on retail sales in the first quarter and even the first half of the year.

3. the exhibition extension, the impact of the first half of the furniture business orders

Affected by the epidemic, the original plan to hold after the spring festival of large-scale domestic furniture exhibition has been postponed. For example, the Shenzhen International Furniture Fair has been postponed to June, and the China (Guangzhou) international furniture fair has been postponed until further notice.

Extension of the exhibition directly affects the furniture business orders, from the extension date, at least half of the impact of the exhibition orders.

[ import and export ] exports fell 22.8% in January-February from a year earlier and will remain under pressure in the first half of the year

China is a large country of furniture production and export, and export is an important source of income for a considerable number of furniture enterprises. In 2019, the country exported US $54.226 billion in furniture and spare parts, of which the US $8.225 billion was exported in January-February, accounting for 15.17 percent of the year, according to customs data.

This year affected by the epidemic, furniture and spare parts exports in January-February US $6.349 billion, down 22.8% from the same period last year, the impact is very obvious. The recent outbreak continues to spread overseas, furniture exports may continue in the first half of the year under pressure.

[ production end ] furniture manufacturing enterprises to resume work in an orderly manner, limited impact on production

1. The furniture output in Hubei province is small and the effect of a work stoppage is limited.

From the 2018 furniture production point of view, the furniture production in Hubei only accounted for 0.61% of the national proportion. Therefore, it is difficult for the enterprises in Hubei to resume their work, which has a limited impact on the national furniture output.

2. The furniture manufacturing enterprise returns to work in an orderly way, the influence is relatively small.

Most furniture manufacturing enterprises have been back to work in an orderly manner since mid-February, and started normal production and operation in early March, with short downtime and limited impact. At the same time, the first quarter is usually a slow season for sales, with limited impact throughout the year.

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