Three Aspects of the Redwood Furniture Industry in 2012

The ups and downs of the 2011 mahogany furniture market can be described as ups and downs. Since the beginning of last year, the cost has increased, the number of entrants has increased, and the regulation of the property market has tightened in the middle of the year. The Da Vinci furniture incident, and many speculators have withdrawn from the industry by the end of the year. From the voice of the veteran mahogany practitioners, it can be seen that mahogany furniture has become an investment product and has been labeled as an investment, collection, and practical label. In the uncertain market factors of 2011, it is like a triangle love, moving in the clouds. .

In 2012, China's macroeconomic situation will undergo major changes, and the mahogany furniture market will also be affected. When the author interviewed Nantong local mahogany enterprises, most of them thought that the overall market strategy in 2012 would be a “stable” word. Whether it is to emphasize the "stable progress" of economic growth or the "stable and win-win" of enterprises, it is inseparable from the grasp of the overall economic development strategy. As a real economy, the mahogany furniture industry may have three points of view.

Weakening the pursuit of quantity

In 2012, China's mahogany furniture industry will weaken its pursuit of quantity. When I interviewed Ziwei Redwood, I learned that due to the rising cost of raw materials and labor, the company has invested heavily in design funds and developed new craftsmen this year. For the already mature market, it will take a route with less quality. This will not only avoid the positive vicious competition with many small workshops, but also help to establish the brand image of the company in the market. Some industry insiders believe that mass production is normal in the situation that the rosewood market continues to grow due to increased demand, but more importantly, most consumers, including investors, share the historical development of the mahogany furniture industry. .

In the face of uncertainties in the global economy, from the flock of funds to the continuation of withdrawal, the 2011 system risk of the mahogany industry is not small. In the second half of 2011, despite the greater global economic uncertainty, China's economic downside risks are not small, but some companies have weakened their pursuit of quantity based on the situation; industry organizations have also called for the return to the artistic value of mahogany. The author believes that this will be a focus of the strategic transformation of the development of China's redwood industry in 2012 and in the future.

Reduce dependence on real estate

With the “de-realization” of the Chinese economy, the development of the Chinese redwood industry in 2012 will reduce dependence on real estate. The so-called "de-real estate", first, the firmness of the government's real estate macro-control policy and the clarity of the goal, is to let the domestic real estate prices return to a reasonable level; the second is that the government will introduce a series of policies to remove the real estate money-making effect To make a fundamental change in the nature of the housing market; the third is to highlight the foundation of the development of the real economy.

When the author interviewed the store, some dealers said that the mahogany industry was not affected by real estate, but it was not as big as it was supposed to be. In areas such as Nantong, which have traditional craftsmanship, the use of mahogany furniture is a popular pursuit of the people. The function of redwood furniture itself to preserve value makes more people willing to invest. In 2012, the real estate market will remain uncontrolled and will allow some of the funds to flow to the investment market of mahogany furniture.

Get rid of the financial difficulties

In 2012, the transformation of China's redwood enterprises may be characterized by a certain degree of getting rid of the financial difficulties. At the annual meeting of the Nantong Home Furnishing Industry in May 2011, the mahogany enterprises, which accounted for 80% of the total membership, collectively expressed their difficulties – it is difficult to get rid of the financial difficulties. The capital chain is the bottleneck of the real economy. In 2012, this situation is expected to improve.

Since 2003, China's economic policy has conflated the real economy with the virtual economy (or financial economy), thinking that only when GDP goes up, China's economy will grow rapidly. This kind of economic growth is mainly based on the excessive expansion of various credits. It can be said that the "currency dependence" of the Chinese economy in the past 10 years is very serious, and the relationship between the total amount of China's money and the total volume of the real economy has been seriously distorted. In 2012, the focus of China's monetary policy will tend to the real economy, which is no longer pushing up assets and GDP performance. This is a good news for the development of the traditional mahogany furniture industry.

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