Chinese furniture industry is a typical export-oriented industry; and wood furniture producers dominated by OEM and ODM production patterns are mainly distributed in Guangdong, Jiangsu, Zhejiang and Fujian etc.
Chinese wood furniture has seen continuously sluggish export market since the financial crisis in 2008, forcing many producers to shift their business centers from overseas market to domestic market. In 2011, export volume of China’s wood furniture registered 201.6 million pieces, down 0.99% year-on-year. Two policies (‘EU Regulations on Timber & Wood Products’ and ‘New Ecodesign Directives’) were formally passed in March of 2012, aiming at restricting export of Chinese wood furniture; and therefore the export of Chinese wood furniture will face higher barriers for environmental protection.
With stronger regional cluster characteristics, Chinese wood furniture industry has developed into five major wood furniture industry areas in Pearl River Delta, Yangtze River Delta, Bohai Rim, the Northeast and the West respectively. Among them, wood furniture in Pearl River Delta and Yangtze River Delta is mainly exported to foreign countries, and most of wood furniture in Bohai Rim is supplied to domestic market.
Owing to seriously tight supply of timber in China, Chinese wood furniture industry features higher import independence in the supply of raw materials such as logs and sawn timber etc. Russia, Southeast Asia, Africa and South America etc. are the major timber import source countries.
Chinese wood furniture industry characterizes a large number of producers and relatively scattered production capacity. At present, over 20 enterprises including Markor Furniture, Suofeiya Furniture, Huafeng Furniture and Royal Furniture etc. enjoy stronger competitive edges in the market.
As one of the largest furniture exporters in China, Markor Furniture International Co., Ltd. has owned its own furniture brand ‘Markor Furniture’ in Chinese market. It has opened nearly 70 chain stores in more than ten medium-sized and large cities. The company is currently focusing on expanding domestic market. it is scheduled to open 30 to 35 new chain stores in 2012.
Suofeiya Furniture is the largest producer of customized wardrobe in China, holding a domestic market share of over 6%. Production capacity of the company’s customized wardrobe reached 3.9 million square meters in 2010.
As the first brand in Chinese furniture industry, Huafeng Furniture has become China’s largest solid wood furniture producer in China relying on abundant forest resources in the Northeast China and Russia, with annual production capacity of 10 million pieces.
As one of panel furniture producers with the highest output and sales volume in China, Royal Furniture mainly produces high-end civil furniture products. The company has an influential marketing network at home. In addition to 100-plus regular chain stores in major medium and large cities of China, Royal brand stores authorized by Royal Furniture have numbered 3,000.
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