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There has been a new wave of price increases in the mahogany furniture market across the country. The survey found that almost all first-tier brands have raised prices. To sum up the reason, it is still the impact of the epidemic, the limited transportation in many countries, and the tight domestic log resources.

In particular, the recent epidemic has made a comeback in India and affects Southeast Asian countries. The entire Southeast Asian countries are closed, and Siamese rosewood wood is hard to find.

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With the soaring log, the end product price increased by 30% or even doubled!

Since 2020, affected by the international epidemic, the prices of some Siamese rosewood raw materials have even doubled, and the prices of consumer products have also experienced varying degrees of price increases, and the entire industry chain has suffered from price increases.

Siamese rosewood and other materials have always been imported products that our country has relied on. However, with the continuous adjustment of policies, import and export timber prices and freight costs have continued to rise, bringing great pressure to the domestic manufacturing industry. The first to bear the brunt is the domestic woodworking, furniture, and floor material companies.

Industry insiders estimate that the price of some wood products will increase by 30% or even double when they reach the consumer terminal in order to maintain the original operating profit of the company.

The number of imports has dropped sharply, and the pressure on enterprises has increased!

With the development of the industry, market demand for Siamese rosewood timber will continue to grow. Under such circumstances, Siamese rosewood home furnishing enterprises have been under considerable pressure in terms of materials.

Nearly 100% of the wood used in the Siamese rosewood furniture industry depends on imports. Currently, major foreign ports have been closed due to the epidemic; coupled with the impact of rising domestic costs, supply gaps, and environmental storms, wood prices have continued to increase since September last year. The scope is up across the board.

According to industry analysis, as far as the current global economic situation is concerned, if the inventory is exhausted, it will become more and more difficult to import wood from Vietnam, Laos, Myanmar and other places, and the cost will also become higher and higher, such as labor costs, processing costs, logistics, etc. Cost stacking...

In particular, the domestic manufacturing industry is in the status quo of "two ends, big in and big out". Among them, the production and processing links with the highest added value are also affected by the epidemic and labor cost growth.

Some other furniture companies also plan to go to Vietnam and other Southeast Asian countries to set up factories in order to improve their overseas layout, but this also adds to the test of the company's operating costs and layout.

Since May, there has been a new wave of price increases in the national Siamese rosewood furniture market

Due to the outbreak of the epidemic in Vietnam, Laos and other countries, coupled with the weak medical equipment in the country, the situation is out of control. Now more and more furniture manufacturers have consumed domestic Siamese rosewood stocks, and the return of foreign countries is indefinitely aggravating this red boom. The price of rosewood fluctuates.

The high cost of raw materials directly drives the sharp rise in production costs, which is the main reason for the increase of prices by all mahogany furniture companies.

Many people in charge of Siamese rosewood enterprises said that after a year of consumption, the stock of raw materials has been almost consumed. However, if a company wants to continue to operate, it is inevitable to purchase high-priced raw materials, superimpose the daily operating expenses of the factory and the exhibition hall, the salary expenses of the employees, and other marketing, promotion and other expenses. After careful calculation, these figures are also a heavy burden. .

At present, the recovery situation on the production side is still good, but factors such as declining orders and slow demand recovery have caused many companies' supply chains to remain under severe pressure.

In the context of the sudden drop in the passenger flow of epidemic stores, many companies have also introduced some price reductions, subsidies, and replacement preferential policies around "distributor assistance". In the long run, it is likely to cause the risk of tight capital chains to become explicit.

In this way, companies have to adopt price increases as a means to relieve pressure, that is to say, the price increase of mahogany furniture is the general trend, and it is a helpless move.

Looking at several major mahogany furniture production bases across the country, many companies have raised prices as early as May, and several companies have already raised prices for the second time this year. To a certain extent, companies that raise prices sooner reflect that they are not doing enough in preparation and that the imbalance between supply and demand can only be carried out by raising prices, otherwise the companies will soon be unable to sustain it.

With good market demand and continuous release of orders, companies need to re-purchase raw materials to complete production and make production plans for next year.

In addition, from the perspective of 10% price increase, Hongmu companies should strive to find better solutions and try to avoid transferring cost pressures to distributors and consumers. For example: product structure adjustment, marketing efficiency improvement, full coverage of new retail channels...

It needs to be pointed out that price increases are only one of the strategies for companies to respond to market fluctuations. In the face of changes in the situation, in the final analysis, Hongmu furniture companies need to be proactive, maintain a good brand image and high-quality products, keep up with the trend, keep pace with the times, embrace new models and new channels, and create more business possibilities.

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