The General Administration of Customs of China has decided that the tax rate for solid wood furniture, leather furniture, rattan furniture and other furniture will be adjusted from 0% to 10% from April 15. Shenzhen is an important city for the design and production of the furniture industry. The reporter learned from interviews with related companies yesterday that Shenzhen enterprises welcomed this policy and paid more attention to the innovation ability of the company itself.
Imported brand cost pressure increases
Shenzhen Lufu bedding is the domestic agent of German high-end bedding manufacturer RUF-BETT. The company's president, Kong Jian, said in an interview: “The tariff adjustment is 10%, and the impact on imported brands is huge.â€
The relevant person in charge of the Shenzhen Furniture Industry Association also said that 10% of the tariffs have nowhere to hide for imported brands, and the cost pressure will certainly increase.
If tariffs increase and costs rise, does it mean that imported brand furniture will also increase in price? An import furniture agent who asked not to be named believes that "at least 10%."
He also said that many imported furniture brands have been "fine-tuned" in the second half of last year, with an increase of around 5%, mainly due to the growth of raw materials, labor, transportation and other costs. Yu Xianglin, general manager of Shenzhen Meilunbaojiayi Co., Ltd., believes that for some imported brands whose prices are already too expensive, there may be no price increase in a short period of time.
“Following the tariff increase of 10%, and then the cost of foreign manufacturers rose by 5%. If it is not a special big brand or a particularly creative product, I would rather choose domestic brand furniture.†Consumer Mr. Lin heard about the price of imported furniture in 2012. It is possible to tell reporters after the increase.
However, some consumers believe that as long as the merchants raise prices reasonably, they are still willing to choose imported furniture. "Especially after the 'Da Vinci Incident', as a consumer, I consider brand quality more than price." Ms. Li said.
Small furniture factory is experiencing "cold winter"
Can we increase the import tariffs on imported furniture and leave more room for development for domestic furniture companies?
It is understood that the domestic furniture industry is highly competitive and has low profits. Especially in recent years, domestic brand furniture has shown a situation of polarization. The price of big brands has risen steadily, while small brands have been affected by factors such as continuous regulation of domestic real estate, rising raw materials, logistics, store rents, and manpower. Wilted.
According to industry insiders, in Longgang and Pingshan, a large number of small furniture manufacturers are undergoing the baptism of “market winterâ€, and some manufacturers that cannot withstand the test can only close their doors.
Domestic furniture or development opportunity
Some insiders said that if imported furniture raises prices because of higher tariffs, domestic brands can take the opportunity to adjust product mix and enhance their competitiveness.
Lu Jian, president of Lufu Bedding, told the reporter that the company also has a domestically produced brand through the introduction of German production lines and technology while acting as a German brand product. "From the actual situation of our company in recent years, compared with imported products, domestic products with similar quality but relatively cheap prices are more popular with consumers, and market share has increased year by year."
Kong Jian believes that if the price increase of imported furniture is too high, it is a test for imported brands.
However, the person in charge of Baoan Redwood Furniture Association believes that the import tariffs on imported furniture have little effect on domestic furniture brands. “The target orientation of domestic furniture and imported furniture is different. Consumers choose more according to personal preferences. The price factor does not affect Big."
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