Analysis of China's furniture exports from January to May 2013

According to customs statistics, in the first five months of this year, China exported furniture and its parts (hereinafter referred to as "furniture") of 21.38 billion US dollars, an increase of 18.9% over the same period last year (the same below).

First, the main features of China's furniture exports from January to May this year

(1) The export value in May continued to rise. Since the beginning of this year, the monthly export volume of China's furniture has shown a V-shaped trend. In January, it continued its high level since December last year. In February, the export volume fell sharply due to the Spring Festival holiday. Since March, exports have been rising month by month, and exports to 46.1 in May of that month. US$100 million, down 3.2% year-on-year and 2.9% quarter-on-quarter.

(2) General trade exports accounted for more than 80%, and processing trade exports declined slightly. From January to May this year, China exported 18.29 billion US dollars of furniture by general trade, an increase of 24.2%, accounting for 85.6% of the total furniture exports in China during the same period. In the same period, processing trade exports were 2.55 billion US dollars, down 7.9%, accounting for 11.9%.

(3) Private enterprises dominate exports and have grown substantially. From January to May this year, China's private enterprises exported 13.73 billion US dollars of furniture, an increase of 34%, accounting for 64.2%; in the same period, foreign-invested enterprises exported 6.32 billion US dollars, down 0.1%, accounting for 29.6%; state-owned enterprises exported 1.03 billion US dollars, down 9.6%, accounting for 4.8%.

(4) The United States and the European Union are major export markets, and exports to Africa are growing rapidly. From January to May this year, China exported 5.94 billion US dollars of furniture to the United States, an increase of 4.9%, accounting for 27.8%; during the same period, exports to the EU reached 4.44 billion US dollars, an increase of 4%, accounting for 20.8%; exports to ASEAN were 2.42 billion US dollars, an increase of 43% , accounting for 11.3%. In addition, exports to Africa reached 1.18 billion U.S. dollars, a rapid increase of 90.4%.

(5) Guangdong and Zhejiang are the major exporting provinces, and Anhui's exports surged 4.4 times. From January to May this year, Guangdong exported furniture of 6.38 billion US dollars, an increase of 4%; Zhejiang exports 3.95 billion US dollars, an increase of 6.4%; the above two exports accounted for 48.3%. In the same period, Anhui exported 610 million US dollars of furniture, a surge of 4.4 times; Liaoning exports 780 million US dollars, an increase of 90.6%; Jiangxi exports 1.09 billion US dollars, an increase of 79.6%; Sichuan exports of 600 million US dollars, an increase of 31.9%.

Second, the main problems currently restricting the development of China's furniture industry

(1) The product homogenization competition is serious and the quality problems are outstanding. China's furniture industry has developed rapidly for many years. It still lacks independent quality standard system, original product design and competitive brand. The products exported are generally of low grade, low added value and insufficient competitiveness in the international market. In addition, the furniture industry is mixed, and product quality problems are prominent. The main problems include excessive pollutants, cracking of solid wood furniture, difficulty in applying for testing by consumers, and proliferation of fake foreign brands. During the “1 June” period, the Guangdong Provincial Quality Supervision Bureau announced the results of the recent quality inspections in the production field. The spot checks included 45 batches of children's furniture products produced by 42 enterprises in 7 cities (districts) including Guangzhou, Shenzhen, Foshan and Dongguan. The failure rate is as high as 64.4%.

(2) The increase in production costs will reduce the profits of enterprises, and the reshuffle of the industry is inevitable. In recent years, the production costs of furniture enterprises have been rising. First of all, in terms of labor costs, 13 provinces have raised the minimum wage in 2013, and the wages of many good skilled workers have even increased by about 20%. Second, raw material prices have risen sharply. Leather, sponges, and wood have been raised several times as essential raw materials for furniture manufacturing. In addition, since the beginning of this year, the central parity of the renminbi against the US dollar has risen by 972 basis points, with a cumulative appreciation of 1.56%. Last year, the renminbi rose only 146 basis points against the US dollar, with an appreciation of 0.23%. Moreover, the expected appreciation of the renminbi is unlikely to subside in the short term. With the rise of various production costs, corporate profits have further declined, many companies are difficult to sustain, and industry reshuffle is inevitable.

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