With the evolution of the global economy and ongoing adjustments in domestic and international economic policies, the competitive cost advantage of Chinese furniture exports has been gradually declining in recent years. This has significantly increased the operational pressures on Chinese furniture export companies. Many businesses now find it increasingly challenging to manage their overseas sales, with "exporting is getting harder" becoming a common phrase among industry players.
At the same time, China's steady GDP growth, expanding market demand, and rising consumption levels have made the domestic market more attractive. However, export-oriented companies face growing challenges due to factors such as anti-dumping measures, export restrictions, and the appreciation of the RMB. The slowdown in the U.S. economy, reduced consumer spending in Europe, and shrinking market capacity have further complicated export operations. As a result, many companies are shifting their focus toward the domestic market.
In response to this trend, the "Focus on Furniture and Home Decor" initiative, launched by Focus Net’s Furniture Channel and Dongguan “Famous Furniture Newspaper,†conducted interviews with several Chinese furniture companies that have transitioned from export to domestic markets. These discussions explored the current state of both domestic and international markets, the challenges faced, and the strategies being implemented for brand development and channel expansion.
Mr. Chen Zhengyu, Executive Director of Fubon Green Furniture, shared insights about the company's experience. He mentioned that while the subprime mortgage crisis had an impact on the export market last year, the situation has improved this year. With many small factories closing down, there has been a shift in order flow. Fubon Green has adjusted its production lines and started raising prices, which has helped maintain relationships with key clients such as Thomas Weir, Hawke, Stanley, Jakes, and Lexington.
The company has also focused on the domestic market for several years, establishing Fubon Green as a subsidiary dedicated to domestic sales. While the export business remains important, the company believes in diversifying its operations. With rising domestic production costs, including wages and insurance, the future of export is uncertain. Therefore, the company sees great potential in the domestic market, especially in the growing popularity of American-style furniture.
American furniture has become more appealing in China, partly due to its presence in TV dramas and films. Mr. Chen noted that consumers are increasingly familiar with and receptive to American-style furniture, making it a strong market opportunity. The company plans to open 20 new stores this year and aims for 40 to 50 next year. They are also considering integrating franchisees and developing brand partnerships, leveraging professional design and marketing firms to enhance their brand image.
Looking ahead, Fubon Green envisions long-term growth through domestic expansion and strategic collaborations. The company is exploring opportunities to work with foreign investors and even consider going public in the U.S., given the limited number of local furniture manufacturers there. Overall, the company remains optimistic about the future of the furniture industry in China.
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