Unprecedented Super Market! Home Furnishing Industry Is Completely Crazy

- Jan 05, 2021-

1608812251(1)


China is the world's largest exporter of furniture products, and its production capacity accounts for more than 25% of the world's total. But in recent years, first affected by Sino US trade frictions, and then by the new epidemic situation at the beginning of this year, the industry ushered in a severe impact and reshuffle, and the furniture export data also declined in the short term. 

However, with the rapid control of the domestic epidemic, China's furniture industry seems to show a strong resilience. According to the data from the September purchase festival of Alibaba international station, during the purchase Festival, the total transaction volume and the number of paid buyers of the furniture industry increased by 244% and 212% year on year respectively, which is the only industry in the top ten of transaction volume, in addition to services, which both exceeded 200%. In addition, when visiting Foshan, which is known as the "furniture capital of China", and Anji, Zhejiang Province, which is known as the "hometown of chair industry", a reporter from securities times · e company found that the rise of home economy under the epidemic situation is detonating the market demand, the orders are increasing sharply, and the supply of accessories is in short supply, so the whole industrial chain is extremely hot. 1. Foshan, the capital of furniture business: exports are recovering rapidly, online transactions are bright. "Although it's incredible, it's really a big deal. Overseas orders are scheduled for next year. " Recently, a reporter from securities times · e company went to Foshan, which is known as the "furniture capital of China", and found that some furniture enterprises have swept away the haze of the epidemic situation, started to work overtime in production and transportation, and recruitment and expansion of production are common. Compared with the first half of the year, their operating conditions have been greatly improved. Foshan, Guangdong, is the largest furniture industry cluster base in China. It has everything from product design, production and sales to the supply of raw and auxiliary materials. The total output value and transaction volume of the upstream and downstream industry chain of furniture manufacturing and material trading exceed 100 billion yuan. The main destinations of this trip are Longjiang Town, which focuses on furniture manufacturing, and Lecong Town, which focuses on furniture trade and sales. Driving 140 kilometers from Shenzhen, most of the buildings on both sides of the expressway are advertising and investment information of furniture products. Sanlian Furniture Industrial Zone, with 3500 mu of land, has gathered more than 500 furniture enterprises. It is understood that from 1998 to 2003, private investment was nearly 2 billion yuan, and more than 100 new commercial buildings were built, forming a ten kilometer long national famous furniture exhibition street. In addition, the Longjiang government also invested nearly 500 million yuan to build Haojun material city, Longshan material city and Asia Pacific International Wood industry city, with a total construction area of 800000 square meters, becoming the largest furniture raw material distribution center in China 。 When I came to Longjiang, the biggest feeling of the reporter of securities times · e company was that everywhere I saw was furniture. Different from department stores in other cities, the first floor of department stores in Longjiang Town is scattered with furniture shops of major brands, and the side doors of some stores are even full of furniture products to be shipped. At the weekend, there are still many trucks pulling furniture and building materials in and out of Sanlian industrial zone. When walking in the park, the reporter noticed that cars were parked beside the road in the park, some workers chatted at the gate of the factory, and the sound of welding machine tools was sporadically heard in the factory not far away. A small blackboard outside the factory still keeps the notice of arrangement during the National Day: "national day 1-2 holiday, 3 normal work." "We are very busy in the second half of this year. The factory has been in operation all the time. We only have two days off on national day. We are working the rest of the time and the wages are paid on time. However, some workers return to their hometown after the new year. The factory has been recruiting workers." A welder from a furniture company told reporters. The reporter then came to the new future talent market near Longjiang Town Government. The window was full of recruitment advertisements of furniture enterprises. The recruitment scope included warehouse management, finance, domestic business merchandising, foreign trade business merchandising and many kinds of work. The salary was more than 4000 yuan, and some positions also had performance salary or performance commission. The staff of Milo home, a local enterprise, told reporters that the company began to continuously recruit salesmen after the new year, with a base salary of 8000-9000 yuan. If you add a commission, you can even get a monthly salary of more than 10000 yuan. Across the second Longjiang bridge, it extends to Shunlian North District. Next to provincial highway 121, there are many furniture stores. Here is Lecong Town, known as "the largest furniture market in the world". The total business area of furniture shops stretching for more than ten miles is 3 million square meters. Three furniture expositions have been successfully held here. Standing in Lecong furniture market, the reporter noticed that the traffic volume on the main road on the street is huge, and even sometimes there are traffic jams. Among them, the full load of trucks is dazzling. As soon as the reporter entered Shunlian North District (Louvre Furniture Expo Center), he saw a lot of "solicitors" on the roadside. They enthusiastically handed out leaflets to the reporter and asked whether there was a demand for furniture. Although it has entered Monday working day, there are still a lot of consumers coming from other places. Mr. Li, who specially came from Zhengzhou to select furniture, told reporters: "although it's not time to deliver the house, now we can take advantage of the low price of home building materials to purchase. Anyway, the manufacturer can deliver the goods within a year." Furniture exports continued to pick up. On October 13, the General Administration of Customs released the relevant data of furniture exports: the cumulative export of furniture from January to September was 271.28 billion yuan, still increasing by 5.1% compared with 258.07 billion yuan in the same period last year, while the growth rate of this data in the first eight months was only 1.6%. This means that furniture exports have not only recovered and stabilized, but also are better than last year. According to the purchasing Festival data of Alibaba international station in September, the global demand rebounded strongly. During the purchasing Festival, the total transaction volume and the number of buyers paid of furniture industry increased by 244% and 212% year on year, respectively. It is the only industry in the top ten with transaction volume exceeding 200% in addition to services. Specifically, mattresses, office chairs and living room sofas are the hot categories of orders. Wei Yanling, the legal person of Foshan Shiyue Furniture Co., Ltd., said in an interview with E company of securities times that the company's main product outdoor furniture is a subdivision of the furniture industry. Nowadays, the epidemic situation is spreading abroad. People can't go out and stay at home for a long time. From the perspective of pursuing the quality of life, they are more motivated to replace outdoor furniture and buy new outdoor furniture in advance. Therefore, the demand for outdoor furniture is getting warmer. It is worth mentioning that recently, the number of confirmed cases in a single day in overseas countries has reached a new high, showing signs of recurrence. In this case, home office has become the norm. A Shenzhen woman who lives in Europe told reporters that in Europe, most employees except waiters are now working at home, so buying furniture and improving the working environment at home have become a "just need". In fact, the export of China's furniture industry has shown signs of recovery since July. According to the statistics of China Furniture Association, in the first half of this year, there were 6418 Enterprises above Designated Size in the furniture industry, and the total export of the whole industry was US $24.077 billion, a year-on-year decrease of 11.98%. From January to July, there were 6457 Enterprises above Designated Size, and the total export of the whole industry was US $29.941 billion, a year-on-year decrease of 6.46%. This means that in July, the number of Enterprises above Designated Size in the furniture industry increased by 39, with a monthly export of 5.864 billion yuan. Furniture export industry continues to pick up, which can be seen from the three quarterly data of listed companies. Zhejiang Yongqiang, a professional manufacturer of outdoor leisure furniture, has its own import and export rights, and its products are sold to the United States, Germany, Australia, Hong Kong, China and other countries and regions. Due to the impact of the epidemic, the company's profit is expected to increase by - 4.5% - 4.5% year on year. In contrast, small and medium-sized enterprises also feel the warm current of the industry. With 17 years of furniture production and export experience, Frank Cheng, director of foreign trade of Dongguan Dingzhi Furniture Co., Ltd., told the reporter of securities times · e company that the company's foreign trade orders began to pick up in June, with a month on month increase of more than 60% in September compared with August. "With the sudden increase of orders, the factory recruited 30% new employees in September this year, but it is still in short supply. Now we are talking about the orders in January and February next year. In September, the new orders mainly came from the United States, Europe and Southeast Asia. From the perspective of sub categories, the main products ordered were beds and sofas Another person in charge of Foshan furniture manufacturing enterprise told reporters: "although it's unbelievable, it's really a burst of orders. Factories with small orders before are scheduled to October, while some factories with large orders are full in December. The current production capacity is far behind the demand of customers, which is probably the busiest time in recent years. "The person in charge said that at present, the company's most popular single is the e-chair. "After all, we have nothing to do at home, we can only play games. Racing chair parts orders are also booming, office chairs, dining chairs, bar chairs and other middlemen are also following up, leading to the whole market explosion However, he believes that this is not necessarily a normal phenomenon, and it should return to normal or even decline next year. "After all, customers' warehouses are full." With the spread of the global epidemic, it has greatly increased the difficulty of international personnel flow and international marketing. The orders of export enterprises that excessively rely on offline transactions were once suspended. Frank Cheng told reporters that during the epidemic period, raw materials, labor, delivery dates and prices were greatly affected. In March, all offline customers stopped placing orders, leaving only one customer from online Ali international station. The suspension of offline transactions has forced international trade to move online, and the growth of domestic and foreign online transactions has exploded. In this process, the modes of cross-border e-commerce, live watching production line and live selling goods are also quietly popular in international furniture trade. Xilinmen, which is mainly engaged in the research, production and marketing of furniture, wood flooring and other household products, has a brilliant performance in the third quarter. The adverse effects of the epidemic situation have been basically eliminated, and the net profit attributable to the mother is 138 million yuan, with a year-on-year growth of 2.47% and a month on month growth of 42.21%. Among them, the non net profit of the main business furniture sector was 138 million yuan, a year-on-year increase of 28.96% and a month on month increase of 57.37%. In the third quarterly report, the company said that during the reporting period, the company actively responded to the market impact brought by the new crown epidemic, made every effort to build anti-bacterial and anti mite star products, launched a new intelligent mattress smart 1, deeply promoted the reform of online and offline channels, and actively embraced the live delivery marketing mode. The brand influence and terminal sales ability of Xilinmen were rapidly improved. At present, the company's orders are basically saturated, and it is expected that the revenue in the fourth quarter will maintain a rapid month on month growth. As many

 

However, the domestic market is booming now, and more than half of our production capacity is used to process domestic orders. At present, domestic orders are booming, and we also plan to recruit people to expand production. " This year, the company began to explore more opportunities in the domestic market. The person in charge said, "the epidemic has also given us an excellent opportunity to develop the domestic market. In the past, I always focused on several foreign markets, but now I find that there are great opportunities in the domestic market. We used to do foreign trade enterprises, product quality is guaranteed, now some domestic big brand manufacturers also find us to do OEM Reflected in the level of listed companies, as a leading domestic enterprise engaged in the production of bathroom hardware products, seagull housing industry used to focus on overseas OEM business for a long time. However, in recent years, the company is constantly expanding its domestic market, and this year's epidemic situation has further accelerated this trend. In 2019, the overseas revenue of seagull residents will account for 62.50%. In the first half of 2020, the proportion will drop to 58.41%. "At present, the company's export and foreign trade orders are very good, but the company does not fully accept export orders, but focuses on domestic sales, so the growth rate of the company's domestic sales revenue is much higher than that of its export. In the future, one will focus more on one belt, one road and one market, and export will maintain steady growth, while domestic sales will maintain a relatively fast growth. Said Chen Wei, Secretary of Haiou housing industry. 2. Anji, Zhejiang Province, the "hometown of chair industry": orders are hot and unprecedented. There are 130 loss making enterprises in February next year, accounting for 62.2%; the total industrial output value is 11.08 billion yuan, a year-on-year decrease of 10.14%. This is the report card of 209 furniture enterprises in Anji County in the first half of 2020. However, when the securities times e company recently visited home furnishing enterprises in Anji, it was found that the home furnishing practitioners in Anji were very optimistic about the results of this year, and one after another lamented that they had caught up with the unprecedented market. Anji, Zhejiang Province, known as the "hometown of chair industry", is the largest office chair manufacturing base in the world. There are more than 700 chair manufacturers in the county, with 209 Enterprises above the designated size. At present, Henglin Co., Ltd. (603661), Yongyi Co., Ltd. (603600) and Zhongyuan home furnishing Co., Ltd. (603709), which have been listed in a shares, are all local enterprises of Anji. The companies to be listed include Botai furniture, Yongyu home furnishing, etc. Recently, when securities times · e company visited Anji home furnishing enterprises, it was found that the rise of home furnishing economy under the epidemic situation is detonating the demand of Anji home furnishing. Orders are increasing sharply, spare parts are in short supply, and labor force is in serious shortage. The whole industrial chain is extremely hot. "In previous years, for every 3 chairs produced in the world, 2 chairs were produced by Anji. The market share of Anji chair industry will certainly increase this year, and 2.5 of every 3 chairs may come from Anji, Zhejiang Province. " On October 15, relevant people of Anji Chair Industry Association told the securities times . e company. In Anji County, the "Kingdom of chair industry" with explosive growth of overseas orders, Henglin Co., Ltd. is the largest office and home furnishing production enterprise with three production bases of Anji, Vietnam and Switzerland. The export volume of office chairs ranks first in the industry for 12 consecutive years. Anji production base of Henglin Co., Ltd. is divided into a, B and C factories, which are connected into one. On the road between the factory and the factory, in and out of the container trucks, from time to time passing by. Through the words "Shanghai Port Group" and "Ningbo Port" on the body of these container trucks, we can tell from which port these packaged finished products went to sea. Mr. Gao is the head of the injection molding production group in the C plant of Henglin Co., Ltd. the specific work of their group is to make the seat mold base, which is the first process of seat production. The finished seat mold base will pass through the automatic production line and be transmitted to the next production workshop for further processing. In the booming injection molding workshop, while observing the operation of the machine, Mr. Gao said to the reporter, "this year's business is fantastic.". In previous years, under normal circumstances, they needed to produce 700-800 seat molds a day. However, in October this year, they were given the task of completing 1500 seat formwork every day. Just past this national day, his injection molding production group only took one day off. Master Gao told reporters, "at the beginning of the epidemic, people were still worried that there was no work for the epidemic. They didn't expect that they couldn't get busy now. For example, at the beginning of the year, there were 8 sets of molds needed for the production of seat mold base. Later, it was increased to 10 sets, and recently it was added to 12 sets. However, the production task can not be completed. Now, the production team implements a "three shift" working system, and the machines start 24 hours a day. " Yongyi Co., Ltd. is another large office chair manufacturer in Anji,

 

Henglin Co., Ltd., which has been ranked first in the domestic office chair export industry for many years, has vigorously promoted cross-border e-commerce business since last year, invested in the establishment of cross-border e-commerce overseas operation company, and built its own overseas warehousing and logistics base and cross-border e-commerce warehouse. In the first half of this year, the global epidemic is still spreading, and the company's cross-border e-commerce business has come into use: in the first half of this year, the company achieved an operating revenue of 1.787 billion yuan, a year-on-year increase of 51.1%, of which the sales revenue of cross-border e-commerce from April to June accounted for 9% of the operating revenue in the first half of this year. As a domestic comprehensive third-party B2B e-commerce platform operator, Li Lei, vice president of focus technology (002315) and President of China manufacturing network, also told reporters that cross-border e-commerce enterprises are limited by the epidemic situation, and even ushered in a wave of peak development. According to the platform data of China manufacturing network, the platform traffic and inquiry volume from January to August this year increased by 38% and 43% compared with the same period last year. Li Lei believes that the rise of new formats such as live broadcast and cloud exhibition shows that the epidemic has changed the traditional foreign trade mode and thinking, and the traditional foreign trade field is accelerating the digital transformation. The sustainability of the industry's recovery remains to be seen. Chen Wei, Secretary of the board of directors of seagull housing (002084), said in an interview with E company of securities times that the company's export revenue in the second and third quarters increased significantly year-on-year. In his view, on the one hand, this is due to the growth of demand of European and American consumers, who reduce the consumption of tourism, sports, entertainment, catering, clothing and so on, but increase the consumption of household goods; on the other hand, during the epidemic period, supply chain capacity in some countries has a certain shortage, and China's epidemic control is leading the world, taking the lead in comprehensive resumption of work, thus winning market opportunities. Zhou Maohua, Macro Analyst of the financial market department of Everbright Bank, told reporters that the overseas epidemic situation is still repeated, and the longer the time, the more obvious the impact on people's life, work and social life. From a macro point of view, because of the global economic recession and shrinking demand caused by the epidemic, and the impact on the global industrial chain and supply chain, China, as the world's largest trading country, will inevitably be affected; but the epidemic also changes people's way of life, such as the birth of "housing economy", which has a structural impact on China's foreign trade. So, how long can the recovery of furniture industry caused by the demand of "housing economy" last? A senior analyst in the home building materials industry has a wait-and-see attitude. He believes that the furniture industry is greatly affected by the real estate market, and since the escalation of Sino US trade friction, the tariff of furniture exports has increased, and the price advantage of Chinese furniture manufacturing has declined. After the epidemic, the market situation of the furniture industry remains to be seen. In August this year, Tu Qi, Secretary General of the world furniture Federation, said at the global furniture industry trend press conference 2020 that at present, the global furniture industry has entered a new stage, and the furniture industry is facing common challenges: in the post epidemic era, the global economic growth momentum is insufficient, which is difficult to support the sustained and stable growth of the world economy; the international industrial development is unbalanced, which is difficult to meet people's demand for a better life The weak international economic situation hinders the transformation of new and old kinetic energy of furniture industry. In fact, the export growth of global furniture industry has slowed down before the epidemic. Tu Qi pointed out that from 2013 to 2019, global exports have increased by about 13%. In 2019, it will reach 160 billion US dollars, accounting for one third of the total output value of furniture, which is the same as that of the same period last year. It is worth noting that the export growth trend since 2017 has been interrupted in 2019. This is due to the simultaneous slowdown of export growth in Asia Pacific and Europe in 2019. In terms of China's furniture export, the export volume in 2019 was US $56.093 billion, with a year-on-year growth of 0.96%, and the growth rate decreased by 7.71 percentage points compared with the same period in 2018, which is inseparable from the international economic and trade friction China is facing. Not only that, but also several furniture foreign trade enterprises reported to reporters that the recent rapid appreciation of the RMB exchange rate has eroded the profits of export orders to a certain extent. Wei Yanling told reporters: "exchange rate appreciation will indeed dilute and evaporate foreign trade profits. Our company's response is to lock the exchange rate with big customers. Once it is lower than the warning line, it will be higher or lower. We can also lock the exchange rate with customers." Some enterprises switch to the domestic market. Although the short-term recovery of foreign trade orders is obvious, and even some sub categories have burst orders, some enterprises think that the order fever in the overseas market is difficult to last for a long time, and some furniture enterprises that used to focus on foreign trade have planned to invest more resources in the domestic market. A person in charge of a furniture enterprise, which used to do most of its business from foreign trade, said in an interview with a reporter from e company of Securities Times: "in the past two months, we have indeed seen a slight pick-up in furniture foreign trade orders. According to the past practice, October to the end of the year is the peak season, but now the foreign trade orders are still lower than last year. However, the domestic market is booming now, and more than half of our production capacity is used to process domestic orders. At present, domestic orders are booming, and we also plan to recruit people to expand production. " This year, the company began to explore more opportunities in the domestic market. The person in charge said, "the epidemic has also given us an excellent opportunity to develop the domestic market. In the past, I always focused on several foreign markets, but now I find that there are great opportunities in the domestic market. We used to do foreign trade enterprises, product quality is guaranteed, now some domestic big brand manufacturers also find us to do OEM Reflected in the level of listed companies, as a leading domestic enterprise engaged in the production of bathroom hardware products, seagull housing industry used to focus on overseas OEM business for a long time. However, in recent years, the company is constantly expanding its domestic market, and this year's epidemic situation has further accelerated this trend. In 2019, the overseas revenue of seagull residents will account for 62.50%. In the first half of 2020, the proportion will drop to 58.41%. "At present, the company's export and foreign trade orders are very good, but the company does not fully accept export orders, but focuses on domestic sales, so the growth rate of the company's domestic sales revenue is much higher than that of its export. In the future, one will focus more on one belt, one road and one market, and export will maintain steady growth, while domestic sales will maintain a relatively fast growth. Said Chen Wei, Secretary of Haiou housing industry. 2. Anji, Zhejiang Province, the "hometown of chair industry": orders are hot and unprecedented. There are 130 loss making enterprises in February next year, accounting for 62.2%; the total industrial output value is 11.08 billion yuan, a year-on-year decrease of 10.14%. This is the report card of 209 furniture enterprises in Anji County in the first half of 2020. However, when the securities times e company recently visited home furnishing enterprises in Anji, it was found that the home furnishing practitioners in Anji were very optimistic about the results of this year, and one after another lamented that they had caught up with the unprecedented market. Anji, Zhejiang Province, known as the "hometown of chair industry", is the largest office chair manufacturing base in the world. There are more than 700 chair manufacturers in the county, with 209 Enterprises above the designated size. At present, Henglin Co., Ltd. (603661), Yongyi Co., Ltd. (603600) and Zhongyuan home furnishing Co., Ltd. (603709), which have been listed in a shares, are all local enterprises of Anji. The companies to be listed include Botai furniture, Yongyu home furnishing, etc. Recently, when securities times · e company visited Anji home furnishing enterprises, it was found that the rise of home furnishing economy under the epidemic situation is detonating the demand of Anji home furnishing. Orders are increasing sharply, spare parts are in short supply, and labor force is in serious shortage. The whole industrial chain is extremely hot. "In previous years, for every 3 chairs produced in the world, 2 chairs were produced by Anji. The market share of Anji chair industry will certainly increase this year, and 2.5 of every 3 chairs may come from Anji, Zhejiang Province. " On October 15, relevant people of Anji Chair Industry Association told the securities times · e company. In Anji County, the "Kingdom of chair industry" with explosive growth of overseas orders, Henglin Co., Ltd. is the largest office and home furnishing production enterprise with three production bases of Anji, Vietnam and Switzerland. The export volume of office chairs ranks first in the industry for 12 consecutive years. Anji production base of Henglin Co., Ltd. is divided into a, B and C factories, which are connected into one. On the road between the factory and the factory, in and out of the container trucks, from time to time passing by. Through the words "Shanghai Port Group" and "Ningbo Port" on the body of these container trucks, we can tell from which port these packaged finished products went to sea. Mr. Gao is the head of the injection molding production group in the C plant of Henglin Co., Ltd. the specific work of their group is to make the seat mold base, which is the first process of seat production. The finished seat mold base will pass through the automatic production line and be transmitted to the next production workshop for further processing. In the booming injection molding workshop, while observing the operation of the machine, Mr. Gao said to the reporter, "this year's business is fantastic.". In previous years, under normal circumstances, they needed to produce 700-800 seat molds a day. However, in October this year, they were given the task of completing 1500 seat formwork every day. Just past this national day, his injection molding production group only took one day off. Master Gao told reporters, "at the beginning of the epidemic, people were still worried that there was no work for the epidemic. They didn't expect that they couldn't get busy now. For example, at the beginning of the year, there were 8 sets of molds needed for the production of seat mold base. Later, it was increased to 10 sets, and recently it was added to 12 sets. However, the production task can not be completed. Now, the production team implements a "three shift" working system, and the machines start 24 hours a day. " Yongyi Co., Ltd. is another large-scale office chair manufacturer in Anji. The north industrial area of the company is not far away from the Anji production base of Henglin Co., Ltd. "Orders are in good condition now. The key is production capacity. Large enterprises are more flexible in capacity improvement, and the company continues to improve capacity mainly through industrial chain control and new capacity. " The person in charge of Yongyi shares told reporters that by speeding up the construction of new projects, new plants were put into operation at home and abroad in the fourth quarter. Behind the continuous improvement of production capacity is the continuous growth of Yongyi's customers. The reporter learned that nearly 70% of Yongyi's revenue is from overseas market. Originally, the company's customers are concentrated in North America. However, since this year, the company has made great efforts to develop markets in Europe, South America and Southeast Asia by increasing new product development and opening up new markets. It is not only an office chair manufacturer, but also a sofa, massage chair, outdoor furniture, electronic competition chair manufacturer. Zhongyuan home is a large sofa manufacturer in Anji. The relevant person in charge of the company told reporters that although the epidemic situation at the beginning of the year, the company's construction and orders at the beginning of this year were impacted, with the improvement of the domestic epidemic situation, it soon returned to normal. In recent months, there have been a lot of orders. So throughout the year, this year's orders are still growing. "As far as the company is concerned, the existing capacity can not meet the growth of orders. What should I do? On the one hand, we should strengthen internal management to improve the efficiency of existing production capacity; on the other hand, we should speed up the construction of projects invested by raising funds. According to the current progress, the projects invested by raising funds are expected to be put into operation early next year. " Zhongyuan household said. Anji chair industry association related personage told the securities times · e company reporter that when visiting enterprises a few days ago, many bosses said that this year is a big market they have never met since they became enterprises, and many enterprises have received orders in February next year. As long as we can produce, there are so many orders in the market that we don't have to worry about them at all. With the extension of collective shortage of spare parts, the hot Anji chair industry is also affecting each end of the industrial chain, from the shutdown at the beginning of the epidemic, to the improvement of the situation later, and then to the continuous heating up today. China's Anji swivel chair market is the distribution center of parts for Anji chair industry, with a market area of thousands of square meters. The hardware, sponge, fabric, chassis, air pressure bar and other raw materials needed for the production of seats can be found in this market. Therefore, China's Anji swivel chair market has become a raw material supply place for many chair manufacturers. In a leather shop in Anji swivel chair market, a reporter of E company met Mr. Xu who came to purchase. After understanding, he learned that his company is a large-scale electric competitive chair manufacturer in Anji, and its products are mainly exported to Japan and South Korea. He told the reporter of E company, "this year, every one of Anji's chair manufacturers has a good business. For small and medium-sized enterprises with a small base, if this year's output value does not increase by 2-3 times compared with the same period last year, it is nothing. " "An obvious phenomenon is that the demand for all kinds of accessories and raw materials is increasing. In order to catch up with the goods, many manufacturers in the chair industry will specially send people to follow the orders in the parts manufacturers, as long as they produce them, they will pull them away. Especially the air rod and chassis, the delivery cycle needs to wait 2-3 months, which has never been encountered before. " Speaking of the current supply of raw materials, Mr. Xu repeatedly lamented. While the reporter was talking with Mr. Xu, the leather store employee who came out of the warehouse said to Mr. Xu, "the fabric you need is out of stock. The customized price is higher. It costs 11.5 yuan per meter, excluding tax. Moreover, if it is customized now, the lead time will be longer, at least more than 20 days. " Due to the long delivery period, Mr. Xu did not place an order. He said that he would consider it before making a decision. Then he got up and left with the cut sample. He told reporters, "in the normal years in previous years, manufacturers of popular raw materials such as fabrics have sufficient stock. Generally, they can pick up the goods after payment. If they are customized, they can deliver the goods in about a week at most." As Mr. Xu said above, there is an obvious shortage of air rods for seats in the market. In Anji swivel chair market, a shop operating air pole told reporters, "this year's business is really good, but it can only receive orders from old customers. No matter how large the orders of new customers are, it can't receive them because they can't deliver goods at all. Even if customers place orders in October now, the delivery time will be at least until the end of this year. " When the reporter asked about the price increase of gas pole, the shop owner said with a smile, "the price must have increased, but this is a trade secret." "Due to the imbalance between supply and demand, the price increase is being transmitted in the industrial chain and gradually transferred to the client. In this context, it is also testing the cost control ability of an enterprise. In this respect, big companies have stronger bargaining power and more obvious advantages. " Industry insiders told reporters that although there was a similar price rise in short supply, different from the price rise in the supply side reform in 2017-2018, the price rise came from the demand side, which was due to the strong demand of downstream customers in Europe and the United States. This kind of price rise caused by the imbalance between supply and demand on the demand side is easier for downstream customers to accept. Anji chair industry association related people told reporters that in this year's big wave of market, many Anji enterprise owners are very envious of Henglin, Yongyi, Zhongyuan and other large household enterprises, not only don't worry about orders, but also supply chain advantages. In the supply of some important parts, such large household enterprises either have their own supporting capacity or have long-term stable cooperation with suppliers. Many Anji's home furnishing enterprises, due to their small scale and weak bargaining power, just earn some hard money. The shortage of raw materials and accessories, let some social capital see business opportunities, have poured into the chair industry chain. "Just like the gap cover during the epidemic at the beginning of the year, these speculators rush to see the opportunity. Some parts factories in the chair industry have a low investment threshold, as long as a million yuan is enough. Therefore, since the second quarter of this year, Anji home furnishing industry, not only the finished product manufacturers have some new faces, but also more of them have poured into the raw material parts industry. " Anji Chair Industry Association said to reporters. Why does the current Anji chair industry have an unprecedented grand occasion? On the way of reporters' interview, they all mentioned the overseas epidemic. "The beginning of the epidemic"

 

For example, according to the statistics of China Customs, during the domestic epidemic in the first quarter of this year, the export data of adjustable height rotating seats showed a negative year-on-year growth. However, since April this year, the growth rates in June, July and August have been increasing, reaching 55.12%, 62.46% and 70.59% respectively. "During the epidemic period, many overseas home furnishing factories were shut down. Therefore, the supply chain of Anji chair industry in the overseas market has a wider coverage. It turns out that of every three chairs in the world, two are made in Anji, China. This year, maybe 2.5 are made in Anji, China. " Anji chair industry related people said. With the rapid increase of orders, all chair manufacturers are facing the problem of labor shortage. When the reporter of E company visited the manufacturers of Anji chair industry, the recruitment advertisements at the door of each manufacturer were particularly eye-catching. In a large seat manufacturer, the reporter found that the company's recruitment office desk, is stacked with a good resume, thick enough to have more than a foot high. Responsible for the recruitment of staff e company reporter said, "now the company's various production workshops are short of manpower. For example, in the sewing production department, there are about 1000 employees in the whole department, but according to the current schedule, there are still about 400-500 missing. At present, there is a shortage of labor force in all chair manufacturers in Anji, which also leads to the labor price rising in Anji market. In the past, the salary of foreign service personnel for ordinary jobs was about 24 yuan / hour, but now it has risen to 26 yuan / hour. " Anji Chair Industry Association told reporters that in recent years, after the upgrading of machine replacement, the overall automation level of Anji chair industry has been improved. However, some non-standard production lines, it is difficult to replace people with machines, but also rely on manual operation to complete. Such as gunnailers, sewing workers, etc. Now, due to the rapid increase of orders of various enterprises, the labor problem has become a common problem of Anji chair industry. After seeing this problem, the association also submitted a relevant report to Anji government. The content of the report is how to solve the labor problem. It is estimated that the situation next year will not be worse than this year. How long will the hot Anji chair industry last? From the field visits, people in the industry interviewed by reporters are generally optimistic about the situation next year. According to the observation of our cross-border E-commerce Team in recent months, they are still optimistic about the situation next year. The increase in cross-border e-commerce penetration caused by the epidemic is a long-term change in consumption habits. In this context, the transformation from B2B mode to M2C mode of domestic enterprises will bring about significant improvement in unit price and profitability. " Yongyi stock related person in charge told reporters, from the industry, home office is a trend, the epidemic accelerated the overseas home office habits. After this habit is formed, the penetration rate of e-commerce shopping will continue to increase. After the epidemic is relieved, the growth rate is expected to decline, but in absolute terms, the demand for home office will not decline. Moreover, the contract market procurement affected by the epidemic this year will resume growth with the improvement of the epidemic. From the company, through the R & D investment in recent years, the company will continue to launch competitive new products. At the same time, the production of the new production base will continue to promote the continuous growth of the company's sales. The new epidemic situation can not help but remind people of the "SARS" in 2003. At that time, the SARS epidemic accelerated the development of domestic e-commerce, and then the number of domestic online shopping users exploded. The total transaction amount of Taobao surpassed that of eBay in 2005. "Recently, there has been a second wave of outbreaks in Europe and the United States. In this way, the time for foreign customers to go out will continue to extend. After a year, it is estimated that consumers' shopping habits may have changed. " Industry insiders said. During the visit to Anji, the reporter of E company also ran into a research fellow of a securities company who is investigating the home furnishing industry all over the country. Through the analysis of overseas market demand and comparison of home furnishings at home and abroad, their research team is optimistic about the domestic home furnishing industry going to sea next year. From the demand side, the concept of home office in major overseas consumer countries is highly respected. For example, Microsoft, Google, twitter, Facebook and other enterprises in the United States will continue to increase the proportion of employees working at home. Among them, Microsoft announced a few days ago that employees will be able to work at home freely within less than 50% of their weekly working time, or permanent work at home will be approved by the manager. Zuckerberg, Facebook's chief executive, predicts that about 50% of Facebook employees will telecommuting in the next five to 10 years. From the supply side, the cost performance advantage of domestic products is obvious, and the competitiveness will continue to be improved. At present, office seats in the United States are mainly concentrated in high-end brands, and the sales price tends to be more than $1000. However, domestic office seat brands such as Henglin and Yongyi generally sell for $200-300. But in fact, no matter in terms of product quality or product function, it can be compared with the high-end office seat brand in the United States. After the outbreak, the comparative advantages of domestic office and home appliances are expected to be re recognized, and the market share will be improved. "In addition to the overseas market, the domestic office and home furnishing market is booming in recent years, which is also very obvious for the whole office and home furnishing enterprises. So in terms of both export and domestic sales, the situation next year will not be worse than this year. " This is what the Securities researcher said. The person in charge of Zhongyuan home furnishing told reporters that the continuous overseas epidemic not only stimulated the demand for home furnishings overseas, but also impacted the overseas home furnishing production enterprises, and orders were being transferred to Chinese enterprises. In this context, domestic home manufacturing enterprises should be able to seize such opportunities. Therefore, we are positive and optimistic about the situation next year. Reporter observation: cross border e-commerce restructures a new journey for domestic products to go to sea. In 2020, under the epidemic situation, Global trade is facing new challenges and opportunities. The continuous spread of the epidemic is changing the behavior of consumers, giving birth to a new online housing economy, opening a new situation for domestic enterprises to explore overseas markets. Although the epidemic has had a certain impact on Global trade, it has also accelerated the online process of retail consumption in the whole European and American countries, resulting in a blowout of online transactions. According to the data, in 2019, online sales in the United States accounted for 16% of the total social retail sales. In 2009, the figure was 4.5%, with an increase of 11.5 percentage points in ten years.

 

 

 

In April 2020, the proportion soared to 27%, 11 percentage points higher than that in 2019. In other words. This is equivalent to the rate of increase in the proportion of e-commerce channels in the past 10 years in four months. According to the sales data of tophatter platform, the orders of daily household products related to housing economy in European and American markets are booming, in which the sales of fitness and sports categories are up 141%, the sales of clothing and apparel categories are up 124%, the sales of health care categories are up 116%, and the sales of household products and entertainment products are up 110% and 103% respectively. China took the lead in stepping out of the epidemic, and its export growth exceeded expectations in the third quarter. China's customs data showed that China's export growth exceeded expectations in the third quarter, with a year-on-year average growth rate of US dollar denominated exports exceeding 8.8%, far higher than the monthly average growth rate of about 0.2 percentage point in the second quarter. Apart from epidemic prevention products, exports of Electromechanical, household, textile and other products have increased significantly. Taking the home furnishing industry as an example, during the domestic epidemic in the first quarter of this year, the year-on-year growth rate of the export data of adjustable height rotating seats was negative. However, since April this year, the growth rate in June, July and August has been increasing, reaching 55.12%, 62.46% and 70.59% respectively. However, in the context of a good situation, there are two different voices in the market: one is that it's too embarrassed to say if the order does not double; the other is that it's just to earn some hard work. Anji, Zhejiang Province is the largest office chair manufacturing base in the world. There are more than 700 chair manufacturers in the county, and 209 Enterprises above the designated size. There is a saying that for every three chairs produced in the world, two come from Anji, so Anji is also known as the "hometown of chair industry". Under the stimulation of housing economy, Anji furniture enterprise orders explosive growth, industry chain appeared unprecedented hot. However, in addition to a few independent brands such as Henglin and Yongyi, most of Anji's more than 700 home furnishing enterprises have relatively simple business models and adopt OEM model to do OEM for foreign brands. Although OEM is also a development mode, compared with independent brands, the gold content is far different. In the context of this year's epidemic, representatives of two Anji home furnishing enterprises, Henglin Co., Ltd. and Yongyi Co., Ltd., have chosen to work in cross-border e-commerce. This not only expands the company's original sales channels, but also greatly promotes the company's independent brand sales in overseas markets. In fact, the continuous overseas epidemic forces the transformation and upgrading of domestic and foreign trade, so cross-border e-commerce has become an important starting point for transformation enterprises. In June this year, the Forum on stabilizing foreign trade pointed out that we should encourage the transformation and upgrading of foreign trade enterprises, improve the quality and added value of export products, accelerate the development of cross-border e-commerce, online trading and other new modes of foreign trade, encourage and guide diversified investment in the construction of overseas warehouses, increase support for foreign trade service platforms that drive the export of small and medium-sized enterprises, and cultivate new growth points of foreign trade. Although cross-border e-commerce is not new, in the face of this global epidemic, cross-border e-commerce is particularly important for domestic products to go to sea. For manufacturing enterprises, their business model changes from traditional OBM model to M2C model, and the upper limit of the whole value chain is equal to the sum of B2B + B2C model. Therefore, the unit price and gross profit rate are much higher than the traditional model, which can drive the rapid growth of performance. It can be asserted that the rise of cross-border e-commerce is reconstructing the profit model of export-oriented enterprises. Under the epidemic situation, Global trade is reconstructing, and the change of shopping habits of European and American consumers has brought new opportunities for the development of cross-border e-commerce. Domestic products with cost-effective advantages are expected to have a long-term and sustained market share increase.



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