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During the May Day holiday, which has traditionally been a peak time for furniture sales in the first half of the year, many retailers found that while foot traffic increased, actual sales did not. A reporter visited several furniture supermarkets and found that most businesses reported a rise in visitors but no corresponding increase in revenue.
Zhong Haizhou, assistant director of the Federal Board of Directors, believes this trend is normal. He explained that with industry adjustments, many furniture companies are now focusing on profitability rather than relying on holiday sales. Additionally, consumers have become more rational, choosing to compare products carefully rather than being swayed by small discounts or promotions.
At Foshan Home International Expo City, Li Zaolan, deputy manager of Yiao Otland Home, expressed frustration. “We distributed 20,000 flyers, but it didn’t make much difference. Sales over three days were just over 200,000 yuan, which was even lower than usual,†she said.
However, some malls saw positive results. According to a representative from Bo City Home Shopping Mall, they held various promotional events during the holiday. The peak of consumer activity was mainly on May 1st and 2nd, with significantly higher foot traffic and strong sales performance. According to preliminary data, home sales during the period increased by about 20% compared to the same period last year.
Lecong Red Star Meikailong also launched promotions such as redemptions and lucky draws. Many merchants offered discounts, but the popularity didn't translate into higher sales. Long Qirong, a salesperson at Tang and Habitat Furniture, said that sales from May 1st to 4th were less than 100,000 yuan. Although daily foot traffic was more than double the usual amount, sales remained similar to regular days.
Despite this, Red Star and Macalline reported impressive numbers. Their total sales during the May Day period reached nearly 30 million yuan, with over 8,000 visitors. Compared to the same period last year, sales increased by 384%, and visitor numbers rose by 273%.
In high-end areas like Louvre, some stores saw a drop in sales. Li Qunfang, manager of New Era Outdoor Furniture, mentioned that they had not opened any bills for the May Day period. Xu Li, a salesperson at the Fashion Workshop, noted that turnover during the four-day holiday was around 150,000 yuan, a 10-20% decrease from the same period last year.
With the market in a downturn, some furniture companies are considering price changes. While some plan to raise prices, others are hesitant due to limited room for cuts. Zhong Haizhou pointed out that the average gross profit margin in the furniture industry has been declining, with net profits hovering around 8-10%. The industry still relies heavily on non-standardized products, making it difficult to reduce prices significantly.
Wang Dong, deputy manager of Foshan Weishang Furniture Manufacturing Co., Ltd., noted that raw material and labor costs have risen by 10-30% this year. Increases in aluminum, stainless steel, and other chemical materials used in hardware have further pressured pricing. Some merchants in Foshan Jiabo City have already announced price hikes following the holiday.
While some price increases are inevitable, Zhong Haizhou emphasized the need for caution. With an oversupplied market and weak bargaining power among furniture companies, raising prices too quickly could backfire. He added that the impact of real estate price changes on the downstream furniture industry remains uncertain, and the overall industry is still far from recovery. “It ultimately depends on the strength and efforts of each enterprise,†he concluded.