Towards the end of the year, the price of brand furniture is "increasing and rising"

Near the end, Fun Fun furniture brand in the furniture price adjustment, due to the plate and logistics costs continue to rise, the price of brand furniture will be "gone."

 

 

Furniture industry profits shrink

 

The end of the year is the off-season of the home furnishing industry. At this time, the price increase is not easy to touch the price nerves of consumers. Moreover, furniture is not a daily consumer product, and its prices have risen slightly. Consumers do not feel as obvious as other products.

 

A salesperson of a well-known brand sofa store revealed that "the company plans to raise prices by the end of the month by about 15%." The company adjusts prices every year. Recently, Huizhou Jinhaima, Shengjia Home Furnishing, Jian Ai Home Furnishing and other home stores have held promotional activities, and many brands have launched special furniture, but some new products are still 5% -20% higher than the same old price.

 

Industry insiders said that with the increasingly fierce market competition and the continuous standardization of marketing methods, the era of profiteering in the furniture industry has passed and began to enter the era of meager profits. "At present, 20% of the income of the furniture industry is given to the store in the form of rent, and 7% of the income is given to logistics. Now the general profit of furniture companies is only 10% -20%, and there is little room for price reduction in a period of time. Looking at the overall trend, the furniture industry began to follow up at the end of the year, with an expected increase of 10% -15%. "

 

The industry believes that the increase is reasonable

 

"It is estimated that the comprehensive increase of various costs will reach more than 10% next year, but considering that each factory will first use internal potential tapping methods to digest the impact of part of the cost, such as slightly reducing gross margin, increasing material utilization, and adopting more Machinery reduces the labor cost per unit product and other ways to reduce the impact of rising costs. "Industry insiders predict that the price increase of the furniture industry next year will be comparable to this year, reaching 10%. In this regard, many furniture manufacturers believe that a 10% increase is more reasonable.

 

Industry insiders remind that New Year's Day is often the time for new products to be launched. Taking advantage of the opportunity of new products to raise prices is more acceptable than direct price increases of original products. (Editor: Peter)

 

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