BEIJING, July 19 /PRNewswire-Asia/ -- Frbiz.com, one of China's leading B2B search platforms, reports that furniture prices will rise.
With sheet, sponge, hardware accessories and other raw material prices continuing to rise, together with an increase in labor costs, it seems that a sharp rise in furniture prices should be expected soon. Faced with scarce resources, raw material prices have been on the rise. Besides furniture, a rise in all household product prices should become a future trend.
Raw material prices rising will undoubtedly squeeze the furniture industry's profit margins -- an inevitability for the furniture industry in this situation. Businesses cannot digest the increasing cost, only through increasing prices can they deal with it. Some furniture manufacturers have developed gradual price increasing plans to ease the cost pressure.
Prices rising may lead to industry reshuffle
With the implementation of China's state regulations on real estate, the furniture industry should be affected within three to six months, as furniture consumption is expected to be reduced. Furniture distributors have expressed that they will not immediately raise prices, but will take into account market conditions. They will attempt to compress internal costs in order to self-digest part of the cost pressure, thus maximizing upward pressure on raw materials. Distributors recognize that furniture prices will eventually have to go up. By lowering the discount rate and other covert means, they may reduce the risk of price increases brought about at the point of sale.
The furniture industry is not high tech and the entire industry can be chaotic. The increase in raw material prices bring great impact on low-end furniture brands. There will be a considerable number of small furniture companies that go out of business. But for the big brands, there may be only a limited impact. Innovation and R&D may improve during this period and may lead to improvement in the added value of products and services in an attempt to adapt to market competition, thereby enhancing the threshold of the furniture industry and promoting the sound development of the entire industry.
About Frbiz.com
Frbiz.com is a promising e-commerce company and a leading vertical search engine company in China. Frbiz.com offers a variety of high quality products such as carbide rings (http://www.frbiz.com/q-carbide_ring/ ), sfp transceivers (http://www.frbiz.com/q-sfp_transceiver/ ), red comforters (http://www.frbiz.com/q-red_comforter/ ) and more.
For more information, please contact:
Frbiz.com
Tel: +86-10-6556-9770
Email: my@frbiz.com
