It is also difficult for export furniture to meet European and American formaldehyde barriers for domestic sales

Europe and the United States "formaldehyde barriers" force export furniture to the domestic market

There is no newest, only updated, what is said here, is the export trade barriers faced by the export of the home industry. The reporter learned from the Furniture Association of Guangdong Province that the United States "Commodity Wood Products Formaldehyde Standards Act" will be implemented on July 1 this year. Wooden furniture made of wood-based wood-based panels will face more stringent technical barriers to US exports. The bill states that if the United States implements new formaldehyde testing standards, the cost of domestic enterprises’ furniture exports will increase by 20%; while the export of wooden furniture to the EU will require the provision of “identity cards” for the origin of the wood, although the two policies have different implementation periods. However, no matter which one, it makes China's small and medium-sized furniture companies that occupy the market at low cost feel caught off guard.
Coincidentally, the “Country of Origin Labeling Act” recently introduced by the EU has also made it more difficult for furniture to export to the EU. At present, furniture products exported to the EU account for about one-third of China’s total furniture exports. It can be said that the EU is in It is also a very important market. It is reported that this regulation requires that wood products imported into the EU market must obtain the FSC "identity card", that is, to prove that the wood purchased by the production enterprise is produced from a legally-developed forest. This bill will take effect on March 3, 2013.
Europe and the United States have always been the largest export market for Guangdong's wooden furniture, accounting for about 60% of total exports. However, this market is currently facing serious threats. A related person told reporters that the bill would increase the production cost by about 20% for furniture manufacturing companies that are mainly for the North American market. Because according to the new standard, the sheet must reach the E0 level. For the furniture factory, the raw material is raised from the E1 level to the E0 level, the cost will increase by 15% to 20%.
There is no doubt that the introduction of new technical barriers will likely force a group of companies to return to the domestic market. However, industry insiders believe that even if the market competition is intensified, the real benefits of being able to buy export goods can hardly fall. To consumers.
Exports frustrated, the public still can not buy cheap export goods?
In the eyes of ordinary people, since exports of products to Europe and the United States have suffered setbacks, it is believed that more companies will be willing to return to the domestic market and competition will intensify. This will inevitably cause companies to automatically reduce profit margins. Consumers may hope to buy better products at lower prices. The export standard product.
However, in the view of some industry professionals who are familiar with the market, although it is not ruled out that the export frustration will result in price reductions for certain furniture products, the large-scale price cuts cannot be expected. Because for companies whose strength is not too strong, even if exports are frustrated, it is not easy to turn into the domestic market. The disadvantages of channels and brands are all clearly laid out and will be difficult to overcome in a short period of time. Moreover, for many domestic enterprises with no reputation, their ex-factory prices cannot have been as high as they have been. With the overall increase in raw materials and labor costs, their profit margins are not high, and there is not much room for price reductions. In Dongguan, the owner of a furniture factory told reporters that last year they had made a business of 15 million yuan and supported more than 100 people. Unfortunately, the profit was only 500,000 yuan. Such a meager profit, "If you want to cut prices in the domestic market, then I would rather not do it."
Why on the one hand manufacturers feel no profit, on the other hand, consumers feel that furniture is not cheap? "The largest piece of home industry profits have been acquired by circulation channels. Did you know that for a piece of furniture that sells for over 10,000 yuan, the ex-factory price may be only around 5,000 yuan? The dealer who sells furniture earns it, and the people who run the store earn it. We are not a famous manufacturer, because it is impossible to determine what the national unity of the price, there is no right to speak on the price, actually do not make much." An industry inside the furniture industry operating for more than a decade said that if Everyone is swarming into the domestic market, and the benefits will be dealers and stores. Just as why so many stores opened in the same year, they would be able to attract investment. As such, the benefits of consumers should not be much.

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