2012 mahogany furniture market shuffled

At the end of 2011, the market of redwood raw materials and finished products staged a peculiar “one loss and loss” drama. Not surprisingly, a major reshuffle of the mahogany industry will accelerate. Under such circumstances, how will the market of mahogany furniture in 2012 develop? What is the fate of mahogany furniture companies in this market baptism?

Raw material speculation makes the industry face difficulties

When the author communicated with the mahogany and woodcarving and root carving bosses in Zhejiang, they revealed that in 2008, the big leaf rosewood was only 30,000 yuan a ton, and by 2011 the price had reached 250,000 yuan a ton, and there was no goods. This is not unrelated to the malicious operation of the material supplier and the hot money speculation. It is understood that the hot money was once the main force pushing up the price of domestic rosewood. In view of the scarcity of redwood resources, many investors in Fujian and Wenzhou have hoarded raw material speculation.

At the end of 2011, affected by the deep regulation of the property market, the redwood season in the original sense suddenly encountered a cold current, and the market was bleak. In addition, some time ago, Wenzhou appeared in the tide of business owners. The well-known Wenzhou businessman, the investment boss of Feng Fengyun, is deeply mired in the private loan crisis. Affected by these factors, some of the hot money began to withdraw from the rosewood market, and some of the rosewood raw materials fell in price.

The price reduction of raw materials, from the perspective of cost, should be a good news for mahogany furniture manufacturers. But helplessly, "interrupted bones and ribs", consumers worried that the price of redwoods dive, the market wait-and-see mood is getting stronger, and the mahogany furniture market is also in turmoil. The market of redwood raw materials and finished products presents a peculiar situation of “one loss and one loss”.

Where do mahogany companies go?

How will the redwood market develop in 2012? No surprise, a reshuffle of the mahogany industry will accelerate. Raw material speculation has brought enormous cost pressures and operational difficulties to production companies. In addition, in the past two years, the cost of labor has risen sharply, and enterprises are facing the test of excessive cost pressure, compression of profit margin and tight capital chain. Some small enterprises can not withstand high costs, and they are unwilling to go out of business or change careers. Other small enterprises and small workshops specialize in semi-finished products processing for large enterprises, while reducing costs and barely maintaining their own survival.

At this time, some big companies began to actively adjust their strategies. In the fiercely competitive mahogany market, whoever wins market share first is the winner. In the long run, the price of redwood raw materials will only rise and fall, and large companies themselves have sufficient anti-risk ability. It is not a problem to deal with this crisis. Those enterprises that have solid foundations, do not forget to improve their internal strength, and constantly reduce management costs and improve production efficiency are good opportunities to become bigger and stronger. However, for some small enterprises and small workshops, there is not enough financial and material resources to operate. They can only do some semi-finished products processing or foundry, or they can only face the bad luck of eliminating them. In the baptism of this market in 2012, the fate of the mahogany furniture enterprises is still waiting for the enterprises to “save” themselves.

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