The cabinet industry is showing signs of cold winter

At the end of 2010, for many Chinese cabinet companies, it is destined to be an unforgettable or difficult day. In fact, some cabinet companies have already felt the cold snap from the industry: the price of raw materials like frogs boiled in warm water and a new property policy that have been tightly matched have made people feel the coldness coming from the face.

Seeing that the traditional peak sales season is coming, many cabinet enterprises, especially small and medium-sized enterprises, may no longer count on the "wangjing" of previous years. They are more thinking about how to survive and absorb energy to prepare for the winter.

Fighting off their extravagant hopes is news from the ups and downs of the cabinet industry—they must be mentally prepared for the worst. Some in the industry even pessimistically believe that a considerable number of SMEs will face the possibility of failure.

The rumors of plate price increase have become very popular. For the home furnishing industry, it is not a matter of a day or two. When the legend gradually became numb, "wolves" really came: from Lushuihe plate, Daya plate , Ai Ge plate and other well-known domestic plate companies news: Recently, domestic and foreign plate prices have been raised inconsistently, the increase ranged from 10% to 40%.

As one of the largest domestic producers and sellers of sheet metal, Lushuihe's trends are also regarded as the vane of the sheet industry. Zhang Zhili, general manager of Lushuihe, confirmed to reporters that the general trend of price increases has been fixed, and the company will fine-tune prices at the end of the year, and will substantially adjust prices in 2011. As for the price increase, it will be determined according to the rising standards of domestic prices.

Chen Hongbing, the general manager of Daya Wood-based Panels, another domestic wood-based panel giant, also confirmed that due to the rising prices of chemical raw materials, wood, water, electricity, oil and coal, and

Due to the impact of the appreciation of the RMB , Daya Steel will increase its price, which is currently in the adjustment period, and it may increase by 50 to 100 yuan per cubic meter.

As the downstream industry of sheet metal, cabinets, etc., the price increase of sheet metal will surely have a profound impact on the industry. Faced with a sharp increase in production costs, the price increase of cabinets will become the norm for a longer period of time. At the same time, the impact of the new housing policy on the housing market has reduced consumer demand. With shrinking prices and demand, sales of mid-range cabinets have shown signs of decline.

It is understood that the most prominent change in the cabinet market right now is the obvious decline in the sales of mid-range products. According to Mr. Cui, the person in charge of Blue Valley cabinets: "The sales of mid-range cabinets have dropped by about 10%. At present, the sales of a cabinet with a price of about 20,000 yuan have shrunk sharply, but the sales of high-end cabinets from 50,000 to 100,000 yuan are in Growth, recently can sign orders for six or seven villas every month. "He believes that cabinets, as a downstream industry of the real estate industry, the market trend corresponds to the property market.

Industry insiders said that the sluggish market has no obvious impact on high-end consumer groups such as villas and luxury homes . This group of people will still buy high-end building materials; but for white-collar workers and other working class, especially the down payment has increased and they have bought a house. There is not much money for

After the decoration , the choice of cabinet products is of course the cheaper the better, which directly leads the mid-end consumer group to the low-end building materials.

In addition, industry insiders also said that the cabinet market is obviously affected by the rising price of raw materials. The cost has increased, and the price of the cabinet can only rise, but it has caused consumers to be discouraged.

The factors that discourage consumers are far more than prices. Recently, the National Development and Reform Commission announced the monitoring of retail prices of urban food in October. Of the 31 products monitored, nearly 80% have risen in price. The rise in the prices of various types of people's livelihood food has already caused many low- and middle-income families to feel a sense of "crunch" in life.

The trend of the home furnishing industry is sluggish, the sales volume is showing a year-on-year downward trend, coupled with the fierce rise in sheet prices, the cabinet industry will face unprecedented challenges.

The impact of rising plate prices on each company cannot be generalized, because each company's situation and demands are different, and companies can reduce pressure by adjusting processes and compressing profits. Zhao Ruihai, president of Qumei Furniture, lamented that in recent years, the furniture industry has shown a situation of "less in and more out", and the market is becoming more and more difficult to do. This time, the price increase of plates is a big challenge for various industries.

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