The latest report from Huai'an Furniture Network: The survival of foreign trade furniture factories triggered the Sino-US trade war, and Chinese furniture products are also on the US-Canada tariff list. The world economy is turbulent, which makes Chinese furniture people doing foreign trade exports, especially Chinese furniture export to the United States, have a heart hanging.
Someone once analyzed the situation of listed furniture companies that were greatly affected by the trade war. Some listed furniture companies that rely heavily on US exports, such as Zhongyuan Home Furnishing, which accounts for more than 99% of overseas revenue and more than 60% of the North American market; more than 80% of overseas revenue, of which the US market accounts for Nearly half of Dream Lily's share price is greatly affected.
In addition to listed home furnishing companies that rely heavily on US exports, there are also many small and medium-sized foreign trade furniture factories in China. Under the Sino-US trade war, how have their orders changed? What are their plans for the future US market?
Furniture brand foreign trade enterprises: orders from the United States are temporarily stable
"The actual impact of the trade war on us has some, but not too big. One is that the United States is not our only and most important exporter, and the recent fall in the exchange rate of the renminbi is good for exports. Our partners in the United States are mainly large customers, The two sides have a stable cooperative relationship for many years. In the case of a trade war and tariffs, some small customer orders will be transferred to Southeast Asian factories with lower processing costs, but large customers will continue to choose to cooperate with us because of our production technology. And the comprehensive quality is more guaranteed. "Regarding the Sino-US trade war, a person in charge of a company headquartered in the Pearl River Delta said.
"The order volume from the United States is temporarily stable, but in the long run, the trade war will affect the progress of the entire world economy. It is not ruled out that there may be an economic crisis. At that time, the impact on enterprises will be fatal."
Small-scale foreign trade furniture product factory: Decrease in orders to the US and actively explore the domestic market
The impact of the trade war on small foreign trade furniture factories can be described as immediate. Mr. Zhang ’s furniture foreign trade factory mainly exports products to South Korea, Australia, and North America. Speaking of the trade war, he feels deeply, “Our orders have been declining all these years. There were more than 300 people in our factory before. More than 100 people; in the early years, when there were more orders, more than 20 containers could be exported in January, and now there are only seven or eight containers in a month; the peak season cycle of previous orders is long, and the long orders received are several years of cooperation. Now, the peak order cycle is shortened, and short orders are the main ones. Recently, due to the impact of the trade war, at least 30% of our orders in the US market have been lost. "
We see that in order to offset the potential impact of the trade war, large enterprises have more choices. The acquisition of overseas factories and overseas brands are both optional strategies and their actual actions; while small foreign trade furniture factories face orders Slipping, often hovering on the edge of survival. The economic downturn brought about by the trade war is affecting people's confidence in economic development. Recently, the monetary easing policy implemented by the state has made the real economy people in dry places look forward to the actual effect. Now, everything is still unknown.
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