Affected by the regulation of the property market affecting the furniture companies to the second and third-tier cities Nuggets

"In the context of inflation and the continued regulation of the property market, compared with the furniture industry in cities in the eastern coastal regions of China, such as Guangdong and Zhejiang, the development of the furniture industry in the central cities has more room for growth. The second and third tier cities have become furniture companies. The new battlefield, said Chen Baoguang, deputy director of the China Furniture Association, said on the 4th.

Chen Baoguang pointed out at the “Press Conference of the Second China and Nankang Seventh Furniture Fair in Central China in 2012” that with the advancement of the entire furniture industry from the eastern coastal city to the central city, many furniture companies have turned their eyes to more Second and third tier cities.

It is understood that under the influence of the regulation of the property market, the volume of transactions in the first-tier cities has plummeted, some property projects have been postponed, and buyers have waited and waited to be transmitted to the furniture industry in the downstream of the real estate, forcing the furniture industry to slow down. From January to August this year, the industrial output value of China's furniture industry was 313.654 billion yuan, down by 25.74% year-on-year.

“Second and third tier cities have large consumer groups, and the development of central urban furniture companies will have much room for improvement.” Chen Baoguang said that under the industrial transfer and the rapid development of the central economy, the bottleneck of the development of the first-tier urban furniture market is prominent, and the second and third line Cities face greater market opportunities.

For example, Chen Baoguang said that the development of the furniture industry in the central city of Jiangxi Nankang is very similar to that of the furniture industry in Longjiang Town and Lecong Town in Shunde, Guangdong, ten years ago. "In the future, Nankang furniture industry will develop into a position of wholesale and distribution of Lecong in the country. The production is equivalent to Longjiang, and the central urban furniture industry has a lot of room for improvement in terms of brand and service."

“Because of rising prices of raw materials, increased labor costs, and rising store rentals, the furniture industry in Guangdong and other coastal cities is under heavy pressure. Small cities such as Nankang have both industrial bases and advantages in terms of labor and rent. It is very attractive for the transfer of coastal urban furniture companies.” Tang Houqi, general manager of Shengjianda (Nankang) Home Business Management Co., Ltd. stated that the market demand of second- and third-tier cities should not be underestimated.