Chinese furniture exports accelerate the development of the Russian market

Despite the severe impact of the financial crisis on China's export industry, furniture exports from Manzhouli Port, the most continental road port in China and Russia, have been steadily increasing. According to statistics from Manzhouli Customs, Manzhouli Port exported US $ 1.652 million in furniture and parts (hereinafter referred to as furniture) in the first four months of this year, an increase of 1.1 times compared with the same period last year, and was mainly exported to Russia.

Feng Zhe, a statistical analyst at Manzhouli Customs, and others believe that with the impact of the financial crisis, the Russians have reduced their dependence on expensive European furniture, and thus look forward to the arrival of high-quality and cheap Chinese furniture. Chinese furniture companies should seize this rare opportunity and speed up the expansion of Russia, an emerging international market.

Over-reliance on US furniture exports affected

Since the second half of 2008, China's furniture exports have been affected by the financial crisis, and exports have fallen sharply. Furniture manufacturers have encountered the biggest export problems in recent years. In the first quarter of 2009, the cumulative total industrial output value and industrial sales output value of Chinese furniture enterprises above designated size increased from the same period of the previous year, but the export delivery value showed a negative growth. Affected by this, the growth rate of the total industrial output value and industrial sales output value of the furniture industry has dropped from double digits over the years to single digit growth.

After years of hard work, China has now become the world's largest furniture exporter. However, China's furniture industry relies too much on exports, especially on the markets of single countries such as the United States, which has caused Chinese furniture companies to be hit hard in the financial crisis. Relevant data shows that in China's furniture exports, the United States alone accounts for more than half of the share, and the United States is one of the countries hit hardest in this financial crisis. Therefore, after the shrinking consumer demand in the US market, it is inevitable that the Chinese furniture industry will suffer a severe blow.

From this point of view, changing the export direction and actively looking for more foreign partners have become the top priority of the Chinese furniture industry. Russia may become an untapped "virgin" market for the Chinese furniture industry.

The Russian market still has a lot of room to rise

It is understood that due to Russia ’s increased pace of construction in the Far East in recent years, the demand for furniture has continued to expand, but the furniture manufacturing industry in the Russian Far East has not yet formed a scale. Cheap Chinese furniture is increasingly favored by Russians, and Russians who buy furniture cross-border in places such as Manzhouli have also formed a large purchasing team.

In recent years, the quality and grade of China's furniture export products have improved year by year, and the furniture production industry is a labor-intensive industry, and China's production costs are relatively low, so it has a certain price advantage in the international market. The furniture produced in China conforms to the living habits of Russians. Manufacturers can also specify the production according to the drawings and samples provided by Russian merchants. Therefore, they are very popular among Russians. At present, various furniture and office furniture are sold in Russia.

Relevant data show that the Russian furniture market capacity reached 6.101 billion US dollars in 2007. Due to the proximity of the Russian economic prosperity area to European countries and the inhabitants' admiration for imported goods, European furniture quickly poured into the Russian market. With the impact of the financial crisis, the Russians have reduced their dependence on expensive European furniture, and thus look forward to the arrival of high-quality and cheap Chinese furniture. Chinese furniture exports have a lot of room for growth in Russia.

Furniture companies should work hard to develop the Russian market

It is understood that at present, in addition to the impact of the financial crisis, China's furniture exports also face some challenges. Manzhouli Customs recommends that in order to promote the expansion of China's furniture market in Russia, government departments and furniture companies need to improve their capabilities in several ways:

——— Enhance brand awareness. Most Russian middle class believes that in the current market, Italian products are the best among all imported furniture, and some Russian families who have bought Chinese furniture with good quality and low price still have to affix an Italian brand trademark on Chinese products. Therefore, it is necessary to establish an image of Chinese furniture products in the Russian market, increase publicity, and build a brand.

-Taking full advantage of the advantages of Manzhouli, Suifenhe and other ports in Russia. In recent years, more and more Russian families tend to order furniture. In order to meet the needs of users, some Russian importers order furniture in China according to customer requirements. Therefore, our export enterprises can develop this business. Although the order quantity is not very large, the actual profit is very considerable, some as high as 150%. In addition, the Russian country is rich in resources, so furniture is mostly made of solid wood or stone. Therefore, in the selection of materials for our export products, its particularity should be considered.

--- Furniture export enterprises should standardize their operations and avoid low-price competitive sales. At the same time, pay close attention to the trend of the international economic situation, reduce the risk of international trade friction, actively seek more foreign partners, and have the conditions to move the factory to Russia. In 2003, Xinjiang Dongmin Group invested and built a furniture company in the Siberian region of Russia, setting a precedent. Sole proprietorship or cooperation with the Russian local government and enterprises to develop the Russian market is an effective way to expand the market.

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