EU's new environmental protection order has caused heavy losses to Chinese furniture exporters
Author:AdminSource:WebVisits:234Date:2012-08-20

In the past two years, the cost advantage of China's manufacturing industry has weakened, especially the furniture export. Recently, the "wood and wood products regulations and the new environmental protection design directive" officially adopted by the European Union has been a blow to the Chinese furniture export enterprises which are already in the cold winter. Furniture manufacturing enterprises are trapped in difficulties at home and abroad.

"Since this year, some of the European customers that the company often contacts have not placed orders." Yesterday, Chen Huanding, the head of a furniture export enterprise in Hubei Province, revealed that some of the company's floors and wooden doors are mainly sold to European and American markets. Under the influence of the global economy, the consumption demand in the overseas market is insufficient, and the foreign trade situation is worsening. "The company's orders are more than halved compared with last year.".

He said that furniture enterprises are typical export enterprises. However, with the rise of raw materials and labor costs and the appreciation of RMB, furniture export enterprises are facing many difficulties this year. The prices of some raw materials such as furniture plates, paints and glues have risen all the way, with a maximum of more than 50%, increasing the business costs of enterprises.

In addition, European and American markets are increasingly strict with China's furniture standards. At the beginning of this year, the U.S. Senate passed the formaldehyde standard bill for composite wood products, which has been officially implemented since July 1. The new law reduces the formaldehyde emission of wholesale wood products sold in the United States, which brings challenges to China's furniture export enterprises. Recently, "EU wood and wood products regulations and new environmental protection design directive" has also been formally passed, requiring all manufacturers in the wood production, processing and sales chain to submit the basic data proving the legitimacy of the wood source, such as the wood source, the country and forest, the wood volume and weight, the name and address of the log supplier. This is a fatal blow to foreign trade furniture enterprises.

"Most furniture enterprises are small and medium-sized enterprises. Small and medium-sized enterprises have long relied on the advantages of low price and low cost to enter the European and American furniture market. Identity authentication has increased its cost pressure, which makes it difficult to establish a foothold in the EU market. " One industry person said.

Then, can these enterprises be converted to domestic sales? Liu Hao, head of a flooring enterprise in Hubei Province, said that every export order is usually profitable, but after it is converted to domestic sales, furniture enterprises need to open up the market and have to focus on investment in the market cultivation period, so it is difficult to make profits in the short term.

In addition, he said, export products are mainly designed for the needs of overseas consumers, and it is likely that the phenomenon of acclimatization will occur after turning to the domestic market, "for enterprises accustomed to export, there will be various difficulties and challenges in the process of domestic sales".

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