This global financial crisis has caused many losses to the Chinese furniture industry, including foreign and domestic, which can be summarized as follows:
Foreign companies go bankrupt and loans fail
Lavetez Furniture Company (ranked 10th), which once had the title of Big Mac in the US industry, filed for bankruptcy on November 8, 2007. The company's total sales were US $ 511.3 million and liabilities were US $ 152.5 million. This company has 20% of its goods sourced from China. It is understood that some factories in Haining and Tongxiang, Zhejiang Province, have been locked in place, with losses ranging from 50 million to 60 million.
A British furniture company went bankrupt, making it difficult to recover more than 4 million loans from Zhejiang Anji.
Chinese furniture export SMEs account for 90%, some of which are independent of middlemen ’s independent export, lack of experience, and unsuccessful development. Trade traps and trade risks are more common in the export process of furniture companies. Every day, there is a Chinese furniture company that has sold out goods and funds due to FOB terms. "There are nearly a thousand enterprises in Zhejiang that have been owed by American companies.
Furniture export refunds due to quality issues
There are hidden dangers in the quality of Chinese furniture exported to the United States. According to US customs information, millions of pieces of furniture imported from China are rejected or returned by the US every year due to quality problems. In 2007, a sofa company in Shenzhen "due to the failure of the leather and paint testing, dozens of containers were returned when they were exported to the United States." This was a painful experience that has made people in the industry sigh.
Malaysian furniture dealers ordered office furniture at a furniture factory in the south. Foreigners said that the shipment was re-exported to Europe. If there is no English label, no one will be interested. The factory was promised by foreign merchants at that time, but due to the lack of English translation and other reasons, when the foreign merchants came to inspect the goods, they found that the outer packaging of the furniture ordered was still not marked in English, and the foreign merchants returned the goods.
French media reported that 400 consumers bought sofas and armchairs manufactured by China Lianzhi Furniture Co., Ltd. and exported to France. As a result, they suffered from eczema and demanded a return. About 600,000 baby cots also exported to the United States have been recalled.
The container is shipped to the overseas terminal, no one picks it up
No one picks up the furniture in Hong Kong for two main reasons: one is the collapse of foreign companies; the other is the hardship of capital turnover.
The collapse or bankruptcy of European and American furniture companies has increased the bad debts of some enterprises in Dongguan where exports are concentrated.
Export companies closed down in large numbers and owed money.
In 2008, more than 7,000 furniture enterprises closed down in China. From January to April this year, another 400 enterprises in Guangdong closed down.
Shenzhen Digaile Furniture Company closed down, and the boss fled back to Italy. De Gaulle has 4,000 employees and annual exports of 400 million US dollars. The main reason for the failure was the breakdown of the capital chain. After several of the company ’s large clients went bankrupt in the financial crisis, they had no money to pay for the goods, dragging De Gaulle into a tight financial situation. The company ’s employees defaulted on their wages in November and December 2008, causing a collective strike. The local government All the company's assets have been sealed up, totaling more than 200 million yuan. More than 25 million wages are owed by the government. De Gaulle owes a large amount of money to suppliers and logistics companies, such as East Asia Sponge being owed more than 70 million yuan, 10 million US dollars in marine containers, and 50 million euros in Europe.
Dongguan's well-known Taiwan-funded enterprise, Oumei Na Furniture Co., Ltd. has a factory area of ​​200,000 and 3,000 employees. The high-end furniture produced is sold to more than 50 continents in the United States. Closed overnight. The boss escaped and is currently in debt.
Dongguan Taihao Furniture Company closed down, the factory has been taken over by the local development zone, and the owed upstream raw materials have reached tens of millions.
Affected by the financial crisis, China's furniture export enterprises are faced with the following difficulties: on the one hand, a large number of enterprises closed down; on the other hand, enterprises suffered large losses.
Dongguan furniture is suffering like fire, forced to the brink of struggling to survive. According to a survey, 20% of Dongguan furniture export companies are losing money, 30% are flat, and 50% are relying on meager support. It is possible that 20% of companies will fail.
In June last year, a reporter from Shenzhen Daily interviewed Dalingshan. There were more than 1,000 employees of Yuanda Furniture Company (private), and the monthly loss was more than 1 million. Chairman Zhu Fuzhang said: "Now the more words you do, the more losses you make. The business and wood industry want to cry without tears." The boss Shang Yourong (Zheshang) did everything in 2006 and wanted to do a big job. With enough land to build a factory of 40 acres, 1,000 employees have now shrunk to 200. Hongsen Wood has moved to Vietnam; Renyi has closed down and the boss fled with money. Dalingshan Township has closed an average of 2 companies every day.
Zhejiang's furniture exports from January to June last year were 2.82 billion US dollars, an increase of 8 percentage points, economic benefits showed a big decline, about 1/3 of enterprises suffered losses to varying degrees, profits fell by 3.03% year-on-year, and the absolute value of losses increased by 61.7 %, Reaching 200 million yuan, equivalent to double the loss for the whole year of 2006.
The national export tax rebate rate has been adjusted twice, from the original 13% to 9%. Based on the 4.3 billion US dollars of furniture exported by the province in 2007, the industry has reduced profits by about 600 million yuan.
The appreciation of the renminbi against the US dollar has evaporated corporate profits in an invisible way. Since the exchange rate reform began in July 2005, the renminbi has appreciated against the US dollar by more than 21%, which has caused China to suffer a direct currency loss of 2 trillion yuan from the devaluation of the US dollar. Since last year, Zhejiang furniture has depreciated only one dollar, resulting in a loss of nearly 1 billion yuan in corporate profits. Calculated at this ratio, it is estimated that the export value will reach about 27 billion US dollars last year, and it is estimated that the profit loss of all export enterprises will reach 10 billion yuan.
The world economic downturn still has a long way to go. The CEOs of China's furniture export companies must be prepared enough. The president of IKEA said: "This economic recession should continue for another three years."
bbq grill, bbq grill mesh, Grill Grate, stainless wire bbq grill,Bbq Grill Metal Mesh,etc. It is suitable for indoor and outdoor barbecue.
Barbecue wire grill grate is made of high quality 304 stainless steel, never rusting and durable. BBQ Wire mesh does not have any coating or chemical ingredients, making food safer.
Barbecue wire grill grate is made of high quality 304 stainless steel, never rusting and durable. BBQ Wire mesh does not have any coating or chemical ingredients, making food safer.
bbq grill mesh,stainless wire bbq grill,Bbq Grill Metal Mesh,cooking grate,bbq grill grates stainless steel
Shenzhen Lanejoy Technology Co.,LTD , https://www.copper-nut.com