The furniture hardware industry is showing signs of a gradual recovery. Along with this "recovery boom," there has been a noticeable surge in furniture prices, driven by rising costs of raw materials such as sheet metal, hardware, and paint, as well as increasing labor expenses. As a result, many furniture manufacturers are preparing to raise their prices starting next month.
"We have received an official notice from the factory that the ex-factory price of furniture will increase by 5% to 10% from March. The products affected will mainly include wardrobes, accessories, mattresses, and sofas," said Mr. Zhang, a furniture brand agent. He added that although many furniture and building material stores haven't changed their pricing yet, discounts have become smaller since last July. This is due to the continuous rise in the cost of key materials like aluminum, stainless steel, and chemical substances such as paint and glue.
In addition, wages for production workers, sales staff, and installation personnel have increased by about 10% to 15% over the past year. With more complex craftsmanship involved in processes like carving and hand-painting, the prices of high-end furniture made by skilled artisans have risen significantly.
Zhang Yuncheng, vice chairman of the Tianjin Furniture Association, stated, "With intensified market competition and more standardized marketing practices, the era of high-profit furniture business has passed. We're now in an era of thin margins. Currently, 20% of furniture companies' revenue goes to rent, 7% to logistics, and the overall profit margin is only 10% to 20%. There's little room for price cuts." He also noted that price increases around March have become a common practice in the industry. Looking ahead, the furniture sector is expected to see a 10% to 15% increase this year.
Before April, the home furnishings market is typically in its off-season, making it difficult to implement price hikes without affecting consumer demand. Moreover, furniture is not a daily necessity, so even small price increases may not be immediately felt by consumers. However, with more transparent pricing and the growing presence of online furniture retailers, physical stores are under pressure. As a result, brands often avoid direct price increases and instead reduce discounts to subtly raise prices.
Interestingly, compared to domestic furniture, imported furniture may see price reductions. According to Zhang Yuncheng, foreign brands have lost some consumer confidence in China due to past issues, leading to a decline in popularity for imported furniture. To regain customer interest, many foreign brands are now lowering prices—a last resort to remain competitive.
Industry insiders also pointed out that the "May Day" holiday is a peak season for furniture sales and often marks the launch of new products. During this time, price increases are likely to be more direct rather than gradual. For those planning to purchase furniture, it might be wise to start shopping early to avoid higher costs later.
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