The export business of furniture and building materials is recovering, and the income of many companies has soared

Dacai Research, Chief Analyst: Deng Chaoming, Pan Home Furnishing Boss Business Internal Reference, Manager's Daily Reading, Business Staff of Front-line Personnel, to create an influential large home furnishing construction and decoration research institution, professional evaluation and communication center.

In the first two months and the first quarter of 2024, the export value of furniture and building materials has increased, and exports in some regions have also done well.

Nationally, in the first quarter of 2024, the export value of furniture and its parts was 124.14 billion yuan, a year-on-year increase of 23.5%. The export value of ceramic products was 42.77 billion yuan, a year-on-year increase of 7.2%, and the export value of lamps, lighting fixtures and parts was 69.54 billion yuan, a year-on-year increase of 13.1%.

Another very typical phenomenon is that, according to the information of the China National Expo, the 53rd China National Expo (Guangzhou) attracted 51,205 overseas visitors, an increase of 43.11% over 2019, a record high, which can also reflect the enthusiasm of overseas markets for Chinese furniture-related products.

Looking at the export business of household products in several provinces and cities, growth has generally been achieved at the beginning of 2024.

For example, Zhejiang, according to statistics from Hangzhou Customs, in the first two months of 2024, Zhejiang Province exported 22.46 billion yuan of furniture products, a year-on-year increase of 30.2%.

Among them, the city's furniture export performance is quite good, the first two months of furniture and its spare parts exports of about 3.13 billion yuan, a year-on-year increase of 40.9%. Furniture exports to emerging markets were 690 million yuan, a year-on-year increase of 103.3%. that

According to the article from the Economic Daily, some companies have performed well, including Longwei Furniture in Anji County, where in 2023, the company's cross-border e-commerce exports will be 300 million yuan, a year-on-year increase of 72.9%. By March 26, 2024, Longwei Furniture has sent 718 dining chairs to the sea.

Through cross-border e-commerce and other forms of the implementation of independent brands to the sea, has become the focus of home furnishing enterprises competition, such as "Longwei", "Qianglong" and other furniture companies have built overseas warehouses, through foreign platforms for independent brand sales.

In terms of supporting furniture exports, Anji has made long-term efforts, such as providing "one-to-one" counseling by the coordinator of customs and enterprises designated by the customs, publicizing RCEP and AEO certification according to the situation of major trading partners, and realizing rapid issuance of certificates through a single window "cloud issuance", shortening the time for issuing certificates in the electronic bottom account of outbound goods, and improving the timeliness of export inspection.

Looking at the overall situation of Anji County in 2023, the cumulative export of furniture enterprises in the county is about 20.4 billion yuan, accounting for 54.5% of the county's total exports, a year-on-year increase of 5.7%. Europe and the United States are still the main overseas markets.

There are 1,308 export enterprises in the county, including 715 furniture enterprises and 64 bamboo and wood products enterprises.

However, the exports of some categories in Anji will decline in 2023, for example, the cumulative export of hardware and metal products enterprises will be 1.442 billion yuan, a year-on-year decrease of 20.1%, and the cumulative export of bamboo and wood products enterprises will be about 605 million yuan, a year-on-year decrease of 19.2%.

In the public 2023 export table of the top 100 enterprises in Anji County, Yongyu Home, Shengxin Office Furniture, Longwei Furniture, Daming Furniture, Actually Yazhu, Chaoya Furniture, Jiaruifu (Zhejiang) Furniture, Wanbao Smart Home, Muge Home, Runda Kehong Furniture, Xinzhan Furniture, Saiwen Furniture, Baizhijia Furniture, Wanchang Furniture, Bomei Furniture, Yongfeng Furniture, Beixin Furniture, etc. have all achieved growth, and some companies have even increased by more than 50% year-on-year.

According to a report by Guangzhou Daily, Shenzhen Customs revealed that in the first two months of 2024, Shenzhen's furniture exports were 11.73 billion yuan, a year-on-year increase of 3.8 times, a record high for the same period in history.

Sichuan's furniture exports are turning the tide, giving upward figures.

In 2023, according to the data of Chengdu Customs, in 2023, the export value of Sichuan furniture and its parts will reach 9.807 billion yuan, a year-on-year increase of 80.4%, and from January to February 2024, the export value of Sichuan furniture and its parts will reach 2.891 billion yuan, a year-on-year increase of 92.3%.

According to a report by Chuanguan News, compared with the major provinces in the furniture industry, Sichuan's furniture exports in 2023 will be less than 10% of Guangdong and Zhejiang, and it is an emerging province for furniture exports. The growth of furniture exports is mainly driven by import and export agents, traders and small and medium-sized furniture enterprises, and the export business of some large furniture manufacturing enterprises in the province is declining.

Hebei's furniture exports have also improved, and in 2023, Hebei's furniture and parts exports will be 10.52 billion yuan, a year-on-year increase of 31.2%.

Let's combine the situation of some listed companies to look at the export changes of furniture and building materials, and here we mainly refer to the 2023 data of listed companies.

Lege Co., Ltd.: In 2023, the operating income will be about 3.902 billion yuan, a year-on-year increase of 21.61%, and the net profit attributable to the parent company will be 634 million yuan, a year-on-year increase of 189.72%.

Among them, the revenue of ergonomic series products and warehousing and logistics business has increased.

By the first quarter of 2024, the company has 13 self-operated overseas warehouses around the world, with a total area of 362,400 square meters, serving more than 600 foreign trade enterprises.

In the first three quarters of 2023, the total operating income was about 5.776 billion yuan, a year-on-year increase of 24.74%, and the net profit attributable to the parent company was 366 million yuan, a year-on-year increase of 22.91%.

Its cross-border e-commerce business has achieved a high growth rate, with Amazon, Tik Tok and other major channels.

Zhiou Technology: In 2023, the revenue will be 6.074 billion yuan, a year-on-year increase of 11.34%, and the net profit attributable to shareholders of listed companies will be 412 million yuan, a year-on-year increase of 65.08%. A total of 20.37 million products were sold in 2023.

Among them, the annual revenue of the furniture series was about 2.71 billion yuan, a year-on-year increase of 4.79%. The revenue of home furnishing series was 2.285 billion yuan, a year-on-year increase of 22.31%.

In terms of regions, the revenue in Europe was 3.728 billion yuan, a year-on-year increase of 21.64%, accounting for 62.31%. The revenue in North America was 2.173 billion yuan, accounting for 36.32% of the main business income.

In terms of channels, B2C is dominated by online retail platforms such as Amazon, OTTO, independent stations, SHEIN, TikTok Shop, Mercado Libre, Fressnapf, etc., while B2B is divided into online B2B and offline B2B lines.

From 2023 to the first quarter of 2024, the export situation looks good. The situation in some regions and some enterprises is quite good.

Dazai Research believes that the ability to stabilize the situation and even grow is inseparable from the factors that the consumption power of Europe and the United States is still strong, and more importantly, domestic enterprises have made every effort to expand more regional markets outside the big stage of Europe and the United States, including the Belt and Road, Latin America, Africa, the Middle East and other regions.

According to information disclosed by some companies, there has been some growth in emerging markets.

In addition, in addition to traditional offline sales channels, e-commerce platforms such as Amazon, OTTO, SHEIN, and TikTok Shop, as well as online retail channels such as Independent Stations and Mercado Libre, are contributing more revenue.

There are also some enterprises that have completed the construction of hundreds of thousands of square meters of overseas warehouses, empowering foreign trade enterprises, so that they can sell better and deliver faster, and also help other small and medium-sized foreign trade enterprises to expand foreign markets.

It is worth noting that domestic enterprises are keeping an eye on the needs of overseas markets, further consolidating their competitive advantages, and being flexible to meet the needs of customers, such as independent brands with better performance, attaching importance to product design, and providing more price advantages and more cost-effective choices.

Of course, the export business can withstand external shocks and make a difference, which is inseparable from the support of local governments, which is reflected in many aspects:

The first is to provide substantial subsidies to support enterprises to hold exhibitions in various potential countries and give financial boosts. The second is to provide training and guidance based on the import and export policies of each target market. The third is to provide full support when handling a package of procedures to reduce the administrative costs of the enterprise.

However, not all companies can achieve growth overseas, and some companies are facing difficulties such as a sharp drop in orders and the impact of traditional advantageous channels.

Even in a strong furniture export county like Anji, there is also this situation, and in 2023, there are not a few furniture export enterprises in Anji County whose performance will decline.

Some time ago, the "Wu Xiaobo Channel" once pushed an article on the visit to the China National Expo (Guangzhou), which mentioned the phenomenon of uneven market heat and cold, some companies have achieved more than 10% growth, while some companies feel that they are falling.

Some companies have reported that the price war in some overseas markets has been more intense, and the price has been seriously suppressed, and the cost-effective advantage between domestic enterprises has continued to strengthen.