The prices of furniture have been on the rise due to increasing wages and higher costs of raw materials. As wood is the main material used in solid wood furniture, its price has been continuously climbing. Last year, although it was far behind the sharp increases seen in premium woods like pear, red sandalwood, and rosewood—some of which saw over 80% price hikes—the increase for general solid wood furniture still exceeded 20%. However, with the continued tightening of property market regulations and a decline in both practical and investment demand, the trend for solid wood furniture prices this year is quite delicate.
Solid wood furniture manufacturing is a resource-intensive industry. In China, there are strict restrictions on the harvesting and logging of forestry resources, leading to an increasing reliance on imported wood. For example, common woods like ash used in domestic furniture are mostly imported from Russia. The scarcity of these materials makes it clear that solid wood prices will remain on an upward trajectory in the long run.
In the furniture market, the use of solid wood for high-end furniture far exceeds the total supply of trees available in China. To protect forest resources, Chinese forestry authorities have become stricter in approving logging activities. At the same time, log import channels are also being restricted, as major wood-producing countries impose more limitations. This has led to a tight supply of logs in China, with raw material prices skyrocketing. Some solid wood furniture manufacturers now find themselves in a situation where they can't make furniture without enough wood, resulting in the common practice of using lower-quality wood as a frame and then covering it with thin layers of high-quality solid wood.
Solid wood furniture prices continue to rise. The furniture sales market is affected by the continuous increase in the cost of raw materials and labor. While some manufacturers with long-term supply agreements have managed to avoid immediate price hikes, many solid wood furniture brands have announced their second price increase of the year, with increases ranging from 3% to 5%.
Southeast Asia, Africa, North America, and Russia have traditionally been the main sources of timber imports in China. However, due to reduced resources, national policy restrictions, exchange rate fluctuations, and rising transportation costs, timber prices have increased significantly compared to previous years. These factors, combined with higher factory purchase and transportation costs, have contributed to recent price increases in solid wood furniture.
"One might say that rising prices aren’t always good. Although we don’t set the prices, after accounting for costs, our profits decrease. If the market turns downward, it could also affect consumer enthusiasm," said a solid wood furniture agent. "This month, I only managed to place a few orders. After deducting rent, utilities, and labor costs, I made no profit at all." He added that if manufacturers decide to raise prices, agents have no choice but to follow suit.
Despite the price increases, most consumers have not changed their purchasing plans. Mr. Li, a local citizen, said that while some brands may try to offset price hikes by cutting corners or charging extra fees, buyers should look beyond just the price and consider the brand and quality before making a decision.
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