In the past year, the domestic mahogany furniture market has experienced a period of stagnation. Since the second half of last year, demand for mahogany furniture has started to decline, and signs of "price reductions in redwood furniture" have quietly emerged. For consumers, is it truly a good time to buy mahogany furniture? Are the current prices really attractive? Industry experts suggest that while the market may be at its lowest point, buyers should still approach with caution. The price of mahogany furniture is influenced by various factors, and long-term investment considerations are essential.
During a recent visit to a mahogany furniture store in Beijing, the reporter observed that several well-known brands, such as Yuxiang Redwood, Tingmei Redwood, Yunlonghai, and Hong Dingge, had closed their doors or were not open for business. In many stores, salespeople often quoted prices lower than the listed ones. At one store, Jinqiyuan Redwood, a salesperson pointed out a Dahongjiao Duobao Pavilion priced at 70,000 yuan, but said it could now be purchased for 35,000 yuan, noting that the market was weak and the prices were genuine.
Previously, during another visit to a similar store, the mahogany section remained largely empty despite the peak season. Many stores had shut down, and even those that were open appeared to have few customers. One shop owner explained that since the second half of last year, business had been poor, and the situation did not improve in the first half of this year. Many merchants found it difficult to sustain operations due to high rent and opted to leave the market. Those remaining were struggling to sell their inventory.
Industry analysis shows that the mahogany furniture market has reached a bottom. Since the second half of 2014, price cuts became common. According to the National Redwood Products Market Prosperity Index released by the China Redwood Committee, the index fell sharply from May 2014 onwards. By April 2015, the index stood at 96.0, a 22.4% drop year-on-year and 5.9% lower than the previous month. Both the new order and production indices declined significantly, reflecting weak demand and heavy downward pressure on the market.
The primary cause of the price drop is the falling cost of raw materials. Industry insiders reported that the price of mahogany materials has dropped significantly since the second half of last year. For example, Burmese rosewood has fallen by over 50% compared to 2013, and Daye rosewood, which once reached 300,000 yuan per ton, now sells for around 70,000 yuan. Similarly, Laos sour branch rosewood, which was once over 200,000 yuan per ton, now trades for about 134,000 yuan. Lobular rosewood, previously priced at 1.2 million yuan per ton, can now be purchased for 800,000 yuan.
Additional factors contributing to the downturn include the 2013 revision of the CITES Convention, which restricted trade in certain species like Sian Dalbergia (Laos), leading to a surge in material prices and early overconsumption. This, combined with the housing market slowdown, economic deceleration, and anti-corruption efforts, created multiple challenges for the mahogany market.
Industry insiders note that during a market slump, no business is immune. Consumers often exhibit a "buy high, not low" mentality, which has been exacerbated by the current price cuts. However, high-quality brand mahogany furniture remains valuable, and many brands have shifted focus toward premium, collection-grade pieces to target high-end consumers.
For buyers looking to take advantage of the current market conditions, it’s advisable to choose materials that are widely recognized, such as red rosewood or lobular rosewood. These materials have a long history of use and are known for their value and appreciation potential. When purchasing, ensure that the product is genuine, as some "new materials" may look similar but lack the same value.
For consumers with real needs, the current market offers an opportunity to buy at near-cost or even below-cost prices, reducing overall budgets. Additionally, high-quality mahogany furniture is beginning to show its true value. Pieces with excellent craftsmanship and design are likely to appreciate over time. If you're interested in long-term value and want to avoid future price increases, consider investing in high-end, premium furniture.
For more information on China's furniture industry, visit the official website of Xianghe Furniture City.
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