The ongoing impact of property purchase restrictions on the real estate market continues to ripple through the furniture industry, intensifying challenges for businesses. Following a sharp decline in the popularity of domestic furniture stores last year and numerous store closures, competition among furniture retailers in Foshan—China’s major furniture trade hub—has become increasingly fierce this year.
An internal conflict within the Foshan furniture sector was recently brought to light by an industry microblog post before the Spring Festival. It revealed that brands with stores in the Louvre shopping mall were allegedly barred from participating in the Foshan International Home Expo City. This alleged "infighting" has sparked controversy and confusion, especially after a press conference held by the China Home Brand Alliance and a PR firm in Guangzhou aimed to mediate the dispute. However, the involved parties, including Louvre and Jiabo City, remained absent throughout the event, leaving the situation unclear.
On March 1, the China Household Brand Alliance hosted a press conference in Guangzhou, inviting prominent figures such as Bao Yujun, president of the China Private Enterprise Federation, and Professor Wang Rongzhen from Guangdong University of Foreign Studies, to address the issue. The event highlighted concerns over unfair competition and the need for a more transparent market environment.
The incident originated from a Weibo post in early February, where Lu Xin, the Secretary-General of the China Household Brand Alliance, shared a communication letter addressed to the Louvre's chairman. The letter accused the Louvre of restricting brand companies or distributors with stores in its mall from entering Jiabo City, even if their product lines were completely different. The letter criticized the Louvre’s actions as "defective" and contrary to fair market competition, urging the company to collaborate for the benefit of the industry.
Notably, the communication letter bore the seals of eight major home furnishing industry organizations, including the National Chamber of Commerce and Industry Home Furnishing Chamber of Commerce, Guangdong Furniture Chamber of Commerce, and others. Despite sending the letter via fax and express, no response was received from the Louvre.
As the situation unfolded, the Louvre remained silent, and media calls to the company went unanswered. At the press conference, a PR agency called Guangzhou Xuanxi Weibo Brand Management invited over 20 provincial media outlets, but neither Louvre nor Jiabo City representatives attended. No affected distributors or brand companies were present either.
Lu Xin, who spoke to the media, mentioned that more than 10 member companies had reported receiving such notices, and some that had already settled in Jiabo City were reportedly forced to leave. This also impacted the planned investment promotion event at Jiabo City, scheduled for March 17.
During the two-hour press conference, several experts discussed the issues surrounding market competition and the protection of branded manufacturers' rights. However, key questions about specific companies involved remained unanswered.
Despite the communication letter and press conference, the situation remains unresolved, with both sides still locked in a contentious battle. The absence of responses from the main players raises further questions about the role of the China Home Furnishing Brand Alliance, which had previously signed a strategic cooperation agreement with Jiabo City in 2012.
Industry insiders believe that the current disputes are just the beginning. Zhou Hua, executive president of Zhanhua Home Purchasing Network, suggests that if the market doesn’t improve this year, competition will likely intensify further. While Jiabo City is positioned as high-end, the large market size and presence of well-known brands make it highly competitive.
Over the past decade, Foshan’s furniture industry has expanded from Le Nan to Longjiang, and more recently to Foshan Avenue in the north. However, in recent years, the industry has faced multiple challenges, leading to weak growth. A senior veteran in the industry noted that verbal warnings against opening stores in competing locations have become an unspoken rule in major furniture stores.
Some companies argue that such practices are part of normal market competition, and that customer preferences determine business success. Others see it as a strategy by new entrants to gain an edge.
Deng Zhenhua, vice chairman of the Shunde Furniture Association, emphasized that the Foshan furniture industry is still in its developmental stage and should focus on long-term growth. He pointed out that successful global brands like Italian furniture thrive due to strong competition, and that healthy rivalry can be beneficial if transformed into mutual motivation.
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