The ongoing impact of property purchase restrictions on the real estate market continues to ripple through the furniture industry, intensifying challenges for retailers. Last year saw a significant drop in foot traffic at domestic furniture stores, leading to store closures and a more competitive landscape. In Foshan, China’s major furniture trade hub, competition among furniture retailers has become increasingly fierce since the start of this year.
A recent industry microblog post before the Spring Festival revealed internal tensions within the Foshan furniture sector, highlighting an alleged "infighting" between key players. Specifically, it was claimed that any brand with a presence in the Louvre shopping mall is barred from entering the Foshan International Home Expo City. This controversy sparked a press conference held by the "China Home Brand Alliance" and a PR firm in Guangzhou, aiming to mediate the conflict between Foshan International Home Expo City and Lecong Furniture Store. However, the involved parties remained absent throughout the event, leaving the situation unclear and raising questions about the alliance's involvement.
On March 1, the China Household Brand Alliance hosted a press conference in Guangzhou, inviting notable figures such as Bao Yujun, president of the China Private Enterprise Federation, and Professor Wang Rongzhen from Guangdong University of Foreign Studies. The event aimed to address the growing concerns around unfair competition in the furniture market.
The incident originated from a Weibo post before the Spring Festival, where Lu Xin, the Secretary-General of the China Household Brand Alliance, shared details about the "infighting" between two major furniture centers in Foshan. A communication letter dated January 7 was posted, stating that some brands and distributors had been told they could not open stores in Jiabo City if they already had a presence in the Louvre mall, even if their product lines were entirely different. The letter criticized the Louvre’s actions as unfair and contrary to the principles of free market competition.
Notably, the communication letter was signed by eight 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.
In the weeks following the incident, the Louvre remained silent, and media calls to its departments went unanswered. At the press conference, a PR company invited over 20 provincial media outlets but did not include representatives from either the Louvre or Jiabo City. None of the affected distributors or brands attended the event.
Lu Xin mentioned that over 10 member companies had reported receiving similar notices, and some that had already established themselves in Jiabo City were reportedly removed by the Louvre. This situation impacted the planned investment promotion event for Jiabo City, scheduled for March 17.
During the press conference, experts like Bao Yujun, Wang Rongzhen, and Guo Libing discussed issues related to market competition and the protection of branded manufacturers' rights. However, key questions about the specific companies involved were left unanswered.
Despite the communication letter and press conference, little progress has been made, and the conflict remains unresolved. The question remains: why have neither of the involved furniture cities responded? Additionally, it has been noted that the China Home Furnishing Brand Alliance had previously signed a strategic cooperation agreement with Jiabo City in June 2012.
Industry observers believe the current situation reflects deeper market tensions. Zhou Hua, executive president of Zhanhua Home Purchasing Network, suggests that the competition will likely continue to intensify, especially if the market remains weak. While Jiabo City positions itself as high-end, its large market size and presence of well-known brands make it highly competitive.
Over the past decade, Foshan’s furniture retail landscape has expanded from Le Nan to Longjiang, and more recently, to Foshan Avenue. While new stores are opening rapidly, the local furniture industry has faced multiple setbacks, resulting in sluggish growth. Some industry insiders suggest that verbal notifications to avoid competing stores have become an unspoken rule among major furniture retailers.
Deng Zhenhua, vice chairman of the Shunde Furniture Association, believes the Foshan furniture industry is still in its developmental stage. He encourages companies to take a long-term view and focus on the global furniture market. Drawing inspiration from Italian furniture brands, he emphasizes that healthy competition drives innovation and success. Ultimately, while intense competition may seem daunting, it can also serve as a powerful motivator for growth.
Fire Pipe Fan Blades,Fog Cannon Cooler Fan,Cooling Fan Impellers,Heat Exchanger Fan Impeller
Changzhou Keyleader Fan Technology Co. Ltd. , https://www.keyleaderfan.com