The "Daily Economic News" reporter recently learned in an interview with Tongling, Anhui, that the trend of the real estate industry is similar, and the furniture industry closely related to it is moving from the first-tier cities to the second- and third-tier cities. This trend will continue to emerge in the future. According to Wu Zhihui, dean of the School of Furniture and Industrial Design of Nanjing Forestry University, this change was more obvious in the second half of last year and the first half of this year. The reason is the transfer of the real estate industry brought about by the regulation of the property market. Since April last year, the state has successively launched three rounds of real estate market regulation, and the regulation and control has been gradually strengthened, and the market has also clearly differentiated. By August of this year, the transaction volume of the four most restrictive first-tier cities had fallen, and the volume of most second- and third-tier cities continued to rise. Many large-scale housing companies have begun to cut investment in first-tier cities and increase the layout of second- and third-tier cities. A well-recognized view is that furniture, building materials and other industries closely related to the real estate industry are among the first to be under the “aftermath†of property market regulation. Subsequently, the second and third tier cities will also undertake the transfer of more industries. The furniture industry is one of the most relevant industries in the real estate industry. In the rapid development of the real estate industry from 2006 to 2007, the turnover of China's furniture industry has also been rising. Since the second half of last year, the furniture market has shrunk with the downturn in the property market. According to the National Bureau of Statistics, in August this year, the sales volume of the furniture industry was 9.8 billion yuan, which was the same as that in July, but the year-on-year growth rate fell by 3.6 percentage points. Since the beginning of this year, the sales volume of the furniture industry has continued to show a downward trend. Similar to the real estate industry, the layout of the furniture industry in the first-tier cities is almost saturated, the competition of enterprises is fierce, and the spillover effect is obvious. Therefore, many second and third tier cities take the initiative to undertake the transfer of industries. Recently, Anhui Tongling invested heavily in the construction of furniture production and sales bases, and tried to make it one of the pillar industries of the city. At the same time, the export-professional furniture industry is being affected by the external economic downturn and has to open up new markets. Chen Baoguang, vice chairman of the China Furniture Association, revealed in the recent "China Furniture Market Development Forum": Since the beginning of this year, the export growth rate of the furniture industry has dropped significantly, from 20% in January to 8% in August. In fact, similar to most real economy industries, the transfer of the furniture industry is also due to the pressure of rising costs. Wu Zhihui told this reporter that the high cost of labor, land, financing and raw materials in first-tier cities has greatly reduced the profitability of furniture companies. On the other hand, the increase in transportation costs has also prompted companies to move directly to second- and third-tier cities. Zhang Jun, general manager of Southern Furniture, told the Daily Economic News reporter that in the company's operating costs, logistics costs accounted for 6%-15%.
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