Shopping Shenzhen
By Thomas Russell -- Furniture Today, May 5, 2008
Shenzhen, China — With one of China's fastest growing cities as a backdrop, visitors to the 22nd International Furniture Exhibition here had plenty of product styles and categories to shop.
Covering 1.7 million square feet at the Shenzhen Convention & Exhibition Center, the March 19–22 show featured 612 exhibitors selling a mix of upholstery, case goods and occasional furniture.
Styles covered a wide range, with European and American-influenced traditional as well as clean-lined transitional and contemporary items geared toward urban markets.
Much of the product reflected the tastes of the domestic Chinese market, and more than 88% of the show's estimated 60,000 visitors were from China. While some collections had western design influences, they were scaled to fit in smaller Asian homes.
An example was a line of contemporary, cappuccino and black-finished cocktail tables at Gingo Furniture, whose surfaces were low to the ground to complement upholstery sold to Asian and European markets.
Shenzhen Shen Long Hang Industry showed a line of European traditional case goods and upholstery under the Makersmade International Furniture brand. It exports about 70% of its products and the United States is its largest market.
While many of its products are styled for western and Middle Eastern markets, the company also offers versions scaled for China. A round dining table in its Broadway collection is 1.6 meters wide in its standard version and also is offered at 1.22 meters. A company representative said that with the domestic market, "The opportunities are limitless."
Mei Jia Ju Furniture markets a line of American traditional bedroom and dining room furniture under the Disenbor brand. The pieces, which included Windsor back chairs and country style cupboards and consoles, are largely sold to the U.S. market, which represents 80% of sales. The company sells another 5% to the Middle East and Canada, and the remaining 15% to the domestic market.
While the styles it showed in Shenzhen were mostly western, a sales representative explained through a translator that most of the pieces on display were scaled for the China market.
Case goods manufacturer China Shenzhen Aristocratic Furniture was hoping to get more U.S. customers, but was thwarted by the high import duty the U.S. government imposes on its traditional European style bedrooms.
Another reason the U.S. market is difficult to penetrate is wholesaler and retailer aversion to rising prices, which cost increases are forcing Chinese manufacturers to pursue.
"Clients in the U.S. cannot accept price increases, so this is a big problem," said Andy Deng, manager of foreign trade at Aristocratic.
According to a post-show report, Shenzhen drew 1,355 buyers from North America, accounting for 19% of the international visitors and 2.2% of the total attendance of 60,000. Europe represented 24% of the international buyers, Southeast Asia 24% and the Middle East 19%.
Many companies, including Aristocratic and case goods and upholstery manufacturer Alexandre International, use the show mainly to attract Chinese buyers. Alexandre was offering franchise opportunities for the growing network of stores it is opening across China.
"Buyers from China, they are looking for higher end classic (style) furniture," said Vicki Lin, marketing director. "The people in China are getting richer and have a hunger for quality. We are preparing furniture and a lifestyle for these people."
The focus on styles and sizes for the domestic and European markets left some buyers without much to choose from for their U.S. stores or product lines.
"A lot of those big fancy showrooms are looking for domestic franchises," said Sunny Hwang, president of case goods manufacturer Sunny Designs, who was shopping the show. "I was really disappointed."
He added that high pricing was another issue. He said items he purchased about two years ago cost 25% to 30% more without much change in style or value.
Because of the weakness of the U.S. dollar, he said, companies also were quoting prices in Chinese yuan, not dollars.
