Mahogany Furniture Bubble Burst &Nbsp; 80 Million Furniture Fell More Than 100 Times

Once a 80 million yuan set of mahogany

In October 2007, at the China ASEAN Expo, a set of Laos "red acid" furniture with a price of "80 million yuan" was exhibited. It is vividly remembered that the site of the set of furniture clearly indicates that "the price is not discounted, but it is sold to a relative person".

In October 2010, at the venue of the China ASEAN Expo, reporters again saw the complete set of "mahogany furniture" including "sour wood", "chicken wing wood", "red sandalwood" and "yellow pear".

This time, the price of the 17 piece set of chicken wing wood is not more than 170 thousand yuan, and the 19 piece of rosewood is priced at only 190 thousand yuan.

Reporters interviewed many experts and scholars and industry insiders believe: Mahogany furniture from the sky crash, behind the hot money after the withdrawal of the consequences, and this bad result, the entire furniture industry has paid a heavy price, it is difficult to calm down for several years.

I could buy a "Airbus", but now I can't buy a car.

Ruan Wencheng, the exhibitor of the fair, told reporters, "in those days, 80 million yuan and 10 pieces of" furniture of high price "were marked, and now 19 pieces can be bought for less than 600 thousand yuan, and the price has shrunk more than 100 times.

The original sale of a set of furniture can buy an 'Airbus', and now it may not be able to buy a cross-country car! "

Huang Peng, a distributor of mahogany furniture that was interviewed by reporters, once introduced: "the acid branch wood is the mahogany furniture in the broad sense, this kind of furniture."

At this fair, Ruan Wencheng, a exhibitor, told reporters that the price of acid wood in the mahogany furniture series has dropped from nearly 800 thousand yuan / ton to less than 10000 yuan / ton, and the speed of shrinkage has been staggering.

The shrinkage of raw material prices naturally brings down the selling price of downstream products.

Reporters in Guangxi, Pingxiang, Dongxing and other border crossings and Nanning, Liuzhou, Guilin and other home furnishings exhibition, furniture stores, the vast majority of mahogany furniture sellers believe that since the first half of 2007 has reached its peak, all the way down, so far, the price has dropped to only one percent or 1/200 that year.

Huang Xiang, a seller of mahogany furniture in Pingxiang, told reporters that prices rose from 2006 to 2007. In 2005, the price of huanghuali and rosewood was only 100 thousand yuan to 200 thousand yuan per ton. In August 2007, Huanghua pear reached 2 million 500 thousand yuan to 2 million 700 thousand yuan per ton, and red sandalwood was more than 700 thousand yuan to 800 thousand yuan per ton. In those years, mahogany furniture industry had a myth of getting rich overnight.

Huang Xiang said, "but now the price is low, which makes people heartache, not only the price of raw materials is falling, but also the furniture market is showing no price."

Huang Xiang told reporters, in the first half of 2006-2008 years, almost every month can have 200-300 yuan of income, the owner of Jiangsu and Zhejiang and Fujian area saw the store has mahogany raw materials, no matter how the quality, whether or not on time delivery, directly hit the money to buy.

Since the second half of 2008, the market has been shrinking rapidly, and now it may not be able to get 1 million yuan a year.

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"Bubble burst" triggering price regression

Cai Liqiang, a collector of red wood furniture, recommended many times in the collection of "collection" and "Jia Zhen" on television. "Now I will never say that mahogany furniture can be kept up and added value, because the mahogany furniture purchased by relatives and friends in the past 2006-2007 years is now scolding me."

Reporters interviewed a number of people in the industry, a more common view is: "mahogany furniture" from "sky price" to "land price" rapid change, and a large number of hot money into the frenzy of speculation is closely related, and now, the speculation has already left the hot money, but resulting in mahogany furniture "production, supply and marketing" disorder, so that the entire industry is facing a serious crisis.

Hu Binlin, a businessman in Fujian, Guangdong, Beijing and Yunnan, who has many sales places of "mahogany furniture" all year round, told reporters that 2003-2007 years is the most rapid period of "mahogany furniture". According to the basic law of the market, the furniture value added 15%-25% is relatively normal.

But for 2003-2007 years, the momentum of "mahogany furniture" is soaring almost every year at the speed of "tumbling".

Hu Binlin said: "taking the most expensive Hainan Huanghua pear as an example, the price in 2003 was only 30 thousand yuan / ton, but in 2004 it rose to 60 thousand yuan / ton, and in 2005 it soared to 120 thousand yuan / ton, in 2006 it rose to 800 thousand yuan / ton, and 2007 rapidly soared to nearly 3 million yuan / ton.

It is totally out of line with the operation of the market.

As early as in the 70s of last century, Du Chengfeng, an enthusiast of collecting mahogany furniture, said: from the later understanding, it is entirely because of a large number of off site funds flowing into the mahogany furniture market. In just a few years, through hoarding, selling short, pulling up the shipment...

And a series of techniques, the rosewood raw materials and furniture fry to "sky high price".

Du Chengfeng said: "the money flowing into the mahogany furniture market is 200-300 times more than that of the original entry." because the industry is not clear about the capital flow and there is no need for raw material information, so in a short time, almost all the raw materials of the industry are "rising steadily". In fact, the raw materials are monopolized into the hands of professional speculators, and the shortage of the industry can only watch the soaring prices.

Most of these mahogany furniture dealers and collectors are remorseful: at first, they thought that the "selling phrase" of "scarcity", "stunt", "long preservation time" and "value-added speed stability" became the biggest push for "professional speculators" to "blow up the price".

The chaos of the industry has not changed completely.

Reporters in the Sino Vietnamese border market, furniture manufacturing enterprises and furniture sales stores secretly visited, but found that a considerable number of businesses are confusing "mahogany" and "hardwood" standards, and "standard" no enforcement force, to consumers "answer doubts."

Reporters in-depth interviews, many people in the industry believe that even if mahogany furniture entered the "naked swimming era", some enterprises also encountered a "wave of the sand" industry shuffle, the industry also issued relevant standards, but from the actual situation, the industry has not completely changed the situation of confusion, confidence in the market has not been boosted.

In September 1, 2008, the new standard of mahogany furniture, "China's dark and precious hardwood furniture standard", was issued. It was stipulated that the products of the rosewood furniture should be marked, including the product name, timber, accessories, timber origin, quality grade, paint and specifications.

This standard has been highly regarded by the industry as an important measure to standardize Redwood standards and achieve market reshuffle.

However, in random interviews with many furniture markets such as Fu Anju, Bai Tu home and Chun Cheng furniture in Nanning, the reporter surveyed more than half of the 63 sellers and salesmen of "mahogany furniture" and had not heard of the "Chinese dark hardwood hardwood furniture standard". 2/ 3 indicated that "standards are standards, but our enterprises have their own production standards, and many other enterprises can not achieve them."

And about 30% of the salesmen clearly say, "we are producing" mahogany "instead of" log, "and the quality will naturally be different.

Many furniture promoters of "Fu An Ju" furniture city in Nanning said: "the standard of Chinese dark hardwood hardwood furniture" is for hardwood. "Mahogany" is not hardwood. Most of the wooden furniture sold in the market is walnut, ebony, and Manchurian ash. The price of mahogany is lower and higher than those of wood.

Hu Binlin told reporters that there are still a lot of confusion in the market of "mahogany furniture". For example, how much material is known as "mahogany furniture", which accounts for more than a few percent to be called "mahogany furniture".

Hu Binlin said: "these do not say that there is no industrial standard, that is, there are industrial standards. Enterprises and businesses will not be strictly implemented without supervision.

Because everyone knows that they can't sell furniture honestly, or the price is too high to sell, or the price they sell will not even come back.

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viewpoint

"Mahogany chaos" needs to be cleaned up

Fung Lun

From Putian tea's "sky price storm" to "mahogany furniture" to buy "Airbus" "dream miracle", from "garlic you ruthless", "beans you play", "Jiang You army" to "sugar Gao Zong"...

In a few short years, we have experienced the soaring prices of all kinds of commodities, created the "bubble of price", and quickly returned to the original form in a very short time.

Behind the soaring price of "mahogany furniture" and similar commodities and the rapid collapse of bubbles, it highlights a series of difficulties faced by the accumulation and investment of private capital in China.

On the one hand, after more than 30 years of reform and opening up, a large number of private capital has been deposited in the Chinese people, and the situation of "hiding rich people" has gradually emerged. On the other hand, the channels for residents to invest are relatively simple. Stock, fund and real estate are still the main channels for residents to invest.

A single investment channel, coupled with the "shrinking" pressure brought about by the rapid rise of real estate prices in recent years, has made quite a few residents wish to pfer their investment channels and realize their own assets' value preservation and increment. The single investment channel leads to the rich class who lack financial knowledge and hope that their wealth can achieve the goal of maintaining value and increasing value, and use the funds to promote the seemingly dreamy "bubble".

Undoubtedly, it is the "illusion" of soaring prices of red wood and soaring prices of Puer tea.

On the face of it, the damage of "mahogany chaos" and "Puer bubble" is only the interests of investors and speculators. In fact, after a round of shuffle, the integrity of the industry, the trust of consumers, the trajectory of the normal development of industry, and the confidence of private investors are also damaged.

The way to clean up the "mahogany" is very simple: This is to create a broader investment channel, so that private capital can not only precipitate, but also benefit, which requires deep adjustment from the industrial structure, abandoning the "growth rate" promoted by the high energy consumption, high emission and Dan Chunyi's advantage of human resources. The goal will be changed to improve labor productivity, technological innovation, institutional innovation and other fields, with science and technology and innovation as the driving force, and lay a solid foundation for the next round of growth cycle of China's economy.

In order to make the rosewood furniture clear, we need to supervise the whole industry from the source of production. We should implement all kinds of illegal and illegal behaviors in the industry, through industry self-discipline, department supervision and other ways to achieve the standard, sustained and healthy development of the whole industry.

Self narration of a mahogany furniture speculator

Unexpectedly, "the last stick" hit in the hands!

In order to stir up the price of mahogany furniture, we must learn to make use of the power of the media, network and public opinion to create "comprehensive effects".

At this stage, I have gradually become a "authoritative expert" in the eyes of quite a few early entrants.

The whole industry is intoxicated by its own "bubble". In the past 2003-2007 years, through the monopoly of raw materials to create "scarcity myth" - the hyped price creates the myth of "rich and rich" - experts recommend the creation of "appreciation legend". The price of mahogany furniture has soared to several thousand times or even tens of thousands of times.

Such a growth rate makes us all be astonishing.

I didn't expect that the bubble would burst, but I hoped that I could sell the last stick before breaking down.

Now it seems that such an idea is too naive.

From treasured to treasured, from treasured to investment, from investment to speculation, from speculation to speculation, from hype to disillusionment, from disillusionment to "bottom"...

Looking back at the experience of climbing and rolling in the "mahogany furniture" industry in recent 5 years, Liang Junqiang, now a debt laden mahogany furniture manufacturer, has described the experience of "mahogany furniture" to the "economic reference daily" reporter.

The "comprehensive effect" has become the "authoritative expert".

Under the recommendation of peers, all kinds of TV stations and radio stations frequently find me to appear in the show, with only one purpose: to exaggerate the collection value and value-added speed of mahogany furniture, so that more people can participate in it.

Mahogany furniture in broad sense includes hardwood furniture such as rosewood, rosewood, chicken wing wood, acid branch wood, etc.

For a long time, enthusiasts are buying on the basis of personal needs, and there are few hype in real sense.

Around 2000, people began to pay attention to the operation of mahogany furniture as collector's market.

In 2000, South market and the northern market, about 5000-6000 yuan, can buy very beautiful mahogany furniture, from the frame, tenon, wood......

They are all mahogany furniture, and they are very good quality red sandalwood or yellow pear.

Since 2003, the rise of mahogany furniture has begun to accelerate.

At this stage, I gradually became a "speculator" from lovers and collectors.

Because I am very familiar with all kinds of mahogany furniture, I can see the quality and material of different mahogany furniture, and soon become an expert in the industry.

Beginning in 2005, with the recommendation of peers, all kinds of TV stations and radio stations frequently asked me to appear in the show to make a program with only one purpose: to exaggerate the collection value and speed of the rosewood furniture, so that more people can participate in it.

The same "speculators" colleagues told me that now is the information age, the Internet age and the entertainment era. To stir up the price of mahogany furniture, we must learn to make use of the power of the media, the Internet and the public opinion to create the "comprehensive effect".

At this stage, I have gradually become a "authoritative expert" in the eyes of quite a few early entrants.

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The whole industry is "bubble" intoxicated by itself.

Because the sales volume of mahogany furniture is limited, in the eyes of professional speculators, if we can quickly monopolize the entire supply chain in a short time, we can create the myth of "sky price".

Whether it's mahogany furniture or hardwood furniture, sales in China are growing at a certain speed every year.

Therefore, the "Redwood Furniture" that accords with the law of economic growth has a very limited space to appreciate every year. From 90s to 2003 of last century, it only grew at 20%-30% speed every year.

However, as the sales volume of mahogany furniture is limited, in the eyes of professional speculators, if we can monopolize the entire supply chain in a short time, we can create the myth of "sky price".

Since 2002, I have joined the "regional mahogany warehousing alliance" similar to the "Pyramid" structure.

The practice of this alliance is that participants pay a certain amount of margin to the Redwood production enterprises and become distributors. The regional mahogany is sold through distributors.

After the formation of the origin and distributor supply and marketing system, the first level dealers will join hands with the two and three dealers to lift the prices of all kinds of mahogany products.

First class dealers, through absolute monopoly, left about 70% of the rosewood hoarding, taking up about 30% of the share, through the "price alliance" to carry out cross regional pull, the price to 5 to 6 times the purchase price to sell to two level dealers; two dealers continue to pull together to achieve a satisfactory price before selling to three dealers.

The emergence of our alliance quietly broke the original market circulation channels of mahogany furniture, and quickly accumulated a large number of mahogany, hoarding and hoarding prices at various levels. Only 30% of the circulation materials were hyped up. In less than half a year, the price of red wood furniture doubled.

The most attractive thing in the industry is the "gold for wood" activities produced by Beijing Yuan Heng Li Classical Furniture Co., Ltd. in 2007. At that time, the company put out a gold bar worth millions of yuan in the mahogany building. The exchange rate was 1 kilograms of yellow pear trees for 40 grams of gold, and the Hainan people were recruited to the wood of Huanghua pear in Hainan. They claimed that they could be turned into treasure, whether they were rolling pins or lame stools, as long as they were made of Huanghua pear.

At that time, the whole industry was intoxicated by its own "bubble". In the past 2003-2007 years, through the "monopoly of raw materials to create" scarcity myth "- hyped prices to create" myth of wealth "- experts recommend the creation of" appreciation legend ", mahogany furniture prices surged to the original thousands of times or even tens of thousands of times.

Such a growth rate makes us all be astonishing.

"Last stick" is stuck in the hands of millions of funds.

"Smashed" in the hands, and still exist more than 800 tons of various kinds of mahogany, so I was "stuck" millions of funds.

From 2003-2007 years, I first collected through collection, and then invested in less than 300 thousand yuan furniture collection through speculation. At the highest time, there was only mahogany material in the warehouse, and the price was as high as nearly 100 million yuan.

But this bubble burst rapidly after March 2008.

"Smashed" in the hands, and still exist more than 800 tons of various kinds of mahogany, so I was "stuck" millions of funds.

I didn't expect that the bubble would burst, but I hoped that I could sell the last stick before breaking down.

Now it seems that such an idea is too naive.

In fact, mahogany furniture for consumers, first of all should be to meet their own needs, but not as a "overnight rich" investment target.

Today, my mind has returned to the past, I still like mahogany furniture, or like to go around, look at mahogany furniture, help others appreciate, comment on all kinds of mahogany furniture, but I will not invest again, "speculation".

Although the industry has been reshuffled due to price slump, although the relevant industry standards have been issued, in my view, the whole mahogany furniture market is still very confusing.

Imitation mahogany furniture, fake assembled red wood furniture...

They are embezzling this huge market, while mahogany furniture is plunging in the market price, and consumer confidence in furniture is also plummeting.

A set of five piece mahogany furniture, rosewood material may cost tens of thousands of yuan to more than 10 million yuan, but imitation mahogany only need 2000 yuan to 3000 yuan.

Implanting pear as a rosewood, using iron wood and bean wood as an acid tree, using African chicken wings as a Burma chicken wing wood.

When I was invited to buy furniture for identification, I felt uncomfortable when I saw these fake mahogany furniture.

I hope this market will be "as soon as possible" and the quality of the whole industry will be upgraded as soon as possible.