Why is buying furniture in China profitable?
There is no doubt that it’s cheaper to buy furniture in China. How can Chinese companies compete successfully in an international market for a foreign customer? Let’s figure it out together. A small spoiler from us: it’s not a matter of cheap labour in China (though it still exists)
Due to special economic zones, factories in China save on taxes
Foshan and Guangzhou are situated in Guangdong province - the richest province in China. In the 80s of the last century here in the Pearl River Delta there was created one of the first special economic zones (SEZ) as a part of economic reform and a policy of openness. The Chinese government provides SEZ with a special, free-market-oriented, economic policy and flexible government measures. The business in such a special economic zone has tax and other benefits to attract foreign investment and technology.
Relatively cheap labour in China
Every year the average standard of living in China is increasing. China is no longer a third-world country, and now it’s achieving rapid scientific and technological progress. You can see it by the improved quality of Chinese goods and the qualification of Chinese workers. Economic breakthrough is followed by the raise of the salaries. Now China is not a country with cheap labour. However, comparing to other countries with furniture factories of famous brands, China is still more preferable among the customers.
Keen competition on Chinese furniture market
In Foshan, there are more than 5 000 suppliers of furniture, decoration materials and sanitary ware. Shopping centres with furniture pavilions occupy an area of 5 million square meters. This is definitely good for a customer because every showroom is trying to impress the customer with high-quality goods and interesting offers. Because of the competition, showrooms are constantly updating their models’ range. Something that was popular last year, you might not find today. The choice is so impressive that even designers come here for inspiration for their new projects. It is important to know that all the furniture in Foshan is originally for sale in China, so no export fees are included in the prices.
Developed logistics and infrastructure in China
Foshan has not accidentally become a furniture manufacturing centre in China. It’s largely due to its favourable location in the South of China near the Pearl River (the third longest river in China and second-largest by volume) which allowed us to develop a wide logistics network. The cost of transportation is minimized. Dozens of years of developing the production in Foshan made it possible to make a clear system starting from the very preparation of raw material and ending with the shipment of the finished goods.
Keen competition makes manufacturers pay great attention to the quality and price of their goods. Big factories in Foshan have been working with foreign customers for a long time, and they know their requests. In order to successfully compete with European manufacturers, Chinese companies are trying to automate most of the production. Accuracy and high quality are provided by imported European equipment. Manual labour is used only for some hand-craft decoration, for example, for carved details on furniture in baroque style.
You save more by buying high-quality furniture
You might think that this statement is not logical but let’s think about it. First, when you buy replicas of famous European brands, you already save a great amount of money. Let’s compare the prices of an original item and it’s replica: it is usually at least 3-5 times higher than the Chinese items. Second, there might be a wide choice of cheap and luxury furniture in your city but there is almost no “above average” furniture. The markets in Foshan provide a variety of items for every budget. Here you can buy high-quality furniture which is simply not present in your city.
One more important thing is saving on customs and shipping. For example, for the same looking sofas for $ 300 and for $3,000, the cost for delivery and customs clearance will be the same. Passing through the customs, a cheap good becomes 3-4 times more expensive while a high-quality good does not rise in price so much.
Whatever your budget is, a trip to Foshan for furniture is a great way to save, and we assure you that the choice will meet your expectations. Our professional managers will help you to save time and effort that you can spend on sightseeing in Foshan and Guangzhou. Click here to reach more information about GLOBUS furniture trip.