Popularity of U.S. Furniture Brands Stands To Lose In Potential Trade War
U.S. Famous Furniture Brands, such as Serta, Simmons, Sealy, King Koil, Kingsdown, Ergomotion, Spring Air, Restonic and Therapedic, other well-known U.S. brands included Lexington Home Brands, A.R.T., Baker, Century, Theodore Alexander and La-Z-Boy, are always popular in Chinese market.
During the June 14-17 Beijing International Furniture Fair, like any furniture show in China, the halls were dominated by Chinese manufacturers, many of which showcased attractive lines that might find favor with consumers in the U.S. But some of the biggest crowds were drawn to the international halls, which included brands from Europe as well as the U.S.
As these and other brands continue to make inroads into the growing China market, the idea of a trade war loomed as it has in recent months, thanks to the Trump Administration’s plans to impose 25% tariffs on a host of Chinese-made goods.
A list of more than 800 goods that will be subject to those tariffs was released during the show. Fortunately for U.S. home furnishings industry, that list does not include most finished furniture from China, which remains the largest exporter of product to the U.S. with an estimated $13.6 billion in shipments last year.
Should furniture ultimately be impacted by further lists, perhaps the worst that could happen is that production of these goods would shift to Vietnam and other countries, as we saw occur with wooden bedroom furniture. But this can be highly disruptive to supply chains, not to mention affect the value-added features and styling a country such as China can produce.
Another unknown is whether China would ultimately retaliate on furniture shipped there — including some aforementioned U.S. brands — that have gained so much traction with the Chinese consumers.
The impact remains to be proved...
(Source: FurnitureToday)