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Furniture is more than just a functional item; it's an expression of the homeowner's taste and style. But what do we really think about today's furniture market? It’s not really a market—it's more like a show. Take a look at those eye-popping price tags. Are you buying furniture or simply indulging in vanity? Is that so-called "high-end" furniture truly worth the price?
**Production Link: Foreign Imported Furniture with Limited Costs Also Has Fake Goods**
One type of production is called “branded manufacturing.†In this model, a domestic merchant entrusts a foreign factory to produce a specific brand product, and the manufacturer creates items based on the merchant's specifications. Mr. Shen explains that in such cases, the foreign manufacturers only make their own branded products. They guarantee quality for the brand they produce but are not responsible for other brands. If the domestic merchants control the pricing and ask the foreign manufacturers to cut costs, the quality inevitably drops. As a result, there can be significant differences between the original products made by the manufacturer and those sold under different labels.
The second type is “OEM production.†Foreign companies place orders with domestic furniture factories, which then produce the furniture using local materials, designers, and labor. After completion, the furniture is sent to bonded port areas according to the specified requirements. These companies then adjust the goods based on store demands across the country. Before shipping, they label the products as imported.
“So a piece of furniture that originally costs just a few thousand yuan can be turned into something worth hundreds of thousands, even millions,†says Mr. Shen.
**Related Reading:** Custom furniture comes with its own set of challenges, and consumers should be cautious when making purchases.
**Marketing Link: Three Cards to Build Momentum**
**First Step: Playing the “Original Natural Imported Forest†Card**
“Things are rare, especially wood. Once it’s polished into furniture and marketed smartly, people can’t tell where it came from. Italy, the U.S., Canada—natural forest farms become our ‘origin.’ Of course, this origin has to be quoted,†Mr. Shen said with a smile.
Each company has a dedicated marketing team that produces videos showcasing Canadian and Italian natural forests. Repeated exposure helps shape the consumer’s subconscious perception that these products are both high-quality and expensive.
**Second Step: Using the “Foreign Designer†Card**
Once a design is linked to a foreign designer, it gains a new level of appeal. The marketing team tries to attach the foreign designer’s name to the furniture.
“This was designed for the Swedish royal family. That one was made for the Dutch royal family. The pictures are beautiful and stir up the desire to buy.â€
**Third Step: Inviting Foreigners for a Stronger Image**
“Inviting foreigners to speak gives a strong impression. Just have a foreigner in a suit, standing confidently, and it creates a powerful visual impact.â€
With these steps, a piece of furniture that may cost just a few thousand yuan can quickly be priced over 10 million yuan.
**Sales Link: Rich People Compete with Consumers**
“Many Chinese billionaires love to compare. Like buying a luxury car—once someone buys one, others feel they must too, even if it means increasing the price by 300,000 yuan,†Mr. Shen said. “High-end furniture often becomes a psychological game with consumers.â€
Even if the price is in the hundreds of thousands or millions, many people don’t mind paying extra. In fact, the higher the price, the more it signals status and wealth.
“Luxury furniture stores aren’t just places to buy furniture. They’re shows, exchanges, and places where vanity is satisfied.â€
**Quality Assurance: Like Ordinary Furniture, It Can Still Fall Apart**
Although some high-end furniture has been exposed for fake production, the quality hasn't always drawn criticism.
Mr. Shen explained, “In general, the quality of high-end furniture is better than ordinary furniture, though it's not directly proportional to the price. The lifespan depends on humidity, maintenance, and other factors. Even expensive furniture can develop issues after a few years, like fabric sofas lifting or wooden pieces loosening.â€
**Survival Strategy: Not Open in March, Open for Three Months – Profit Close to 900%**
Many consumers wonder how high-end furniture businesses survive in a competitive market with such high prices.
“The cost is actually very low, and the profit margin is extremely high. Some stores are open only for three months a year,†Mr. Shen said.
For example, a regular furniture piece costing around 5,000 yuan has a profit margin of about 30%. Selling three pieces a day could bring in nearly 150,000 yuan a month.
But luxury furniture priced at 500,000 yuan can have a profit margin of nearly 900%, or 450,000 yuan per sale. Imagine selling just one piece a month—it would equal the profits of a regular furniture store over three months. That’s why high-end furniture stores don’t worry about their survival.