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Furniture is more than just a functional item—it reflects the personality and taste of the homeowner. But what do you think about today’s furniture market? It’s not really a market; it’s more like a performance. Look at those eye-popping price tags—do you really know if you’re buying quality or just vanity? Is that so-called “high-end†furniture truly high-end, or is it just a clever marketing trick?
**Production Link: Imported Furniture with Limited Costs Also Has “Y Goodsâ€**
There are two main production models in the high-end furniture industry. The first is “brand production,†where a domestic merchant entrusts a foreign factory to produce a branded product. The manufacturer follows the merchant’s specifications and produces items of a certain grade. However, these products are not guaranteed to be of the same quality as the original brand. If the merchant demands lower costs, the quality inevitably drops, leading to discrepancies between the original and the imported versions.
The second model is “OEM production.†In this case, foreign companies place orders with domestic manufacturers, who use local materials, designers, and labor to produce the furniture. Once completed, the goods are sent to bonded ports and labeled as foreign before being distributed across the country. This way, even though the furniture is made locally, it’s sold under an international brand name, often at a significantly higher price.
“Sometimes, furniture that costs just a few thousand yuan can be rebranded and sold for hundreds of thousands, even millions,†said Mr. Shen.
**Related Reading:** Custom furniture can be tricky—consumers need to be careful.
**Marketing Link: Three Key Tactics to Build Momentum**
**Step One: The “Original Natural Imported Forest†Card**
Many companies promote their furniture by claiming it comes from natural forests in Italy, Canada, or the U.S. These videos show lush forests and exotic landscapes, making consumers believe they are getting something rare and authentic. In reality, the source of the wood is often unclear, and the “origin†is mostly for marketing purposes.
**Step Two: The “Foreign Designer†Card**
Branding furniture with a foreign designer adds a layer of prestige. Companies often claim their designs were created for royal families or famous clients. These stories, whether true or not, create a sense of exclusivity and desire among buyers.
**Step Three: Inviting Foreign Figures for Credibility**
Companies also bring in foreigners to add credibility. A foreigner in a suit, standing confidently, gives a strong impression of authenticity and sophistication. This tactic plays on the psychology of people who want to feel connected to the global elite.
With these tactics, a piece of furniture that costs just a few thousand can be priced at over a million.
**Sales Link: Rich People Compete, Consumers Follow**
Today, many wealthy individuals are driven by comparison. Like luxury cars, they buy high-end furniture not just for its quality, but to show off status. “It’s a psychological game,†said Mr. Shen. “Even if it’s expensive, people don’t mind paying extra. The higher the price, the more it signals wealth.â€
Luxury furniture stores aren’t just places to buy furniture—they’re spaces for socializing, showcasing status, and satisfying vanity.
**Quality Assurance: Not Always Better, Just More Expensive**
Although some high-end furniture has been exposed for fake production, the quality isn’t always criticized. Mr. Shen explained that while high-end furniture may have better materials, it’s not always proportionally more durable. Factors like humidity and maintenance affect lifespan. Even expensive furniture can show signs of wear after a few years.
**Survival Strategy: Short Operating Period, High Profit Margins**
Consumers often wonder how high-end furniture businesses survive in a competitive market. According to Mr. Shen, the answer lies in the profit margin. While regular furniture might only offer 30% profit, luxury furniture can reach up to 900%. Selling just one piece a month can generate as much profit as a regular store would make in three months. That’s why high-end furniture shops can afford to stay open for only a few months a year.
In short, the high-end furniture market is more about branding, perception, and psychology than just craftsmanship. Whether it's worth the price depends on what the buyer values most—quality, status, or simply the thrill of the purchase.