Flooring exports to domestic sales Domestic flooring market pressure

After half a year, on March 21, the US Department of Commerce announced the preliminary results of the countervailing investigation on multi-layer wood flooring in China: two Zhejiang enterprises were awarded a zero tax rate, and another company imposed a low tax rate of 2.25%. More than 100 companies listed on the survey list will be determined as a 27.01% countervailing duty rate. Anti-dumping results of an initial ruling have not yet been issued. In June, the US Department of Commerce will announce the final verdict. If the domestic flooring companies lose the case in the “double reverse” case, US Customs will impose a punitive tariff of more than 242.2% on the imported flooring.

Such a high tax rate has caused many floor companies to shudder and have to abandon the US market. Some floor companies that account for a relatively high share of export business have indicated that they have expanded the domestic market and accelerated the deployment of second- and third-tier cities. Due to the overcapacity of wood flooring in China, some floor companies' transformation from export to domestic sales is bound to bring unprecedented pressure to the domestic flooring market.

The floor is a product with a low level and homogenization. With the impact of inflation, the cost of floor materials and labor rises, making the competition in the domestic floor market already intensified. Under such circumstances, it is not feasible to rely solely on the fight for cost and price competition. Flooring companies should increase investment in independent innovation, increase product added value, and increase brand core competitiveness. At the same time, some export-oriented flooring companies are not familiar with the domestic market and may cause product categories and designs that do not meet the appetite of domestic consumers; these companies may also have a lack of channels in the domestic market. In the fight for dealers, it is not The struggle is to earn, but also depends on the distributor's own adaptability to the local market, so from product positioning to distribution channels are a huge test for the transformation from the export to the domestic business.

2011 will be the most difficult year for Chinese flooring companies. The current status of the domestic flooring market determines the brutal competition of this year's industry, which will intensify the large-scale reshuffling of floor brands, and some small brands whose quality cannot stand the test will be small. Enterprises will be eliminated in the competition.