"Bubble burst" triggers price return

At the China-ASEAN Expo in October 2007, a set of Laos "Red Rosewood" furniture with a price of "80 million yuan" was exhibited. What is fresh is that the scene of this furniture set is clearly marked " The price is not discounted, and it is sold to those who are interested. "

In October 2010, also at the venue of the China-ASEAN Expo, the reporter of the Economic Reference Daily once again saw the complete set of "Redwood" including "Sorbus Wood", "Chicken Wing Wood", "Red Sandalwood" and "Huanghuali" Furniture ". This time, the price of 17 pieces of chicken winged wood is not more than 170,000 yuan; the price of 19 pieces of rosewood is only 190,000 yuan.

Many experts and scholars and industry insiders interviewed by the "Economic Reference News" believe that: behind the plunge of mahogany furniture from the skyrocketing price is the evil result of the withdrawal of hot money, and this evil result has made the entire furniture industry pay a heavy price for several years It is difficult to calm down.

I could buy an "Airbus" but now I can't buy a car

Ruan Wencheng, an exhibitor at the Expo, told the Economic Reference News reporter, "At that time, a 10-piece set of" 80-yuan furniture "was marked with 80 million yuan, and now 19 sets can be bought for less than 600,000 yuan. The price has shrunk by more than 100 times. Not only. It turned out that selling a set of furniture can buy an Airbus, but now it may not be possible to buy an off-road vehicle! "

Huang Peng, a dealer of mahogany furniture interviewed by a reporter from the Economic Reference Daily, once introduced: "Rosewood is a mahogany furniture in a broad sense. This kind of wood has a long growth cycle, and basically it takes hundreds of years to become a talent. The acid in 2003 The price of sticks is only 7,000 yuan / ton, and the interval in 2007 has soared to 35,000 yuan / ton. "

At this fair, exhibitor Ruan Wencheng told the Economic Reference News reporter that the price of rosewood in the mahogany furniture series has fallen from nearly 800,000 yuan / ton to less than 10,000 yuan / ton. The rate of shrinkage is astonishing.

The shrinkage of raw material prices naturally brings about the rapid drop in sales prices of downstream products. In an interview with the Economic Reference News reporters at border crossings in Pingxiang, Dongxing, Guangxi, and at home improvement exhibitions and furniture yards in Nanning, Liuzhou, and Guilin, the vast majority of mahogany furniture sellers believe that they have been all the way since they reached their peak in the first half of 2007 Decline, so far, prices have "fallen" to only 1% or even 2% of that year.

Huang Xiang, a distributor of Pingxiang mahogany furniture, told reporters that 2006-2007 was a year of skyrocketing prices. In 2005, the price of Huanghuali and rosewood was only 100,000 to 200,000 yuan per ton. In August 2007, Huang Huali reached 2.5 million to 2.7 million yuan per ton, and rosewood exceeded 700,000 to 800,000 yuan per ton. In the past few years, the mahogany furniture industry has produced the myth of one night after another.

Huang Xiang said: "But the current price is so low that not only is the price of raw materials falling sharply, but the furniture market is also showing a priceless situation."

Huang Xiang told reporters that in the first half of 2006-2008, almost 2 to 3 million yuan can be received every month. The bosses in Jiangsu, Zhejiang and Fujian saw that the store had mahogany raw materials, regardless of quality, whether they could be delivered on time. The goods are directly bought with money. Since the second half of 2008, the market has shrunk rapidly, and now it may not be possible to make a payment of 1 million yuan all year round.
Cai Liqiang, a collector of mahogany furniture who has recommended mahogany furniture for many times in the "collection" and "home treasure" columns of TV stations, said: "Now I will never say that mahogany furniture can maintain value and increase in value, because relatives and friends who entered the industry in 2006-2007 Buying mahogany furniture is now scolding me. "

In an interview with a number of people in the industry by a reporter from the Economic Reference News, a more common view is that the rapid change of "mahogany furniture" from "sky price" to "land price" is closely related to the influx of large amounts of hot money for crazy speculation. Today, the hot money of speculation has already left the market, but the confusion of the "production-supply-sales" link of mahogany furniture has caused the entire industry to face a serious crisis.

Hu Binlin, a businessman who owns many "Redwood Furniture" sales places in Fujian, Guangdong, Beijing, Yunnan and other places, told reporters that 2003-2007 was the period when "Redwood Furniture" soared the most, according to the basics of the "Redwood Furniture" market. Regularly, in general, furniture adds 15% -25% annually, which is a relatively normal rate. But between 2003 and 2007, the momentum of "mahogany furniture" soared almost every year at the rate of "stumbling".

Hu Binlin said: "Taking the most expensive Hainan Huanghua pear as an example, the price in 2003 was only more than 30,000 yuan / ton, but it rose to 60,000 yuan / ton in 2004, and soared to 120,000 yuan / ton in 2005, in 2006. It rose to 800,000 yuan / ton, and soared to nearly 3 million yuan / ton in 2007. It is completely inconsistent with the operation of this market. "

Du Chengfeng, a collection enthusiast who began collecting mahogany furniture as early as the 1970s, believes that: from what I learned later, it is entirely because of a large number of off-site funds pouring into the mahogany furniture market. In just a few years, hoarding A series of methods, such as short selling, short selling, and high shipments, have made mahogany raw materials and furniture to a high price.
Du Chengfeng said: "The capital that flowed into the mahogany furniture market at that time was 200-300 times more than the capital that had originally entered the market. Because the flow of such funds in the industry is very unclear, and there is a lack of mutual exchange of raw material information, Therefore, in a very short period of time, almost all the raw materials in the industry are 'bully bullish', in fact, because the raw materials are monopolized into the hands of professional speculators, and those who are out of stock can only watch the price soar. "

What made these mahogany furniture dealers and collectors most regretful: At first, they considered the "promotion" of "scarcity", "special skills", "long-term preservation", and "stable value-added rate" as "professional speculators" The biggest driver of "blowing high" prices.

Industry chaos has not completely changed

During an unannounced visit to the China-Vietnam border market, furniture manufacturing companies and furniture sales outlets, a reporter from the Economic Reference Daily found that a considerable number of businesses are still confusing the "redwood" and "hardwood" standards, and the "standards" are not enforceable. To "answer questions" to consumers.

During the in-depth interview with the reporter, many people in the industry believed that even if the mahogany furniture entered the "naked swimming era", some companies also encountered a "big wave" sand reshuffle in the industry, and relevant standards have been issued within the industry, but from the actual situation, The industry's chaos has not completely changed, and market confidence has not been boosted.

On September 1, 2008, a new standard for mahogany furniture, "China Dark and Dark Hardwood Furniture Standard" was introduced, which stipulates that the sale of mahogany furniture must indicate the product name, wood, accessories, wood origin, quality grade, paint, specifications, etc. This standard has been placed high hopes in the industry, as an important measure to "standardize mahogany standards and achieve market reshuffle."

However, more than half of the 63 "Redwood Furniture" sellers and their salespeople surveyed in random interviews in the furniture market of Fu'anju, Baitu Home Furnishing, Chuncheng Furniture, etc. in Nanning, more than half did not hear There have been "China Dark and Dark Hardwood Furniture Standards"; 2/3 said "Standards are standards, but our companies have their own production standards, and many other companies can't meet them, we can all meet them."; There are also 30 % Of the promoters made it clear that "we produce 'Redwood' instead of 'Rawwood', quality will naturally vary" ...

A number of furniture promoters from the “Fu Anju” Furniture City in Nanning said: “The China Standard for Dark and Precious Hardwood Furniture is for“ hardwood ”.“ Redwood ”is not“ hardwood ”. Wooden furniture sold on the market now Most of them are walnut, ebony, ash, etc. The price of 'redwood' is even lower, and it is higher than the price of these woods. "

Hu Binlin told reporters that there is still a lot of confusion in the complete set market of "mahogany furniture". For example, how many materials are called "mahogany furniture", and only a percentage of more than a few percent can be called "mahogany furniture"; Where is the material of "Redwood", whether it is a whole piece of redwood or assembled redwood ...

Hu Binlin said: "These don't have industry standards, that is, there are industry standards. Enterprises and businesses will not strictly enforce them without supervision. Because everyone knows that honestly making furniture, or the price is too high to sell If you do n’t go out, you ’ll either sell it at a price that wo n’t even make money. ”
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"Redwood Chaos" Urgently Needs Original and Clear Source

â–¡ Fenglun

From Puer tea's "high price turmoil" to "Redwood furniture" to buy "Airbus" 's "dream miracle", from "garlic you ruthless", "beans you play", "ginger your army" to "Sugar Gaozong" ...... In just a few years, we have experienced soaring prices of various commodities and created a "sky bubble", and then quickly "returned to its original shape" in a very short time.

Behind the soaring prices of the "Redwood Furniture" and its similar commodities and the rapid bursting of the bubble, it highlights a series of difficulties faced by China's private capital accumulation and investment process. On the one hand, after more than 30 years of reform and opening up, a large amount of private capital has been deposited among the people, and the situation of “being rich in the people” has gradually emerged. On the other hand, the channels for residents ’investment are relatively single. The main channel.

The single investment channel, coupled with the “shrinking” pressure of assets caused by the rapid rise in real estate prices in recent years, has made a considerable number of residents hope to be able to transfer investment channels to realize the preservation and appreciation of their own assets; the single investment channel leads to a lack of financial knowledge The wealthy class, whose wealth can achieve the goal of value preservation and appreciation, uses the funds to speculate in a seemingly dreamy "bubble." What follows is undoubtedly the "illusion" of the price of rosewood and the price of Pu'er tea.

On the surface, behind the bursting of the "Redwood Chaos" and "Pu'er Bubble", only the interests of investors and speculators are harmed. In fact, after a round of "shuffle", the industry's integrity and consumption are also harmed The trust of investors and the normal development of the industry also include the confidence of private investors. The method of clearing the source of the "high price mahogany" is very simple: this is to open up a wider investment channel, so that private capital can not only precipitate, but also benefit, which requires deep adjustments from the industrial structure, abandoning high energy consumption and high emissions 1. The "growth rate" driven solely by the advantages of human resources, shifting the goal to improve labor productivity, technological innovation, institutional innovation and other fields, with technology and innovation as the driving force, laying a solid foundation for the next round of China's economic growth cycle basis.

To clean up the original source of "Redwood Furniture", it is also necessary to supervise the entire industry from the source of production, and to implement various types of violations and violations in the industry through industry self-discipline and departmental supervision to achieve the standardization, sustainability and health of the entire industry development of.
A statement from a mahogany furniture speculator

Unexpectedly, the "last stick" fell into his hands!

● To raise the price of mahogany furniture, we must learn to use the power of the media, network and public opinion to create a "comprehensive effect." It is at this stage that I have gradually become a "authoritative expert" in the eyes of a considerable number of newcomers.

● The entire industry is intoxicated by the "bubble" made by itself. From 2003 to 2007, through the "monopoly raw material manufacturing" rare myth "-hype price manufacturing" rich wealth myth "----- Experts recommend manufacturing "appreciation legend", the price of mahogany furniture has soared to several thousand times or even tens of thousands of times. This growth rate makes us all amazing.

● I did n’t expect the bubble to burst, but I hope I can sell the “last stick” before it bursts. Now it seems that such an idea is really naive.

â–¡ Reporter He Fenglun Nanning reports

From cherish to treasure, from treasure to investment, from investment to speculation, from speculation to speculation, from speculation to disintegration, from disintegration to "bottom" ... Looking back at what I have been doing in the "redwood furniture" industry in the past 5 years Through experience, Liang Junqiang, now a debt-ridden mahogany furniture manufacturer, told the reporter of Economic Reference News about his experience of hype "mahogany furniture".

Relying on "comprehensive effect" to become "authoritative expert"

Under the recommendation of peers, all kinds of TV stations and radio stations frequently asked me to appear in the show for the purpose of only one purpose: to exaggerate the collection value and value-added speed of mahogany furniture, so that more people can participate.

The mahogany furniture broadly includes hardwood furniture such as rosewood, rosewood, wenge, and rosewood. For a long time, lovers first bought based on their personal life needs, and there was little hype in the true sense. It was only around 2000 that people began to pay attention to the operation of the mahogany furniture as a collectibles market. In 2000, in the southern market and the northern market, about 5000-6000 yuan, you can buy very decent mahogany furniture, from the frame, the tenon, the wooden board ... all are mahogany furniture, and the quality is very good red sandalwood Wood or yellow rosewood.

Since 2003, the rise of mahogany furniture has accelerated. It is at this stage that I gradually changed from a fan and a collector to a "speculator." Because I am very familiar with all kinds of mahogany furniture, I can see the quality and materials of different mahogany furniture at a glance, and soon become an expert in the industry. Since 2005, under the recommendation of peers, all kinds of TV stations and radio stations have frequently asked me to appear in the show for one purpose: to exaggerate the collection value and value-added speed of mahogany furniture, so that more people can participate.

The colleagues who are also "speculators" told me that now is the information age, the Internet age, and the entertainment age. To speculate on the price of mahogany furniture, we must learn to use the power of the media, network, and public opinion to create a "comprehensive effect." It is at this stage that I have gradually become a "authoritative expert" in the eyes of a considerable number of newcomers.
The whole industry is intoxicated by the "bubble" made by themselves

Due to the limited sales of mahogany furniture, in the eyes of professional speculators, as long as they can quickly monopolize the entire supply chain in a short period of time, they can create a "great price myth" that makes them rich overnight.

Whether it is mahogany furniture or hardwood furniture, annual sales in China are increasing at a certain rate. Therefore, the room for annual appreciation of "mahogany furniture" that conforms to the law of economic growth is very limited. From the 1990s to 2003, the annual growth rate was only about 20% -30%.

However, due to the limited sales of mahogany furniture, in the eyes of professional speculators, as long as they can quickly monopolize the entire supply chain in a short period of time, they can create a "great price myth" that makes them rich overnight. Since 2002, I have joined the "regional mahogany storage alliance" similar to the "pyramid" structure. The practice of this alliance is: Participants pay a certain amount of security deposit to the redwood production enterprises, they become distributors, and all the regional redwoods are sold through distributors. After the origin and dealer supply and marketing system is formed, the first-tier dealers will join hands with the second- and third-tier dealers to raise and lower the prices of all kinds of mahogany products. The first-level dealers left 70% of the mahogany hoarding through absolute monopoly rights, and took out about 30% of the shares. They carried out cross-regional pull-ups through the "price alliance" and sold the prices to 5 to 6 times the purchase price. Second-level dealers; the second-level dealers continue to jointly pull up and sell to the third-level dealers after reaching a satisfactory price.

The emergence of our alliance has quietly broken the market circulation channels that the original mahogany furniture has formed, quickly hoarding a large number of mahogany, hoarding and raising prices layer by layer. As a result, only 30% of the circulating raw materials are hyped. In less than half a year, the price of mahogany furniture has doubled.

The most eye-catching thing in the industry is nothing more than the "Gold for Wood" activity carried out by Beijing Yuanhengli Classical Furniture Co., Ltd. in 2007: At that time, this company placed a million-dollar gold bar in the "Redwood Grand View Building" The exchange rate is 1 kg of Huanghuali wood for 40 grams of gold, soliciting the wood of Hainan Huanghuali from the people of Beijing, and claiming that whether it is a rolling pin or a lame stool, as long as it is made of Hainan Huanghuali, it can become a treasure.

At that time, the entire industry was intoxicated by the "bubble" made by itself. From 2003 to 2007, "monopoly raw material manufacturing" scarce myth "-hype price manufacturing" rich wealth myth "-expert recommended manufacturing "Legend of appreciation" ", the price of mahogany furniture has soared to several thousand times or even tens of thousands of times. This growth rate makes us all amazing.
"Last stick" smashed millions of dollars

More than 800 tons of all kinds of mahogany that have been "smashed" in my hand, so I was "trapped" with millions of dollars of funds.

From 2003 to 2007, I initially collected through furniture, and then through hype. I invested less than 300,000 yuan in furniture collection. At the highest, only the raw materials of mahogany in the warehouse existed, and the price was as high as nearly 100 million yuan. But this bubble burst quickly after March 2008. More than 800 tons of all kinds of mahogany that have been "smashed" in my hand, so I was "trapped" with millions of dollars of funds.

I didn't expect the bubble to burst, I just hope I can sell the "last stick" before it bursts. Now it seems that such an idea is really naive. In fact, for consumers, mahogany furniture should first meet their needs in life, and should not be used as an investment target for "getting rich overnight."

Today, my mentality has returned to the past. I still love mahogany furniture. I still like to go around, look at mahogany furniture, help others appreciate and evaluate all kinds of mahogany furniture, but I will not invest again. " Hype ".

Despite the "industry reshuffle" due to the price plunge, and despite the introduction of relevant industry standards, in my opinion, the entire mahogany furniture market is still very chaotic. Imitation mahogany furniture, counterfeit mahogany furniture ... all invade this huge market. While the market price of mahogany furniture plummets, consumer confidence in the furniture also plummets.

A set of five-piece mahogany furniture, red sandalwood wood may cost tens of thousands to tens of thousands of yuan, but imitation mahogany only need 2,000 to 3,000 yuan. I use Yahuali as rosewood, iron and bean wood as rosewood, and African winged wood as Burmese winged wood ... Every time someone invites me to buy furniture for identification, I see these fake mahogany furniture, I am It's uncomfortable. I hope that this market will be “original” and the quality of the entire industry will be improved as soon as possible.

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