Floor International Market Share Declined by Legal Timber Trade Barriers

After more than 20 years of development, the wooden floor industry in China has reached a very impressive scale and level. Since 8 years ago, in the Americas, Europe, and other major international markets, Chinese wood flooring has gradually squeezed out products from other countries, accounting for 20% of the market share. This shows that China's wood flooring industry has an international market The very strong advantage also shows that the quality and price of Chinese wood flooring are also quite competitive in the international market.

But in the past three years, these conditions have undergone great changes. On the one hand is the price, North America, Europe and other places are trying to keep the price down; on the other hand, more and more international markets begin to certify, which is not a small threshold for Chinese wood flooring companies; It is the increase in transportation and logistics costs and the shortage of raw materials, which also increases the operating costs of Chinese wood flooring companies. Therefore, this year has been showing the trend of China's wood floor in the international market share continues to decline.

The first is the cultural difference. The cost performance of Chinese wood flooring is high in the international market. However, Chinese companies cannot overcome the bottleneck of product design and service, which is difficult to satisfy the tastes of local consumers. Because of the lack of understanding of exotic cultures, culture has become a barrier to market transactions. In the face of different cultural backgrounds, even if the prices are good and the species is more, it will follow others. Based on this situation, many Chinese products can only take the popular route abroad and have little foothold in some market areas with high individuality or added value.

Followed by foreign trade barriers. With the second bottom of the financial crisis in the European market, trade protection in the foreign trade market has once again begun to take off. This time, the building materials industry has become the protagonist. Firstly, one hundred building materials companies in China were charged with astronomical compensation by the US lawsuit, followed by Foshan Ceramics, or they will encounter In the EU’s largest anti-dumping investigation, China’s import of plasterboards in the United States was litigated by the United States. The report of the “Temporary Trade Barrier Database” monitoring the global trade protection measures issued by the World Bank on May 26 shows that Chinese exporters continue to be the number one targets of trade remedy investigations. In the first quarter, 47% of newly launched trade surveys and 82% of Completed trade surveys are directed to or involve China. All these have led us to see that the export of building materials has become increasingly difficult.

For the different wood floor manufacturers or suppliers, the biggest trade barrier is legal timber. This type of trade barrier will become more and more solid in the future, and it will also be more and more. Now the Japanese Government Procurement Law, the U.S. Lacey Act, and the European harvesting policy have become increasingly stringent.

At present, the concentration of wood flooring industry in China is not high enough, and the market and economic factors such as capital, technology, manpower, and resources are not concentrated. In the face of the future market economy, wood flooring companies will eventually compete in the business model and in the industrial platform from the current product competition and service competition. The higher level of competition will also have higher demands on the company's ability to innovate, produce, and develop.