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Post-holiday invisible prices for home building materials
In the home furnishings industry, March has traditionally been a time for price adjustments. However, this year’s price increases are more subtle and less direct than in previous years. Instead of outright hikes, manufacturers are using tactics like minor design changes or introducing new models to justify higher prices. For example, a sofa that looks almost identical to last year's model now comes with a significantly higher price tag—sometimes by thousands of dollars.
According to a recent report by Huaxi Dushi Bao, many businesses have already begun adjusting their prices, some even before the Spring Festival holiday. One store manager shared that during the holiday, staff were working long hours, fielding customer inquiries about when operations would resume. The head of Chengdu Bieyi Furniture City noted that consumer demand has surged earlier than usual this year, but despite the positive market trend, companies are facing increasing pressure due to rising costs.
Steve Rowland, marketing manager at Cai Chengwei, confirmed that their suppliers have issued price increase notices. Meanwhile, Zhou Wei, general manager of Jianlang Home Furnishings, said that while they haven’t raised prices yet, they may do so if material costs continue to rise. Local branches will also adjust prices based on regional conditions.
A customer named Mr. Bowe expressed frustration over the price jump: “Last year, a coffee table sold for 1,500 yuan. I didn't buy it then, thinking there might be promotions around the Spring Festival. But now it's up to 1,850 yuan. It feels like every store is running promotions, but the prices keep going up.â€
Some retailers are using "invisible pricing" strategies by labeling products as new models, even if the only difference is a slight change in design. In one sofa store, sales representatives claimed that a new product was available only from stock and could not be ordered. Despite looking nearly identical to the older version, the new model came with a much higher price.
Sales staff explained that while the designs may seem similar, rising costs in materials, shipping, and labor have forced them to adopt a new pricing structure. Industry analysts believe that consumers are less sensitive to price changes in home furnishings compared to daily goods, making it easier for manufacturers to implement small, gradual increases without drawing too much attention.
While prices for plate and solid wood furniture have seen modest increases, solid wood items—especially those made from rare woods—have experienced more significant price hikes. European and American-style furniture, which already carries a premium, is expected to remain stable as these products have already absorbed some of the cost increases.
This spring, promotional activities in the home furnishing sector have started earlier than usual, with many companies launching sales campaigns as early as February. Wu Zhiwei, manager of Guangdong Baojule Home's Chengdu branch, noted that rising rents and production costs have put pressure on dealers. With so many options available, consumers now have more choices, and competition is fiercer than ever.
Industry experts recommend that buyers consider purchasing Guangdong or coastal-made furniture soon, as dealers are eager to secure orders for major exhibitions in Guangdong. Many are also clearing out old stock to make way for new products. Additionally, manufacturers often offer better deals early in the year to start off strong, with potential price increases expected after March, especially ahead of the May 1st peak season.