The mahogany furniture market is easy to buy but difficult to sell

In recent years, the price of mahogany raw materials has steadily climbed, and with it, the value of rosewood furniture has surged dramatically. As a result, it has become a popular choice for both collectors and investors. A reporter recently visited the market and found that during the recent May Day holiday, the mahogany furniture sector experienced a significant sales boom. Many consumers took advantage of the break to travel to places like Dongxing and Pingxiang, where they could purchase redwood furniture. This surge in interest has led to some challenges in the market. According to insiders, the current mahogany furniture market lacks a standardized pricing system and has limited repurchase options. This has created a situation where there is "no clear price, yet no real market," making it difficult for sellers to move their inventory. At a large home building materials plaza, Mr. Lu, the manager of a mahogany furniture store, shared that holidays like the Spring Festival, May Day, and National Day are key sales periods for the industry. During the recent May Day holiday, his store generated nearly 10 million yuan in sales—equivalent to the total from March and April combined. Most of the buyers were families looking for complete sets of furniture such as sofas, wardrobes, and desks, often spending hundreds of thousands of yuan in a single transaction. The rising prices of mahogany have been driven by several factors, including international conservation efforts. In June last year, the scarlet rosewood was listed as an endangered species, leading to a sharp increase in its value. As a result, many households now prefer more affordable varieties like chicken wing wood and ordinary rosewood. During the Nanning International Housing Fair, several mahogany furniture brands participated in the home improvement exhibition. According to them, the on-site booking rate was impressive, with many customers moving directly to stores to place orders. The enthusiasm among buyers was evident. Li Xiaoming, vice chairman of the Dongxing Redwood Industry Association, noted that May Day is also a peak season for foreign buyers visiting the region to purchase redwood furniture. Customers from cities across China, especially from the north, were also seen in large numbers. As prices continue to rise, many people see mahogany furniture not just as a luxury item but as a form of investment. Some buyers admitted that the long-term upward trend in prices was the main reason for their purchases. Mr. Zhu, who bought a pair of mahogany cabinets during the holiday, said he felt that holding onto the furniture would prevent future regret, given the consistent price increases over the years. According to an official from the Guangxi Mahogany Furniture Association, the price of finished rosewood furniture has risen by over 70% this year, while raw material prices have increased by about 50%. Market expectations suggest that prices will keep rising, further increasing demand. However, despite the bullish market, many investors face challenges when trying to sell their pieces. Mr. Wang, a citizen, purchased a set of antique rosewood bookcases in 2010 for 40,000 yuan. By last year, the same piece was valued at 100,000 yuan, but he struggled to find a buyer even after offering it at a discounted price of 80,000 yuan. Similarly, Ms. Li tried to return a set of furniture she bought from a branded store, only to be offered a 30% discount by the seller. Most mahogany furniture stores do not offer formal repurchase agreements, and those that do often use such promises as a marketing tactic rather than a genuine commitment. Industry experts believe that many merchants have stockpiled raw materials due to rising costs, making repurchase guarantees more of a sales strategy than a real service. Despite the high demand, the market still faces issues related to liquidity and transparency, which can make it challenging for investors to realize profits. While the allure of mahogany furniture remains strong, the reality of the market is more complex than it appears.

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