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

In recent years, the price of mahogany raw materials has been on a steady upward trend, and with it, the value of rosewood furniture has also skyrocketed. As a result, it has become a popular choice for both collectors and investors. A recent report revealed that during the recent May Day holiday, the mahogany furniture market experienced a significant sales surge. Many buyers took advantage of the break to travel to Dongxing and Pingxiang, where they could purchase high-quality redwood furniture. Industry insiders have pointed out that the current mahogany furniture market lacks a standardized pricing system and has limited resale channels. This has led to a situation where the market is "priceless but not marketable," making it difficult for some to sell their furniture. According to Mr. Lu, the manager of a large mahogany furniture store in a home improvement mall, the Spring Festival, May Day, and National Day holidays are the top three sales periods in the industry. During this year's May Day holiday, his store recorded sales of nearly 10 million yuan—equivalent to the total sales from March to April. Most customers are families looking to buy complete sets of furniture such as sofas, wardrobes, and desks, often spending hundreds of thousands of yuan in a single transaction. The increased demand is partly due to the 2022 international protection convention, which listed scarlet rosewood as an endangered species, causing its prices to soar. While high-end varieties like Dahong rosewood are now extremely expensive, many households opt for more affordable options like chicken wing wood and regular rosewood. At the Guangxi Housing Fair in Nanning, several mahogany furniture brands showcased their products, and the on-site booking rates were impressive. Many customers even placed orders directly at the exhibition, showing strong interest in the market. Li Xiaoming, vice chairman of the Dongxing Redwood Industry Association, noted that May Day is also a peak time for foreign buyers to purchase redwood furniture. Customers from cities across China, including northern regions, have shown a growing interest in these products. With rising prices, many people are turning to mahogany furniture as a form of investment. In interviews, several buyers admitted that the long-term price increase was the main reason for their purchases. One buyer, Mr. Zhu, spent hundreds of thousands of yuan on a pair of mahogany cabinets during the holiday. He said he had been investing in rosewood furniture since 2009 and felt that the prices were consistently rising, even during economic downturns. A representative from the Guangxi Mahogany Furniture Association explained that the price increases are mainly driven by rising raw material costs. Since the start of the year, the price of rosewood logs has gone up by about 50%, while finished furniture prices have risen by over 70%. The market expects further price hikes, leading to increased demand. Mr. Lin, a senior collector, believes that the continuous price rise is largely due to speculative investors who see mahogany furniture as a financial asset similar to gold or stocks. This has helped maintain confidence in the market. However, not all investors are seeing profits. Many face difficulties when trying to resell their furniture. Mr. Wang, for example, bought a pair of antique rosewood bookcases in 2010 for 40,000 yuan. By last year, the same item was valued at 100,000 yuan, but he struggled to find a buyer even after offering it at 80,000 yuan. Similarly, Ms. Li found that her store’s promise of repurchase came with a 30% discount, citing depreciation and handling costs. Most stores do not offer formal repurchase agreements, and those that do often make verbal promises without contracts. Industry experts suggest that such offers are often just marketing tactics, as many manufacturers have stockpiled raw materials due to rising prices. Overall, while the mahogany furniture market continues to attract attention, the lack of liquidity and clear pricing standards remain major challenges for investors.

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