Where will prices for kitchens, wardrobes and beds go
According to the Association of Furniture and Wood Industries (AMDPR), the volume of furniture production in the country for 6 months of 2023 increased compared to the same period in 2022 by 8.6% and amounted to 26.8 million units. Which types of products have fallen in price, and which, on the contrary, have risen in price — MK found out.
Furniture production in Russia in monetary terms for two quarters of 2023 amounted to 179.5 billion rubles, which is higher than last year's half-year results by 4.7%. The metal office furniture segment showed the highest growth (+26%, or RUB 22.3 billion), followed by plastic furniture (+18%, RUB 1.4 billion). The third is wooden furniture for offices (+3%, RUB 14.1 billion).
In real terms, the output of kitchen furniture (+51%), metal beds (+44%), and hallway furniture (+26%) increased the most. Production of wooden furniture for offices and folding upholstered furniture showed a 13% growth. At the same time, the production of country furniture, on the contrary, decreased by 65%, wooden furniture for the dining room and living room — by 36%.
“If in 2022 there was an increase in the furniture industry only in terms of value, now production volumes are also growing,” said Alexander Shestakov, General Director of the First Furniture Factory. “This year, only wooden kitchen cabinets and living room furniture have gone up in price,” Timur Irtuganov, General Director of AMDPR, said. — Almost all other groups of furniture before the beginning of autumn showed a decrease in prices or no growth. We hope that this situation will not change much in September.”
At the same time, analysts believe that the summer price decline trend will not last long. It is no secret that domestic producers are highly dependent on imports. Due to the collapse of the ruble in August, the price of varnishes, paints, chemical components, accessories, without which it is impossible to produce high-quality products, increased in price.
With the beginning of the new business season, a price reversal in the lumber segment is also possible, which will affect the retail price of furniture along the chain. Recall that over the past 14 months, chipboard manufacturers have been steadily reducing prices, and now they are 14.3 thousand rubles. per cube. m. The cost of fiberboard boards is currently at the level of mid-2021 — 145 rubles. per sq. m. Prices for plywood gradually began to grow (27.8 thousand rubles per cubic meter), but they are still far from the values of June 2022 (43.6 thousand rubles per cubic meter).
< p>“The rise in price of lumber can occur for the same reasons as for any other goods: inflation, rise in the cost of logistics and imported components. In addition, most Russian lumber manufacturers have imported equipment. But at the moment there are no real prerequisites for a rise in the price of lumber, as well as reasons for worries, ”Timur Irtuganov noted to MK.
According to him, in the woodworking industry, the most difficult situation is with «plywood workers», and the authorities' assistance to them is still insufficient. The government's recent decision to ban imports of plywood from unfriendly countries is symbolic, as their imports accounted for approximately 0.2% of all sales. «We are waiting for the next logical step — to increase duties on imported furniture from unfriendly countries,» Irtuganov said. In addition, in his opinion, a bill prepared by the Ministry of Construction on furnishing mortgage apartments in new buildings, which the State Duma deputies will discuss in the autumn session, will be of great help to domestic producers.
There are other initiatives as well. “Companies from China and Turkey are coming to replace the Western furniture makers who left the Russian Federation. But we compete with them in unequal conditions,” says Alexander Shestakov. — For example, domestic manufacturers, when supplying furniture to the Turkish market, must pay a duty of 30% to 60%, and our duty for foreign, incl. Turkish companies is only 9-12%. Russian furniture cannot enter the EU market under any circumstances. At the same time, German furniture makers can easily supply furniture to the Russian market. We should pay attention to this situation — and if not ban imports, then at least raise duties, as all other countries have already done.
According to MK, the proposal is currently under consideration by the government commission on tariff and non-tariff regulation.
Another interesting trend is gaining momentum in the Russian furniture market: exports to China have grown this year. “Until recently, competition between Russian and Chinese furniture was only in our market. But the situation is changing, the cost of furniture production in the Celestial Empire has grown, Russian furniture is in quite acceptable positions, and we can compete with them,” Irtuganov explained.
It is gratifying that, despite Western sanctions, those who want to work in RF production of kitchens, doors and chairs is becoming more. So, recently in Khimki near Moscow, with the support of regional authorities, they expanded the production of furniture. And at the end of summer, one of the national marketplaces launched the sale of furniture under its own brand in the middle price segment. We add that the project is being implemented by former managers of the Russian office of IKEA. Sofas and beds are now sold on the electronic platform; by the end of 2023, the range will be replenished with furniture for the living room, kitchen and bedroom.