HOUJIE, CHINA ¨C With the domestic market floundering, why American furniture manufacturers consider selling furniture into China?

That was the question asked by Charley Wang, the Director of International Relations for Dongguan Famous Furniture Association, the organizer for International Famous Furniture Fair at the beginning of his speech at the recent 2009 Furniture Today Leadership Conference from 2-4 December.

In his speech, Mr. Wang shared with the audience the changes of Chinese government policies on foreign investment, Chinese furniture market potentials. He also talked about how local furniture manufacturers sell their products to Chinese consumers and gave some tips on doing business in China. He points out that to be in China, to feel the market is very important for American companies in venturing into China and visiting and/or exhibiting at 3F is the best way to do so.

"Americans are not spending. Now the economy in China is growing and people are spending," he said. Wang said that Chinese born after 1980, when the government started encouraging people to have fewer children, have changed the country's shopping habits. "A large number of customers are willing to buy."

Doing business in China is easier actually since Chinese government eased restrictions in 2000, and began encouraging foreign investment in factories or partnerships in China. So furniture produced either within or outside China, whether it's produced by factories invested by Chinese or foreigners can be sold to Chinese consumers. This a major breakthrough for Chinese government to open up its market to outside world.

A big difference from the U.S. market in distribution is that 99% of Chinese furniture stores are franchised, with many operating out of large furniture malls in urban areas. Only 1% are independently owned, Wang said.

Chinese consumers like American and European styles, but American companies must build their brand image. The more luxurious the products are, the better.Like Americans, Chinese consumers also want fast delivery, which means keeping inventory on hand in China is important.

Wang also gave the audience some tips on doing business: Study the Chinese Culture and learn key words, and make friends first then business. Hire locally. Build relationships with local associations and furniture shopping malls.

Mr. Charley Wang encourage American companies to consider selling into China.

Download the presentation file in PDF format.