THE STATE OF THE FURNITURE BUSINESS IN 2016

Furniture makers, companies, designers, importers and furniture retailers are no longer strangers when it comes to issues and problems that hounded the furniture industry.  Although some sectors in this industry may have enjoyed moderate growth last year, a lot faced issues and challenges which affected their business.

Just like any other businesses, the furniture industry has its own share of problems and challenges which greatly affects them, and one of which is projecting their inventory. Furniture closeouts from other countries have flooded our country resulting to surplus furniture piling up in warehouses. While our costs kept on increasing, furniture manufacturers from other countries like China, India and Bangladesh managed to keep their costs at bay, allowing them to produce as many furniture as they can. As a result, a lot of companies have a hard time projecting their inventory as more people opt to buy cheaper furniture. Although some furniture manufacturers and makers managed to stay afloat by producing quality products, retailers extending discounts to their customers, still a lot of furniture remained unsold and are collecting dust in warehouses. 

Surplus furniture that you can see in retail stores

The cost of oil has gone down dramatically over the past years, this allowed other countries especially from furniture producing nations to ship or transport more of these furniture products to their customers, not to mention faster of mode of transport which allows them to flood the market with surplus furniture that you can see in retail stores. This in effect, results in more furniture overstock in warehouses sitting and collecting dust.

What can they do to correct this immediate painful problem? Manufacturers, importers and retailers having large quantity of furniture surplus, closeout furniture or furniture overstock, often contact closeout buyers, furniture liquidators or furniture discounters. They know that stale dated merchandise is like money sitting in a checking account, not earning them any interest. So contacting a home décor liquidator or a national furniture liquidator to sell their office furniture clearance or hotel furniture liquidator makes good business sense.

Another problem which furniture manufacturers and designers have to contend with is design piracy. Just like producers of smart phones and gadgets, these companies acknowledged that totally eliminating copying and piracy is really hard and safeguarding everything is almost impossible. Some of these companies have been victim of other manufacturers who are producing an almost identical design at a lower cost, selling it as surplus furniture. This practice results to closeout furniture piling up in their warehouses. Some companies have to rent or lease additional warehouses to house their products and prevent further losses due to damages. To combat this issue, more companies are innovating more often in order to be a step ahead of the competition.

They are often shocked to discover that this wholesale merchandise is just sitting in their warehouse taking up valuable space that could be put to better use. They realize from painful experience that they must act promptly and liquidate their overstock clearance inventory.

There is also a rising call for environmental concern. A good hard wood as furniture maybe a thing of the past as more and more environmentalist group calls for total log ban in their country. Using composite materials may be able to solve this issue but the cost could also be high and staggering, which can result to steeper price, and with our economy still recuperating, furniture that are branded as premium may be left unsold in retail outlets and eventually have more inventories stored in the warehouse.

There are actually lots of issues and problems facing furniture manufacturers, designers, importers and retailers today. Coming up with innovative branding strategies will definitely help them against other industry players especially those coming from inexpensive labor producing countries.  

Vendors will try and contact various furniture and mattress liquidators, furniture discounters and assorted merchandise liquidators to help rid themselves of their wholesale merchandise. One of the largest wholesale liquidators is AAA Closeout Liquidators, a trusted and well known closeout buyer, in business since 1979. They specialize in quickly purchasing wholesale merchandise, overstock clearance and bulk inventory for cash. 

They are among the best reputable furniture liquidators and have the proven ability to purchase your entire furniture close outs, you can see a free informative video about their cash buying services by CLICKING HERE.