In fact, the sales price of solid wood flooring has been gradually increasing due to the tight supply of timber. Now the price of most brands is above 200 yuan/m2.
A solid wood flooring company will raise the prices of solid wood flooring next month, rising from RMB 10 to RMB 20 per square meter depending on the wood. The company’s marketing staff explained that the levying of consumption tax will definitely have an impact on the retail price of flooring, but at present, the shortage of timber supply is still the main reason for floor price increases.
According to statistics from the China Timber Distribution Association, sales of solid wood flooring fell by 30% in 2004 and 2005. In 2005, sales of solid wood flooring in China were 75 million, a decrease of nearly 30% from the previous year.
Gao Zhihua, chairman of the China Timber Distribution Association, believes that the total sales of solid wood flooring in China will continue to decline in 2006, but the sales of 30 well-known brands will increase and the investment will be even greater.
The impact of consumption tax may lag
As more and more dealers of solid wood flooring nowadays, the profits of the industry are getting thinner and thinner, and the sales link has been difficult to digest various cost-rising factors. Factors from production, sales and transportation will directly affect the market of solid wood flooring. The sales price is only slightly different and the lag time is not the same.
At the end of December of the year before the end of the Southeast Asia tsunami, by the fourth and fifth year of the following year, the solid wood floors on the market had a relatively large price increase. In recent years, the rise in the price of oil has led to a rise in freight rates for solid wood flooring. This year, the market price has been raised several times. After the introduction of a 5% consumption tax on solid wood flooring on April 1, a certain period of time, the market's sales prices will rise, but the rate will not be too large, is expected to rise about a few dollars per square meter.
Consumption tax is not paid when buying flooring
Many people can't figure out what kind of tax the consumption tax is and where it is levied. It is assumed that the consumption tax is levied only when the floor is bought. Some consumers have suggested that if a 5% consumption tax is to be imposed on the purchase of flooring in the building materials market that does not require invoices, will the price not be affected?
However, when the reporter consults with the taxation department, the taxable consumer goods produced by the taxpayer should be taxed at the time of sale; taxable consumer goods that are imported should be taxed at the time of customs declaration. Therefore, to the point of market sales, solid wood floors should have already been paid for consumption tax regardless of whether the consumer requested sales invoices.
Early purchase is the normal reaction of the market
The majority of solid wood flooring sales in the building materials market has seen a boom in trading. Mr. Wang told reporters that he had just booked 80 square meters of solid wood flooring for 240 yuan/square meter, but his new house will not be delivered until June of this year. He calculated an account for the reporter, a set of 120 square meters of the house, about the need to shop about 80 square meters of floor, if you buy the same floor in the future, then calculate to pay nearly 1,000 yuan. There are not many consumers like Mr. Wang. Many citizens who are preparing to decorate at the end of this year have also joined the ranks of early-stage flooring.
The overall consumption of solid wood flooring will not be affected much
The aristocratization trend of solid wood flooring is more obvious. At present, the consumer groups of domestic solid wood flooring are relatively mature, especially for some consumers who buy up or down. They generally believe that solid wood floors can reflect their own consumption grade, value and status. Therefore, the price increase will not have much impact on this part of consumers. At the same time, the price increase caused by this consumption tax will not be too great.
Lin Dianming, head of Anxin Flooring, believes that at present, the solid wood flooring market is for less than demand, and the consumption tax should be appropriately increased. This situation should be an effective balance.
Laminate flooring may expand market
“I used to specialize in solid wood flooring. Only from this month onwards did we open up a section of laminate flooring.†A flooring dealer said that sales of solid wood flooring were good, but more and more consumers are now more willing to choose laminate flooring. floor. Coupled with the fact that prices for solid wood flooring are on the rise, he estimates that the share of laminate flooring will increase by about 30% this year.
In fact, manufacturers of laminate flooring have always consciously adopted techniques such as silent processing and simulation of wood grain, and strived to solve problems such as slight noise and insufficient comfort of reinforced flooring, and strived to be close to real solid wood in terms of perception and touch, and the price More than double the price, in line with the country's environmental protection purposes, should be the mainstream of the future floor market.
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