Last month, I accompanied an Australian buyer to Lecong, Foshan furniture wholesale market to purchase sofas.
We saw the same sofa in 2 different places. The shape, color, and size were all very similar.
But the prices has a big different..
One shop quoted USD500, while a showroom asked for USD700.
The buyer asked me:
“Why are the prices so different for the same sofa?”
Actually, this happens very often in Foshan. As I have stayed in Foshan for many years, I think these are the reasons.
1. Different types of suppliers
In the Foshan market, every shop will say,“I am a factory.”And you see“Factory Direct” everywhere.
In fact, some businesses are genuine manufacturers. Some are trading companies. Others are only showrooms. They take orders from customers, and then place the production with a factory from their supply chain.
For a foreign buyer who only comes to China occasionally, for sure it is difficult to tell the difference if only walking around a furniture market for a few days.
This is one of the reasons you see
price differences in the market.
2. The material
For a leather sofa, one of the biggest factors affecting the cost is the
leather itself.
There are different materials used in one sofa, including
genuine leather, split leather, leather on the contact areas, and PU.
A sofa may require around
300 square feet of leather, so the material cost between a fully leather sofa and a PU sofa can differ by several thousand RMB.
This is another reason you see
price differences in the market.
There are still many factors affecting the price inside the sofa:
Whether the frame uses solid wood, plywood, or recycled wood.
The type of springs
Internal hardware
The density of the foam
These details may not be obvious when you are standing in a showroom looking at the finished sofa, but they all affect the
manufacturing cost — and eventually the price you are quoted.
There are still many reasons affecting the price, like the
packing, the quantity you order; retail or wholesale also affects the price.
Need Help with Sourcing furniture in China?
If you are planning to source furniture in Foshan , feel free to get in touch.
