Research On The International Market Power Of Chinese Wooden Furniture

Since the Chinese Economic Reform,Chinese forest products trade has developed promptly,as one of the most important part of forest products trade,wooden furniture has also made a great progress.Since 2004,China has replaced Italy as the world’s largest exporter of wooden furniture. Wood furniture trade has caused widespread concern. Although relying on the cost advantage,Chinese wooden furniture walked out of the country and inproved the international competitiveness,but most products can only enter the low-end market. Under the big background of the future labor cost advantage decline and the five development concepts,promoting the export and stable development of Chinese wooden furniture,mainly depend on the market power.Firstly this paper reviewed and commend on the foreign and domestic study about the market power and wooden furniture trade,then analysed the Chinese wooden furniture export market and its influencing factors through HHI,diversity,shannon index.Then by using residual demand elasticity model, this paper estimates the international market force of wooden furniture in China and Vietnam from 2000 to 2014. The analysis results show that the market power of China’s wooden furniture is relatively higher than Vietnam. Although China’s wooden furniture have a high market share on target maeket, but only three types of wood furniture (seats with wooden frame nes, wooden office furniture and wooden kitchen furniture) have market power and have the risk of being replaced by competitor’s products. Meanwhile, this paper analysed the influencing factors of international market force from the sources of market power, technology and capital, the export market structure, labor costs, exchange rate. Finally, combined with the analysis results,the paper put forward reasonable suggestions to improve the international market power of Chinese wooden furniture.