Impact of the Pandemic on Office Chair Manufacturers

The impact of the pandemic on office chair manufacturers is multifaceted, presenting both opportunities and challenges.

Opportunities

• Growing Market Demand: In the post-pandemic era, there has been a shift from centralized office work to independent home-based work, accompanied by an increased awareness of health. This has led to a surge in demand for office products. Ergonomic office chairs have become the preferred choice for many. According to JD.com data, the pandemic-induced scenarios of remote and mobile work have accelerated the integration of 'office/study spaces' and 'living spaces', with sales of home office computer chairs increasing by 30% year-on-year. Guanyan Report Network indicates that in 2020, China's demand for office chairs was approximately 230 million units, with a market size of about 26.5 billion yuan. It is expected that the market size will maintain steady growth from 2021 to 2026, reaching 37.6 billion yuan by 2026.
• Increased Order Volume: Taking Anji, Zhejiang, known as the 'hometown of the chair industry', as an example, as the world's largest manufacturing base for office chairs, the rise of the 'home economy' during the pandemic has triggered a surge in local demand for home furnishings and a significant increase in orders. For instance, Henglin Co., Ltd.'s production base in Anji, which typically produced 700-800 seat molds per day in previous years, needed to complete 1,500 units per day in October this year during the pandemic. The production team implemented three shifts, with machines operating 24 hours a day without interruption. Yongyi Co., Ltd. also reported favorable order conditions.

Challenges

• Disrupted Export Business: The export business has been affected by factors such as exponential growth in sea freight rates and budget tightening or work stoppages in overseas market engineering projects. The substantial increase in sea freight rates has raised the export costs for office chair manufacturers, while budget tightening or work stoppages in overseas market engineering projects have directly reduced the demand for overseas orders for office chairs.
• Rising Raw Material Prices: Global supply chain tensions have led to a rapid increase in raw material prices, posing varying degrees of impact on enterprise management and business operations. The increase in raw material costs has compressed the profit margins of office chair manufacturers, placing higher demands on their cost control and profitability.