Sales are down 95% compared to last year, and prices are up 45%
“Die Effektebeurs” monitors the reactions of owners of furniture factories and exhibitions
Al-Manasra district, the most famous furniture market in Cairo, is witnessing a serious stagnation in sales due to the high prices due to the increase in production costs.
Owners of factories and exhibitions in the Al-Manasrah area told Al-Boursa that recently they tended to sell at a low profit margin to move the stagnant water and cover costs, while others suggested that it was necessary to take their products to the export markets in an effort to stimulate sales. Some found it inevitable to lay off some of the workers, given the difficulty of covering the costs.
Mr. El-Sheikh, chairman of El-Sheikh Furniture Company, said that the Al-Manasra area, which is one of the most famous furniture and furnishing markets in Greater Cairo, is suffering from a state of stagnation that has almost closed exhibitions and companies to to keep working
He added to Al Borsa that the area, which is visited daily by thousands of citizens, has no more than 5% of sales compared to last year, which means that the drop has reached 95%.
He explained that the consumer does not understand the increases in the furniture sector: “For example, when he is asked about the price of a bedroom, he finds it at 22,000 pounds … He answers that he will continue to pay the rest of the companies to tour. and return, or bargain according to his budget which he had fixed before he went out to buy.”
He called on the government to support the furniture sector and provide materials at reasonable prices to sustain large companies and exhibitions that are threatened with closure in view of the obstacles it is facing.
Mohamed El-Sayed, a furniture dealer, said the sector is suffering due to the high exchange rate and the resulting increase in the prices of raw materials such as wood, fabric, sponge, paint and finishing materials.
He added that furniture prices have increased by 40-45% in the last six months, causing a weak buying and selling movement for the final consumer.
He explained that the prices of modern and classic bedrooms ranged between 21-32 thousand pounds, compared to 14-18 thousand pounds six months ago, and the prices of children’s rooms rose to between 12 and 17 thousand pounds, compared to 7 and 10 thousand pounds.
Hosni Al-Khodari, a timber trader, said that timber prices are unstable and fluctuating, with a value fluctuating between 300-400 pounds for the past two weeks.
He added that the price of a cubic meter of Swedish wood is around 9.8 thousand pounds, compared to 9.5 thousand pounds, and the price of a square meter varied between 8.2-8.5 thousand pounds, compared to 8-8 thousand pounds in the past two weeks.
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The price of plywood varies between 200 and 220 pounds per meter, and the price of a Swedish meter of wood is 11.3 thousand pounds, compared to 10.2 thousand pounds.
Egypt annually imports more than 1.5 billion dollars of wood, of which 1.4 billion dollars is softwood, and 155 million dollars of hardwood, while the value of oak imports is about 10 million dollars, according to the Central Agency for Public Mobilization and Statistics.
Alaa Issa, chairman of the board of directors of the Issa Sons Furniture Company, said that the company began to reduce its production and lay off some workers due to the decline in sales.
He added that the worker’s wages were estimated at 600 pounds a week, and with the rise in prices he began to demand an increase of 200 pounds to reach 800 pounds a week, which some exhibits in view of the decrease in forced sales to lie. from their workers.
He explained that the prices of furniture have doubled in the last period, and the consumer has not been able to understand the repercussions of that increase from the increase in materials and freight, in addition to electricity bills, taxes and wages of workers in the exhibition. not.
Issa emphasized that export is the only way out of the domestic stagnation, but that this must be matched by the government’s support for raw materials and the promotion of their products in African and Gulf markets by organizing foreign exhibitions.
Imad Fahim, a furniture dealer, said that the furniture trade and industry is being depleted in light of the changes that have taken place in many countries of the world since the beginning of the Russian-Ukrainian war.
He added that the relevant authorities should intervene and support the raw materials after reaching their highest levels this year, as it is the main component of the industry with a rate exceeding the 70 percent mark.
Ahmed Ali, president of Furniture Modern, said that the consumer pattern of individuals has decreased despite the summer season and weddings, and the consumer is on his way to meet his basic needs of food, drink, clothing and education.
He added that some couples who are about to get married turn to second-hand furniture markets scattered all over Cairo to meet and manage the home’s furniture needs in the face of the high prices of new products.
Ali explained that the person getting married now buys used furniture and then takes it to an astori who paints and polishes it, according to the money he has after buying it.
He pointed out that the company approved discounts on bedrooms at cost price and with a low profit margin ranging between 200-300 pounds, to move stagnant water, and collect the liquidity of the products in the exhibition, to cover the expenses to cover rent, labor, electricity, and others.
The company also delivers the furniture to the buyer’s home for free inside Cairo, and outside it pays half the shipping cost and the consumer bears the other half.