Global furniture markets showed mixed trends over the past year, with overseas demand providing some relief amid a sluggish domestic backdrop. While net profits and total revenue declined, certain international regions posted strong growth, driven by product innovation and expanded market reach.
© Man Wah
Sales volumes in Europe and North America grew steadily, with export volumes of sofa products rising by approximately 13% year-on-year. The gains were attributed to stronger brand recognition, increased cooperation with local distributors, and tailored product offerings to suit regional consumer preferences.
In contrast, the domestic Chinese market saw significant challenges. Consumer confidence remained low due to broader macroeconomic conditions, with furniture buyers exercising caution. Government trade-in subsidy schemes helped soften the decline, but overall domestic sales still contracted sharply.
Hong Kong-based upholstery specialist Man Wah reported that for the fiscal year ending 31 March 2025, total revenue declined 8.2% to HK$16.90 billion. Net profit fell to HK$2.1 billion from HK$2.3 billion, despite a slight improvement in gross profit margin, which rose from 39.4% to 40.5%.
Sales in China dropped 17%, accounting for 58.7% of total revenues, down from 65% the previous year. North American sales rose by 3.2% to HK$4.4 billion, while EU revenues jumped 22% to HK$1.58 billion.
The company stated that it had responded to "complex market conditions" by "strengthening brand building, optimising the product mix, expanding sales channels and enhancing operational efficiency." In Europe, strategic marketing and distribution efforts were cited as key to driving growth.
Despite the challenges, the firm described overseas performance as "satisfactory," with demand in international markets helping to offset headwinds in its core domestic business.
Source: www.bigfurnituregroup.com