Softer couch cushions. A smaller selection of jacket sizes. ...

Core Insights - IKEA is planning to increase its sourcing of products from factories located in the United States due to rising import costs driven by tariffs imposed by President Donald Trump [1] Group 1 - The decision to source more products domestically is a response to the increased costs associated with importing items such as bookcases, mattresses, and sofas [1]

Core Insights - The latest U.S. tariffs on imported kitchen cabinets, bathroom vanities, and upholstered furniture have led Chinese vendors in Lecong to largely abandon the U.S. market, indicating a significant shift in their business strategy [1][2][3] Industry Overview - Lecong, known as China's "Furniture Kingdom," features over 180 furniture malls filled with retailers, wholesalers, and distributors, showcasing a wide range of products from plywood tables to plush leather sofas [4] - The town has a historical significance as the earliest furniture market in China, catering to international customers for over 30 years, particularly in the higher-margin European and North American markets [5] Market Challenges - Geopolitical tensions, tariffs, and rising labor and production costs have adversely affected Chinese manufacturers, forcing them to adapt to survive in a challenging environment [6] - The domestic market is experiencing weak consumption due to an economic downturn and a slump in the property market, impacting overall sales [6] Business Adjustments - Companies like Hansen Outdoor Furniture have reduced their workforce significantly and shifted their sales focus, with 60% of products now sold domestically and 40% overseas, primarily to India and Africa [6] - Hanfei Furniture reported average business performance this year, with a notable impact from last year's tariff increases leading to order cancellations from American clients [7] Competitive Landscape - The furniture industry is facing increased competition and a smaller market size, but manufacturers express confidence in their ability to survive despite the challenges [8]