1. Sharp Exchange Rate Fluctuations Erode Export Profit Margins

The USD/CNY exchange rate has experienced dramatic fluctuations over the past two years, greatly affecting the furniture export industry. In the first half of 2025, the exchange rate remained around 7.2, while it has now dropped to 6.7, marking a nearly 7% appreciation of the RMB.

Many clients consider a 7% fluctuation insignificant. However, for the low-margin office chair and gaming chair export sector, this shift has severely squeezed profitability. Taking a standard export order worth $20,000 as an example: the order value equaled RMB 144,000 at the exchange rate of 7.2, but only RMB 134,000 at the current rate of 6.7. This results in a direct profit loss of RMB 10,000 per order, a margin shrinkage of nearly 7%.

Currently, the net profit margin of the domestic office and gaming chair export industry is only 4% to 5%. Without adjusting product pricing, orders will inevitably fall into losses. The exchange rate fluctuation alone has completely wiped out the original profit margin of conventional orders.

2. Soaring Raw Material and Logistics Costs Further Aggravate Pressures

Exchange rate volatility is not the only challenge facing exporters. A full-scale increase in industrial costs has further intensified operational difficulties. Core raw materials for chair manufacturing, including sponge, PU materials, and textile fabrics, are highly correlated with international oil prices. Rising oil costs have directly driven up raw material procurement expenses.

In addition, higher oil prices have pushed up global logistics costs, especially sea freight rates, which have seen a significant increase. As sea shipping is the primary transportation method for chair exports, the surging logistics fees have further diluted order profits, putting export enterprises under triple pressure from exchange rate losses, rising material costs, and increased logistics expenses.

3. Effective Solutions for Chair Export Enterprises

To tackle the dual challenges of exchange rate fluctuations and rising comprehensive costs, we have summarized practical and diversified solutions to help enterprises stabilize profits and achieve sustainable development:

（1）. Optimize Settlement Currencies to Avoid Exchange Rate Risks

Prioritize RMB cross-border settlement for overseas clients and regions that support RMB transactions, fundamentally avoiding profit losses caused by USD/CNY fluctuations. During business negotiations, compare the real-time exchange rates of local currencies against USD and RMB, and select the most cost-effective settlement method for both parties to improve client acceptance. Meanwhile, adopt batch settlement and forward exchange rate locking strategies to hedge short-term exchange rate risks and stabilize order returns.

（2）. Iterate Product Lines to Improve Added Value

Abandon the traditional low-price and high-volume sales model, and accelerate product upgrading and iteration. Develop high-value-added new products by optimizing craftsmanship, upgrading materials, innovating ergonomic functions, and updating appearance designs. Gradually phase out homogeneous old models with thin profit margins to get rid of low-price market competition. High-value-added products have stronger pricing power, which can fully cover the increased costs caused by exchange rate fluctuations and raw material price hikes, fundamentally improving order profitability.