Evolving timber production and marketing in China

In tandem with China's economic development and as living standards rise, consumer preferences for quality wood products is growing. In recent years domestic demand for wood products has shifted from low cost to quality. This change has meant manufacturers servicing the domestic market have had to pay more attention to workmanship and appearance.

Chinese consumers are also becoming more conscious of environmental and conservation issues and there is a growing interest in wood products that reflect cultural values.Another change has been with the location of the wood processing enterprises. Many have transferred from the developed and high cost eastern coastal regions to less developed areas in central and western China. The most recent development has been the rapid growth in online sales of wood products.

Building an image of credibility
Recently the government has been encouraging enterprises to pay more attention to building an image of „good faith and credibility‟ in the minds of consumers. The government has adopted a policy on credibility building and this is outlined in a document entitled "Planning the construction of a social credibility system".

Through this policy efforts will be directed at promote greater credibility in many areas especially business management. The aim is to achieve a high level of self-regulation and credible market mechanism for industry and to cultivate awareness of the benefits of reliable market services.
As early as 2004, the China Timber and Wood Products Distribution Association (CTWPDA) took the lead in setting up a working committee of timber enterprises to design ways to improve credibility in the timber sector and the committee developed a system for credibility evaluation in the timber industry.

Currently more than 30 large timber processing enterprises have been assessed as AAA after evaluation and have registered with the Ministry of Commerce as „pacesetter‟ in the wood products industry.

A decision had been made by the CTWPDA to conduct a survey to assess companies in terms of legality to promote trust and integrity in the eyes of global consumers.

Source: ITTO