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6 Trends Provide New Develope Directions For Enterprises In The Enlarged Furniture Market

6 Trends Provide New Develope Directions For Enterprises In The Enlarged Furniture Market

With the improvement of the living standards of the Chinese people and the rapid urbanization process, coupled with China's rich timber resources, large population base and strong furniture production, the Chinese furniture industry has good development prospects .

6 Trends Provide New Develope Directions For Enterprises In The Enlarged Furniture Market

However, the Chinese furniture industry still faces many unfavorable factors: the pressure on fuel and labor costs is rising rapidly in domestic sales; in terms of exports, it faces a series of effects such as shrinking exports, appreciation of the RMB, and adjustment of the national export tax rebate policy; Due to the increasing scarcity of raw materials and rising prices, some enterprises have to stop production or reduce production; in the downstream sales, due to fierce market competition (furniture manufacturers are not strong in their marketing methods), they dare not raise prices at random or even compete to cut prices to obtain consumption. Favored.

At the same time, real estate is affected by the state's regulatory policies, and the decline in the sales rate of real estate sales will inevitably lead to a certain impact on furniture sales.

In recent years, the scale of assets of enterprises above designated size in the Chinese furniture industry has expanded year by year. According to the data of the “Furniture Industry Market Demand Forecast and Investment Strategy Planning Analysis Report” issued by the Prospective Industry Research Institute, the number of enterprises above designated size in the national furniture industry was 5,561 in 2016. The sales revenue reached 855.95 billion yuan, an increase of 8.73% over the previous year. The sales profit of the products was 98.25 billion yuan, and the asset scale reached 5,416.60 billion yuan. However, the industry is still dominated by small and medium-sized enterprises. Private enterprises, foreign businessmen, Hong Kong, Macao and Taiwan investment enterprises (three-capital enterprises) and other types of enterprises account for 98.53% of the total number of industrial enterprises.

China's furniture manufacturing market development prospects forecast

1. E-commerce promotes the domestic demand market

The traditional domestic furniture marketing model is to use independent stores, large national chains, local chains, large supermarkets and other channels for sales. Relying on e-commerce, the furniture industry has acquired a new effective marketing model to meet the furniture needs of a large number of young people. The group purchase network is an emerging e-commerce model in the past two years. After the home moved to online sales, it received good feedback. For example, Qumei Home has been killed by 130,000 sets within 40 days through online group purchase, with a total value of more than 100 million yuan.

E-commerce represents the maximum use of limited resources by modern technology to meet the needs of consumers. With the development of Internet of Things, mobile payment and cloud computing, consumers will make resources more concise and convenient in the future. In the future, the furniture industry will rely on the e-commerce industry to usher in greater opportunities for transformation and upgrading.

2. The market potential of the third and fourth grades is huge

In the past, most brand furniture companies have adopted first- and second-tier cities such as Beijing and Shanghai as well as Shenyang and Qingdao as market development priorities. However, from the recent market sales situation, in 2016, the sales of stores in Shanghai and Beijing have been shrinking. On the contrary, the sales in the third and fourth grades are getting more and more popular.

At present, there are about 150 million households in the third- and fourth-tier markets represented by prefecture-level cities and some economically developed counties and cities. According to relevant market surveys, if the demand for these households is calculated at 30%, the market capacity will reach 150 billion yuan. And as the income level of these urban residents increases, the purchasing power will also rise. Driven by the accelerating urbanization process, the market potential of third- and fourth-tier cities is gradually turning into real purchasing power.

As a result, more and more furniture companies regard the third- and fourth-tier markets as strategic growth points. Sichuan furniture enterprises represented by Quanyou, Shuanghu, and Pearl of the Year have passed the market cultivation for many years and have gained high brand recognition and market share in the third and fourth grade markets. However, at present, the third- and fourth-tier markets are still in a state of development, and there are not many brands that actually enter this level of market, so the competition is relatively weak.

According to the report of the Prospective Industry Research Institute, in 2016, China's furniture industry was often at a scale of 855.6 billion yuan. It is expected that with the adjustment of China's real estate market in the future, the growth rate of the furniture industry will decline, but it will still maintain steady growth. It is estimated that in 2023, the market size of China's furniture industry will reach 1,336.5 billion yuan.

Analysis of the development trend of China's furniture manufacturing market

1. Furniture matching highlights cultural taste

With the deepening of the concept of “light decoration, heavy decoration”, buying furniture is no longer a simple purchase of a set table, a set of beds, a sofa, but from the furniture to more cultural essence, creating a unique living room Cultural space. In recent years, the popularity of American furniture is the best illustration.

It combines the American local customs and culture, or rough, luxurious, or appropriate, nostalgic is a major feature of American furniture. In general, furniture with a cultural charm can give family members a sense of belonging and appeal, so most of the owners who come to buy are more refreshing. In addition to American furniture, mahogany furniture has become the first choice of many decoration owners in recent years. The obvious nationality in the shape and crafts of mahogany furniture is the most attractive part for many collectors, and Xi'an, as a cultural ancient capital, has obvious advantages in the cultural identity and inheritance of traditional furniture.

2, 13 cities pilot collective land construction and rental housing, small-sized furniture will be popular

In August 2017, the Ministry of Land and Resources and the Ministry of Housing and Urban-Rural Development identified 13 cities including Shanghai, Guangzhou and Hangzhou, and launched pilot projects to build rental housing using collective construction land. The 13 cities under this pilot are Beijing, Shanghai, Nanjing, Hangzhou, Xiamen, Wuhan, Hefei, Zhengzhou, Guangzhou, Foshan, Zhaoqing, Shenyang, and Chengdu, which basically cover the cities where housing prices have risen rapidly. The construction of leased housing for collective land is mainly small-sized.

In the next 2-5 years, small-sized units such as commercial housing, affordable housing, affordable housing, and low-rent housing will continue to sell well. For example, Gemma Furniture is creating a cost-effective panel furniture that is very similar to IKEA but durable to IKEA. The Hengli brand launched by Yaobang Furniture is also completely designed for affordable housing. The products, pricing and style are all for affordable housing.

In addition, some of the brand companies that previously focused on the high-end market also launched related furniture for affordable housing at the Guangdong show.

Such as Fuyun ideal space, its main promotion in Dongguan famous furniture exhibition is custom furniture - up to 200, 300 square meters of villas, as small as 40 square meters of apartments, have the right products. Fuyun Ideal Space introduces customized furniture for different types of houses, which is in line with affordable housing and affordable housing. Previously, the furniture of Fuyun's ideal space can meet the customization needs of 70% and 80% of customers, and in the past two years, its custom furniture is to meet the needs of customers 100%. Similarly, the latest Lafite series launched by Peugeot Furniture is a delicate and compact route that subverts the traditional European and American classical furniture image.

3. New concept of furniture environmental protection

In the home industry, furniture is one of the industries that rely heavily on resources. The resource conservation of the furniture industry is of great significance to the development of a conservation economy in the entire home industry.

In fact, the resource conservation of the furniture industry has made some breakthroughs. Recycling is a creative concept in eco-friendly home design, with a focus on sustainability.

More and more furniture and household items have begun to use recycled materials, and paper furniture has quietly emerged in China.

It is reported that foreign designers have designed paper furniture more than ten years ago. The most famous is the series of corrugated furniture works by design master Frank Gehry, which will be displayed every time at Milan Furniture Fair and Cologne Furniture Fair. However, these products are more formalized. If they are to enter the mass consumption field, they are more difficult to be accepted by ordinary consumers. Even if they like it, they will not be bought and used, and the cost is relatively high.

In addition to this type of conceptual paper furniture, in fact, we often see some “simply” paper furniture in life, such as many supermarkets using cardboard to do some promotional display racks. In the words of the designer himself, the paper house has a “natural beauty”, and the natural paper can create a soft, natural and calm atmosphere of the living room.

Compared with traditional furniture, the cost of paper furniture is not low, but compared with traditional furniture with brand and design, the cost of some ordinary paper furniture is still low, and the price is much lower.

4, customized furniture will be much more popular

In the past, the middle and low-end working class would find artisans to "make furniture" at home. The furniture price is cheap. Nowadays, the overall custom furniture trend has also appeared in the white-collar workers. The personality, fashion, time-saving and labor-saving of customized furniture have gradually conquered more consumer groups.

With the increasing demand for furniture customization, a number of enterprises specializing in the manufacture of furniture should also be on the market. A large number of cabinets and wardrobe enterprises entered into the custom furniture industry.

Custom furniture appeared in the domestic market in 2001. At present, custom furniture accounts for about 10% of the entire furniture market. As a new thing, its development space is still very large. At present, the finished furniture on the market has become more and more difficult to meet the needs of modern people for the home space due to factors such as style and size restrictions and difficulty in integrating the overall decoration style. While the overall furniture customization method solves these contradictions, it can make better use of the space and pay attention to the environmental protection requirements of the furniture in the panel, and the consumers are more likely to grasp.

Judging from the current market situation, furniture stores do not have a special area for customized furniture. The market for customized furniture is still in a state of fragmentation. Many small furniture factories offer customized services, mainly to change the size of the furniture. And this also provides a perfect opportunity for more professional and more powerful furniture companies to enter.

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