China furniture market report 2020,Export Furniture China

China Furniture Market Report – 2020 : Ken Research

• How China Furniture Market has Evolved?

China being the second largest economy by nominal GDP and world largest economy by purchasing power parity (PPP) in 2014 has emerged as one of the key furniture market in terms of revenue, top largest furniture exporters and one of the major manufacturers of wooden furniture in world. The furniture market in China has grown with a CAGR of ~ % during the period 2010-2015. The revenues generated by china furniture market were evaluated at USD ~ billion in 2010 and has grown to USD ~ billion by end of 2015.The furniture industry in China has been immensely driven by its ability to provide best quality furniture products at best affordable prices without compromising on the quality standards and low cost skilled workforce. Domestic demand for furniture had also increased in China due to the increase in real estate sector for both residential and non-residential segment.

China Furniture market had dominated several European wooden furniture manufacturing countries such as Germany and Italy along with other furniture manufacturing nations like Netherland, Canada, Poland, Mexico and United States.

The growth factors that have boosted the growth are expansion in real estate and housing activity, increasing growth in travel & tourism industry, growing affluence both in the urban and rural areas, remarkable growth of the mass media resulting in large number of middle-class families aspiring for better lifestyle. Chinese customers mostly prefer the wooden furniture in comparison to other furniture products. However, with the changes in scenario for latest designs and finishing features, customers are shifting their preference towards integrated furniture such as wood-glass furniture in residential and non residential sector.

China was recognized as top largest furniture exporter in the world and exported ~ % of its production to other nations in 2015. With the total furniture export value of ~ USD billion in 2010 to ~ USD billion in 2015, China furniture export market in China has shown prodigious growth during the period. On account of increasing demand for China furniture items in the global market, coupled with rising furniture manufacturing capacity of the country, the export of furniture has witnessed prolific growth during the period 2010-2015. China is widely known for its wooden furniture across the world. The demand for exports of China furniture has increased due to the availability of cheap labor force in nation which makes the overall manufacturing cost lower compared to other nations.

The domestic furniture market of China has been predominantly driven by the unorganized segment which has comprised an assortment of large number of small and medium independent retailers, local carpentry shops, numerous SMEs and wholesalers. China domestic Furniture market can be segregated in residential and Non-Residential furniture market. Residential sector has dominated the domestic furniture industry with a share of ~ in 2015, thereby valued at ~ million in 2015. However, Non- residential furniture market in the domestic country was evaluated at ~ million. • How has the Contribution of Residential Furniture Changed in China Furniture market?

The residential furniture market comprises with extensive product range of furniture products which are used in daily household purpose. Major furniture items which have propelled the growth of residential market are majorly beds, sofas, dressers, cupboards, dining table sets, cabinets, tables, chairs and others.

Increasing spending capacity and a gradual shift in consumer perception to purchase branded furniture products to beautify their home decor has driven the growth of residential furniture market in the country. The trendy demand for the stylish and latest fashionable furniture from the traditional furniture has enhanced the market share of the residential furniture in 2015. The market for residential furniture has enhanced at a CAGR of ~ % during 2010-2015.the market had increased from USD ~Billion in 2010 to USD ~ Billion in 2015. The reason for the domination for residential sector in furniture sales is the availability and innovation of large new number residential furniture products of innovative designs and variety of material integration/combinations. Additionally, because to availability of large variety of products in residential furniture product line than the number of products in non residential furniture product line, residential furniture products are offered at a broader price range, contributing to larger demand and resulting in higher percentage share to the revenue of domestic furniture market in China.

The Bedroom furniture has dominated the market with share of ~ % of the total sales revenue of residential furniture market in China during 2015. Bedroom furniture has stood as the highest revenue-generating segment as in the residential furniture sector as items placed in bedroom have been the utmost priority for any customer. Living room Furniture is the second largest contributor in the revenues of residential furniture. The dining furniture segment accounted for a share of ~% in the residential furniture market in terms of revenue during 2015. The kitchen segment contributed a share of ~% in the overall China residential furniture market during 2015.The major demand of residential furniture came from southern province the major reason accounted is the High per capita personal disposable income, number of residential building, urbanization had led the demand of furniture products in southern provinces. Eastern Province is the second largest contributor followed by western and Northern Province of china.

Exclusive stores such as IKEA, Modish Furniture, Flexa and others generated sales worth of USD ~ Billio i FY’ 5. Dealers which ostly co prise of s aller format stores and contain both branded and non-branded furniture registered ~ % share in the market revenues. In export market there are many big manufacturers who are exporting their furniture to other countries The residential furniture sector will grow at a CAGR of ~ % during 2016-2020. The market share of residential furniture will increase from ~ % in the overall sales of domestic furniture market in 2016 to ~% in 2020. The major reason attributed is the increase in Chinese population in the country which will surge the demand of furniture industry. Additionally with the increase in the real estate residential inventories in the major cities of China, will further increase the demand of residential furniture market in the country. The urban population of China is increasing, people are moving from rural area to urban areas in search of jobs, education and other reason, due to this shift the demand for residential furniture in China is expected to surge in the coming years.

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What has been the Performance of Non-Residential furniture Market in China Furniture Industry?

Non residential furniture market in China comprises of furniture products that are used in offices, hospitals, hotels, restaurants, shopping malls and other public places. The most commonly demanded products in China non residential furniture market are primarily chairs, Sofa sets, tables, and stools, desks, bar furniture, storage cabinets and others. The market for non-residential furniture had consistently enhanced over the years 2010-2015. The market is likely to grow in future in terms of revenue due to new hotels, offices, shopping complexes observed to get constructed in the recent years. Boom in the travel and tourism industry, complemented with hospitality sector in the current scenario has also driven the non-residential furniture market. The market for Non- residential furniture has enhanced at a CAGR of ~ % during 2010-2015.the market had increased from USD ~Billion in 2010 to USD ~ Billion in 2015.

Furniture items which are primarily used in offices are desks, computer tables, workstations, chairs, paper & media organizer, notice boards, coffee tables, conference tables, drawer units and others. The market of non residential furniture has showcased enormous growth during the period 2010-2015. The demands for non-residential unit are growing due to increase in hospitality, travel & tourism and construction sector which has triggered the market for nonresidential furniture. In Non – Residential sector, office and industrial furniture contributed largest share of ~ % to the revenues in 2015 since the amount of volume demanded is high in comparison to other segments of non residential furniture sector. With the growth of tourism sector in China, the number of hotels has also increased from ~ in 2010 to ~ in 2015. This growth in the hotel industry in China has generated demand for hotel furniture which in turn has contributed to ~ % in 2015 in overall sales revenue of non-residential furniture. Retail segment includes shopping complexes, retail malls and others commercial places.

Wooden furniture is the most preferred furniture than any other furniture in China due to easy availability and large variety of raw material available for manufacturing which ultimately makes the wooden furniture affordable to purchase for the people living in China. But with the changing time and economical conditions and growth in the spending power of the Chinese customers, there is shift towards integrated or mixed furniture that is observed in the preference of Chinese customers. Offices, industrial plants, schools, colleges and other places majorly go for contract based furniture. As they are buying the products in bulk and all the products are of small size and quality. The contract based furniture is less expensive than customized based furniture and also it takes less time for installation. The demand for contract furniture and customized furniture had increased as well, which are primarily been demanded by hotels, bars and hospitals. The contract furniture majorly encompasses dining tables, dining chairs, cabinets, sideboards, display cabinets, wall mounted tables, bar desks, bar chairs and other such products.

The non-residential furniture market will increase at a CAGR of 3.8% during 2016-2020 to reach at USD 18.2 billion in 2020. In the coming years, government of China is likely to launch number of hotel projects and shopping malls, which are anticipated to trigger the demand for Non-Residential furniture in the coming years. With the increase in travel & tourism industry there will be a trigger in the hospitality sector resulting in increase in non-residential furniture market in the company. With a rapid development of Chinese economy, the advancements in city in terms of development, rising number of institutions and government agencies will elevate the market for non residential furniture in China in coming future. The progressive growth of China non residential furniture market is likely to continue in future as well in terms of revenue due to substantial increase in large number of commercial units in the country. Increase in commercial projects, Increase in FDIs and increase in demand of contract & Customized based furniture in China will trigger the market for non residential furniture in future.

• What Has Been The Growth Trajectory Of Online Furniture Market In China?

Growth in internet usage has helped the flourishing of online furniture market in China from 2010 to 2015 supported by increasing population and growing economy in nation. Although China`s economy has suffered from great deal of instability and shown sustained sign of weakness throughout 2015, but their technological strength had made its ecommerce sector to be a major driver of economic growth driving factor for the industry due to continuous increase in internet penetration and smart phone ownership across the nation. Rising urbanization in China has strengthened the middle class income group with better purchasing power than ever before. This rising urbanization growth also helped the E-commerce industry in nation to grow on faster rate which leads to increase in number of internet users from ~ million in 2011 to ~ million in 2015.The market for Online furniture has enhanced at a CAGR of ~ % during 2010-2015.the market had increased from USD ~Billion in 2010 to USD ~ Billion in 2015.

Online China furniture market is projected to be one of the boosting factors in the overall China furniture market in coming future. The online furniture market is projected to grow at CAGR of ~ % for 2016 to 2020. With the increasing internet penetration in the country, the number of internet users in China is projected to grow at a rate of ~ % and reach around ~ million in 2020. Additionally with the rise in presence of online furniture companies and the entry of international online furniture players in China will accelerate the market size of the industry. • Trends & Developments In China Furniture Market Easy availability of raw materials for furniture products in the country had triggered the market size of furniture industry in the country. With access to high quality of raw materials in the country, china is manufacturing highest quality furniture products in the world. The timber forest in the country had triggered the market size of wooden based furniture in the country.

Easy availability of raw materials for furniture products in the country had triggered the market size of furniture industry in the country. With access to high quality of raw materials in the country, china is manufacturing highest quality furniture products in the world. The timber forest in the country had triggered the market size of wooden based furniture in the country. Easy availability of raw materials for furniture products in the country had triggered the market size of furniture industry in the country. With access to high quality of raw materials in the country, china is manufacturing highest quality furniture products in the world. The timber forest in the country had triggered the market size of wooden based furniture in the country. With the improvement in the living conditions in China, People are willing to invest more amount of money in homes and their decoration. The increase in purchasing power in the country had driven the demand of furniture in the country. People have shifted their preference from buying basic necessity of the furniture to more lifestyle oriented furniture. The increase in penetration in the internet users in the country had accelerated the e-commerce industry of the country. The increase in the size of E-commerce industry has increased the size of online furniture sales in the country.

• What Are The Future Prospectes For China Furniture Industry?

It has been anticipated that the market will increase in future at a CAGR of ~ % during 2016-2020. The major reason which will drive the furniture market in the country will be the growth in the industrial and residential sector, ease availability of raw materials, low labour cost, online sales, and entry of international brands.

Additionally support and encouragement by Chinese government to local entrepreneurs will led them to open furniture business which will also drive the furniture market in future. In future the domestic sales will be dominating the market with a share of ~ % in 2020. The increase in demand of good quality and antique Chinese furniture in low prices will surge the demand of furniture in other countries triggering the overall export of furniture industry by 2020. Additionally, the growth of organized retail culture, rising real estate activities, increasing demand and rising e retailing of furniture in the country are expected to contribute substantially to the market growth in the coming few years.

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Source: https://www.kenresearch.com/consumer-products-and-retail/home-andoffice-furnishings/china-furniture-market-report/35851-95.html

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