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China Furniture Market, Market Trends Furniture ,China Custom Made Furniture

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China Furniture Market The furniture industry in China has undergone a dynamic change from traditional operations to technology driven industry over the last few years 2010-2015. The growth in the furniture industry in past decades was phenomenal and was quite evident through consistent surge in exports. In 2010, the China furniture market was valued at USD 40.9 billion which has increased to USD ~ billion in 2015 growing at a CAGR of ~% during the period. 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. With the substantial growth in the real estate industry, technology and increasing growth rate in tourism from ~% in 2011 to ~% in 2015 – PowerPoint PPT presentation

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Title: China Furniture Market, Market Trends Furniture ,China Custom Made Furniture


1
China Furniture Market Report 2020 Ken
Research
2
  • 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.

3
  • 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.

4
  • 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.

5
  • 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.

6
  • 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.

7
  • 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.

8
  • Exclusive stores such as IKEA, Modish Furniture,
    Flexa and others generated sales worth of USD
    Billion in FY2015. Dealers which mostly comprise
    of smaller 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.

9
  • 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.

10
  • 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
    non-residential 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.

11
  • 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.

12
  • 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.

13
  • 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 Chinas 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.

14
  • 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.

15
  • 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.

16
  • 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.

17
  • Source https//www.kenresearch.com/consumer-produ
    cts-and-retail/home-and-office-furnishings/china-f
    urniture-market-report/35851-95.html
  •  Contact Ken ResearchAnkur
    Gupta, Head Marketing CommunicationsAnkur_at_kenre
    search.com91-9015378249

18
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