Analysis of the current situation of China's furniture market with huge potential
Overview of the current development of the furniture market
As a large consumer goods of the people, with the rapid improvement of people's living standards and the rapid development of housing construction, the market capacity is huge, and the average profit rate of the industry is much higher than the average profit rate of the society. Therefore, the furniture industry is the capital investment and scale in various industries. The most prominent one is expanded. In the early 1980s, there were 3,500 furniture enterprises in the country, employing 300,000 people, with a total output value of 5.36 billion yuan. By 1998, the number of furniture enterprises nationwide had reached 30,000, with 2 million employees and a total output value of 78 billion yuan. At present, there are more than 50,000 furniture manufacturing enterprises in the country, and about 5.5 million employees. It is estimated that by 2005, the output value of China's furniture will reach 250 billion yuan, double the number in 2000. From 1.297 billion U.S. dollars in 1996 to 5.417 billion U.S. dollars in 2002, China’s furniture exports have grown by an average of more than 30%.
Exports are expected to reach around $7.5 billion in 2005. Despite this, due to the large population, China’s per capita furniture consumption is less than US$8 (60-70 RMB), which is one-third of the per capita consumption of 25-27 US dollars in developing countries such as Brazil, the Philippines and Thailand. China's furniture industry still has a large market space. "But China's furniture industry is now facing strong domestic and international competitive pressures. At home, the current production capacity has exceeded market capacity. Internationally, ASEAN countries are competing for China's middle and low-end furniture market share, while European and American countries are preempting. China's high-end furniture market share. China has joined the World Trade Organization (WTO), furniture tariff reduction to 18%. This provides a more favorable market opportunity for the international furniture industry. This change in the furniture industry is increasingly focused on the market and In the field of circulation and its organizational level, a new market and circulation revolution is coming.
Furniture industry enterprise distribution
China's furniture industry production enterprises are mainly distributed in South China, East China, North China and Northeast China, especially in Guangdong. Most of these furniture manufacturers are located close to the market or the estuary. Guangdong and Fujian are mainly invested and established by Hong Kong and Taiwanese businessmen. Jiangsu Zhejiang was originally the processing center of the Chinese furniture industry. The ancient "Su Zuo" once had a glory, there is a long tradition of furniture and a profound cultural deposit.
The Pearl River Delta is currently the most developed and concentrated area of ​​China's furniture industry. Furniture production accounts for 70% of the country's total, and exports account for more than half of the country's total furniture exports. Regardless of the output value or the export, ranking first in the country is an indisputable fact. At present, there are more than 6,000 furniture manufacturing enterprises in the Pearl River Delta with an output value of more than 40 billion yuan. In the 1980s, almost all of the furniture industry in Hong Kong moved to the mainland, mainly in Shenzhen and Dongguan.
Since the 1990s, the Taiwanese furniture industry has moved its factories to Dongguan and other places. There are more than 250 Taiwan-funded furniture companies in Dongguan alone. Dongguan is a famous furniture production base in China and the world. These Taiwanese capitals are large-scale furniture export enterprises and some multinational furniture groups. Today, 38 production lines with an annual export volume of 10 million US dollars have been built. Form a new model of "Taiwan orders, Dongguan production, Hong Kong exports." Shunde is one of the most intensive areas of furniture enterprises in the Pearl River Delta. It has 2,000 manufacturing companies and more than 200,000 furniture employees.
Dongguan furniture enterprises are mainly export-oriented, which is one of the main producing areas of China's furniture exports. It is the existence of a number of furniture markets such as Shunde, Dongguan and Zhongshan that have created the leading position of the Chinese furniture industry in the Pearl River Delta. The production of furniture in the Yangtze River Delta, represented by Zhejiang, Shanghai and Suzhou, is developing rapidly.
At present, the growth rate of the furniture industry in the Yangtze River Delta has greatly exceeded the overall growth level of the domestic furniture industry. The total output value of Zhejiang furniture has reached 15 billion yuan, and the annual growth rate is over 30%, which is twice the national average growth rate. Moreover, the Yangtze River Delta furniture has formed a distinctive industrial cluster and a clear industrial division, such as Shaoxing's soft furniture, Hangzhou office furniture, Wenzhou's suite furniture, Jinhua's mahogany furniture and woodcarving furniture, Ningbo's old furniture, Yuhuan's Classical furniture and Angie swivel chairs. The furniture of the Yangtze River Delta, headed by Zhejiang Furniture, is building another important base for the Chinese furniture industry in addition to the Pearl River Delta.
Analysis of the status quo of major domestic furniture market
Beijing furniture market
The Beijing market has touched the country with every move. The total number of existing furniture circulation venues in Beijing is nearly 650,000 square meters, of which more than 50 are more than 5,000 square meters, nearly 30 are above 10,000 square meters, and more than ten are more than 20,000 square meters. There are about 3,000 furniture brands entering the Beijing furniture market, including more than 100 brands in foreign countries and Hong Kong and Taiwan, accounting for about 5% of the Beijing market brands. The proportion of Chinese and foreign famous brand furniture with high reputation and high reputation is about 6% in the market. The developers of the Beijing furniture market generally adopt three business models: rental space, partial self-operation, and full self-operation. Among them, most of them are renting venues. The dealers mainly include distribution, agency sales, chain monopoly, and franchising. For the consumer is to provide a home improvement program. And assist consumers to choose home improvement materials and furniture on the spot.
Shanghai furniture market
Driven by the development and opening up in Pudong, the Shanghai furniture market has never been more prosperous. The entire furniture market space and market capacity are very large. It is the largest market for Chinese furniture. Shanghai has a population of more than 15 million, and the mass market has a large proportion. The Shanghainese who pay attention to fashion also pay attention to furniture. Moreover, there are more than 100,000 foreigners in Shanghai, hundreds of thousands of overseas Chinese, and millions of rich people. The expensive furniture is very common. Furniture is bought by families. There are more than 5 million families of various forms in Shanghai. Every 5 years, some furniture is updated, and the number of new families is increasing every year. The purchase of furniture at public expense can account for 50% of the share in Shanghai. In 2010, Shanghai will hold a large-scale international comprehensive exhibition, which will drive the purchase of group furniture as much as the Beijing Olympic Games.
Guangdong furniture market
It should be said that Guangdong furniture is indeed at the forefront of the country, regardless of its quantity, style and style, always rising and innovating year after year. In 2001, the value of furniture production in Guangdong Province reached 41.5 billion yuan, accounting for 30% of the total output value of the national furniture industry. The export of furniture was nearly 2 billion US dollars, accounting for 50.5% of the total national furniture exports. In 2002, the absolute value of exports reached 2.74 billion US dollars, accounting for 51% of the country's total exports. And the growth rate reached 37.6%, higher than the national growth rate of 35.51%. Guangdong Province still occupies the first position in the country's furniture exports. Guangzhou, Shenzhen, Dongguan and Shunde have concentrated furniture exhibitions every spring and autumn. Guangdong Lecong furniture market is the best in the world. There are more than 200 mahogany furniture factories in Dayong Town, Zhongshan City. All of them are made of real materials and fine workmanship. The products are sold well all over the country and exported to all over the world.
Diversified consumer groups
Each furniture store has its own positioning and product grades, and has its own consumer groups. Generally speaking, furniture consumption can be roughly divided into three types of consumer groups.
First, active consumer groups
Consumers in this class are very wealthy, so they rarely take into account the price factor in their consumption, and even do the opposite, not expensive. They generally prefer European style, Chinese classical or trendy avant-garde expensive furniture, such as modern home, mahogany furniture, noble and other brands.
Second, boutique and famous consumer groups
For consumers, shopping while enjoying the pleasure of aesthetics and culture requires that furniture can reflect its own taste and personality. Fine and famous furniture stimulates more and more consumers from interest to preference because of their excellent style and quality, and even dilutes the price concept, making consumers who buy it, whether from aesthetic taste, lifestyle, or price concept. They are all ahead of the trend of the times.
The third category is the wage-based mass consumer group.
Furniture with good value for money and value for money is most popular among this class. Consumers in this group have gradually matured. Price and quality are the leading factors guiding their consumption behavior. They want to spend less and buy the same. The concept of furniture, a penny and a share of goods, makes them very cautious when buying furniture, shop around.
In the past, the building materials and furniture shopping malls were mixed, giving money to rent, no features and selling points, and the market was chaotic and disorderly, giving consumers a feeling of being at a loss. Today's furniture malls not only have their own investment standards and positioning grades, but also have their own characteristics in terms of scale, grade, taste and service. And consider the products that are operated must be suitable for the future development trend of furniture. The leasing operators operating in the big shopping malls form an interdependent relationship with the property owners of the big shopping malls. The two sides work hard to make the furniture shopping malls have their own survival competitiveness and good reputation, fully satisfying the multi-level needs of consumers. In the market, there will be a market that will generate greater economic benefits.
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