Custom furniture market scale exceeded 250 billion in RMB

In 2018, the international furniture market is fluctuating, Sino-US trade frictions are intensifying, the real estate market is declining, and the competition in the custom furniture market is superficial. In 2018, the international furniture market is fluctuating, Sino-US trade frictions are intensifying, the real estate market is declining, and the competition in the custom furniture market is superficial.The custom furniture industry is facing many challenges. The real estate dividends have subsided, and the custom furniture industry has entered the reshuffle period. Custom furniture market scale exceeded 250 billion in RMB.The competition in the whole market has gradually entered from the single competition of product prices to the multi-dimensional integration of brands, products, services, design, channels, marketing, talents and management, and enterprise scale. Horizontal competition, the entire industry will gradually shift from production to production services, and the market for customized furniture will gradually concentrate on the dominant enterprises in the industry. In 2018, the scale of China’s custom furniture market exceeded 250 billion yuan. With the continuous improvement of the penetration rate of customized furniture products, the gradual withdrawal of hand-made products, the industry scale is expected to continue to expand.

However, it should be noted that although custom furniture has achieved rapid development in recent years, it is still in the early stage of development in China. There are many manufacturers, the market share is scattered, and the leading position is far less prominent than the home appliance industry. In addition, the product penetration rate is still low and there is a large penetration space. Custom furniture market scale exceeded 250 billion in RMB.Therefore, the core of custom furniture enterprise revenue growth is not the increase in market share, but the increase in industry penetration and the expansion of the company’s business line.

This paper mainly summarizes and analyzes the four driving factors affecting the development of China’s custom furniture industry:

Driving factor 1: speeding up urbanization

The urbanization process has accelerated the supply of power to the custom furniture industry. China is in the period of rapid urbanization development, and the national urbanization rate (the proportion of urban population to total population) has increased from 52.57% in 2012 to 59.58% in 2018. The rapid development of the furniture market, especially the overall home market, is inseparable from the urbanization process in China. Custom furniture market scale exceeded 250 billion in RMB.The acceleration of China’s urbanization process will provide a broad market space for the development of the customized furniture industry.

Driver 2: Residents’ income continues to grow

With the development of macro economy, the disposable income of Chinese residents continues to grow, and the consumption power of residents has greatly increased. In 2018, the per capita disposable income reached 28,228 yuan, an increase of 8.7% year-on-year. Custom furniture market scale exceeded 250 billion in RMB,After deducting the price factor, the actual increase was 6.5%. The continuous growth of per capita disposable income has established the certainty of the domestic consumption upgrading trend, which has driven the consumption of high-end customized household products, and has also made the furniture industry’s customer unit price growth have a revenue base.

Driver 3: The real estate market is running steadily

The furniture industry belongs to the post-real estate industry and is closely related to the real estate industry. The main demand comes from housing transactions, including new and second-hand housing. In 2018, the real estate market adhered to the main tone of “staying and not speculating”, and the performance of real estate regulation and control in various places tightened tightly. However, in October 2018, some urban control policies were slightly relaxed. In 2018, China’s residential sales area was 1.48 billion square meters, up 2.2% year-on-year. The residential completion area was 660 million square meters, down 8% year-on-year. The related industries were under greater pressure from the real estate industry.

Driver 4: The consumption potential is constantly released

Over the years, the proportion of China’s household consumption to GDP has been lower than that of developed countries in Europe and America. With the gradual elimination of the factors that inhibit China’s consumption, under the combined effect of consumption upgrading and consumption popularization, the consumption level and consumption scale of Chinese residents will achieve long-term and sustained growth. Custom furniture market scale exceeded 250 billion in RMB,In 2018, the total retail sales of consumer goods nationwide totaled 380.87 billion yuan, an increase of 9.0% over the previous year. Among them, furniture category increased by 10.1%. Under such a background, the consumption potential of residents has a large release space and stimulates the sustained and steady growth of custom furniture consumption.