As a sub-sector under the manufacturing industry, the furniture manufacturing industry is characterized by a low number of listed companies and a small total market value. However, the “sweaters are small and fully-equippedâ€. The furniture manufacturing industry has a complete industrial chain and a mature sales model. Today Mi Xia Furniture Xiaobian focuses on the development status and industry characteristics of the furniture manufacturing industry.
According to data released by the National Bureau of Statistics, the total retail sales of consumer goods in 2017 was 33,263 billion yuan, an increase of 10.4% year-on-year, and an actual increase of 9.6% after deducting price factors. The retail sales of furniture in 2017 amounted to 278.1 billion yuan, a year-on-year increase of 12.7%.
Potential market space for urbanization is large
The process of urbanization will promote the development of the furniture industry. The demand for home purchases such as “changing the size of small for largeâ€, “replacement for oldâ€, and “substituting for the countryside†will increase the furniture market. On the other hand, when the industry develops gradually into a mature period, the branded furniture companies have more advanced production technology, more abundant product categories, more complete channel construction and management, and are more likely to meet consumer demand for products.
It can be foreseen that urbanization will become an important driving force for the rapid development of China's furniture industry. In addition to the first and second tier cities, the demand in third and fourth tier cities will also increase substantially, which will provide sufficient room for brand furniture companies to develop.
Online and offline consumption patterns
In recent years, there has been a new change in the consumer demand for furniture. Consumers are the first to consider the quality of goods before they consider cheap. Furniture companies can only make scientific adjustments in time to help the mainstream consumer groups improve the quality of their home life while gaining more opportunities for development. With the age of 80 and 90 entering the marriageable age, the first home purchase will make them the main consumer groups in the furniture consumer market. With 80 and 90 as the core of the consumer demand, the diversity and personalization of consumers will become the mainstream of the market. , More and more consumers are starting to like personalized products. The focus on products has changed from quality, environmental protection and other factors to personalized products. The difference in the structure of furniture consumption and the difference in the consumption path of the main consumer groups makes the online marketing and promotion of the furniture industry an inevitable trend.
Consumption upgrade brings new demand
As national income continues to increase, consumers’ quest for brand and quality is increasing, and the era of consumer escalation has come. From the initial use of the furniture to the enjoyment of life, consumers are increasingly concerned about the product's aesthetics, functionality and environmental protection. At the same time, there is a higher demand for the personalization of furniture space and the overall space aesthetics, which means that the "lifestyle era" has arrived. Therefore, the furniture brand pays more attention to establishing a lifestyle model for consumers and prompts the furniture manufacturers to gradually shift to service providers.
Environmental factors hinder
On January 1, 2015, the "New Environmental Protection Law" was formally implemented. The "New Environmental Protection Law" is regarded as the most stringent environmental protection law. Compared with past environmental protection laws, penalties have been increased and law enforcement measures have been added. This has brought a great deal of environmental pressure to the furniture manufacturing industry.
The Catalogue of Prohibitions and Restrictions on Newly-Added Industries in Beijing (2015 Edition) lists the furniture manufacturing industry as one of the “prohibitions for new construction and expansion.†Beijing's furniture manufacturing industry has ushered in a wave of shifts, and the speed of reshuffling of the furniture industry has accelerated.
Real estate market regulation policy
The development of enterprises in the furniture industry is closely related to the development of the real estate industry. To further strengthen and improve the control of the real estate market and promote the steady and healthy development of the real estate market, the state has successively introduced macro-controls such as sales tax, sales tax on second-hand housing purchases, and personal income tax. Striving to stabilize prices. The government's real estate macro adjustment policy has brought about a slowdown in the growth of demand for commercial housing. If macro-control leads to a long-term downturn in the real estate market, the furniture industry will suffer.
Increased costs
From the current situation of the furniture manufacturing industry, the high comprehensive cost is also an important reason that restricts the development of the industry. The concentration of various production and sales factors raises the price, and the company needs more and more operating funds. Moreover, the furniture industry is a raw material-intensive industry, and raw material costs account for a large share of business costs. Changes in the prices of direct materials will have a significant impact on the profitability of the industry. For example, China's forest coverage rate is far less than that of other countries. There is a long period of shortage of forest products. Many materials of the Chinese furniture industry are imported and limited by other countries. In addition to material fees, labor costs have continued to increase as China’s demographic dividend has decreased.
Low industry concentration
Due to the limitations of the technological content and investment scale of the furniture industry, the industry's "low threshold" is caused. There are tens of thousands of Chinese furniture companies and the market is highly fragmented. In addition, the Chinese furniture industry is still dominated by SMEs. The industry concentration is very low, most of which are still at the stage of initial accumulation. It is difficult to protect the types and styles of furniture and new products developed by companies are heavily invested. Recognized by the market will be imitated by peers, rapidly industrialized, large-scale production. In the past, the life cycle of a best-selling product was 2-3 years, but now it has been shortened to less than half a year, and the homogeneity of the market is serious.
In general, the development of China's furniture manufacturing industry has both advantages and disadvantages. However, as the industry develops more and more mature, the country's supply-side structural reforms are deepening, and technology is changing with each passing day. The furniture industry has carried out innovations in all aspects of technology and products, and detailed furniture manufacturing. It will overcome the development difficulties of some industries, take advantage of it, and accelerate the pace of development of the furniture manufacturing industry.
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