Stepping into 2018, looking forward to furniture companies embarking on a new journey

The growth rate of the entire home environment has slowed for three consecutive years. Under this market background, the dominant enterprises maintain their growth momentum. The ordinary enterprises are disheartened. Some enterprises are struggling to send out distress signals. This is the era of development and the re-emergence of wealth. The era of distribution is an era of differentiation, and the trend of accelerating "differentiation" is coming.

China's home furnishing industry slowed for three consecutive years

The Consumer Products Industry Department of the Ministry of Industry and Information Technology has released a message that the growth of China's household furnishing industry has slowed for three consecutive years. In 2013, the main business income growth rate was 14.3%. Since then, the speed has been declining year by year, from 10.9% in 2014 to 9.3% in 2015 and 0.7 percentage points in 2016, becoming 8.6%. Similar to the overall domestic economic situation, China's home furnishing industry has already bid farewell to the "surge" era and entered a new normal stage of steady development.

The "golden" era of the furniture industry has come to an end

According to data obtained from the Consumer Products Industry Department of the Ministry of Industry and Information Technology, from January to December 2016, the main business income of the furniture manufacturing industry was 855.95 billion yuan, a cumulative increase of 8.6% year-on-year; the total profit was 53.75 billion yuan, a cumulative year-on-year increase of 7.9%. The furniture manufacturing and sales rate was 97.9%, down 0.3 percentage points from 2015. By the end of 2016, China's furniture industry had reached 5,561 enterprises above designated size, an increase of 271 compared with the previous year.

According to relevant data, the growth rate of the main business income of China's furniture manufacturing industry has been slowing for the third consecutive year. In 2013, the main business income growth rate was 14.3%. Since then, the speed has been declining year by year, from 10.9% in 2014 to 9.3% in 2015 and 0.7 percentage points in 2016, becoming 8.6%. Of course, the furniture industry is still 3.7 percentage points higher than the national industrial growth rate, and the latter has a growth rate of 4.9%.

In terms of profit, the growth rate of China's household manufacturing industry in 2016 decreased by 6.1 percentage points compared with 2015, which was 7.9%; compared with the national industrial profit growth rate of 0.6 percentage points, the latter growth rate was 8.5%. On the export side, according to customs data, the cumulative export value of China's household and its parts from January to November 2016 was US$42.832 billion, a cumulative decrease of 9.67% year-on-year; it should be noted that while the export volume decreased, the export volume increased. . According to industry insiders, this shows that the export price of single-piece household products has decreased, but the international share of household export trade has not decreased.

"Consumption upgrade" promotes the transformation of the home industry

In the new normal stage, people's consumption habits gradually shift from food and clothing to personalized consumption. People's demand for household products has not only satisfied their basic functions, but also added more independent ideas in their home life, paying more attention to design concepts. Factors such as brand connotation, health and environmental protection, and too popular and standardized household products can no longer meet the needs of consumers. At present, customized home products that are more personalized and integrated have been widely accepted by consumers, and the social awareness and market demand for customized home products are constantly improving.

In order to meet the market development trend and meet the needs of consumers, China's home furnishing enterprises must increase investment and development of original design, improve the production process level, improve the environmental standards of products and substrates, increase brand value added, and expand brand influence. Continuously enhance market competitiveness, and optimize industry resource allocation through branded operation, design and service, and promote industry transformation and upgrading.

Comments: National policies, demand structure, enterprise technology management and other aspects have affected the stability of the home improvement market. The slowdown or accelerated situation is indeed unpredictable. Entering 2018, we expect more furniture companies to embark on a new journey. To bring more unique and exquisite design and quality products to consumers.