Furniture Market Analysis

Overview and Classification of Furniture Industry

1. Overview of furniture

Furniture in a broad sense refers to all kinds of utensils necessary for human beings to maintain normal life, engage in labor production and carry out social activities. This category covers almost all environmental products, urban facilities and public products. Implemented in daily life, work, and social interaction activities, furniture is a class of utensils and equipment for people to sit, lie, lie, or support and store items. Furniture acts as a medium between architecture and people, forming a transition between interior space and human body through form and scale. Furniture is an extension of architectural functions, and the specific functions of the interior space are reflected or even strengthened through the setting of furniture. At the same time, furniture is the main furnishings of the interior space, which has a decorative effect and forms a unified whole with the interior space.

The furniture industry mainly includes three types of products: furniture, housing decoration (including durable furniture and consumer goods), and light construction materials. Demand for lightweight building materials is linked to new home sales and is generally more cyclical than furniture and home improvement demand.

The upstream of the industrial chain of the furniture industry is the raw material supply link, mainly including wood, leather, metal, plastic, glass, sponge, etc.; the middle reaches of the industrial chain is the furniture manufacturing industry, mainly including wooden furniture manufacturing, metal furniture manufacturing, upholstered furniture manufacturing, etc.; the industrial chain The downstream is the furniture sales link, and the sales channels include supermarkets, department stores, furniture shopping malls, online retail, furniture specialty stores, etc.

2. Classification of furniture industry

1. According to the furniture style, it can be divided into: modern furniture, postmodern furniture, European classical furniture, American furniture, Chinese classical furniture, neoclassical furniture, newly decorated furniture, Korean pastoral furniture, and Mediterranean furniture.

2. According to the materials used, the furniture is divided into: jade furniture, solid wood furniture, panel furniture, upholstered furniture, rattan furniture, bamboo furniture, metal furniture, steel and wood furniture, and other material combinations such as glass, marble, ceramics, inorganic minerals, fiber Fabrics, resins, etc.

3. According to the function of furniture, it is divided into several categories: office furniture, outdoor furniture, living room furniture, bedroom furniture, study furniture, children's furniture, restaurant furniture, bathroom furniture, kitchen and bathroom furniture (equipment) and auxiliary furniture.

4. Furniture is classified by structure: assembled furniture, disassembled furniture, folding furniture, combined furniture, wall-mounted furniture, and suspended furniture.

5. The furniture is classified according to the effect of the shape, ordinary furniture and artistic furniture.

6. According to the grade classification of furniture products, it can be divided into: high-grade, middle-high grade, middle-grade, middle-low grade, and low-grade. situation analysis of furniture industry

1. Analysis of the market size of the furniture industry

1. Scale analysis of the global furniture market

Since 2016, the global furniture output value has gradually recovered along with the continuous recovery of the global economy. As of 2020, it has risen to US$510 billion, an increase of 4.1% compared to 2019. The global furniture market has entered a stage of steady growth.
Chart 1: 2016-2020 Global Furniture Industry Market Scale

At present, among the major production and consumption countries in the global furniture industry, the proportion of China's self-production and self-sale can reach 98%. In the United States, which is also a big consumer of furniture, 39% comes from imports, and the proportion of self-produced products only accounts for 61%. It can be seen that in the United States, Europe and other countries or regions with a relatively high degree of market openness, the furniture market has a large capacity. In the future, with the development of the economic level of each country and the increase of per capita disposable income, the willingness to consume furniture will continue increase.
Chart 2: Consumption of the world's top five furniture consuming countries

China is currently the world's largest furniture producer and exporter, and has the largest consumer market. In recent years, furniture companies are also actively using technologies such as the Internet, intelligent manufacturing, and green production to improve the manufacturing level of the industry. At present, my country's furniture industry is in a critical stage of structural adjustment. In 2020, the cumulative export value of my country's furniture and its parts will reach US$58.406 billion, a year-on-year increase of 11.8%.

Thanks to the development of the logistics industry and the drop in furniture transportation costs, ordering furniture online has brought more choices and greater convenience to consumers. The data shows that from 2017 to 2020, the proportion of online sales in the global furniture market has increased year by year, and online channels have become a new engine for the development of the global furniture market. In the future, with the continuous expansion of e-commerce channels and the development of logistics, electronic payment and other supporting industries, the proportion of online furniture market is expected to continue to expand. Analysis of domestic furniture market scale

With the continuous development of my country's economy in recent years and the improvement of residents' consumption level, their demand for daily necessities such as furniture and replacement demand continue to increase. Coupled with the continuous development of smart furniture and customized furniture in my country in recent years, the output of furniture in my country has also grown steadily.
Chart 5: The output and growth rate of the domestic furniture industry from 2016 to 2020

From the perspective of retail sales, in recent years, affected by the downturn in real estate, the demand for furniture in my country has been decreasing, and the retail sales of furniture products have also decreased. According to data, the retail sales of furniture products in my country will be 166.68 billion yuan in 2021, a year-on-year increase of 4.3%.
Chart 6: The retail sales scale and growth rate of the domestic furniture industry from 2016 to 2021

Judging from the operating income of the furniture manufacturing industry, the change trend is basically the same as that of retail sales, and the overall trend is in a downward trend. According to data, the operating income of my country's furniture manufacturing industry in 2021 will be 800.46 billion yuan, a year-on-year increase of 16.4%. Compared with 2018-2020, the domestic furniture market has a recovery trend.
Chart 7: 2017-2021 domestic furniture industry revenue scale and growth analysis

2. Analysis of the competitive landscape of the furniture industry

The concentration of my country's furniture industry is low. In 2020, CR3 is only 5.02%, CR5 is only 6.32%, and CR10 is only 8.20%. At present, my country's furniture industry has developed into an important industry dominated by mechanized production, with continuous improvement of technological content and the emergence of well-known brands. With the country's emphasis on the quality of architectural decoration products and the establishment of consumer brand awareness, the domestic furniture market is gradually moving towards brand competition. By improving the technical level, strengthening quality management, and increasing investment in advertising and marketing, the brand advantages of leading enterprises in the furniture industry have gradually emerged, driving the continuous upgrading of industrial competition levels, and promoting the formation of a development trend driven by brand enterprises and continuous innovation in the entire industry. The industry concentration will increase. will improve.

Analysis on the development prospect of furniture industry

1. Changes in consumption concepts promote product upgrades

With the rise of a new generation of consumer groups, people's lifestyles and life concepts have undergone changes, and higher requirements have been put forward for furniture products. The selection of furniture products is more personalized and fashionable. In the future, the personality, Fashion, time-saving and labor-saving will conquer more consumer groups. At the same time, with the deepening of the concept of "light decoration, heavy decoration", consumers are more inclined to the charm of the entire living room environment, instead of simply buying a dining table, a set of beds, a sofa, and future soft furnishings Design will gradually become a major driving force for furniture. Functionalization and intelligence are also a major trend of furniture products. In recent years, with the continuous development of technology, black technology smart furniture has gradually emerged, and functional and intelligent furniture products will become the mainstream of the times.

2. Changes in demand promote new development of the industry

With the continuous development of my country's economy and the continuous improvement of residents' income and living standards, consumers are no longer satisfied with basic functions of furniture products, and pay more attention to product brands and user experience. In order to meet the needs of consumers, furniture manufacturers continue to increase investment in product design and brand building, continuously improve the aesthetics and user experience of products, and increase brand recognition in consumers' minds. At the same time, the younger generation of consumer groups has gradually become the mainstream, and the new consumption forces represented by them are pouring into the furniture market. With the iteration of consumers, changes in consumption pain points, diversification of information channels, and fragmentation of time, new patterns of consumption have gradually formed, which will further promote the development of furniture branding. In the future, furniture companies need to pay more attention to brand building and product design, so as to meet the new needs of consumers for furniture products. The furniture industry will develop in the direction of new retail, new marketing, and new services.

3. Online channels will become a new growth point

Benefiting from the increasing popularity of the Internet and payment technology, e-commerce is booming, and a large number of consumers have begun to develop the habit of online shopping. Due to the convenience of using pictures, videos and other media to display products, online shopping platforms can quickly complete transactions through convenient online payment, and the transaction efficiency has been greatly improved. With the rapid development of my country's e-commerce industry, e-commerce channels will become a new growth point for my country's furniture market.


Post time: Dec-22-2022