4 Hidden Worries behind the Prosperity of China's Furniture Customization Industry
Chinese home furnishing and custom furniture companies need to confirm brand positioning, enhance the competitiveness of core products, and seize the 100 billion-level custom furniture market.
In recent years, the custom furniture industry has grown rapidly, emerging sales channels have emerged, and the overall home industry has experienced an upgrade. The customization industry has seen four obvious concerns. Chinese home furnishing and custom furniture companies need to confirm brand positioning, enhance the competitiveness of core products, and seize the 100 billion-level custom furniture market.
After more than 30 years of development, the Chinese furniture industry has formed a certain industrial scale. In recent years, the rapid growth of custom furniture has become one of the most obvious trends in the Chinese furniture market.
Before 2010, custom furniture was expensive for most of chinese, and now custom furniture has "flyed into the ordinary people's home." 80, 90's younger generation of consumers have become the main consumer power in the home market, they prefer personalized, one-stop whole house customization.
Custom furniture industry status and trends:
1. The industry is growing rapidly, but the market share is small: finished furniture still accounts for more than 70% of the furniture market, and custom furniture accounts for less than 20%.
2. Emerging sales channels appeared rapidly: more than 80% of furniture companies pay great attention to e-commerce, more than 60% of furniture companies are planning to implement, about 30% have been deeply involved, and 5% have achieved good results.
3. The overall home industry consumption upgrade, product distribution to third- and fourth-tier cities: in 2016, the proportion of the whole cabinets purchased in the second and third tier cities reached 61%. The third and fourth lines and the following cities will become a must-have for custom furniture companies.
4. The market concentration of the overall home furnishing industry is further enhanced, and the head enterprises occupy more market share.
5. Extend the category and deepen the “full house customization” pan-home strategy.
Four hidden worries behind the prosperity of the customized industry:
1. The whole industry enters the custom field, the market competition is fierce, and the average profit rate of the industry may decline.
2. Category expansion has restrictions, increased the risk of brand reputation damage.
3. The custom industry is still unable to get rid of the "high gross profit, low net profit" dilemma.
4. China's real estate policy regulation, fine decoration policy launched the extrusion furniture industry demand market.
(Source: JJGLE.COM)