1. Overview of the custom furniture industry
Customized furniture refers to personalized furniture configuration customized according to personal preferences and space details. In my country, it mainly focuses on customized cabinets, customized wardrobes, and other fields. With the improvement of people's pursuit of quality of life, the maturity of the concept of furniture consumption, and the improvement of the production technology of furniture enterprises, custom home furnishing has gradually expanded from custom cabinets, custom wardrobes, and other fields to study, children's room, living room, dining room, and other whole house furniture field.
my country's custom furniture industry has developed for more than 30 years. Affected by the economy, population, real estate, and other aspects, the development process of the custom furniture industry can be roughly divided into the following four stages:
The upstream of the custom furniture industry include raw materials such as plates, aluminum materials, and hardware materials; the midstream is the manufacturer of custom furniture; the downstream is the channel providers and end consumers. Upstream raw materials account for the largest proportion of the cost of custom home furnishing companies. Custom home furnishing companies are in the middle of the industry. From design to manufacturing to direct sales, some custom home furnishing companies with strong brands enjoy higher product premiums, so their profitability is relatively high. Strong, the gross profit margin is mostly between 30%-40%.
Second, the status quo of the custom furniture industry
The scale of the custom furniture industry has shown a rapid development trend in recent years. From 2016 to 2021, the scale of my country's custom furniture market has rapidly increased from about 198.2 billion yuan to 418.9 billion yuan, with a compound annual growth rate of 16.15% during period.
3. Competitive landscape of the custom furniture industry
1. Layout
Domestic home furnishing companies have laid out custom furniture. As early as 2014, Sophia invested 1 billion yuan to build a production base in central China, which is used to produce custom wardrobes, custom cabinets, and matching household items. After that, other companies in the industry, such as Meike Home Furnishings, Shangpin Home Furnishings, Oupai Home Furnishings, etc., have also successively expanded their customized home furnishing business and promoted the continuous improvement of the company's product layout.
2. Channel structure
The whole-home model is a manifestation of the continuous deepening of the large-scale home furnishing line, and it is expected to become an important driving force for the increase in the unit price of customers. The concept of whole house customization is between whole-house customization and complete decoration, that is, after the home improvement company completes the hardware installation, the customization company undertakes all subsequent links, providing a one-stop consumer experience without integrating front-end hardware installation. After 2010, on the one hand, with the rapid development of hardcover channels and home improvement company channels, on the other hand, the store layout of some leading companies has gradually improved, and the blank market that has not yet been laid out and has a certain purchasing power is relatively limited. Model expansion, the problem of weak growth gradually emerged. Therefore, OPPEIN, the leader in custom furniture in my country, took the lead in laying out the whole assembly channel, leading the industry channel reform. Subsequently, large-scale furniture companies, including Sophia, Zhibang Home Furnishing, and Gold Medal Kitchen Cabinets, began to organize their channel layouts to seize and preempt traffic entrances.
3. Market share
At present, my country's customization industry is in the stage of leading the staking, expanding channels and categories, integrating upstream and downstream industries, and seizing market share. In terms of categories, in the field of custom cabinets in 2020, CR6 is less than 10%, and the top six companies are Oppai Home Furnishing, Zhibang Home Furnishing, Gold Kitchen Cabinet, Sophia, Piano and Wole Home Furnishing, accounting for 4.3% respectively. %, 1.8%, 1.5%, 0.9%, 0.7%, 0.6%.
Fourth, the development prospects of the custom furniture industry
First, with the deepening of urbanization, the demand for an urban living continues to increase, making the spatial layout of urban residential buildings more flexible and diverse, and complex situations such as small and irregular units have appeared. The mass-produced finished furniture cannot meet the space requirements of these different types of households in form.
Second, with the gradual liberalization of the maternity policy in recent years, many families are faced with the real problem of reducing the per capita housing area. The finished furniture produced in mass production cannot meet the actual needs of these families in function.
Third, with the substantial improvement of the material economy and living standards, consumers, especially young consumers, have also raised their aesthetic standards one after another, and their pursuit of taste in the living environment varies widely. Due to the same shape and style of traditional finished furniture, it is difficult to meet their individual aesthetic needs for the home environment.
To sum up, it can be imagined that under the impetus of many practical contradictions, customized furniture, which is different from traditional finished furniture, will be more and more recognized and favored by consumers with its unique advantages. The concept of customized furniture design and whole house customized design is also expected to go further to the peak of popularity.