The panel furniture industry is an emerging sub-industry in the furniture industry. The threshold for new entrants is not high, but it still faces high barriers to form a certain scale and brand advantage.
China's panel furniture industry is currently in the mature period of the industry, but it is facing structural adjustment within the industry, which belongs to the first half of the mature period, and there will be a big rise after the adjustment period. It is expected that the market size will exceed 350 billion yuan in 2022.
In the long run, the dominant consumer groups in the panel furniture industry are self-occupied and improved housing demanders, speculative real estate investors cannot bring actual economic benefits to the panel furniture industry, overheated real estate investment, and excessive housing prices. Instead, it inhibits the development of the panel furniture industry.
In recent years, governments at all levels have carried out continuous and in-depth regulation of real estate from the aspects of market management, land, finance, and taxation, which has effectively curbed the irrational rise in housing prices in some cities and the demand for speculative investment-oriented housing purchases and has eased and improved the housing of some families. The problem has promoted the steady development of the real estate market. In the future, with the continuous development of real estate investment in my country and the continuous improvement of the urbanization rate, the panel furniture industry still has a stable growth space.
According to the analysis of the "2022-2027 China Panel Furniture Industry Development Trend and Investment Risk Research Report", with the continuous upgrading of the furniture market, the gradual strengthening of public awareness of environmental protection and the improvement of living standards, the growth of the panel furniture market will tend to stabilize.
Due to the advantages of low cost, high product quality stability, relatively easy disassembly, and reduced difficulty in transportation to overseas customers, panel furniture products are more inclined to low-cost but fashionable design and more flexible product design that adapts to different market demands. Therefore, panel furniture is more popular in overseas markets.
Status of the panel furniture industry
According to the data of the China Furniture Association, the main business income of enterprises above designated size in my country's furniture industry showed a fluctuating trend from 2015 to 2020. In 2018, due to the influence of the internal and external environment of the furniture industry, the sales growth of the entire furniture industry slowed down, and the main business income of 701.188 billion yuan was achieved.
As of the end of 2020, due to the impact of the new crown pneumonia epidemic, the main business income of enterprises above designated size in China's furniture industry reached 687.54 billion yuan, a cumulative decrease of 6%.
The data shows that in the geographical distribution of Chinese furniture enterprises in 2020, Guangdong Province accounted for the largest proportion, with a data of 11.3%. It is followed by Shandong province with 8.5%. Ranked daown are Henan Province, Jiangsu Province, Shaanxi Province, the proportions are 7.3%, 7.2%, 6.3%, and the proportion of other regions is 59.4%.
Mid-to-high-end furniture companies benefit from the rigid demand for real estate and the rise of China's middle class, so they are not affected much by them, and their brands and services may increase their share in the process of slowing industry growth.
With the intensification of real estate market regulation, families who are unable to buy a house in the short term and cannot buy a house again due to policy restrictions will improve the living environment by renovating old houses and replacing furniture, increasing the demand for secondary decoration.
Consumers have an increasing demand for personalized panel furniture. Panel furniture manufacturing has become a new rapid growth point in the field of high-end panel furniture manufacturing and consumption in recent years by virtue of the efficient use of home space, the ability to fully reflect consumers' personalized consumption needs, and a strong sense of modernity.
