Research Report on Furniture Industry & Market of China
Order ID: CDC-R-2002-013
ISBN: 2001 Version
Publisher: All China Marketing Research Co., Ltd.
Publication Date: 6/1/2001 12:00:00 AM
Format: Paper Copy
Price: $800 (for academic users)
With the twenty-year rapid development after the reform and opening to the outside, China furniture industry has achieved considerate scale and brimmed with the vigor. The total output value of furniture industry in 2000 has reached RMB 120 billion and increased 15.4% than last year, maintaining a steady increasing momentum in the decades. At present the number of furniture manufacture enterprises is over 50,000 with 5 million employees.
Among the furniture manufacture enterprises, non-state-owned enterprises take a predominant place with foreign funded enterprises and civil-run enterprises occupying major parts. Foreign funded enterprises especially have played a decisive role. Most furniture manufacture enterprises are small-scaled, with distinctive regional characteristics. They are mainly distributed in South China, East China, North China and Northeast of China. Guangdong province is mostly concentrated, which owns more than 6000 enterprises, accounting for 12% of the total. Its total output value is RMB 36 billion, taking up 30% of the total, and furniture export value is RMB 1.8 billion, making up 50.5% of the national export value.
Loss incurs most in state-owned furniture manufacture enterprises, then foreign funded enterprises, and the least in civil-run enterprises. In 2000, the national labor productivity of furniture industry is RMB 2,4000/person*year. To consider it worldwide, the overall development of China furniture manufacture enterprises is pretty low and the main reason is the low level of mechanization and the small scale of enterprises.
With the gradual development of China furniture industry, furniture brands are becoming increasingly important. The famous brands nationwide are MeiKe Xinjiang, Guangming Heilongjiang, TianTan Beijing, Richman and Land Bond Guangdong and XiLinMen Zhejiang among which, MeiKe and Guangming are the only two listed enterprises in Shanghai and Shenzhen stock markets in China.
Wooden furniture occupies the major part of furniture products, followed by metal furniture, while rattan furniture and plastic furniture takes up only a few. A survey made by National Bureau of Quality Control and Quarantine shows that one third of wood furniture has quality problem; large-scale enterprises enjoy a comparatively good reputation as to the quality of their furniture products, while the products from medium or small-scale enterprises have many quality problems. It is not optimistic in terms of environmental protection quality of the furniture. The issue of environmental protection index, such as the excess release quota of formaldehyde of man-made panels, seriously affects the quality of our country's furniture products. Just as people are paying more attention to Green Consuming,the sense of green products in furniture industry is gradually enhanced. Product design is one of the weak points in China furniture industry. The current situation is that designers are in great need, and designs are simply imitated and lacks originality.
In 2000, the possessing amount of wardrobes, sofas and writing desks per hundred families in cities has decreased. The number of different kinds of furniture owned by citizens has changed dramatically. The furniture-consuming characteristics between cities and countryside are quite different. Furniture expenditure accounts for 1.20% of the total family expenditures.
The furniture price is declining. In 1999, people realized the fall of furniture prices for the first time. In 2000, it has become more distinct, and even spread the saying of "Furniture Price Campaign". The phenomenon of the fall of furniture price is the result of the development of furniture industry, the adjustment of market economy law and the change of people's consuming concepts. The total furniture output has shifted from less supply to excess supply, which shows some deviation in supply and demand structure. The current price situation means the coming of a competitive era of bigger scale, wider range and more sophisticated extent of furniture industry.
In 1999, the total demand of China furniture market is RMB 73.4 billion. Domestic market is still the main war field for China furniture manufacture enterprises. It is expected that the total future demand will be on the rise. From 1999 to 2000, two aspects in furniture market have achieved people's attention, one is Western China furniture market and the other is kitchen furniture market. The West Development of China will push the furniture demand, especially the demand of office furniture, hotel furniture and school furniture. According to the estimate, the annual demand of kitchen furniture will be RMB 35 billion from 2000 to 2001.
Various furniture-trading places in the country have covered over 2 million square meters. Such a big-scale circulation place is the main achievement of China furniture industry, but it also exhibits the problem of repetitive construction and blind following. At present, about 30% of furniture halls are set aside or have not been fully used. The main channels for selling furniture include large furniture market, selling hall of the urban furniture, and retail network of big furniture manufacture enterprises and furniture exhibitions. Group purchasing by the way of tendering is a new trading method. The wholesale and retail furniture business in Shanghai and Guangdong are most developed. Great loss now incur in furniture retail industry.
Furniture exports far exceed imports. Export, as the main business in China furniture import and export trade, has grown rapidly these years. The export market of China furniture has been considerable, and begun to play an important role in furniture industry. In 2000, export volume has taken up 24.7% of total furniture output value. America, as the main importer of china furniture exports, has occupied half of the total export volume.
China furniture industry is at the early stage of its growth and has great potential despite the problem of instability in industrial structure. Furniture industry is confronted with many environmental factors, such as entering WTO, West Development of China, environmental protection barriers of international trade, and starting of domestic counter exchange market. In 10 years after entering WTO, the structure of China furniture industry will take qualitative change, with one third enterprises developing, one third enterprises specializing and one third enterprises going bankrupt. Entering WTO requires furniture manufacture enterprises to open up foreign market. Enterprises with effective management will therefore, make breakthroughs. Counter exchange market will support those really promising small-scale or civil-run furniture manufacture enterprises, and create developing opportunity for them and contribute to the healthy development of China furniture industry.
Table of Contents:
1. Furniture Industry Scale
1.1. General Situation
1.2. The Situation of All State-owned Enterprises and Non-state-owned Enterprises with Annual Volume
over 5 Million
2. The Structure of Furniture Industry
2.1. The Situation of Different Investment Enterprises
2.2. The Situation of Enterprises Manufacturing Different Types of Furniture
2.3. The Situation of the Enterprises of Different Scale
2.4. The Geographic Distribution of Furniture Industry
3. The Economic Situation of Furniture Industry
3.1. The Economic Benefit
4. The Main Furniture Manufacture Enterprises
4.1. Famous Furniture Brands
4.2. Meike International Furniture Co., Ltd
4.2.1. Introduction to the Company
4.2.2. Management Situation
4.2.3. Views on the Development of Meike Company
4.3. Guangming Furniture Shares Co., LTD
4.3.1. Introduction to the Company
4.3.2. Management Situation
4.3.3. Views on the Development of Guang Ming Company
5. Furniture Products
5.1. Product Make-Up
5.2. Product Quality
5.3. "Green" Products
5.4. Product Design
5.5. Furniture Products of Non-majority stream Material
5.5.1. Rosewood Furniture
5.5.2. Bamboo and Rattan Craft Furniture
5.5.3. Plastic Furniture
6. Situation of Furniture Consuming
6.1. The Amount of Furniture Owned by National Citizens per Hundred Families
6.2. The Number of Furniture Owned by per hundred Families in Cities and Towns.
6.3. The Proportion of Furniture Consuming in Consuming Expenditure
6.4. The Situation of Furniture Consuming in Western Part of China
7. Furniture Price
7.1. Index of Retail Price
7.2. The Phenomenon of Furniture Depreciating
8. Furniture Demand
8.1. Total Market Apparent Demand
8.2. General Demand Analysis
8.3. Case Analysis of Market Demand
9. Furniture Circulation
9.1. The Sales Volume of Furniture Wholesale and Retail Trading Industry over the Quota in All the
Regions in China
9.2. The Situation of Purchase, Sale and Stock and Proceeds in Furniture Retail Industry over the Quota in
9.3. Circulation Place
9.3.1. General Situation
9.3.2. The General Look of Furniture Trading Market in All the Regions in China
9.3.3. Brief Introduction of Examples of Furniture Market of Distributing Center and Furniture Market in
10. Furniture Import and Export Trade
10.1. Import and Export Volume of China Furniture
10.2. The Main Furniture Exporting Provinces in China
10.3. The Transporting Destinations of Furniture Export of Chinese Mainland
11. The Development of Furniture Industry
11.1. Development Phases of Furniture Industry
11.2. The Environmental Factors Faced by Furniture Industry.
11.3. Entering WTO and the Prospect of Furniture Manufacture Enterprises
11.4. The Influence of Opening Counter Exchange Market in Furniture Industry.
Appendix 1: The Trial Measures of Protecting Furniture Design by China National Furniture Association
Table 1 The Development Course of the total Output Value of China Furniture Industry
Table 2 Main Index of All state-owned Enterprises and Non-state-owned Enterprises over the Certain Scale Table 3 The Structure of All State-owned and Non-state-owned Furniture Manufacture Enterprises over the
Certain Scale in 2000--the Situation of Different Investment Enterprises
Table 4 The Structure of All State-owned and Non-state-owned Furniture Manufacture Enterprises over the
Certain Scale in 2000--the Situation of Enterprises Producing Different Types of Furniture
Table 5 Regional Distribution of Furniture Manufacture Enterprises in 2000
Table 6 The Economic Benefit Index of all State-owned Enterprises and Non-state-owned Enterprises over
the Certain Scale
Table 7 Brands Promoted by China Furniture Association of Ten Provinces in 2001
Table 8 Sales profits of all state-owned furniture manufacture enterprises and non-state-owned enterprises
over a certain scale and their proportion in 2000
Table 9 The amount of the furniture owned by national citizens per hundred families from 1995 to 2000
Table 10 The Number of Furniture Owned by per Hundred Families in Cities and Towns in 2000.
Table 11 The Proportion of Furniture Consuming in Consuming Expenditure
Table 12 The Situation of Furniture Consuming in Shan,xi province in 1999
Table 13 Furniture Brands from Other Provinces in Shanxi Civil Furniture Market
Table 14 The Furniture Prices Received by Xi'an Citizens
Table 15 The index of furniture retail price from 1995 to 2000
Table 16 The sales volume of furniture wholesale and retail trading industry in all the regions in China in
Table 17 The Amount of Purchase, Sale and Stock in Furniture Retail Industry over the Quota in All
Regions in China in 1999
Table 18 The Profits and Loss and Distribution in Furniture Retail Industry over the Quota in All regions in
Table 19 The Basic Situation of Furniture Trading Markets in All regions in China
Table 20 The Number of Furniture Trading Market and volume of
Table 21 Import and Export Volume of China Furniture from 1995 to 1999
Table 22 The Main Furniture Exporting Provinces in China in 2000
Table 23 The Main Transporting Destinations of Furniture Export of Chinese Mainland
Figure 1 The Structure of All State-owned and Non-state-owned Furniture Manufacture Enterprises
over the Certain Scale in 2000--the Situation of Different Investment Enterprises
Figure 2 The Structure of All State-owned and Non-state-owned Furniture Manufacture Enterprises
over the Certain Scale in 2000--the Situation of Enterprises Producing Different Types of
Figure 3 Regional Distribution of Furniture Manufacture Enterprises in 2000
Figure 4 The Changing Course of Export volume of China Furniture from 1995 to 2000
Figure 5 The Changing Course of Export Volume of China Furniture from 1995 to 2000