Urbanization accelerates the potential for custom furniture consumption

Since the beginning of this year, many first-line furniture brands have adjusted their marketing strategies, on the one hand to upgrade the products in the first-line market, and on the other hand to increase the development of the third- and fourth-tier markets. Sina home survey found that due to factors such as lower profits in the furniture industry, reduced exports, and rising costs, many furniture companies have gradually begun to transform, or export to domestic sales, or sinking channels, or enter the custom industry.

Seize the third and fourth tier markets

As the core driving force for China to promote the economy and promote social transformation, urbanization has been identified as an important strategy by the government's decision-making level at the beginning of this year, and the continuous increase in fixed-asset investment has also led to the construction of public infrastructure. Demand.

Che Jianxin, chairman of Red Star Macalline, said at the beginning of the year that with the continuous advancement of the country's urbanization construction, the town will become a livable place with higher quality, which will stimulate the domestic demand market, and the home industry will benefit from it. Usher in a new round of development. “At present, it seems that the less advanced prefecture-level cities and the top 100 county-level cities are the focus of urbanization development, which is also the opportunity for the home furnishing industry.”

The huge dividend brought about by urbanization has made furniture people eager to move. Some furniture companies have already smelled the business opportunities of urbanization. They took the initiative to gradually sink the sales channels and seize the third- and fourth-tier markets.

According to Li Yueshun, the general manager of Yi Simengsha, the number of stores opened in the third- and fourth-tier cities reached 40 this year, accounting for nearly half of the total number of stores. “The country has vigorously promoted urbanization and brought great opportunities to the furniture industry.” Li Yueshun said.

At the beginning of March this year, Zhang Keqin, the general manager of Xilinmen, said that Xilinmen is expected to open 200 stores this year and plan to sink into third- and fourth-tier cities. Zhang Keqin said that the overall low growth of the mattress industry last year was mainly due to the lagging influence of real estate regulation. However, with the spread of urbanization construction and the improvement of people's living standards, the demand for mattresses in the third- and fourth-line urban residents and even the vast rural areas may increase substantially.

According to industry analysts, in the next 20 years, urbanization will become an important driving force for the rapid development of China's furniture industry. In addition to first- and second-tier cities, the demand for third- and fourth-tier cities will also rise sharply.

Product line differentiation is intensifying

With the intensification of competition in first- and second-tier cities and the deep cultivation of third- and fourth-tier cities, the differentiation of furniture companies in different cities has gradually intensified.

"In terms of products, in the first and second tier cities, we pay attention to the creation of high-end products and the overall bedroom facilities, such as matching wardrobes and drawers; in the third- and fourth-tier cities, we mainly promote some products that are close to the people, so that we can catch consumers more. The demand point." Li Yueshun said that the market in the third- and fourth-tier cities is very big, depending on whether the company can seize it.

Qu Nini, vice president of Qumei, said that there are more than 20 series of Qumei products. From materials, they can be divided into plate, board and wood, solid wood series furniture. According to the size of the store and the purchasing power of each city, the product layout is slightly different. In the first- and second-tier cities, while ensuring the reasonable ratio of wood furniture and solid wood furniture, it will also increase the proportion of solid wood furniture such as Cournot-French, such as China, while the third- and fourth-tier cities are mainly made of wood furniture.

In the first-tier cities such as Beijing, Shanghai, and Guangzhou, due to market pressure, many panel furniture brands began to transform, and home stores also adapted to the market trend, gradually adjusting the proportion of panel furniture in the store.

In the second half of the year, the home of the company announced the opening of the “European and American Family” project, and the mainstream European and American classical furniture brands in the market, providing consumers with “one-stop” purchase services for European and American classical furniture. At the same time, Chengwai Cheng also began to create a new 50,000-60 square meters European and American furniture museum. The original “European and American Furniture World” outside the city will be moved to the museum after re-branding.

Custom furniture into industry trends

During this year's Shenzhen Furniture Fair, the show first launched a high-end custom furniture pavilion, which made the custom home get the attention of the industry. Although custom furniture has been in the country for more than ten years, it still belongs to the emerging industry, accounting for about 10% of the entire furniture market, and has great development potential.

In September, the National Solidarity Industry Committee of the Furniture Industry Association of the National Federation of Industry and Commerce released the “2013 White Paper on the Development and Consumption of China's Customized Home Furnishing Industry”. According to the survey, among the 100 million urban households in China, the overall kitchen, cloakroom, private wine cellar and other ownership rates are only 6.8%, which is far lower than the average of 35% in developed countries.

The survey also revealed that about 29% of urban households said they would purchase and install a whole home in the next three to five years. In the next five years, the total demand or intentional purchase volume of China's overall custom homes will be about 29 million sets, with an average of 5.8 million sets per year. There are indications that the development space of China's customized home furnishing industry in the 21st century is very huge and the development prospects are very broad.

Zhang Chuanxi, executive president and secretary general of the National Federation of Industry and Commerce Furniture and Decoration Industry Association, said that at present, 10% of foreign panel furniture is custom furniture, while domestic panel furniture is basically finished furniture. I believe that the customization of panel furniture in the future will be a trend. . Zhang Chuanxi said that he visited more than 20 furniture companies in early August this year, and nearly half of them were making custom furniture. “Many of the original finished home and overall home businesses are now transforming to be customized.”

Wu Nani said that Qumei launched the B8 3D e-commerce platform last year, and the core concept is limited customization. Customized furniture meets the needs of consumers and meets the needs of making full use of space. Therefore, the market sales of B8 is very hot. Because of this, Qumei also specially updated and expanded the production line of B8 furniture in August this year. Meet the rising demand.

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