Furniture Market China

November 2010

Executive Summary
Furniture market in China is growing at a steady rate It is highly fragmented with the presence of over x manufacturers There are three primary categories of furniture present in the market - a, b and c

Market

Drivers:

Drivers & Challenges

Rising income levels Real estate boom Increase in urbanization Strong distribution network Furniture Expo

Trends

Emergence of newer varieties of furniture Rise in luxury furniture demand Demand for kitchen furniture

LE P M A S
FURNITURE MARKET IN CHINA 2010.PPT

Challenges:
Huge importer of timber and other raw materials Heavy anti-dumping duties

Competition

There are many small and mid-sized companies in China Players in the market offer diversified range of furniture products like office furniture, home furniture, kitchen furniture, hotel furniture Players in the market include Company A, Company B, Company C

Market Overview Drivers & Challenges Trends Competition

FURNITURE MARKET IN CHINA 2010.PPT

Country 1 is the leader in the global market in terms of production of furniture

Overview
High income countries that include Country 2, Country 3, Country 4, Country 5, Country 6, Country 7, Country 8 produce furniture worth USD d bn
The production of furniture in the high income countries constitute e% of the global production

Global Furniture Trade

USD bn r% o p q

100 50 0

The production of furniture in the middle and low income countries that include Country 1, Country 9, Country 10 constitute f% of the global production of furniture

Consumption per capita of furniture ranges between an average of USD g per year in middle and low income countries and USD h per year in high income countries
The worldwide average stands at USD i per year

LE P M A S
20-J% L% M%
FURNITURE MARKET IN CHINA 2010.PPT

20--e

20--e

Nation-wise Share of Global Production

Country 1 Country 2 Country 3 K% Major producer of furniture N% Country 4 Country 5

While the leading importers are Country 2, Country 3, Country 4, Country 5, Country 6, the main exporters are Country 1, Country 9, Country 10
Source:

In 2009 the expected value of global production stood at USD -- bn

The fragmented Chinese furniture market is growing at a dynamic rate

Market Overview
Furniture industry has grown phenomenally since 19-, post the economic reform in China which led to large scale global trade The furniture market in China is highly fragmented with the presence of over x manufacturers In terms of ownership, there is a wide and diversified range of ownership patterns including foreign, domestic private Chinese companies, stock-holding companies, various joint ventures, etc.
Around xy % of the Chinese furniture companies are state owned

Furniture Market Total Output Value

USD bn

150 100 50 0
ab

Xz%

ac

Most of the Chinese furniture companies are small or medium scale

Approximately, xa % of the companies present in the Chinese furniture industry are large scale

LE P M A S
Ad% Ae%
FURNITURE MARKET IN CHINA 2010.PPT

20--

20--e

Note: Figures are for the respective calendar year

Share of Wooden and Metallic Furniture

a b c

Broad furniture market segments are office furniture, home furniture including the niche kitchen furniture segment and childrens furniture, hotel furniture In 20--, large furniture enterprises that include stateowned enterprises and other with annual sales exceeding USD xb mn generated xc% of the total output value of the furniture industry

Af%

In 20--, production was af mn pieces

Source:

Drivers & Challenges Summary

Drivers
Rising income levels Real estate boom Increase in urbanization Strong distribution network Furniture Expo

Challenges
Huge importer of timber and other raw materials Heavy anti-dumping duties

FURNITURE MARKET IN CHINA 2010.PPT

Trends Summary

Emergence of newer varieties of furniture

Key Trends

Demand for kitchen furniture

Rise in luxury furniture demand

FURNITURE MARKET IN CHINA 2010.PPT

Domestic Players (1/6)

Company Snapshot: Company 1
Corporate Information
Headquarters Founded Products Key People City 1 N.A. Product 1 Person 1 Chairman

SAMPLE
Financial Performance
Revenue Revenue USD mn
80 60 40

Profit / Loss bc

Profit USD mn
20

ba

10

bd bb

be

0 -10 -20

20 0

20---

20--

20--

20--

20--

Business Highlights
The company is an investment holding company, which is engaged in designing, manufacturing, selling, and retailing household products in Country 1, Country 2, and Country 3 Its product offerings include solid wood furniture products under the AB name and fabric furniture products under the AC name It is also involved in retailing. Operates approximately ca retail AB branded shops, including cb self owned stores and cc franchised stores, as well as a flagship store

Source: FURNITURE MARKET IN CHINA 2010.PPT

Thank you for the attention

Furniture Market - China report is a part of Netscribes Consumer Goods Industry Series. For more detailed information or customized research requirements please contact: Gagan Uppal
Phone: E-Mail: +91 22 4098 7530 gagan.uppal@netscribes.com

Gaurav Kumar
Phone: E-Mail: +91 33 4064 6214 gaurav.kumar@netscribes.com

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FURNITURE MARKET IN CHINA 2010.PPT