The Surface + Design Event China 2019

2019.12.11-13 | Shanghai New International Expo Centre(SNIEC)

 

What Is The Market Of Furniture, Building Materials And Decoration In The Remaining Two Months Of 2019

The quality of the market is not only related to the feelings of practitioners, but also related to the overall demand trend of the industry.

At present, partial subdivision industry faces the circumstance that demand gross atrophy, for instance ceramic tile, demand has decrease.

In some industries, the growth rate has slowed down and is declining, while forces from outside the industry have entered and crossed the border to rob, the aboriginal people’s life will not be very easy, especially the relatively uncompetitive companies, may be directly beaten down.

In most industries, the scale of market demand still keeps a small growth. We can look at the specific situation from the perspectives of sales area of commercial housing, total retail sales, export volume and purchase amount.

Let alone bad business, after all, there are still a lot of people to make money, the environment cannot change, only more ways to explode our small universe, enhance competitiveness.

The home furnishing sector, which is closely related to home sales, will have an impact on home demand in 2018 and 2019.Let’s look at the situation in 2019. In the first nine months of this year, the construction area of real estate enterprises was 8.3420.1 billion square meters, up 8.7 percent year-on-year. Moreover, housing starts began on a total area of 1.2230.8 billion square meters, up 8.8 percent year-on-year. The area of completed housing was 467.48 million square meters, down 8.6%.Say again sale area, before 9 months, area of commodity house sale area is 1,9917.9 billion square metre, year-on-year decline 0.1%, in decline, but decline narrate. Residential sales rose 1.1%, led by an 11% drop in office space.

Combined with the sales of commercial housing in 2018, it can be concluded that, in terms of the total amount, the demand for home building materials industry brought by the housing market did not decline significantly, but the flow of orders changed after the proportion of hardcover houses increased.

Start with retail sales.

In September 2019, the national retail sales of furniture reached 17.8 billion yuan, up 6.3% year on year and 0.6 PCT higher than August. From January to September, the cumulative retail sales amounted to 139.6 billion yuan, with a cumulative year-on-year growth of 5.9% and a growth rate of 0.1pct higher than the previous August.

In September, the retail value of construction and decoration materials was 18.99 billion yuan, up 4.2% year on year. From January to September, the retail value of construction and decoration materials was 144.91 billion yuan, up 3.6 percent.

If we look at the first half of the year alone, the retail sales of furniture products were 89.6 billion yuan, up 5.7% year-on-year. The retail sales of construction and decoration materials reached 90.7 billion yuan, up 3.6 percent year on year, while the retail sales of household appliances reached 439.2 billion yuan, up 6.7 percent year on year.

Growth rate is not very big, but there is growth, that physical stores, online stores sold goods, the total is still good.

Let’s look at exports.

Exports of furniture and parts totaled 28.52 billion yuan in September, according to customs data. From January to September, exports totaled 268.47 billion yuan, up 6.8 percent year on year and 1.3 percentage points slower than the previous month.

If all home-related products are counted together, including furniture, lamps, lighting fixtures and parts, ceramic products and textile products, the total amount of home-related products is 1.16 trillion yuan.

Among them, the growth rate of ceramic products continued, furniture, textiles, lamps and lighting products cumulative export growth rate declined, although the growth rate declined, but most of the small growth.

Compared with the situation of last year, it can be seen that export maintained a small growth.

The problem this year, however, is that the U.S. market is facing severe challenges, like mattresses, which have shrunk dramatically. However, some markets, such as Europe, Africa and Asia, have seen relatively obvious improvement. Affected by the trade war, the structure of export channels will be greatly changed.

See the market of a subdivision market again, it is furniture purchases the market.

In the third quarter, about 2,900 furniture procurement projects were completed nationwide, up 27 percent from the same period in 2018, according to daxai’s research on the government procurement website. The total purchase amount was 5.56 billion yuan, an increase of 56% over the same period in 2018.An explosion!

Some of the details are noteworthy, such as 33 projects worth more than 10 million yuan, 50 percent more than in 2018, focusing on schools and government units. A larger number of projects range from 1 million to 10 million, 1,505 in all. Sichuan ranks first in terms of purchase amount, followed by shandong, henan, fujian, Beijing, guangdong, chongqing, guangxi, guizhou, etc., with more opportunities.

Another statistic is that from January to August, the national furniture manufacturing output was 576,622,000 pieces, down 0.7% year-on-year. The business revenue of national furniture manufacturing industry was 444.31 billion yuan, up 3.0% year on year. Profits totaled 27.03 billion yuan, up 14.7 percent year on year.

Specific to the home textile industry, from January to August, there were 1,758 home textile enterprises above the designated scale in China, with the main business revenue of 131.61 billion yuan, a year-on-year growth of 3.05%. The total profit was 6.04 billion yuan, up 0.98% year on year.

The proportion of the three expenses of the above scale home textile enterprises decreased month by month. The proportion of the three expenses from January to August was 7.85%, down 0.09 percentage points compared with the same period of last year.

In addition, the 212 key sample enterprises tracked by the home textile association realized the main business income of 47.173 billion yuan from January to August, with a year-on-year growth of 4.72%.See a few head enterprises again, the listed company revenue circumstance of furniture industry, growth rate also is in 10% above.

According to statistics of 80 listed companies in the household industry, the total revenue in the first half of the year exceeded 300 billion yuan, and the net profit totaled 25.5 billion yuan, showing a stable performance. In the first half of the year, 60 of the companies saw revenue growth and 20 saw negative growth. Another 73 are profitable.

Note that the average revenue growth rate of these 80 companies in the first half of the year was 11.70%, undoubtedly outperforming the general trend of the whole industry.

So, no matter look retail sale, still be purchase, export, the market of furniture industry this year is not bad. It’s just that the larger companies have a much larger share of the market, and are doing much better than the industry, which means that some smaller companies are having a hard time.

In addition, it is worth noting that the home decoration and home textile industries are under great pressure, and the revenue of most enterprises has declined significantly, even showing negative growth, and the average growth rate of the industry is negative. Household sells, custom-made household still can maintain good growth rate.

Also mentioned above, the overall situation of home textile industry is not bad, but leading enterprises a few years ago strong attack, and then some play retreat, growth steadily decline. Some companies are even experiencing negative growth

.We look at some industries where total demand is shrinking.

For instance ceramic tile, January, August, total demand of countrywide ceramic tile 4.35 billion square metre, on the base that drops 12% last year, compare last year corresponding period continues to slide 4.5%, the cake of the market continues to shrink. Supply respect, before this year August countrywide ceramic tile yield is about 6.19 billion square metre. Exports, the first August 508 million m2. Overproduction was about 21.6%.What’s worth noting here is that some of the most heavily segmented industries have seen a decline in demand, but substitutes, or upgrades, are emerging very quickly, like toilets. The demand for traditional toilets is declining, but sales of smart toilets are increasing. Demand for mechanical locks has declined, but shipments of smart locks are on track to reach 10 million units, and some analysts expect the figure to rise to 40 million units by 2020.We feel that the market for small household appliances is not easy to do. Air purifiers, soybean milk machine and other products are in sharp decline. However, some emerging categories are selling very well, such as juicers, electric heaters, humidifiers, boiling water series, blenders, electric baking cakes and so on.

So, look at the market is good or not, the advice is not only to look at their own business, do not only look at the previous hot category, but to look at the whole industry, understand the relevant areas, especially to pay attention to those new emerging markets.

The above is the industry information that SURFACES China brings to you. For more information, please log on to the official website of SURFACES China or visit this building materials exhibition to have a look!

Source: China floor network