ã€Abstract】 At present, China's furniture industry has entered a relatively stable growth period, and the growth rate in the next few years is expected to remain at around 15%. The industry is shifting from exports to domestic sales; low-end demand is still huge, but high-end and personalized demand is beginning to rise; some sub-sectors have a concentrated trend. We believe that companies with deep channel sinking and high brand awareness will have an advantage in the future. In addition, custom furniture companies will grow faster. Celebrity home furniture http://mrgg.cnjiaju.com/ share. The growth of the furniture industry has been driven by exports and driven by domestic sales. Brand competition is the focus of the future: the growth point of the furniture industry is shifting from export to domestic sales. The proportion of China's furniture industry's export revenue has dropped from 37.45% in 2008 to 2013. 23.49%, in the past three years, the export CAGR was 7.27%, and the domestic sales CAGR was 21.1%. The domestic furniture market is not yet mature, and there is no absolute influence on the furniture brand. As the business of large furniture companies shifts to domestic sales, we believe that brand competition is the focus of the future. The brand advantage is conducive to furniture companies to seize the domestic market share. Nonstick Soup Pot,Non Stick Stockpot,Non Stick Stock Pot Set,Best Non Stick Stock Pot SUZHOU JIAYI KITCHENWARE TECHNOLOGY CO.,LTD , https://www.jiayi-kitchenwares.com
The industry's growth rate is stable, and the future demand will be dumbbell-shaped: the overall CAGR of the furniture industry in the past three years is 17.8%. It is expected that the growth rate will remain at around 15% in the next few years, which is more stable than the growth before the financial crisis. The company wants to develop at a high speed and needs to seize the opportunity of domestic market demand transformation. We believe that the future demand of the furniture industry will be dumbbell-shaped: on the one hand, the rise of urban elites and the upgrading of consumer attitudes will bring more high-end and personalized furniture needs; on the other hand, the advancement of urbanization will make more The low-yielding rural population has entered the city, bringing a new round of low-end demand.
The overall concentration of the industry is low. In the sub-industry, the mattress and mattress industry have a concentrated trend: the whole furniture industry has the characteristics of low concentration. The CR10 of China's furniture industry is 3%, the American furniture industry. The CR50 is 40% and both are at a lower level. The concentration of China's furniture industry is lower than that of the United States mainly because the gap between the rich and the poor clearly leads to more levels of product demand, and the low-end demand leads to more small and medium-sized manufacturers. Drawing on the high concentration of office furniture and mattress furniture industry in the United States, we believe that some furniture sub-sectors in China have a concentrated trend in the future, such as the mattress industry and the custom furniture industry. In these two industries, there are brands. Companies with advantages and technological advantages will win and occupy a high market share.
Large furniture companies have good cost control and gross profit margins continue to rise. The prospects are worthy of optimism: According to the statistical data, we found that most of China's large furniture manufacturing companies have relatively good sales management fees, and the average gross profit ratio is only 57.37%, lower than 81.48% of the United States. We believe that good cost performance provides cost space for the company to implement sales expansion and brand building. In addition, unlike the low gross margin (15%) phenomenon of small and medium-sized furniture companies, the average gross profit margin of large furniture companies is higher, about 40%. Affected by the optimization of business structure and the increase in advertising, we expect the gross profit margin of large furniture companies to rise further and the prospects are promising.
The furniture company with sinking channels can expand sales scale more quickly: we find that each region with a weaker consumption power has a certain proportion of consumption power. The stimulation of household consumption is greater than that of regions with strong consumption power, combined with the current consumption power of various regions in China. With the fact that the growth rate is similar, we believe that the growth rate of household consumption in the next developed regions will be higher than that in the developed regions. In addition, the current real estate sales trend in second- and third-tier cities is better than first-tier cities. Therefore, we believe that furniture companies that have sunk their sales channels can expand their sales faster.
The four major trends of the furniture industry in the future: We believe that the furniture industry has the following four trends in the future: 1) The proportion of domestic sales will be further expanded, and domestic furniture-based furniture companies have greater opportunities to outperform the market. 2) Custom furniture companies' future profit growth rate will be higher than average. 3) Brand competition is the focus of competition for furniture companies in the future, and advantageous brands are favored by investors. 4) Channel sinking is the marketing trend of large furniture companies. 
September 30, 2021