China Upholstered Furniture Market - Growth, Trends, Covid-19 Impact and Forecast(2022 - 2027)

China Upholstered Furniture Market - Growth, Trends, Covid-19 Impact and Forecast(2022 - 2027)

China is one of the world’s largest producers and consumers of upholstery furniture. Upholstered furniture is gaining popularity in mainland China because of its comfortability, design, rich colors, and diverse styles.

China is experiencing a rapid improvement in the economic indicator in the last decade or so. The per capita disposable income grew by 8.9% for the year 2019. The furniture market is also experiencing rapid growth. The revenue of the furniture manufacture grew by 1.5% whereas, the profit increased by 10.8% year on year for the year.

Rapid urbanization is another driving factor for the growth of the upholstered furniture market in China. According to the National Bureau of Statistics, the level of urbanization has reached more than 60% which is the highest in the world. The new urban area residents contribute to the increasing sales of upholstery furniture. Along with the domestic sales, the Chinese export of upholstering furniture is also showing sustained growth. The export of furniture from China increased by 10.7% for the year 2020. The growth was seen in the later half of the year. United States is the major importer of Chinese upholstery furniture contributing about one third of total export.

Key Market TrendsE-commerce Sales is Escalating in China Upholstered Furniture Market

Another favorable trend for the upholstered furniture market in China is the exponential growth of e-commerce sales. E-commerce expansion in China is the highest in the world and is predicted to reach 44% and beyond. E-Commerce in China accounts for more than 50% of worldwide retail sales on the internet. The majority of small and medium-scale manufacturers of upholstery furniture are using the O2O e-commerce model. That is linking online sales and marketing with offline business operation and consumption. Consumers either can order the furniture through the website or else they can also visit the store and place an order. Ikea is the other example where, IKEA started selling on Chinese eCommerce platform Tmall, marking the first time the retailer has sold through a third party in its 77-year history.

China Upholstered Furniture and related products are most exported items from China

China upholsters furniture market adopt mainly two sales models i.e., independent brand sales and ODM/OEM model. In an independent brand sales private brands themselves research, manufacture, market, and sell the furniture through the appropriate channel using their own value chain. But in Original Equipment Manufacturer (OEM) and Original Design Manufacturer (ODM), the design, development, and manufacturing of furniture and part of the furniture is outsourced to the third party and sold externally under different brands adjusting the profit

Most of the upholstery furniture manufacturers in China are small and medium-sized and are highly fragmented. According to market statistics, in 2019, there were some 6,410 furniture enterprises above a designated scale in China. There are only a few brands with a strong influence in the overall Chinese furniture market.

Furniture and related item are the most exported items from China. The furniture and parts thereof contribute to 1.18% of the total export from China which amounted to USD 109 billion for the year 2020.

Competitive Landscape

The market is highly fragmented with small and medium players which serve their own region. The organized market is dominated by the players like QuanU Furniture, Royal Furniture, QM Furniture, Red Apple Furniture, M&Z Furniture, IKEA, Kinwai Group China, and Interi Furniture.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.