China Furniture Market Trends

The Rise of Urbanization in China and its Impact on the Furniture Market

China has been experiencing a boom in its economy and there seems to be no stopping it anytime soon. The younger generation is now moving towards urban areas because of job opportunities, better education, and a comparatively better lifestyle. Since the new generation is more trend-savvy and independent, many of them are living independently. the ever-increasing trend of building new houses has also taken the furniture industry to yet another level.

Due to urbanization, different brands have also surfaced in the Chinese furniture industry. Their most loyal customers are younger people, who tend to be better at adopting the new trends, and have significant purchasing power as well. This urbanization is also affecting furniture marketing in a negative way. It is leading reduction of forests and high-quality wood is becoming more scarce and expensive. Moreover, there are lots of organizations that are working to preserve the environment to limit deforestation. The government is taking the initiative to increase the number of trees in the country to ensure that the furniture market in China keeps thriving while keeping the environment safe. This process is slow therefore furniture makers in China import wood from other countries and some organizations export finished wooden products and furniture to China.

Living & Dining Room Furniture: the biggest selling segment

This segment has been growing steadily representing nearly 38% share of the Chinese furniture market as of 2019. In terms of popularity, the living room segment is immediately followed by kitchen and dining room equipment. This trend is especially noticeable in the southern and eastern part of the country with the multiplication of high-rise buildings.

IKEA and innovation within the industry

IKEA in China is a very good and mature market, and the brand increases its market share every year. In 2020, Ikea partnered with Chinese e-commerce giant, Alibaba, to open the first major virtual store on Alibaba’s e-commerce website, Tmall. This is an incredibly innovative move within the market as the virtual store allows the Swedish furniture company to access many more consumers and allows them to experiment with a new method for marketing their goods. This bodes well for other furniture brands and manufacturers because it shows the incredible growth within the market and innovations that are available for companies to reach consumers.

The Popularity of “Eco-friendly” Furniture in China

The concept of eco-friendly furniture is quite popular these days. The Chinese consumers understand its importance and thus are ready to invest in it even though they have to pay a higher price.  Eco-friendly furniture is free from any type of harmful chemicals which may include artificial odor as well as formaldehyde which can be harmful to one’s health.

The Chinese government also cares about the environment a lot. This is why the Environmental Protection Law was introduced by the government in 2015. Because of this law, many furniture companies were forced to shut down as their methods were not in lieu of new protectionist policies. The law was further made clear in the December of the same year so that furniture manufacturers are clear about the need to use formaldehyde-free products which can be harmful to the surroundings

The Demand for Kids Furniture

Since China follows the two-child policy, many new parents want to give their children the best that they have got. So, a rise in the demand for kids’ furniture has been seen in China. Parents want their kids to have everything from their own bed to their own study table whilst a crib and a bassinet are also needed when a child is still small.

A study shows that 72% of Chinese parents want to go for premium furniture for their kids keeping in mind their child’s safety. The premium furniture is more suitable for kids as it is free from any type of harmful material and is less accident-prone. So, the parents don’t generally have to worry about sharp edges. Furthermore, the premium furniture is also available in different styles, colors as well as cartoon and superhero characters which are popular among kids of different age groups. It is important for furniture companies who are doing business in China to consider the importance of this segment of the market from the design phase all the way to the selling phase.

The Increase in the Production of Office Furniture

China is among one of the most popular hubs for economic activities. Many international brands are investing in China every year. Many multinationals, as well as domestic corporations, have their offices over here, while many more organizations are also opening every other month. This is why a huge increase in the demand for office furniture has been observed. Since deforestation is causing serious problems in China plastic and glass furniture is becoming more popular especially in offices. There are some non-profit organizations that are working to create awareness about the benefits of non-wooden furniture in the long run. Chinese people have a serious awareness of this fact because they are experiencing the adverse effects of deforestation in and around various cities.

Furniture Production and the Opening of Hotels

Every hotel requires stylish and elegant furniture to ensure the comfort of customers and attract them. Some hotels and restaurants get customers not because of the taste of their food but because of their furniture and other such facilities. It is a challenge to find the best-suited furniture in huge stock at low rates but if you are in China you can get innovative furniture easily.

Another factor that the economic boom has given birth to is the concept of more and more hotels opening up in China. They range from 1-star to 5-star hotels which are constantly competing with each other. The hotels not only want to provide the best possible services to their guests but also want to give themselves a contemporary look. This is because the furniture industry is always busy providing high-quality and trendy furniture to the various hotels present in China. Therefore, this is a specific niche that can be incredibly profitable if exploited correctly.

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