Furniture Market in China (2022)

With a huge population and an ever-growing middle class, furniture is in high demand in China making it an extremely lucrative market.

In recent years, the rise of the Internet, artificial intelligence, and other advanced technologies have further promoted the development of the intelligent furniture industry. In 2020, the market size of the furniture industry declined due to the impact of COVID-19. Data shows that the retail sales of China’s furniture industry reached 159.8 billion yuan in 2020, down 7% year on year.

“As per estimates, China leads online furniture sales globally with an estimated sale of over USD 68.6 billion in 2019. The rapid development of e-commerce in China has increased the sales channels for furniture in the past 2-3 years. The online sales of furniture through online distribution channels increased from 54% in 2018 to around 58% in 2019 as consumers are showing a rising preference for the purchase of furniture products online. The steady growth in e-commerce and the rise in retailers adopting online channels for selling their furniture products is anticipated to further increase the demand for furniture products in the country.”

The Myth of “Made in China”

The myth of “Made in China” is popular around the world. People think that Chinese products are synonymous with low quality. This is definitely not the case. Had the Chinese been manufacturing furniture while compromising on its quality, its exports wouldn’t have increased magnanimously. This viewpoint has seen a change in the Western world since designers have started getting their furniture manufactured in China.

You have more and more quality suppliers in China, that are able to produce quality products at affordable prices, like Nakesi, a Guangdong factory, doing only OEM for high-end customers Overseas.

When did China Become the Largest Exporter of Furniture?

Before China, Italy was the largest exporter of furniture. However, in the year 2004, China became the country with the highest number of furniture exports. From that day on there has been no looking for this country and it is still providing the world with the most amount of furniture. Many of the leading furniture designers have their furniture produced in China, although usually, they avoid talking about it. The population of China is also playing a vital role in making this country the biggest exporter of many products, including furniture. In 2018, furniture was one of China’s top exports with an estimated value of 53.7 billion U.S. dollars.

The Exclusivity of the Chinese Furniture Market

The furniture produced in China can be quite unique. You can even find furniture items that don’t use any nails or glue. The traditional Chinese furniture makers believe that nails and glue reduce the life of furniture because nails rust and glue can get loose. They design furniture in such a way that allows all parts to connect with each other to eliminate the use of screws, glue, and nails. This type of furniture can survive for centuries if made out of high-quality wood. You must try it to truly test the exceptional engineering mentality of Chinese furniture makers. You will be amazed to see how they connect different parts without leaving any sign of connection. It seems that only one piece of wood is used to build the entire piece. This is great for all parties in the furniture industry – manufacturers, designers, and sellers.

Areas where the Local Furniture Industry is Concentrated in China

China is a big country and has its local furniture industry based in different locations. The Pearl River Delta boasts the highest production of furniture. It has a thriving furniture market because there is a great availability of natural resources. Other areas which are known for their wonderful skills in producing high-quality furniture are Shanghai, Shandong, Fujian, Jiangsusuperheroand Zhejiang. Since Shanghai is the largest metropolitan city in China, it has a huge furniture market, probably the largest in the Yangtze river delta. The central and western regions of China lack the proper infrastructure in terms of resources and facilities to have a thriving furniture industry.  This industry is still in its early days over there and will take time to develop.

The capital city of China, Beijing, has an amazing flow of resources available for the production of furniture. All the tools and facilities required for furniture production are also present there, thus more and more furniture manufacturers are interested in having their corporate offices opened in Beijing.

Why China Produces Much Better Quality Furniture when Compared to Other Countries

Although China may have a reputation for producing substandard products, it does produce excellent quality furniture. According to a survey, more than 50,000 companies manufacture furniture in China. Surprisingly, most of them are small to medium-sized enterprises with no brand name attached to them. In recent years, some companies have definitely emerged in the furniture producing sector having their own brand identities. These companies have increased the level of competition in the industry.

A survey conducted by the Hong Kong Trade Developmental Council (HKTDC) revealed that the small to medium furniture enterprises in China can make a lot of money if even a small percentage of the total Chinese population decides to get rid of its old-fashioned furniture and buy into a more modern aesthetic. This ability to adapt and grow within the industry is why manufacturing furniture in China is the optimal choice to keep with consumer needs and demand.

Revenue in China on the rise

The increase in revenue is the most important indicator that China produces better quality furniture as compared to its competitors. According to a study, in the year 2010 alone, 60% of the total revenue of China came from its furniture industry by selling locally as well as in the international market. The market took a hit in 2020 due to the COVID-19 pandemic but long-term growth is expected to bounce back. Industry revenue is expected to grow at an annualized 3.3% over the next five years, to total $107.1 billion.

While metal furniture is now becoming more popular in the West as compared to wood furniture, China is expected to surpass the west in this field because of its amazing furniture-producing skills and no compromise on quality. As mentioned previously, this is a good sign for both manufacturers and sellers as it raises the perception and value of the market as a whole.

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