Policies on the real estate market are changing increasingly, yet what remains unchanged is the country's confidence in regulation. As a downstream industry, the home furnishing industry has been more or less affected by the real estate market. However, with the launch of affordable housing and the increasing proportion of house renovation, the furniture industry has achieved rapid development instead. Contrary to the sluggish real estate market, it has stepped into a golden age of development.
Trend: The Industry Has Entered a Golden Development Period
Professionals hold that the furniture industry is an evergreen industry, as well as an industry for sustainable development and an industry that enriches people.
At present, China is still in the middle stage of industrialization, and the urbanization rate is still relatively low. To reach the level of moderately developed countries, there are still 20 years to go. It is believed that these 20 years will also be 20 years of sustained and steady development for China's furniture industry, and a golden development period for the industry. If the previous 20 years were dominated by volume expansion, the next 20 years will focus on quality improvement. The industry should seize this golden opportunity period: since the national economy is growing at a rate of 8% per year, a large amount of furniture is in demand. If GDP grows by 8%, the growth rate of the furniture industry will be around 15%, and maintaining such a speed can ensure coordinated development.
From the perspective of the international market, although there are still many uncertain factors, I believe that Chinese furniture with high quality and low price will still be welcomed by people around the world. Therefore, exports will continue to grow steadily, but the growth rate will not be very large.
Another development trend is that the industry may continue to transfer northward to the central and western regions, which will make the overall industrial layout more reasonable.
Operation: The Situation in 2012 Will Be Better Than Last Year
Starting from last year, affected by the international financial crisis, the furniture industry encountered considerable difficulties. However, under the guidance of a series of policies including maintaining growth, expanding domestic demand, and adjusting structure, and with the joint efforts of the entire industry, the furniture industry has overcome various difficulties, achieved steady production growth, initial results in structural adjustment, marked improvement in economic benefits, and further expansion of the domestic market. According to statistics, from January to October 2011, the cumulative total industrial output value of the furniture industry reached 413.11 billion yuan, the total industrial output value of the furniture industry in October was 46.824 billion yuan, and the number of enterprises in the furniture industry was 4086, around 100 million yuan. The first quarter of this year saw a good start, with exports increasing by 26% year-on-year.
Industry insiders point out that the current operation of the furniture industry has the following characteristics: First, export-oriented enterprises face relatively great difficulties. Among enterprises above designated size, brand enterprises focusing on domestic sales enjoy a sound development momentum, while export-oriented enterprises, especially those mainly exporting to Europe and the United States, face more difficulties. Some unbranded small and medium-sized enterprises also struggle, and a number of them closed down last year, though the number was not large. Second, development across regions is uneven. Zhejiang, Shandong, Hebei, Beijing and Sichuan have developed relatively fast, and private enterprises in Guangdong have also developed rapidly. In addition, the pace of industrial transfer has accelerated significantly, and exports in several fast-growing regions—Henan, Jiangxi and Anhui—have more than doubled. All these growths come from industrial transfer from Guangdong. The Northeast region has not developed fast, and development in other regions is also relatively slow. Third, progress has been achieved in structural adjustment and transformation. Facing the financial crisis, the majority of enterprises have continuously adjusted their structure, improved quality, increased product varieties and promoted industrial upgrading. In addition, enterprises have strengthened management and reduced costs, so their economic benefits have improved significantly.
At present, the development of the industry mainly has the following problems: First, product quality is uneven, with insufficient high-end products and overcapacity of middle and low-end products, leading to fierce competition. Second, there is blind development. Many regions regard the furniture industry as a pillar industry, which is certainly good, but it also gives rise to the problem of redundant construction. Third, the international situation is uncertain, and exports still face many difficulties. Fourth, overall, management is still extensive and labor productivity is relatively low.