[Data Source: Qianzhan “Annual Sales Revenue of the office furniture market in China”]

Main competitors in the office furniture market in China

After the reform and the opening up, numerous brands appeared in the office furniture market in China. Both domestic and foreign office furniture companies play an important part in China’s office furniture market.

The office furniture market in China shows regionalism

China is one of the largest production and consumption countries of office furniture. In 2018, the number of office furniture enterprises in China was over 1,100. Office furniture enterprises are mainly in five areas-Northeast district, Yangtze River Delta district, West district, Bohai Bay Rim district, and Pearl River Delta district. Northeast industrial district, Yangtze River Delta industrial district, and Pearl Delta industrial district are mainly on target to export. The other two industrial districts focus on the domestic market.

China Brand selected the Top 10 office furniture brands in China

[Source: China Brand “Top 10 Office Furniture Brands in China”]

High-end foreign office furniture brands are also popular in the office furniture market in China.

Foreign brands in the furniture industry pay more attention to the integration of the office environment. International brands always pursue freedom, privacy, and easy use. Thus, these brands are popular among large enterprises which desire to provide a comfortable work environment for their employees. Herman Miller, a famous American office furniture brand, created the “action office”, still widely adopted by many companies nowadays. The Embody Chair, one of its products, combines the body mechanics perfectly and even appeared in companies’ recruitment advertisement.

New vibrant trends in the office furniture market in China

In the past, Chinese office furniture was usually mahogany and archaistic. Even though such furniture has a high value for collection, it is not comfortable in the workplace. With the construction of smart buildings, there is more need for modern office furniture in China.

[Source: Pixabay and daxue consulting “Office Furniture Preference Change in China”]

Customized office furniture is becoming popular in China.

Currently, more companies choose customized office furniture, as it can adapt to the working environment. Customized office furniture usually combines physical mechanics and health management to make users comfortable. In April 2020, Luo Yonghao sold 5 million ergonomic chairs in one live-stream. Customized office furniture can also utilize space effectively. Meanwhile, companies are free to choose their preferred materials and style to show their companies’ unique features. Particularly, the 80’s and 90’s generation in China like to use special symbols to represent their uniqueness.

[Source: Weibo “5 million ergonomic chairs were sold out”]

Information systems and personalized production technology are important for customized office furniture as well. In recent years, China’s customized office furniture gradually reduced its dependence on overseas technology. In the past, German’s HOMAG used to monopolize the production of the equipment that produces customized office furniture in China. Now, domestic brands are leading the equipment production. Thus, more office furniture companies in China started to buy domestic equipment, triggering the boom of the customized office furniture in China.

Green office furniture is becoming the mainstream in China’s offices.

Following the trend of green consumption in China, consumers are becoming aware of potential environmental threats of office furniture. Office furniture with heavy metal and BTEX is not environmentally friendly and harmful to people’s health. Thus, consumers pay more attention to green office furniture. As a major office furniture exporter, China’s office furniture producers are closer to international standards. Meanwhile, China’s government issued policies to drive green production. Once companies are reported to disobey the laws, their brand reputation would be destroyed.

Office furniture’s E-commerce era in China

E-commerce is growing rapidly in China. The office furniture market cannot avoid utilizing the internet to broaden their sale channels. According to Guanghuijiaju, Linshimuye’s sales revenue broke 110 million yuan in 2013’s double 11. Online stores can integrate with offline stores. On TMall, consumers can find over 24 thousand pieces of office furniture. Many office furniture pieces’ monthly sales can surpass a thousand pieces. Not only do online channels provide B2C services to complement retail, but it also benefits B2B office furniture sales. On Alibaba, there are more than 40 thousand pieces of office furniture selling for wholesalers.

[Source: TMall “Consumers can find numerous office furniture in TMall and many sell well”]

[Source: Alibaba “Wholesalers can find numerous office furniture in Alibaba”]

Issues in the office furniture market in China influence its development.

China’s office furniture market achieved great progress in the past decades. The profits and the number of the office furniture enterprises rose sharply. . However, there are still some issues that block the development of the office furniture market.

Homogenization is severe in the office furniture market in China

Many kinds of office furniture are available in the market. Some of them have similar designs, which make it hard to make decisions. When well-known brands spend much effort in designing one fine piece of office furniture, other brands copy it without breaking a sweat. In 2016 at the Guangzhou Furniture Exhibition, Tenglong Furniture was accused of copying Makorhome’s products, according to zhuangyi.com. It also causes designers to lose enthusiasm to innovate. Even though China’s government introduced laws to restrain such action, similar phenomena still occur. The problem of counterfeiting in China is widespread across industries, especially luxury.

The office furniture market in China is short of brand marketing

Although various brands exist in the office furniture market in China, the market does not build household names. Most of the top 10 office furniture brands are limited in certain regions and lack of awareness in the countrywide market. Few office furniture brands in China are able to come into the public. Meanwhile, some reports unveiled that their marketing strategies failed to highlight their products. They blindly imitated other companies’ behaviors. For example, one company invites a star to be the representative. Other brands may follow their methods while not considering the links between their products and stars.

The office furniture market in China has potential but is challenging.

The office furniture market in China gradually built into an industrial-scale business through several decades of evolution. Yet the market still contains many issues, the market is improving. In the long term, due to the booming need, the office furniture market in China still has potential.

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Performance of China’s furniture market: decreasing performance in 2018

According to the National Bureau of Statistics, in 2015, there were 5,290 furniture enterprises in China with a total estimation of 769.61 million pieces of furniture produced. China’s furniture industry has made tremendous progress, and the country has become a world-class location for setting up furniture factories and an important export base. According to the Chinese Family Development Report in 2014, there were roughly 430 million households and it is expected to be 500 million by 2030 in all provinces of China. To add to that, the low labor cost and large consumer market in China has attracted many foreign furniture enterprises. Due to large differences in practices throughout the country, China’s furniture industry is neither homogeneous nor predictable. Chinese consumer expectations and purchasing behaviors have marked regional variations, particularly for products reflecting cultural and personal tastes.

Sales volume stabilizing

The sales volume of furniture experienced growth in 2016 and 2017. Nevertheless, in 2018, it decreased to 758.79 million. In the same time, the market size of China’s furniture industry shrunk to 525.33 million RMB in comparsion with 732.98 million RMB in 2017. This is due to the fact that China’s furniture market was highly affected by the performance of the real estate market in China. In 2018, the policy of China’s real estate market became tightening thus it led to decreasing performance of China’s furniture market.  

[Data source: chyxx, ‘Production volume in China’s furniture market’]

[Data source: chyxx, ‘China’s furniture market size’]

Performance of IKEA in China: affected by preferences of furniture consumers in China 

China’s furniture market is still developing with advanced manufacturing and application of information technology in production. Furniture enterprises will have to upgrade their products to bring greater added value by raising the level of technology in innovation to achieve “low cost, high quality, high efficiency”. At this moment, the future development trend is green manufacturing in which the whole life cycle of products must be conducive to the environmental protection and the reduction of energy consumption. Foreign industry players will need to step up their pace of entering china. As of 2015, global furniture retail giant IKEA in China has opened up to 18 stores and the largest sourcing country with 22% of its global purchases with about 300 local suppliers. The company intends to expedite its pace of expansion in China, hence number of stores is increasing every year.

As of August 2019, IKEA in China has opened 28 stores. Even though this figure is increasing, the growth rate of sale volume in China’s market dropped to 9.3% in 2018 in contrast with more than 10% from 2011 to 2017. This can be explained by the fact that furniture consumers in China are demanding products with more than design, in other words, quality matters. IKEA’s furniture receives criticism in China for not being durable and this has affected IKEA’s reputation in China. Apart from the quality, some Chinese netizens say the interior and the location of IKEA’s stores are not consumer-friendly.

[Data source: winshang, ‘Number of IKEA stores in China’]

IKEA in China’s strategy for the China’s furniture market: Standardization VS localization

Furniture Retail Giants, IKEA Group a franchisee of Inter IKEA Systems BV brings its unique style and sales model to China. IKEA in China belongs to IKEA Group and operates as a joint venture. This venture served as a good approach to test the market, understand the local needs and adapt strategies to gain competitive advantage. IKEA had to make adjustments to its marketing strategy as the company uses its product catalog as a major marketing tool. IKEA in China realized that digital marketing was the way to go, with that IKEA Group used digital technologies using the internet such as Chinese social media and micro-blogging for their marketing campaign to gain market attractiveness and brand recognition. Also, IKEA  had to adjust its store location strategy as most consumers in China use public transportation. Rather than the usual stores in the suburbs, IKEA sets up its stores on the outskirts of cities which are connected by rail or metro networks.

IKEA in China has made all the necessary adjustments to certify that there were minimal obstacles in its growth ambitions, and brand promise. IKEA has demonstrated courage, adaptation, and awareness to shift its production, work with local sources, overcome legal requirements and adapt brand proposition to suit the level of development of the market and consumer perception. With that, to grow globally requires sacrifices and innovation from global teams, listening to the local team, and learning with an open mind.

As mention as an example above, IKEA entered the Chinese market by learning from their mistakes and continuously adapting to the changing environment. Not many companies have the ability to go through trial and errors because it is very costly when mistakes are made. Moreover, IKEA’s strategy in China’s market embodies either standardization or localization, sometimes both of them.

IKEA’s strategy in China’s market: maintaining core value of IKEA’s business (standardization)

“To create a better everyday life for the many people” is the IKEA vision. The business objective of IKEA is to “offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them.” In order to execute this business objective, IKEA applies the same business model (the inferior of the store, a range of products and services and the management style) everywhere, including China. Furthermore, the design of IKEA’s furniture which features simplicity are are popular among young people in China. This has become one of IKEA’s business drivers in China.

IKEA’s strategy in China’s market: updated sales channels (localization)

Development of IKEA’s E-commerce

Since E-commerce is a current trend in China’s business market, many firms have keep pace with it and updated their sales channels, IKEA is among them. In 2016, IKEA officially launched the online shopping service in Shanghai. Two years later, the service has expanded to 149 cities in China. In 2018, IKEA made an official announcement that its official website is the only online sales channel in China. By collaborating with Amazon and Boyol the logistic firm, IKEA categorizes the products into “small-scale parcels” and “large-scale parcels”. What is more, the delivery price of small-scale parcels is 9.9 RMB whereas that of big-scale parcel is 69 RMB. It can be seen that IKEA attempts to lower the delivery fees in order to maintain and expand its customer base in China. Updating sales channel is a milestone in IKEA’s business in China as the company tries to reach its customers in multiple ways.

Collaboration with downtown shopping centers

IKEA received criticism on the inconvenience of their store locations, as they are located in remote areas. In order to tackle this issue and satisfy customer’s need, IKEA has established collaboration with downtown shopping centers, that is, building mini IKEA stores in these shopping centers. In 2016 and 2017, IKEA opened Pick UP & Order Point stores with the area of 1800-3000 square meter in Wenzhou and Beijing respectively. These actions have proven that IKEA has tried to approach IKEA customers in China while meeting their expectation.

[Photo source: winshang, ‘Guohua Shopping Center and IKEA’]

Pop-up stores are the current trend

Going to a place and posting photos regarding the experience on social media platform has been a trendy consumer behavior in China. By taking advantage of this, from August 24th to October 7th, IKEA launched its pop-up store in Beijing featuring youth and urban lives. It was such a good promotion which potentially led to increase in customer base since many young people noticed it and went there to take photos. It was not the first trial for IKEA to open such an unusual store. In December 2017, IKEA have started opening pop-up stores for the purpose of selling small-scale items. By the end of September 2019, IKEA has opened 2 concept stores in China in order to amaze IKEA customers in China meanwhile promoting their services and products.

[Photo source: China.cn, ‘Pop-up store of IKEA in China’]

[Photo source: China.cn, ‘Pop-up store of IKEA in China’]

IKEA’s strategy in China’s market: service and product diversification (standardization + localization)

IKEA’s catering business in China is astonishingly successful. In 2015, IKEA’s cafeterias served over 31 million IKEA customers in China, sold 6 million units of meatballs and 12 million units of ice-cream. Cafeterias have large contribution regarding the sales value of the whole IKEA business. In the global market, it occupies 5% of the total sale value while 10% in China’s market.

As for the standardized food, Swedish meatballs and IKEA’s ice-cream are the signature dishes. Because of IKEA, Swedish meatballs and sauces come to be the nation’s dish of Sweden. Moreover, IKEA customers in China like the meatballs. Selling Swedish meatballs in IKEA enables Chinese customers to taste something exotic.

[Photo source: Sohu, ‘Swedish meatball of IKEA’]

China’s IKEA stores localize the food options

Apart from the signature, in order to tailor to local tastes, IKEA also keeps developing and launching localized dishes that fit the preference of IKEA customers in China. For example, in Guangdong, there is dim sum in IKEA’s cafeterias; in Sichuan, customers are able to taste Sichuan hotpot; in Shandong, spicy crayfish are the common dishes in the cafeteria. Although, people can have these authentic dishes in other restaurants instead of IKEA, it is a method to keep people in the store so they do not have to leave when they get hungry. In order to distinguish from the authentic Chinese dishes, IKEA promoted the localized dishes by linking them with Northern Europe on social media platforms. By doing this, IKEA is able to create sensations and draw existing and potential consumers’ attention.

[Photo source: Sohu, ‘Dim Sum of IKEA in Guangdong’]

[Photo source: Sohu, ‘Hot pot of IKEA in Sichuan]

[Photo source: Sohu, ‘Spicy crayfish of IKEA in China’]

[Photo source: Sohu, ‘IKEA’s promotion in China via social media platforms’]

IKEA’s challenge in China: how to turn controversial consumer behavior into business opportunity

With the increasing scale of IKEA’s market expansion in China, the company has confronted with a troubling phenomenon. Consumers would sleep and hangout on display furniture in IKEA’s stores. Initially, it was reported by western media and went viral on social media as people discussed whether it was appropriate or not. One interesting review argued that sleeping on IKEA’s display furniture was understandable as the noon nap is a common habit in China. In order to deal with the challenge, IKEA announced that they had no intention to prohibit customers from sleeping on their furniture as they did not perceive that it was a problem. Instead, they were delighted to see that consumers thought IKEA was like their home. The rationale behind the permission was that the more consumers try on, the more they likely to purchase, since sleeping on IKEA’s display beds is a mean of trial. In addition to IKEA’s permission, IKEA also set up pop-up displays their so that customers are able to have a rest in the area of pop-up displays.

[Photo source: World, ‘IKEA allowed customers to sleep in its Chinese stores’]

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The building materials market in China

The building materials market in China refers to the materials used as exterior and interior decorations for public buildings. The rapid growth of this sector is mainly due to the macro environment and the government polices.

 [Data source: qianzhan, Output and YoY Growth of the Building Materials Market in China]

The total output of the building materials market in China was ¥ 3.94 trillion rmb in 2017. This  represents an increase of 280 billon from 2016 and a growth rate of 7.65%.

[Data source: qianzhan.com, The proportion of sector output within the decoration market.]

Overall, the growth of the building materials market exceeds the growth of the home-decorating market. However, the growth of the two sectors is gradually balancing out. While in 2017 the building materials market occupied around 52% of the total output of the decoration market in China, the home-decorating market occupied around 48%. Furthermore, the continued expansion of the building materials market in China may imply that China is still at the stage that requires the implementation of basic infrastructure and public facilities.

The home-decorating market in China

The home-decorating market in China refers to the interior decorations of residential houses.

[Data source: qianzhan.com, Market scale of home-decorating market in China]

The continuous growth of real estates sales and of the Chinese economy provide the foundation for the home-decorating market to further grow. The market scale had reached ¥2.23 trillion rmb in 2018, and is estimated to exceed over ¥2.59 trillion rmb by 2020.

[Data source: qianzhan.com, Percentage of different home-decorating in China, by type]

Newly purchased homes are the main driver of the home-decoration market in China. Nearly 73% of the total revenue is contributed by new home decoration.

[Data source: qianzhan.com, Consumers of home-decorating market in China]

The main consumers of the home-decorating market are millennials, which are those born during the 80s and 90s. They contribute to more than 60% of the market revenue. Those born in the 70’s are also a large consumer group at 16%, while the remaining 22% other ages.

The rise of the E-commerce home-decorating market

E-commerce home-decorating market in China boomed in 2015, which has become the key contributor to and further intensified the competition within the overall decoration market in China.

[Data source: ebrun, Market scale and growth of E-commerce home-decorating market in China]

The market scale of the E-commerce home-decorating market in China reached ¥258.9 billon rmb and achieved a 36% growth rate in 2018. Nonetheless, it is currently experiencing a bottleneck period with less than 5% penetration rate. This rate is fairly low when compared to other E-commerce markets such as car-hailing platforms and online travel agencies with around 1/3 penetration rate.

E-commerce ,  helps address the non-equilibrium profit margins that lie within traditional home-decorating market. E-commerce home-decor companies standardize decoration methods, prices, and simplify the working procedure. However, many consumers believe the materials and the user experience of E-commerce decoration companies are too expensive for the quality. As e-commerce does not always offer acceptable after service provision, many consumers are switching back to traditional of home-decoration methods.

Consumers are constantly pushing for transparency and information symmetry. The future of the E-commerce decoration market will no longer be on price wars, but quality and value wars.

Decoration companies in China

[Data source: qianzhan.com, Number of firms within the Chinese decoration market]

The market share of Chinese decoration market is fairly scattered. Around 82% are traditional decorating companies and around 18% are E-commerce home-decorating companies. There is currently a large amount of small to mid-sized decoration firms in China. The market scale is huge with fairly low entry barrier. Although, the total amount of firms within the industry experienced a decrease of 2.22% from 2015 to 2016, the total output had increased by ¥0.277 trillion rmb. This may suggest that the market share has became concentrated as regulations imposed on the Chinese decoration market gradually standardize.

A huge market with hundreds and millions of small businesses

Over 70% companies within the Chinese decoration market achieved revenue growth in the first half year of 2018. Gold Mantis (金螳螂) achieved top revenue gain of ¥10.904 billion rmb and China Red Star (红星美凯龙) was ranked at second place with ¥6.374 billion rmb revenue. The top three players within the home-decorating market are, listed in order; Gold Mantis, China Red Star and Oppe In (欧派家居).

[Source: ebrun Market share of E-commerce home-decorating market in China]

On the other hand, E-commerce home-decorating market is concentrated. To8to.com (土巴兔) occupied around 40% of the total market share, and Jia.com around 27%.

Although the overall market is fairly competitive, it has not yet reached the mature stage. This means that there is still a large room for small firms to develop along with the expansion of medium to large-sized firms.

Opportunities in the Chinese decoration market

Aesthetic home-decoration market in China

Currently, the decoration products in China are rather homogenous. However, consumers are gradually valuing creativity, quality and environmental aspects of decoration products as their living standards improve and consumption upgrades. The aesthetic home-decoration market in China may be the answer to consumers’ concerns. It refers to the mid- to high-end furniture brands with good designs and quality products. Firms have began implementing strategies to target luxury consumers by offering environmental friendly materials, customized product design, and foreign luxury brands.

Standardized regulation across the decoration market

As regulations imposed upon the Chinese decoration market become more standardized, the industry is expected to become more concentrated. Comparing to the current market environment with mixed standards, quality and prices, the future expectation for the market will center around transparency and price equilibrium. For E-commerce home-decorating, focusing more on after-sales provision and product quality allows room for future development.

Smart home is the new go-to for modern Chinese households

Smart home stores in China offer Chinese consumers a new form of experience. Many sellers of intelligent home technologies seek to introduce their products to potential consumers through such experiences. Examples of smart home technologies include automatic adjusting lights and Homepod etc. The smart home stores in China allow consumer to touch, test and experience the products in real person. A direct-to-customer strategy by engaging customers through these brick-and-mortar stores. Smart home technology is definitely a future trend that decoration or furniture companies need to consider.

The decoration market in China has a large potential to further grow in the near future. However, the development needs more funding and more creative and quality products.

Author: Chenyi Lyu

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The rise of interior design in China

China has a long and profound history of home décor, and the modern home décor market in China is a fusion of traditional Chinese furniture with ancient roots and simple modern décor and furniture. The craft of interior design in China encompasses various prototypes of; lighting, statues, wall-décor, furniture, flooring and flowers using attractive colours such as red and gold which portray status and power. The home décor market in China can be traced back to the Eastern Zhou period (770B.C. – 221B.C.) where Chinese developed long, narrow tables to hold musical instruments or to display items of wealth and beauty such as jade, porcelain or flower arrangements.

Ancient roots of interior design in China

The architecture of interior design in China began with lanterns and furniture demonstrating the power and status of Chinese elite, since the Han Dynasty (25–220 AD) and Tang Dynasty (618-907 AD). Furniture height rose according to the “elevated to a position” of one’s status in society. The furniture makers of the Tang Dynasty began using high round and yoke back chairs for the wealthy elite. Lanterns are widely known to most of the Chinese people as the symbols of festival, worship and peace. They can be made from wood, bamboo, wood, rattan, created with silk or paper and being decorated with Chinese calligraphy, embroidery, painting and cut paper.

The era of modern interior design in China

In recent years, China became a fast growing economy with GDP of $14.22 trillion with the population of almost 1.4 billion and average growth rate of 9.5 as well as high level of urbanisation. With this, people become more fascinated with luxury and fashion. In 2018, the interior design market in China was estimated at $740 billion (RMB 5 trillion), according to a study by Yicai 2018, and that market keeps rising and evolving both online and physical stores. Home décor market in China seems to be one of the fastest growing businesses in the region with a high consumption power. Both domestic and international companies are now establishing more offices and showrooms in the cities such as Beijing, Hong Kong, Shanghai, Shenzhen and Guangzhou.

China’s interior design industry has incredible variety to fit the tastes of types of consumers. This not only includes different economic class of people, but also includes office design projects in business districts across China. Customers can be small companies, which seek to minimize their spending on office interior design thus not requiring high quality expensive furniture or lighting, while multinational corporations, for whom office design is crucial for meeting clients and partners, may ask for luxury European furniture with high quality lighting. Interior design companies in China can be divided into lighting, flooring, doors, furniture and wall murals companies.

Chinese interior design: global recognition

The interior design market in China is booming due to the rapid growth of the national economy as well as the industrial development and governmental policies. The interior design market in China is now witnessing an inconsistent demand, which extensively provides a remarkable opportunity for home décor market in China. In 2015, China occupied 34.64% of the revenue market. It is followed by Europe and North America, which respectively have around 27.52% and 17.08% of the global total industry. Other countries have a small amount of revenue. Despite the fact that the global interior design market is saturated, Chinese interior design is playing a pivotal role with an outstanding market share which has to do more or less with Chinese consumption power. Below are some interior design companies in China that are seems to be the main players in the market; China State Construction Engineering Corporation, Gold Mantis Construction Decoration, Shenzhen Grandland Decoration Group, Shenzhen Hongtao Decoration and Zhejiang Yasha Decoration, which enjoy only 1.6% of market revenue of which Gold Mantis accounted for 0.7% in 2013

Market segmentation in the home décor market in China

The furniture market in China

Furniture is an important part of the Chinese interior design market and culture. According to Mr. Xu Xiangnan, Chairman of China National Furniture Association

“The furniture industry is not just a traditional industry but also an evergreen industry. It is closely related to people’s wellbeing and socio-economic stability”.

In 2018, there were 6,300 scaled furniture companies in China, with a total market size of 701 billion rmb.

In recent years, the furniture market in China is persistently growing to become the largest in the world with a value of US$ 114 billion, accounting for 61% of the total Asian and Pacific market. Furniture market in China shows a strong potential for further growth.

Office furniture has played a vital role in the interior design market in China, and now the country is the leading office furniture manufacturer and exporter at a global level, with production exceeds US$ 16 billion in 2018, increasing by 10% on average in the last decade and representing 30% of the world office furniture output. For office furniture, the interior design market in China has increased drastically from 24% in 2009 to 36% in 2018 (USD 4.0 billion) of the global exports is the main supplier for the United States, Japan, France, the United Kingdom and Japan among others. The United States alone which seems to be the main customer, represent $1.3 billion about 33% of the whole Chinese office exports.

The following companies are the major key players in that market making it highly saturated and competitive; Lizhiyanghang, Paiger, UE Furniture, Wosen, Victory, Henglin Chairs, CR Logic, Saosen, Diou, Green Link, Sunon, Lamex, Jinwei, Mingli, Xinnou and Shengao with Sunon and Lamex. However, home décor market in China is significantly growing due to high luxury demand from Chinese customers, the presence of Furniture store market is growing fast in China with leading European and Chinese brands such as IKEA Group, Jinan Fangzhen Furniture Co. Ltd, Kinhom Group, Shenzhen Hoba Home Furnishings Chain, Yuexing Group. These four companies share most of the market.

Lighting market in China

Lighting has a long traditional and cultural background in home décor market in China since during Han Dynasty (25–220 AD), lighting market in China was famous to the rest of wold. Currently, China’s lighting industry has been developing rapidly and the country has become a world-leading lighting producer and consumer. Lighting market in China can be grouped into; Light emitting diodes (LEDs) with the output value of RMB636.8 billion in 2017, up 21% from 2016, and is expected to show an annual growth rate of about 18% in 2018-2020 and is set to break the RMB 1 trillion by 2020. compact fluorescent lamps (CFLs), electrodeless discharge lamps (EDLs) and organic light emitting diodes (OLEDs) are major products in the mainland lighting market with rapid market grew from USD530 million in 2011 to USD6.23 billion in 2016, representing an annual growth rate of 63.8%, and is expected to reach USD65 billion by 2023. Lighting market in China consists of a lot of manufacturing and selling companies including AD Lighting, Beghelli, Civilight, Cooper, Cree, CX Lighting, Crestron, Dahom,Davinci,Dongsheng, DZ-YC, Eglo, Elec-Tech, ESN Lighting, ET Lighting, Fagerhult,Feelux, FSL,Greeble, Huari, Huati, , Huayi Group, HuaYu Lighting, Ikea, JK Lighting, Jiufo, Kingsun, Koizumi, Meses, Nanker, Neo-Neon, Neonlite-Megaman, NVC, Okes, Olympia, Opple, Pak Electrical, Philips, Plusrite, Tao Light, TCL Light, TCPShanghai, Top Century, Top Lighting, Topstar, TopTech lighting, Toshiba, Tospo, Touve-Gangfeng, Unilumin, Violet Lighting, Yajiang, Yaming, Yankon, Youyao, Zhongfa, Zhongyu, Zhongzhen, Zumtobel. However, leading players in the market, which control considerable part of lighting industry, are Neo-Neon Group, NVC Lighting Technology Corporation, Opple Lighting Co. Ltd, Penglei Energy Saving Component Factory, Zhejiang Yankon Group Co. Ltd, with some companies being international while others being domestic.

Art market in China and the door market in Chinese interior design

Rapid Urbanization and home renovation seems to be the leading factor that influences the Chinese art market. It’s predicted that by the year 2030, China will add 310 million urban residents and the urbanization level will reach 70%. In 2017, the demand for doors in China rose to 8.5% amounted for RMB194.5 billion. Due to the huge demand for interior design market in China, wood doors have dominated the market for Chinese interior design with RMB 150billion sales in a 2017. Non-residential has the highest demand than residential. Also, due to the robust increases in construction activity, spurred by rapid progress in industrialization and subsequent rising personal incomes, the north western region has the highest demand for home décor market in China.

Flooring market in China

With increase in urbanisation and rising in personal incomes of the customers, the interior design market in China is growing rapidly with the high demand for floor coverings which is forecast to rise to 4% per year to 5.2 billion sq m in 2020. Ceramic tile is used for interior design in China more frequent than any other flooring material, Non-resilient flooring was the most popular floor covering of interior design in China which has 85% demand. Carpets and rugs represented 8% of floor covering demand in China in 2015, with resilient flooring accounting for the remaining 7%. The, Power Dekor, Nature, Anxin (ARK), Vohringer, Shiyou (Sunyard), Der, Sino-Maple, Krono and Rhineshine are some major key players in flooring industry.

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Asian countries compete with other countries all around the world as far as electronic component production is concerned, boosted by an expanding domestic market and low labor costs. Therefore, electronic component market (supply and demand) is moving towards Asian countries which register a high growth.

Due to its fast development in terms of Information and Communication Technologies (ICT), China has become the world’s largest electronic products manufacturer, especially concerning televisions, computers, mobile phones and DVD players. Moreover, China’s most common electronic components – lower end and premium components – represent the world’s biggest electronic component production. Revenue of electronic component production in China registered an annual average growth of 11.9% the last five years.

China’s electronic component manufacturing is currently in a growth phase. This is shown by annual growth rates of 9.4% in the value added of industry since 2008, and this growth will remain stable until 2018, according to estimates. Thus, electronic component industry is expected to increase gradually and quickly in the future.

The number of companies which make the industry work will also rise very quickly. With China’s accession to the WTO (World Trade Organization), a lot of world-famous companies which produce computers, mobile phones and other communication devices have settled their manufacturing centers in China.

China’s future on the electronic component market

(toocle.com)

Is China tomorrow’s leader in terms of electronics? One thing is certain: a leading and autonomous electronic industry is emerging in China. China’s electronic equipment production growth has even been described as the most important shift in the world’s electronic industry.

This development is widely supported by China’s government, whose goal is to make electronic national industry an independent and competitive activity, pulling China’s economic development.

Fil control, one of the electronic component leaders for textile industry, present in china for 10 years

Fil Control, the electronic component manufacturer, is one of the electronic component leaders in textile industry. As many European manufacturing companies, Fil Control benefits from the rise of China in terms of textile industry and electronic components, and has settled its first manufacturing plant in China in 2004, in Wuhu. The company has therefore been present in China for 10 years. With the help of local suppliers, Fil Control offers quality services to its customers. Its branch in China offers a wide range of services, like production, conception, installation, textile equipments and electronic components.

Article proposed by Cedric

Sources:

• http://filcontrol.com
• www.huffingtonpost.com/
• http://www.news.xinhuanet.com
• http://daxueconsulting.com/consulting-china/

This article The electronic component market in china is the first one to appear on Daxue Consulting - Market Research China.

Cappellini offer completes itself with limited edition products, to increase the value of image and the cultural solidity of its realizations, but also to preserve a pinch of healthy fun. Cappellini also dedicates its research to the objects and the complements creating in 1992 a collection of products for the house calm and measured, simple but of great design. Progetto Oggetto is the design of the normalcy and the synthesis; the lamps, the vases and the containers that compose the collection are as they should always be, pleasant and honest.

China Market Research for the New Millennium Cappellini

Cappellini enters the new millennium completely transformed in comparison to its origins, tied up indissolubly to the world of the image under every aspect and to the world of the experimentation and research. The Cappellini collections are convincing; they are well balanced, refined, simple and yet leans towards the experimental. There is no house style: the intention is to allow the user enough space for his individual interpretation, shown by China market research. All pieces have been designed to be used, contrary to the trend in recent years. Not only icons, many of which present in the most important museums of the world, from the MOMA in New York, to the Victoria & Albert Museum in London, to the Museum of Decorative Arts in Paris, but also flexible products of great design for the daily use: an interest that Cappellini pursues since the beginning with products able to last in the time and that have become true “classical contemporaries”.

Cappellini’s Main Competitors: Unifor, Flou, Zanotta

Cappellini faces biggest challenge directly from other brands of design and furniture, especially from Unifor, Flou and Zanotta, those who are also very popular companies of design and furniture in Italy. Cappellini has been striving to rival these competitors and enlarging its market share in the market, and China mystery shopping has been studying the corresponding effects.

1969. Molteni & C. expanded its field of activity to include furniture that was not only for the home, but also for work environments. That’s how Unifor was born, a division that develops and creates designs for the contemporary office space. Autonomous structure, that operates in an integrated manner with other companies in the group, with which it shares resources, basic organization and a system of related services.

Flou, accompany with the precise objective of innovating the bedroom and create a new “sleep culture”, was founded in 1978. Flou had arrived and its continual development saw esthetics and function going hand-in-hand with innovation in the field of materials, technology, and rationalization of the production processes. However, the company philosophy remained unchanged: to produce excellent beds, designed with the precise objective of improving comfort, wellness and quality of life.

Zanotta’s history can be said to be a miniature of the entire Italian contemporary furniture development history. This company, who has accompanied the rise of Italian design in the 1950s, played an indelible role during the progress of gradual dominance of Italian design in the world. Zanotta’s products are sold throughout Europe and the United States, Canada, South America, Japan, Australia. Its exports take up 40% of total sales.

Edited by Amy Wang from Daxue consulting China.

Picture source: baidu

This article China Market Research on the Italian Designer Cappellini is the first one to appear on Daxue Consulting - Market Research China.

Driade is an aesthetic workshop that from the start, began working with designers capable of anticipating new trends. It employs a philosophy of home-living based on the conviction that eclecticism, cultural collage, curiosity and surprise, represent the true sense of our age. Through the years it has produced furniture and other products to suit every furnishing and lifestyle requirement. Today, the Driade catalog is composed of finished furniture, equipment, kitchens, complimentary furnishings and objects of art and daily use.

China market report on Driade’s most recognized designers

Driade owns a number of famous and talented designers, shown by a China market report. And the most recognized ones include:

Naoto Fukasawa: Fukasawa was born in Yamanashi, Japan, in 1956. He graduated in 1980 from the department of product design at Tama Art University. After eight years of working in the United States for the IDEO studio, he became director of their Tokyo branch. In 2003 he founded Naoto Fukasawa Design.

Shaun Fynn: Fynn was born in Chester, England in 1968. In 1989, he received a Bachelor of Arts degree in Industrial Design from Central St. Martin’s College of Art and Design in London. After graduation he freelanced in London before moving to Milan in 1991 and then onto Los Angeles in 1993 where he collaborated with renowned design studios.

Driade’s main competitors and its China strategy: Flou, Zanotta, Cappellini

Driade’s main competition comes directly from other Italian brands of design and furniture, especially from Flou, Zanotta and Cappellini. Driade has made its China strategy to rival these competitors and gain a larger market share than them.

Flou, a company with the precise objective of innovating the bedroom and creating a new “sleep culture”, was founded in 1978. The company prides itself on how its products’ aesthetics and function go hand-in-hand with innovation in the fields of materials, technology, and rationalization of the production processes. Since its inception the company philosophy has remained unchanged: to produce excellent beds, designed with the precise objective of improving comfort, wellness and quality of life.

Zanotta’s history can be said to be a miniaturized version of the entire history of Italian contemporary furniture development. The company, who accompanied the rise of Italian design in the 1950s, played an indelible role during the rise of Italian design in the furniture industry. Zanotta’s products are sold throughout Europe and the United States, Canada, South America, Japan, and Australia. Its exports make up 40% of its total sales.

Cappellini strategy revolves around its limited edition products, to increase the value of its products and the cultural solidity of its realizations, but also to preserve a pinch of healthy fun. Cappellini also conducts in depth research to ensure that its limited edition products will be successful. Progetto Oggetto’s products are simplistic, yet elegant.

Daxue consultants China

Sources:

• Yahoo
• Driade
• China Furniture PDF 1
• China Furniture PDF 2

Picture source: bing

This article Market report: Italian furniture in China – Driade is the first one to appear on Daxue Consulting - Market Research China.