Safe Housing Brings Business Opportunity to Furniture Industry Up to 360 Billion Potential Market

Some experts in China's furniture industry entrepreneurs and industry associations interviewed by reporters in Beijing said that the ongoing construction of affordable housing in China will bring enormous business opportunities to the furniture industry and promote the industry's standardization and large-scale development.

Cao Yingchao, former secretary-general of the China Furniture Association, said that China must build 36 million sets of affordable housing within five years and calculate 10,000 yuan for each purchase of furniture, which will generate a market of 460 billion yuan. This is a conservative figure. Many households that have access to affordable housing may spend between 20,000 and 30,000 yuan on furniture.

Cao Yingchao said that the protection of housing furniture needs to be low in price, small in size, new in design, and of good quality. Not only must the quality be up to standard, the design must not be sloppy. “Even if the price is low and the grade of the material is relatively low, we must create an artistic design style that is suitable for ensuring the unique lifestyle of the house.”

He said that the Ministry of Housing and Construction, the General Administration of Quality Supervision, and the Furniture Industry Association will successively introduce standards for ensuring the protection of furniture, impose mandatory requirements on enterprises, and ensure product quality. On the other hand, companies do according to standards, have clear directions, and have a more streamlined transformation path.

In fact, some furniture companies and investment companies have begun to focus on the development of affordable housing. In Tongzhou International New City, Beijing, a large-scale furniture store with a planned area of ​​2.6 million square meters has been completed. It plans to attract thousands of furniture companies to settle in, and the protection of the family will be It is an important market for this "city outside the city's venture capital square."

According to Sun Jinfu, an executive member of Chengli City Outer Investment Group, “Outside the city and town” will organize 500 production enterprises, more than 2,000 brands, and ** protect low-income families. At the same time, benefits are granted when the home is guaranteed to purchase products.

In addition, industry insiders in the furniture industry expect that the construction of affordable housing will accelerate the survival of the fittest within the industry. Cao Yingchao said: "The protection of the room is more standardized, standardized and modularized. It is more suitable for mass production. It will give birth to a large number of large-scale modern furniture companies. If the quality of the small workshop is small, if it cannot be transformed and upgraded, Will be eliminated by the market."

Sun Jinfu said that the annual output value of China's furniture is nearly trillion yuan, and that according to the average growth rate of 22.2% over the past 30 years, the total output value of China's furniture industry is expected to exceed that of the automotive industry by 2015. However, 80% of companies with an industry-wide scale of 300 or less account for 90% of the production capacity of small and medium-sized enterprises. Production is not large-scale and the cost is high. The “overlord-class” company that can lead the industry is in urgent need.”