Changes in Custom Furniture Industry–In recent years, China custom furniture has been changing with the needs of people. From the original single product customization to the current space customization, then to the whole house furniture customization. China custom furniture market is developing faster and faster. It has become the most important trend in the current furniture industry. Today, we will share with you the main changes in the custom furniture industry.
1. Changes in market channels
As the property purchase restriction policies of China’s third- and fourth-tier small towns become more relaxed. The whole house furniture customization is no longer a “patent” for first- and second-tier cities, and custom furniture companies can focus more on the third- and fourth-tier markets. At present, the leading custom furniture enterprises have basically completed the market layout of first- and second-tier cities, and many custom furniture enterprises have already set the channels for third-tier cities. Therefore, the key targets of the customized furniture market can be placed in the market of four-tier cities in China.
The first-hand property market in the third- and fourth-tier cities have developed rapidly. Many people have bought new houses before the land prices have not risen. But most people still choose to buy the finished products produced by the traditional assembly line. Therefore, The custom furniture market in China has great potential and space for development. Custom furniture companies should promote the concept of “customization” to more small cities, increase support for dealers, attract more merchants to join, and occupy with cost-effective products, in order to benefit thousands of families in this market.
2. The rise in timber prices
The timber industry is closely related to the industries of plates, building materials and furniture. As the main raw material of the plates, the price changes will have a huge impact on the plating industry. First of all, the plates industry is the intermediate link in the production and sales chain. The rise in timber prices directly leads to an increase in the cost of sheet metal, which leads to a sharp drop in profits. Secondly, in order to obtain higher profits or to avoid losing money, it is highly probable that plate companies will increase their timber prices by transferring the price pressure to consumers, which triggers the price increase in the plating industry, causing consumer dissatisfaction.
Industry experts pointed out that for Chinese custom furniture companies that meet customer needs as the core advantage, it must not be Neglecting consumers’ psychological price of panel furniture, it is necessary to control quality, improve quality, and provide high-quality and cost-effective products for the target population.
3. Changes in the furniture market environment
Under the background of Industry 4.0, custom furniture enterprises can combine the individualization of consumer demand with the standardization of mass production through the big data platform to provide consumers with more and more high-quality products and services.
In the traditional production process of ready-made furniture, there is a large number of raw materials and waste of manpower, which also leads to high prices of branded finished furniture.
At present, the penetration rate of China custom furniture in the furniture industry is about 20%-30%. Compared with the penetration rate of 60%-70% in developed countries such as the United States and South Korea. The custom furniture industry in China has much room for improvement. According to estimates, the annual compound growth of custom furniture brand companies in recent years is expected to continue to exceed 30%, and companies with good performance are expected to exceed 40%.
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