Market Trends of China Upholstered Furniture Industry
E-commerce Sales is Escalating in China Upholstered Furniture Market
China's e-commerce expansion is the highest in the world and is expected to reach 44% and beyond. One positive trend for the upholstered furniture market in China is the significant increase in e-commerce sales. Over 50% of worldwide retail sales on the Internet are from China. Many small and medium-sized manufacturers of upholstery furniture use the O2O e-commerce model, which connects online sales and marketing with offline business operations and consumption. Customers can order furniture through the website or visit the store to place an order. Ikea is also an example of a company that has started selling on the Chinese e-commerce platform Tmall, marking the first time in its 77-year history that the retailer has sold through a third party.
Growth in the Real Estate Industry
China has become a major player in the market for upholstered furniture due to its strong manufacturing capabilities and highly skilled labor force. The country's growing middle class, rising disposable income levels, and evolving consumer preferences have made it an attractive market for stylish and comfortable furniture. Moreover, the expansion of the real estate market, urbanization, and infrastructure investments have created ample opportunities for market growth. Since the launch of the government's "ensuring timely delivery of presale housing" initiative in July 2022, more than 1.65 million presale homes have been delivered. This has had a significant impact on the market, boosting confidence in the real estate sector and driving demand for home furnishings, including upholstered furniture.
The rapid urbanization and changing lifestyles in China have created opportunities for the real estate industry to boom. As more people move into towns and cities, the demand for homes is expected to increase, leading to a corresponding increase in demand for home furnishings, including upholstered furniture. Additionally, the demand for office and commercial spaces has contributed to the market's significant growth. Overall, China's upholstered furniture market is poised for continued growth due to various factors such as the expanding middle class, rising disposable incomes, increasing urbanization, and changing consumer preferences. The market presents significant opportunities for businesses looking to enter or expand their presence in this sector.
