Unlock the development status and trends of China's custom home industry

I. Introduction

Furniture, as an indispensable part of housing decoration, can play a role in security, decoration, psychological satisfaction and so on, and is an important demand for people to live.

Second, furniture industry development status

Benefiting from the steady development of the national economy, the domestic furniture industry has a higher growth rate than other major consumer products and service retail industries. According to the statistics of enterprises above designated size by the National Bureau of Statistics, from 2011 to 2016, the main business income of China's furniture manufacturing industry has been rising year after year; In 2017, after years of sustained growth, the main business income of furniture manufacturing was adjusted.

Third, the development prospects of furniture industry

1 The increase in national income level provides support for the growth of industry demand

With the development of macro-economy, the disposable income of urban residents in China continues to grow, and the consumption power of residents is improved. At the same time, the consumption structure and consumption concept of residents have also undergone certain changes. The factors affecting the consumption behavior of residents have gradually developed from the simple price factor to the comprehensive factors such as brand, quality, reputation, service and shopping environment. At the same time, the increase in disposable income of urban residents also provides a strong support for the growth of demand for the overall home industry.

2 The national urbanization level continues to improve, providing a broad market for the furniture industry

Since the beginning of the 21st century, China's urbanization rate has continued to increase. From 2011 to 2019, China's urbanization rate increased from 51.27% to 60.60%. The National Development and Reform Commission issued the Key Tasks of New Urbanization Construction in 2019, proposing to continue to strengthen the reform of the household registration system, comprehensively relax and relax the conditions for settling down, and completely remove the restrictions on settling down of key groups. We will actively encourage rural migrants who are already employed in urban areas to settle down. The accelerated urbanization process and the accompanying population migration are conducive to the development of the real estate market and the overall home furnishing industry.

3. The huge marriageable population has become the main consumer

The demand for marriage and childbearing housing has made the demand for decoration and furniture grow steadily. In the 1980s, China entered the third baby boom, and the number of people born between 1985 and 1998 was at a relatively high level. These age groups currently belong to the marriageable and childbearing population, which is the main force for future housing demand. The population growth brought about by the peak birth period will promote the demand for house purchases, which will lead to an increase in the demand for decoration and furniture.

4. The real estate market continues to provide room for the development of the furniture industry

In recent years, the continuous development of China's real estate and construction industry has effectively improved the housing conditions of urban residents. Under the tone of adhering to the real estate policy of "housing without speculation", the steady development of the real estate industry has brought about an increase in residential sales area, which has promoted the steady growth of the home decoration and furniture market.

5 Fine decoration development into the fast lane, while vigorously develop green building materials

The "13th Five-Year Plan for the development of the construction industry" clearly requires that by 2020, the newly started fully renovated finished residential area will reach 30%, the proportion of urban green buildings in new buildings will reach 50%, and the proportion of green building materials application will reach 40%. Under the advocacy of the central government, the local government has also introduced the corresponding "full decoration" policy, clearly put forward the full decoration coverage rate, and strive to improve the full decoration penetration rate. As of the first half of 2019, the local governments that have issued fine decoration policies across the country have exceeded 35 provinces and cities. The whole decoration has entered the fast lane of development, and the bulk engineering business brought by it will drive the rapid growth of the furniture industry. In addition, in the future, China's furniture industry will also pay more attention to the green environmental protection of production processes and products, effectively reduce the energy consumption of the production process, and further protect the health and rights of consumers.

Fourth, the development status of the custom home industry

The whole home customization refers to the complete customization of the whole house furniture based on the user as the center, and the relationship between furniture and interior decoration and decoration is fully coordinated from the design. Among them, the wooden part is manufactured according to the design style, so as to achieve the consistency of style and the combination of technology. Mengtian Home is mainly engaged in the integrated customization of wood furniture, wooden doors, cabinets, wall panels, ceiling and other products in the whole home. With the growth of residents' income, the upgrading of consumption concepts and the improvement of environmental awareness, people's demand for furniture products is not limited to meeting the basic function of use, but more preference for personalized design, quality, brand consumption orientation, making the demand for customized products continue to increase, and promote the custom home market in the furniture industry.

1 Custom home concept

Customized home refers to the home service tailored for consumers, through the automation and large-scale production of personalized panel furniture to meet the individual needs of consumers.

2 Custom home industry characteristics

Compared with the large-scale, standardized finished furniture industry, the custom home industry has the following characteristics:

According to consumer demand for customized production of furniture, enterprises in the front end of the order after production, sales set production, products basically zero inventory, making customized home furnishing enterprises than finished home furnishing enterprises less capital occupation;

The characteristics of non-standardized products determine the long service chain provided by custom home enterprises, covering a complete set of service processes such as design, production and installation;

Standardized production through automation and flexible manufacturing at the back end of the enterprise can release scale effects and improve the efficiency of the manufacturing process;

The distribution channel sales of customized home furnished enterprises accounts for a relatively high proportion, and the end customers are mainly individual consumer groups, generally adopting the product final account model of prepayment reproduction, which makes its cash flow abundant and profit quality high.

3 Customized home industry chain

The custom home industry is in the middle of the manufacturing link in the industrial chain, the upstream is mainly the raw material supply link, and the downstream is the terminal sales market

(1) Correlation with upstream industry

Custom home industry is closely related to the upstream industry, mainly from the upstream to purchase sheet, veneer, wood lines, paint, hardware accessories, etc. The cost generated by the upstream procurement process occupies a higher proportion of enterprises in the custom home industry. In addition, because there are many building materials enterprises that supply raw materials, they can fully meet the procurement needs of manufacturing enterprises in the industry.

(2) Correlation with downstream industries

Companies in the custom home industry mainly provide products and services to consumers through terminal sales channels. Among them: the retailer (dealership and directly operated store) model is the traditional sales channel of customized home industry, which focuses on direct service to customers: providing customers with measurement, personalized solution design and other services in the early stage; After the completion of the product delivery, to provide customers with installation and after-sales service.

In recent years, with the diversification of industry sales channels, home improvement companies and real estate engineers continue to increase the penetration rate of the terminal market, and gradually become an important member of the future home improvement market. On the one hand, young consumers have gradually become the main force of consumption in the home market, coupled with the rise of Internet thinking, the "complete" model of integrating furniture, soft decoration and household appliances and other home elements by home improvement companies came into being; On the other hand, with the rapid advancement of the hardcover room policy, the rise of the mass engineering market is becoming an important driver of sales growth in the custom home industry.