Ikea

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HOME FURNISHINGS IN CHINA
Euromonitor International November 2009

HOME FURNISHINGS IN CHINA

PASSPORT

I

LIST OF CONTENTS AND TABLES
Headlines ..................................................................................................................................... 1 Trends .......................................................................................................................................... 1 Competitive Landscape ................................................................................................................ 1 Prospects ..................................................................................................................................... 2 New Product Developments ..................................................................................................... 2 Summary 1 Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 New Product Launches 2007- 2008 ............................................................. 2 Sales of Home Furnishings by Subsector: Value 2003-2008 ....................... 3 Sales of Home Furnishings by Subsector: % Value Growth 2003-2008....... 3 Home Furnishings Company Shares 2004-2008 ......................................... 3 Home Furnishings Brand Shares 2005-2008 ............................................... 4 Sales of Home Furnishings by Distribution Format: % Analysis 20032008 ............................................................................................................. 4 Forecast Sales of Home Furnishings by Subsector: Value 2008-2013 ........ 4 Forecast Sales of Home Furnishings by Subsector: % Value Growth 2008-2013 .................................................................................................... 5 Sector Data .................................................................................................................................. 3

© Euromonitor International

HOME FURNISHINGS IN CHINA

PASSPORT

1

HOME FURNISHINGS IN CHINA
HEADLINES
Home furniture market increased to RMB 136.34 billion with 14.6% increase against 2007 Recovered real estate given a chance for home furnishing sector to grow Carpets were the highest growth subsector in 2008 with 16.3% Ikea and Qumei are the top players in 2008 2008-2013 CAGR to be 13.6% since demand will be stable or increasing during the forecast period.

TRENDS
Home furnishing was negatively affected by the recession in 2008, but increasing home ownership created a large market for home furnishing. Market growth is slower compared with 2007, as consumers hesitated to buy furnishing instead spending on necessities. The government took a proactive attitude to enlarging domestic consumption, by innovating new production, expanding rural markets and promoting the use of textile products in relevant industries, while expanding export destinations to stabilise share in the international market. Carpets were the best performing with 16.3% in 2008, since carpet prices dropped and consumers gradually accepted carpets as decorative products. When the government released its stimulus plan, it announced plans to increase the tax rebate rate for textile and garment exports from 14% to 15%, which would reduce exporter's costs and support the textile industry. Besides short-term benefits, the plan also provides instruction on the structural reform and industrial upgrade of the textile industry in the long run. The unit price has been decreasing for years since low-end products were starting to dominate market sales. Furthermore, market players had to give discounts in order to boost sales. In terms of distribution, about 54% of sales were from furniture and furnishing stores, increasing during the review period, while sales from mixed retailers declined. Market shares from non-store based retailers like home shopping and internet sales were increasing. Freebies and cheap prices were the main method of attracting consumers....
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