Development of the domestic furniture market is bolstered by an increase in purchasing power among Chinese customers. Continuously rising incomes in both urban and rural China have raised the living standards for a large share of the Chinese population, which has led to a significant growth in China Furniture Market.
Hence, Chinese consumers are willing to spend more on household decorations. As a response, the furniture market in the country has developed into a multi-billion dollar industry.
Top China Furniture Market Statistics
Rapid urbanisation has also spurred the growth of home marts in second‑ and third‑tier cities, where the market offers more room for development. As a result, expansion in the domestic market is set to become a key marketing strategy.
- China’s major furniture manufacturers reported rising profits in the first 10 months of 2022 (January to October), in spite of COVID disruptions and lockdowns. (Source – Xinhua news agency)
- Total profits of major Chinese furniture makers was 34.42 billion yuan ($4.88 billion), up 3.8% over 2021. (Source – Chinese National Bureau of Statistics)
- The Furniture Stores industry in China is expected to grow at an annualized rate of 3.7% over the five years through 2022, to reach $36.0 billion.
- There were 5,899 Furniture Stores businesses in China as of 2022, an increase of 0.1% from 2021.
- Combined operating revenue for the manufacturers was down 6.2% from the prior year figures at 610.75 billion yuan.
- In October 2022, the retail sales of furniture in China amounted to approximately 14.4 billion yuan. This equaled to around 6.6 percent decrease of the revenue generated in the same period of the previous year.
- The changing preference of consumers towards purchase mode has led to an increase of online distribution channels from 54% in 2018 to around 58% in 2022.
- The urbanization rate of permanent residents in China reached 63.9% in 2020 leading to an increase in demand for furniture.
- Shanghai (16 businesses), Guangdong (16 businesses) and Guangdong (16 businesses) are the States with the most number of Furniture Stores businesses in China.
About Chinese Furniture Consumers
Mainland furniture consumers can be roughly divided into three groups: avid consumers, luxury and branded goods consumers and average wage‑earning consumers.
1. Avid consumers: this is a very rich group of consumers with little concern for price. They usually favor expensive western style, classical Chinese style or avant-garde furniture.
2. Luxury and branded goods consumers: these consumers want furniture to reflect their taste and style. They appreciate aesthetics and cultural elements. They are at the forefront of trends in fashion, lifestyle and price.
3. Average wage-earning consumers: this group represents the majority of consumers, who see price and quality as the dominating factors when making purchases. They often shop around before buying.
Chinese Furniture Consumers – Buying Trends
- Chinese consumers have three main concerns when buying furniture: the environmental impacts (cited by 53.2% of consumers), the material used (52.7%) and the appearance and design (49.4%).
- In terms of materials, metal furniture (50.9%) and wooden furniture (40.5%) together account for more than 90% of the furniture manufactured in China, followed by soft furniture (8.6%).
- With an annual growth of 20%, the custom‑made furniture market is one of the industry’s bright spots. The custom‑made furniture market is expected to grow to RMB 334.2 billion by 2024.
- 42% of consumers ordering custom‑made furniture are from the younger generation.
- The market for children’s furniture could reach RMB 182.5 billion by 2024.
- China produced 801 million pieces of smart furniture in 2020, a year in which the market grew 11.4% to RMB170.5 billion. It was thought that China’s smart furniture market could exceed RMB200 billion in 2022.
Ikea’s Success Story in China in Numbers
The 5 top companies in the Furniture market in China are Macalline Group, IKEA Group, Beijing Easyhome Investment Holding Group Co. Ltd., Yuexing Group and Markor Furnishing Co. Ltd.
- Ikea announced a three-year strategy in 2019 especially for the Chinese market, which included 10 billion yuan of investment.
- Over the past three years, Ikea’s services have extended to nearly 1 billion Chinese consumers with the online platforms such as the Tmall store and online shopping mall on WeChat.
- Ingka Group, the parent group of Swedish home furnishing giant Ikea, will invest 5.3 billion yuan ($772.9 million) in China in the fiscal year 2023.
China Furniture Market Export Statistics
After decades of development in the furniture industry, China has become the world’s largest furniture producer as well as exporter. Being among the major export goods of China, a significant part of China’s furniture products are destined for the global market.
- In 2020, the total value of Chinese furniture exports amounted to around 58.4 billion U.S. dollars. Total export value of furniture was $75.14 billion in 2021. (Source – China National Furniture Assn)
- Vietnam’s hold as the top furniture exporter to the U.S. is a tenuous one at best, with just $2.5 million separating it from rival China based on activity in the first six months of 2022.
- While Vietnam grew its share by just 1% to $5.177.5 billion in the first six months of 2022, China significantly closed the gap with a 13% increase in exports to the United States for the same period, reaching $5.175 billion.