As of September 2017, the total revenue of the China furniture manufacturing industry was RMB 674.77 billion, with a year-on-year growth of 11.10%, increasing 3.2 percentage points over the same period last year. The gross profit of the industry was RMB 40.43 billion, with a year-on-year growth of 11.20%, increasing 0.5 percentage points over the same period last year. From 2016 to 2017, real estate sales boosted by an explosive growth in China, by which the revenue and profit of furniture industry was driven to increase synchronously.

The major business growth of China furniture manufacturing industry accelerated in 2017

The profit growth of China furniture manufacturing industry increased slightly in 2017

In 2017, Chinese real estate was restricted by the purchase restriction policy in many places. The sales growth rate decline rapidly. Until September 2017, the sold area of Chinese real estate was 1,160,061,600 square meters, with a year-on-year growth of 10.30%, the growth declining by 15.6% over the same period of last year. The sales amount of real estate was RMB 9.190353 trillion, with a year-on-year growth of 14.60%, the growth declining by 26.7% over the same period of last year. Although the sales growth of real estate has declined obviously, the increment of the past year has formed a stable support for the demand side of the furniture industry in 2017.

China furniture consumer groups

At present, China furniture consumer groups mainly concentrated in the age of 25-35 years old. The consumers at that age are often just married or in early marriage, in great purchase or update demand for furniture. By the base year of 2016, 25-35 years old people were born in 1981-1991 when the average birth rate was 21.3%, the highest value since China's reform and opening to the outside world. Especially during the period of 1986-1990, Chinese average birth rate reached 22.2%, which explained that the proportion of the total population of 25-30 years old in China has been increasing year by year in the past 5 years. For people of 25-30 years old, they will still be one of the main forces of furniture consumption in next 5 years, providing an objective support for the demand increment of the furniture market.

Custom-made furniture industry

In 2017, the demand in the custom-made furniture industry also obtained stable support, the overall performance in a big rise. The listed custom-made furniture enterprises achieved total revenue of RMB 20.058 billion with a year-on-year growth of 36.22%. The net profit was RMB 2.388 billion, with a year-on-year growth of 38.98%. The gross profit rate was 38.21%, with a year-on-year decrease of 0.84%.

(Source:jiagle.com)