ENGLISH  

HABITA

T  

China has become the largest consumer market for home products and the largest production center in the world.  In 2010 the Chinese HABITAT market consumed 10 times the turnover of IKEA worldwide  

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Products to be considered "HABITAT". Four main categories

• Furniture • Decoration • Lighting • Home textile

Among these four categories, the Chinese market total consumption was around 230,000 million € in 2010, this means Chinese consumers consumed 10 times the turnover of IKEA worldwide 2010 (23,000 million €).

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Without any doubt this is a spectacular figure, however we need to be careful how we interpret this data as only 10 % of this amount was invoiced by International firms operating in China, and only 5% imported from outside China. Growth of International firms in China is becoming exorbitant, for instance the growth of sales of IKEA in China in 2010 was 25%. Other companies such as NATUZZI, Chateau d 'AX, B & B Italia, iGICCINI Lighting China, Domani House, ... among others also had similar growth rates.

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It is worth mentioning some relevant data to understand the figures in China

Home textile sector accounts for 40% of the total HABITAT market (Total figure for HABITAT = 230,000 million € / 92,000 million € of turnover home textiles) .

Furniture industry accounts for 37% of the total HABITAT market, or about € 85,000 million.

Lighting and Decoration accounts for 23% (or 52,900 million €).

230  Billion  €  

HABITAT    Market  value  

85  Billion  €  

FURNITURE  Market  value  

52,9  Billion  €  

LIGHTING  &  DECORATION  

MARKET  TRENDS.    In  general,  from  looking  at  the  four  main  categories:  Furniture,  Lighting,  Decoration  and  Textile,  we  can  conclude  that  it  is  a  luctrative    industry  with  enormous  potential  and  is  rapidly  growing.  Not  only  is  consumption  growth  increasing  at  a  rapid  pace  there  is  also  a  shift  in  the  mentality  of  Chinese  consumers  who  give  priority  to  issues  such  as:    

ü Design  ü Branding  ü Exclusivity  ü Quality  

 This  shift  in  consumer  thinking  involves  a  change  in  consumption  habits  of  Chinese  families  that  directly  affects  the  sector  of  "HABITAT".  It  implies  a  change  of  mentality  in  other  agents  in  the  sector:  starting  and  ending  with  the  merchant  manufacturer  of  consumer  products  for  the  home.  It  is  within  these  changing  trends  where  we  see  the  opportunity.  

OPPORTUNITIES.    As  previously  discussed,  the  general  trends  in  the  sector  of  "HABITAT"  show  a  profound  change  in  consumer  habits  and  therefore  as  a  consequence  a  widespread  change  in  the  entire  value  chain,  from  manufacturer  to  the  retailer,  is  required.    Chinese  consumers  are  not  only  changing  their  habits  of  consumption  of  household  products,  they  are  experiencing  a  generational  change  that  opens  the  way  for  a  new  model  of  family  and  a  new  lifestyle,  much  like  the  European  way  of  life  where  consumerism,  exclusivity,  image  and  quality  of  life  become  the  dominant  values  in  society  as  a  whole.    This  generational  change  and  conceptualization  of  life  accompanied  by  strong  international  competition,  high  growth  and  high  inflation  requires  that  the  agents  are  part  of  the  sector  "HABITAT"  and  have  to  adapt  to  new  market  conditions  to  survive.    

Market  Trends  There is a shift in Chinese Consumer mentality giving priority to,

DESIGN BRANDING EXCLUSIVITY QUALITY

 Great  opportunities  for  new  entrants  who  bring  talent,  knowledge  and  new  designs.  

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CONCLUSIONS In  this  article  we  have  highlighted  four  very  important  concepts  in  the  HABITAT  market:  

     

ü Design  ü Brand  ü Exclusivity  ü Quality  

 They  are  the  symbol  of  change  and  are  the  four  premises  of  China's  new  consumer  market.  A  new  China,  full  of  "niche"  markets,  hungry  for  new  products  to  fill  their  lives  and  their  homes  in  a  manner  different  from  that  experienced  in  the  past.  China’s  new  consumer  believes  that  the  best  representation  of  the  style  and  quality  of  life  is  reflected  in  our  homes.  

 

 

 

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This  change  in  consumption  habits  associated  with  manufacturing  outside  the  orbit  of  design  and  modernity  means  that  there  are  huge  opportunities  for  new  entrants  who  want  to  contribute  their  knowledge  of  western  styling  and  provide  ideas  and  designs  to  the  new  China  of  Consumerism,  which  searches  for  modernity,  exclusivity  and  quality.    Chinese  agencies  in  the  sector  "HABITAT"  support  those  International  projects  that  contribute  their  part  to  the  modernization  of  industry  and  International  cooperation.  Among  the  organizations  contacted  by  CONSTRUMAT  the  following  are  most  relevant  CHINA:    

CHINA  COUNCIL  FOR  PROMOTION  The  OF  INTERNATIONAL  TRADE,    

CHINA  FEDERATION  OF  BUILDING  MATERIALS,    

CHINA  INSTITUTE  OF  INTERIOR  DESIGN,    

ARCHITECTURE  SOCIETY  OF  CHINA,    

CHINA  NATIONAL  FURNITURE  ASSOCIATION,    

CHINA  LIGHT  INDUSTRY  ASSOCIATION,