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HABITA
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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,
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