Furniture Market in China

Updated: Jul 21

May 19, 2022



Furniture is in high demand in China, which has a large population and an ever-growing middle class, making it an incredibly profitable industry.


The growth of the Internet, artificial intelligence, and other advanced technology in recent years has aided the development of the furniture sector. The impact of COVID-19 reduced the size of the furniture industry's market in 2020. According to data, retail sales in China's furniture business totalled 159.8 billion yuan in 2020.

“As per estimates, China leads online furniture sales globally with an estimated sale of over USD 68.6 billion in 2019. The rapid development of e-commerce in China has increased the sales channels for furniture in the past 2-3 years. The online sales of furniture through online distribution channels increased from 54% in 2018 to around 58% in 2019 as consumers are showing a rising preference for the purchase of furniture products online. The steady growth in e-commerce and the rise in retailers adopting online channels for selling their furniture products is anticipated to further increase the demand for furniture products in the country.”

The Myth of “Made in China”


The "Made in China" myth is well-known around the world. People believe that Chinese items are of poor quality. This is certainly not the case. If the Chinese had been producing furniture while sacrificing quality, their exports would not have expanded so much. Since designers began having their furniture made in China, this perception has shifted in the Western world.


There are more and more quality suppliers in China that can make quality items at reasonable pricing, such as Nakesi, a Guangdong plant that solely does OEM for high-end customers outside.



When did China Become the Largest Exporter of Furniture?


Prior to China, Italy was the leading furniture exporter. However, in 2004, China overtook the United States as the country with the most furniture exports. Since then, there has been no looking for this country, and it continues to supply the globe with the greatest number of furniture. Many of the major furniture designers have their furniture manufactured in China, though they normally avoid discussing it. China's population is also important in making the country the largest exporter of numerous things, including furniture. With an estimated value of 53.7 billion US dollars in 2018, furniture was one of China's biggest exports in 2018.


The Exclusivity of the Chinese Furniture Market


China's furniture may be rather distinctive. You may even find furniture that does not utilize nails or glue. Traditional Chinese furniture manufacturers believe that nails and glue shorten the life of furniture by rusting and becoming loose. They create furniture such that all elements may connect with each other without the need for screws, glue, or nails. If built of high-quality wood, this sort of furniture can last for decades. To properly assess the amazing technical mentality of Chinese furniture producers, you must experience it. You'll be shocked at how they link various sections without leaving any trace of the connection. It appears that only one piece of wood was utilized to construct the whole sculpture. This is beneficial to all stakeholders involved in the furniture sector, including manufacturers, designers, and retailers.


Source: Statista


Areas where the Local Furniture Industry is Concentrated in China


China is a large nation with several local furniture industries in various areas. The Pearl River Delta has the greatest furniture production rate. Because of the abundance of natural resources, it has a strong furniture business. Shanghai, Shandong, Fujian, and Zhejiang are also well-known for their excellent talents in creating high-quality furniture. Because Shanghai is China's largest metropolitan metropolis, it has a massive furniture market, maybe the largest in the Yangtze River delta. The centre and western areas of China lack the necessary resources and facilities to support a robust furniture sector. This industry is still in its infancy over there, and it will take time to mature.


Beijing, China's capital city, has an incredible flow of resources accessible to furniture manufacturers. All of the tools and facilities necessary for furniture production are also there, thus an increasing number of furniture manufacturers are interested in opening corporate headquarters in Beijing.



Why Does China Produce Higher-Quality Furniture Than Other Countries?


Although China has a reputation for creating low-quality goods, it also produces high-quality furniture. According to a study, more than 50,000 enterprises in China create furniture. Surprisingly, the majority of them are small to medium-sized businesses with no brand identity. In recent years, various enterprises with their own brand identities have evolved in the furniture manufacturing sector. These firms have enhanced the industry's degree of competitiveness.


According to a poll performed by the Hong Kong Trade Development Council (HKTDC), small to medium furniture firms in China may make a lot of money if even a tiny fraction of the Chinese population decides to get rid of its old-fashioned furniture and embrace a more modern style. This adaptability and growth within the business are why producing furniture in China is the best option for meeting consumer wants and desires.


Revenue in China on the rise


The most crucial evidence that China manufactures higher-quality furniture than its competitors is the growth in income. According to one estimate in 2010, 60 percent of China's entire income came from its furniture business, which was sold both locally and internationally. The COVID-19 epidemic harmed the industry in 2020, but long-term growth is likely to recover. Over the next five years, industry revenue is predicted to expand at an annualized rate of 3.3 percent, totalling $107.1 billion.


While metal furniture is currently more popular in the West than wood furniture, China is predicted to outperform the West in this industry due to its incredible furniture-producing skills and refusal to compromise on quality. As previously said, this is a positive indicator for both makers and sellers since it increases the perception and worth of the market as a whole.


China Furniture Market Trends

The Impact of China's Urbanization on the Furniture Market


China's economy has been booming, and it doesn't appear to be slowing down anytime soon. Because of employment prospects, higher education, and a substantially better lifestyle, the younger generation is now migrating to cities. Because the younger generation is more trend-savvy and self-sufficient, many of them are living on their own. The ever-increasing trend of new home construction has likewise pushed the furniture sector to new heights.


As a result of urbanization, new brands have emerged in the Chinese furniture sector. Their most devoted clients are younger individuals, who are more likely to adopt new trends and have tremendous spending power. This urbanization is also having a detrimental impact on the furniture sector. It is causing forest loss, and high-quality timber is becoming increasingly rare and expensive. Furthermore, there are several groups striving to protect the environment and minimize deforestation. The government is taking steps to boost the number of trees in the country in order to ensure that While safeguarding the environment, the Chinese furniture sector continues to flourish. Because this procedure is time-consuming, Chinese furniture manufacturers import wood from other countries, and some firms export finished wooden items and furniture to China.


Living & Dining Room Furniture: the biggest selling segment


This area has been gradually rising, accounting for roughly 38 percent of the Chinese furniture market in 2019. The living room category is soon followed by kitchen and dining room equipment in terms of popularity. With the proliferation of high-rise structures, this tendency is notably visible in the country's southern and eastern regions.


IKEA and innovation within the industry

IKEA has a very excellent and established business in China, and the brand's market share grows year after year. Ikea collaborated with Chinese e-commerce giant Alibaba in 2020 to build the first large virtual shop on Alibaba's e-commerce platform, Tmall. This is a very smart business move since the virtual shop allows the Swedish furniture manufacturer to reach many more consumers and experiment with a new manner of promoting their items. This bodes well for other furniture brands and producers since it demonstrates the market's phenomenal development and the innovations accessible for them to reach consumers.


The Popularity of “Eco-friendly” Furniture in China


The notion of eco-friendly furniture is becoming increasingly popular. Chinese customers recognize its significance and are willing to invest in it, even if it comes at a greater cost. Eco-friendly furniture is devoid of any toxic chemicals, such as fake odours and formaldehyde, which can be damaging to one's health.


The Chinese government is likewise concerned about the environment. This is why the government enacted the Environmental Protection Law in 2015. Many furniture firms were forced to close as a result of this regulation since their practices were incompatible with new protectionist rules. The regulation was clarified further in December of the same year so that furniture makers are aware of the requirement to use formaldehyde-free goods that are not damaging to the environment.


The Demand for Kids Furniture


Because China has a two-child policy, many new parents want to provide their children the best they can. As a result, demand for children's furniture has increased in China. Parents want their children to have everything from their own bed to their own study table, but a crib and a bassinet are also required when a child is young.


According to one survey, 72 percent of Chinese parents choose superior furnishings for their children in order to ensure their child's safety. Premium furniture is more suited for children since it is devoid of dangerous materials and is less prone to accidents. As a result, parents rarely have to worry about sharp edges. Furthermore, quality furniture is available in a variety of styles, colours, and cartoon and superhero figures that are popular among children of various ages. It is critical for furniture businesses doing business in China to evaluate the relevance of this market segment from the design process all the way through to the selling phase.



The Increase in the Production of Office Furniture


China is one of the most popular economic activity centres. Every year, several multinational brands invest in China. Many global firms, as well as domestic corporations, have offices here, and many more are opening every other month. As a result, there has been significant growth in the demand for office furniture. Because deforestation is generating major difficulties in China, plastic and glass furniture are becoming increasingly fashionable, particularly in workplaces. Some non-profit groups are attempting to raise awareness about the long-term benefits of non-wooden furniture. Because of the negative impacts of deforestation in and around numerous cities, the Chinese people are acutely aware of this reality.


Furniture Production and the Opening of Hotels


Every hotel requires modern and attractive furnishings to ensure the comfort and attraction of clients. Some hotels and restaurants attract clients not because of the quality of their cuisine, but because of the furnishings and other amenities they provide. It is difficult to acquire the best-suited furniture in large quantities at affordable prices, but if you are in China, you may simply obtain creative furniture.


Another factor that the economic boom has given birth to is the concept of more and more hotels opening up in China. They range from 1-star to 5-star hotels which are constantly competing with each other. The hotels not only want to provide the best possible services to their guests but also want to give themselves a contemporary look. This is because the furniture industry is always busy providing high-quality and trendy furniture to the various hotels present in China. Therefore, this is a specific niche that can be incredibly profitable if exploited correctly.



A Market Full of opportunities


The Furniture Industry Provides a lot of Job Opportunities


Because of its enormous population, China has a large number of individuals seeking work. Many employees have been created by the furniture sector. The whole process of creating furniture, from cutting wood to transporting it, requires a significant amount of effort. The Chinese government's primary goal in growing the furniture business was to give opportunities for its underprivileged citizens to work and support their families. Initially, its target market was limited to low to medium local customers.


Because of the country's low unemployment rate, the Chinese government did not put many unneeded regulations on its industry. The next stage for these sectors is to identify an efficient staff and create novel processes.


The world is changing, and today metallic alloys, plastic, glass, and polymer materials may be found in furniture. When compared to wooden furniture, furniture constructed of these materials is less costly and creates less environmental impact. Industries must have a suitable staff to make furniture made of unique materials. So, people with a one-of-a-kind ability in this profession are the future of the industry, and you may use that gift to make a fortune. Finding a manufacturing partner with highly qualified and dependable staff is critical.


Outsourcing of Western Furniture


Even in the West, China has emerged as the most popular furniture market. Even designers rely on the Chinese market to offer them high-quality furniture with a stunning finish at a reasonable price. Even the fabric used on various furniture items is sourced from China due to its unrivalled quality. Shang Xia and Mary Ching are two Chinese enterprises that have collaborated with several Western counterparts to export their furnishings.


Many designers also import furniture from China and market it under their own brand name. This is why China is currently developing as a reliable furniture market in both the Western and international markets. Ironically, the identical furniture created in Italy or America costs more than twice as much as that manufactured in China and shipped to these same nations. Instead of just adapting to what is created in Asia and notably China, China understands how to incorporate the Western sense of style in producing and designing its furniture.


American Retailers & Chinese Furniture


Many American shops are enthusiastic about Chinese furniture. IKEA and Havertys, for example, import furniture from China and sell it in their stores. Other firms that offer furniture produced in China include Ashley Furniture, Rooms to Go, Ethan Allan, and Raymour & Flanigan. Ashley Furniture has even launched several locations in China to provide the Chinese consumer with greater power.


However, in America, the cost of purchasing furniture has begun to fall. The American furniture sector is once again improving, and labour costs have fallen. Furthermore, several American firms are increasingly collaborating with Italian leather producers to produce leather furniture. However, Chinese furniture is still in great demand and will be for a long time.



The Demand for Furniture Malls


China is clearly keeping up with the furniture game. Due to strong customer demand, more furniture malls are currently opening around the country. Because of the diversity and varied sorts of the pricing available, potential buyers prefer visiting these malls to going to a solitary business. Many businesses also have their own websites for their tech-savvy clientele.


Guangdong the furniture centre in China


Guangdong province is home to 70% of furniture suppliers. With the correct amount of marketing and good production quality, the Chinese furniture sector will undoubtedly go somewhere. The combination of low costs and high quality has made it a favourite not only in the local market but also in the worldwide market. Here is a list of China's most popular furniture marketplaces, malls, and shops.


China Furniture Wholesale Market (Shunde)


This massive market is located in the Shunde district. It has about every type of furnishings. The fact that it has more than 1500 manufacturers gives an idea of the scale of this market. Because there are so many options, it is best to research the most popular and reputable furniture manufacturers before venturing into the market. Furthermore, because this market is 5 kilometres long and has over 20 separate streets, you will not be able to visit all of the businesses. The wonderful thing about this market is that you may locate your ideal furnishings in the very first shop. Because it is close to Lecong city, this market is also known as the Foshan Lecong wholesale furniture market.


Louvre Furniture Mall


This is the place to go if you want high-end furniture with great quality, distinctive design, and appealing texture. It resembles a castle rather than a shopping mall. This mall's setting is really comfortable, so you can easily spend many hours exploring it. If you are a businessman looking to build a furniture business, you should check out this mall since you can find high-quality furniture at reasonable prices. This mall has become an important supplier for China's furniture sector.You do not need to be concerned about scammers because all of the stores in this region are really trustworthy. If you are a tourist who is unsure where to buy trustworthy furniture without getting cheated, this is the spot for you.




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