In recent years, the development and implementation of policies such as real estate destocking, second-child opening and urbanization acceleration have enabled the real estate market to maintain steady growth as a whole, which has also driven the development of its downstream custom furniture industry. Custom home businesses are on the market and continue to expand their territory.
Intensive listing of home furnishing companies, increased industry competition
Continuing the trend of intensive listing of home furnishing companies in 2016, this year's home furnishing enterprises are still “relay†listed. Since March, the home sector has continued to grow, and listed companies are involved in home improvement, furniture, building materials, stores and other fields. On March 7th, Shangpin House was listed on the Shenzhen Stock Exchange; on March 10th, the Piano Shenzhen Stock Exchange was listed; on March 28th, the European School was listed on the Shanghai Stock Exchange; on May 12th, the gold kitchen cabinets were listed on the Shanghai Stock Exchange; May 12 On the day, the IPO of Zhibang kitchen cabinet was approved. Industry analysts pointed out that listed companies have obtained capital support, which is conducive to expanding scale, upgrading design, research and development capabilities, increasing production capacity, strengthening corporate competitiveness; industry development prospects are promising, custom furniture, high-end furniture industry is expected to become a new profit growth point. In addition, the industry will intensify competition in the future.
Income growth is faster, and the increase is higher than the overall level of the industry
Judging from the three quarterly reports of listed home furnishing companies in 2017, most home-listed companies achieved double growth in operating income and net profit. Revenue increased by more than 30% year-on-year, and overall income maintained a high growth. Shen Wan Hongyuan Research Report shows that the income of key home-listed companies in the third quarter of 2017 increased by 34.2% year-on-year, and the custom-made home faucets continued to grow steadily by 30%-40%. Although there is a lag in the early stage of real estate sales, it can be seen that the growth rate of major home-listed companies is higher than the overall industry.
"On the one hand, the industry continues to integrate, leading the channel and brand power, product cost-effective and terminal channel service capabilities, the market share continues to increase. On the other hand, custom home enterprises gradually expand the whole house customization, leading enterprises to create multi-category home Strategy, the future is expected to cross the risk factors brought by the real estate cycle."
In terms of much-respected income, the fast-growing segment is still a custom home sector. Among them, the custom home furnishing industry grew by 36.9% in the first three quarters, the custom wardrobe industry's revenue growth in the first three quarters was 42.8%, and the custom cabinet industry's revenue in the first three quarters increased by 27.5%.
In addition, there are research data showing that in 2017, in the home industry, leading companies performed strongly. Sophia rose the most, reaching 34.2%, followed by Gujiajia, which rose by 20%. In addition, in the 2017 new stocks, Shangpin home furnishing and kitchen cabinet leading European-style homes were among the top gainers, 98.1% and 56% respectively.
The production capacity of the industry will be released in the future
A number of researchers said that in the context of consumption upgrades, the ability of leading home furnishing companies to add stores and increase customer unit prices will resist real estate downside risks. As China's urbanization rate continues to increase, the per capita income growth and individualized demand will increase, which will drive the rapid growth of custom furniture and high-end furniture performance, and is expected to become a new profit growth point. At the same time, the penetration rate of the custom cabinet industry will gradually increase in the future, and the whole house customization will also drive the customer unit price to increase, and the custom home will maintain high growth. In addition, the development of information technology in the industry is accelerating, production efficiency will continue to increase, and production costs will also decrease. In 2018, the profitability of home furnishing companies can be expected.
The custom furniture industry is ushered in a period of rapid growth, and there is huge room for growth in the future. According to the CITIC Jianye Securities Research Report, the custom furniture industry achieved a rapid growth of 30%-40% in recent years, which greatly exceeded the overall growth rate of the furniture industry by 15%-25%.
According to the “In-depth Research Report on China Custom Furniture Industry 2017-2021†issued by China Investment Consultant, the current custom cabinet penetration rate is about 60%, and the market capacity is close to 100 billion. The custom wardrobe has a penetration rate of about 30% and a market capacity of 50 billion. Other custom furniture penetration rate is about 10%, and the market capacity is 15 billion. The market capacity of the entire custom home sector is about 165 billion. Compared with the foreign share of 60%-70%, according to the growth rate of China's custom furniture comprehensive ratio of 5%, it is expected that the custom home market in 2020 is expected to exceed 300 billion, and basically reach saturation.
Guojin Securities pointed out that this year's intensive listing of customized home furnishing enterprises, the financing scale exceeded 10 billion, and the production capacity after financing will gradually be released in 2018 and 2019. For small enterprises, the release of production capacity of listed companies will increase the pressure on market share to be squeezed, and the pace of catching up with large enterprises will be even more difficult. After the whole assembly has become the development direction, the gap between large enterprises and small enterprises will further increase.
Conclusion:
The development and enrichment of the customized furniture market, in the case of the whole house customization, the overall home into the mainstream trend in the future, put forward higher requirements for home furnishing enterprises. Listed companies and large enterprises with excellent design teams and cooperation with many enterprises should seize opportunities and give full play to their advantages and seek further development. In the face of fierce market competition, small enterprises should pay attention to transformation and upgrading, formulate accurate strategic goals, and attach importance to Design and cooperation to stimulate business vitality and competitiveness.
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