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| Expert Forecast: "Blowout" Phenomenon to Occur in China's Cupboard & Furniture Market in the Next 5 Years |
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| January 4, 2006 |
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As shown by statistic figures of China Building Material Industry Association, the total output value of China's building decoration industry has maintained 20% annual growth rate while the total output value of China's home decoration industry has maintained a higher than 30% annual growth rate. With high-speed growth of the above two sectors, the cupboard furniture market, an important part of the home decoration market, has witnessed an amazing growth rate. Since late 1990s, China's cupboard industry has almost witnessed a redoubling annual growth rate. By mid-1990s, the annual market demand of Chinese households for cupboard had hit 10,000 sets.
As shown by market survey, only 6.8% of Chinese urban households possess integrated cupboard furniture, which lags far behind such developed countries as Europe and USA where 35% urban households possess cupboards. Fortunately, however, 29% urban households indicate they will purchase integrated cupboard furniture in the next 3-5 years. As estimated by insiders, in expenditure for future urban home decoration, the cost for kitchen decoration will account for higher than 30%, of which, the cost for cupboard furniture will account for 60%. At China First Kitchen & Toilet Industrial Development Forum and International Trend Press Conference, some experts estimated that ?Blowout? phenomenon will occur to China's kitchen furniture market in the next 3 to 5 years. In the next 5 years, China will have a market capacity of 29 million sets of integrated kitchen furniture, 5.8 million sets per year on average. If each set of integrated kitchen furniture costs RMB 10,000 and cost for cupboard accounts for 60% in this expenditure, the market scale for cupboard furniture alone will hit RMB 35 billion. In turn, the rapid growth of integrated cupboard furniture will trigger a sharp growth in demand for timber, artificial boards, painting, household appliances, aluminum alloy and other relevant products.
Currently, based on survey and statistic figures, China has more than 500 cupboard production enterprises. Of these enterprises, however, fewer than 100 are above-scale enterprises and even fewer implement standard operation in production and sales. |
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