Comparison between China and the United States: Americans have more demand for furniture

Comparison between China and the United States: Americans have more demand for furniture

With the recovery of the real estate industry around the world, the market prospect of household products is broad, which is a good opportunity for China’s cross-border e-commerce.

At present, among the major producing and consuming countries in the global furniture industry, the proportion of self-produced and self sold furniture in China can reach 98%, while the United States, also a major furniture consumer, imports 39%, accounting for only 61%.

Comparison between China and the United States: Americans have more demand for furniture

The demand of overseas furniture market is large, and e-commerce has become a new growth point

In the United States, Europe and other countries or regions with a high degree of market openness, the furniture market demand is large.

According to the data provided by Euromonitor, home furnishing and gardening ranked fourth in the market value of global consumer goods in 2013-2033.

Compared with shoes, hats, clothing and other e-commerce hot products, furniture is one of the traditional industries that are least impacted by e-commerce. The average annual compound rate of this category is estimated to be about 2.1%.

At the end of 2018, eBay released a set of data, which showed that in Germany, Chinese sellers could sell one home gardening product per second.

It is worth noting that the penetration rate of Chinese sellers in these categories remains at a low level.

It is expected that the home furnishing market on the whole line will show an upward trend in the next five years

The growth curve of furniture and household appliances in the North American market is the epitome of the global market trend

In 2021, the scale of furniture and household appliances in the North American market will be 85.3 billion US dollars. By 2025, the market scale will reach 98.3 billion US dollars on the basis of an increase of 15%, and the annual growth rate is consistent with the trend of the global market.

Comparison between China and the United States: Americans have more demand for furniture

Take household goods sales as an example

During the epidemic in 2020, the online sales revenue of household products still accounted for 12.19% of the total sales revenue of e-commerce

It is estimated that by 2025, the proportion of its online sales revenue in the total Gmv of e-commerce sales will drop to 10.86%, but its online sales revenue will increase to US $61 billion

It is estimated that by 2027, the global furniture market will reach 650.7 billion US dollars, an increase of 140.9 billion US dollars compared with 2020, an increase of 27.64%.

Comparison between China and the United States: Americans have more demand for furniture

The home market also has broad prospects in the United States. Compared with China, the consumer base of the United States is large, and most areas are sparsely populated. Influenced by traditional ideas, Chinese people like to be stable, rarely move, and will not often replace furniture. The service life of furniture is mostly 5 to 10 years, or even longer.

Most of the houses in the United States are in a large pattern. There is a lot of space for them to take care of both indoors and outdoors, which is completely different from domestic dense houses.

In addition, Americans do not like to use other people’s old furniture when they live in a new place, so furniture has become an abandoned product. In addition, Americans advocate that furniture should be changed with the improvement of living conditions, so it will be replaced in 1-2 years. This is undoubtedly a very good opportunity for cross-border sellers in China.

What are the advantages of cross-border e-commerce of furniture in China?

China’s wooden furniture manufacturing industry is developing rapidly

According to statistics, China’s furniture manufacturing industry can be divided into five categories according to varieties, which are the main bodies of wooden furniture manufacturing industry, bamboo and rattan furniture manufacturing industry, metal furniture manufacturing industry, plastic furniture manufacturing industry and other furniture manufacturing industries.

Over the past decade, the United States, as China’s * * wooden furniture export market country, has only slightly decreased its export volume during the financial crisis in 2009, and its export volume has shown a stable growth trend as a whole.

The United States is a highly developed country with a high level of per capita income, and its residents have strong consumption power and purchasing power.

Compared with other wooden furniture exporting countries, the advantages of China’s wooden furniture export trade lie in the following two points:

  1. Labor costs and land resources are relatively low

China’s furniture manufacturing has a long history, with a lot of familiar labor force, and the labor force is low.

Compared with Europe and the United States, the labor cost of furniture in China is 4 yuan / hour, while the labor cost in Europe and the United States is about 12 dollars / hour, which is nearly 20 times that of China.

  1. Advantages of wood furniture industry cluster

At present, the agglomeration of wood furniture industry in East China, South China and central China is obvious.

There are 33 wooden furniture industrial zones in East China centered on Zhejiang, Jiangsu and Shandong

There are 36 South China wood furniture industrial zones centered on Guangdong and Guangxi

There are 19 in Central China centered on Henan, Hunan and Hubei

Industrial clusters are conducive to reducing transaction costs and technology development costs, establishing good partnership between upstream and downstream partners and forming external scale advantages.

From 2016 to 2020, the export value of China’s household and decorative wood products continued to grow. In 2021, the export value of China’s household and decorative wood products reached US $3.566 billion, a year-on-year increase of 33.2%.

Increased demand for furniture in emerging market countries

In emerging market countries, the urbanization process continues to advance, and the increase of urban population leads to the expansion of housing demand and the increase of furniture demand.

At the same time, the rapid economic development of emerging market countries has increased the income of residents, and the demand for furniture will continue to grow.

North America has a broad market prospect and its foreign trade continues to be positive

In terms of global market scope, affected by the general environment of the COVID-19, the overseas “housing economy” is unfolding, the demand for furniture products is increasing, local furniture manufacturers are shutting down, and furniture from China is being snapped up overseas.

In recent years, China’s foreign trade exports have accelerated the recovery, and the popularity of export orders in the furniture industry has exceeded market expectations.

It is understood that the furniture industry chain is ushering in an unprecedented market, with a sharp increase in orders and a shortage of raw materials. The continuous recovery of furniture export industry is a great opportunity for export trade and looking for customers.

Take the North American market as an example:

In 2020, the online revenue of furniture and household products in the North American market accounted for 20% of its total revenue, especially in the US market – it is expected that the online revenue of furniture and household products in the US market will account for 23% of the total revenue by 2023.

At the enterprise level, there are 11 brands accounting for about 55% of the market (mostly retail).

The number of household goods monopoly brands proves that at this stage, consumers’ loyalty to household goods brands has not been formed, and sellers and brands have full opportunities to enter the competition.

Friends who want to be cross-border e-commerce should seize the opportunity as soon as possible and occupy their own blue ocean.

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