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Customized Furniture Market Grows Rapidly, Market Size Reached RMB 200 Billion in 2016

China Agriculture Report By CnAgri2017-04-06 09:29:58China Agriculture Report Print

Furniture industry is on the rise in China but the growth was slowing in recent years. In the past three years, the growth was lower than 10%. Because customized furniture can meet customers ' personal demands, the quantity demanded grew rapidly.

The performances of the listed customized furniture companies are good with the rapid growth of output value and profits. The three companies - Shangpin Zhaipei, Piano, Oppein went public in March and Sophia and Holike went public earlier. The performances of Shangpin Zhaipei and Sophia are good. For example, the revenue of Shangpin Zhaipei was RMB 1.91 billion, RMB 3.09 billion, RMB 4.03 billion respectively from 2014 to 2016 with 45.10% annual compound growth. Sophia’s operating revenue was RMB 4.53 billion in 2016, up 47.15% year on year with the average annual compound growth rate of 41.3% since 2008; the net profit was RMB 664 million, a year-on-year growth of 44.66% with the average annual compound growth rate as high as 45.5%. Currently Jinpai Cabinet, Zbom Cabinet, Nanjing Wole Household Corp are lining up for IPO.

Some traditional finished products furniture manufacturers are also making the transition: some singe category customized wardrobe and cabinet enterprises are also expanding to the whole house furniture customization; in addition, the home furnishing enterprises and flooring enterprises are also involved in this field. LUOLAI announced to acquire Lexington (American high-end home furnishing brand) and the company will expand its business from home textiles to furniture business. In November 2016, with no more than hk $420 million, Man Wah Holdings acquired Home Group, the parent company of Fleming and Man Wah is holding 50% of the shares. In March 2016, after buying 52% of the stock rights of Suzhou Baidesheng Home Furnishing Corp with RMB 314 million in cash, Deer Weilai holds 100% of the stock rights of Baidesheng.

In January 2017, Deer Weilai bought 40% of the shares of Boer Hengwenkeji with RMB 30 million; in March 2017, Sophia invested in cash and set up Sophia Huahe Menchuang Co., Ltd. with Huahe Group, the registered capital at 547 million, the shareholding ratio at 51%.

It is estimated that the customized furniture market size is around RMB 200 billion in 2016, accounting for 20% of the total scale of furniture and it may maintain the growth of 20% in the next few years.


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