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Board Enterprises Set Foot in Irresistable Trend - Whole House Customization

China Agriculture Report By CnAgri2017-09-05 09:28:23China Agriculture Report Print During the first half of the year, a significant increase was found in the performances of a few whole house customization enterprises such as Oupai, Sophia, Piano, Zbom Kitchen Cabinet, Shangping Zhaipei. The growth of their operation revenues and net margins were both over 30%. Piano’s net margin growth surpassed 100%.
At present, some stronger artificial board enterprises already started to transform from artificial board manufacture to furniture manufacture. Such as: (1) in early July, new products of Dehua Tubao’s whole house customization were launched. The company transformed from a material supplier to a one-stop home furnishing provider and solver. (2) Jilin Forest Industry Group developed businesses such as customized homes and imported wood related foreign trade services. (3) In April, Dare Power Dekor’s Boloni was established. This showed that the company’s large home development strategy officially started. (4) In March, as Hangzhou King Coconut Holding Group Corp started an Italian customized home brand, Bransa, the company entered the customized home field.
In recent years, raw material prices kept rising, board industry competition was more intense which directly led to a decline in profits for some enterprises. The volume of customizing housing was 230 billion, accounting for 20% - 30% of the overall household market share in China, the industry was growing rapidly by 15% to 20%, faster than the yearly growth of 8% - 9% of the furniture industry and customizing housing sees broad market prospects.
We believe that artificial board enterprises are involved in the whole house custom-made which represents the general trend and its transformation in the furniture field has great cost advantage and resource integration ability. Industry chain extension is an effective way to expand enterprise layout and occupy the market which not only can help the growing demand of original artificial board products, but also can fully enjoy the bonus from the increasing furniture consumption and speed up industry consolidation.
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