China furniture Product Trends

Currently, there are many different kinds of furniture in the market, mainly are home furniture, hotel

furniture, office furniture and public furniture. As for the home furniture, people pay more attention on

the living tasty and the personal furniture. Therefore, the following characteristics are considered by

customers, when they are choosing the furniture of :

ı

-Simple, Cultured and Personal Design

ı - Raw Material

ı - Chinese and European classical style

ı - Eastern and Western mixture modern style

Furthermore, the following characteristics are going to be popular in the Chinese market.

Kitchen furniture: The idea of the completed kitchen furniture is accepted by more and more people

lived in the cities.

Green furniture: As a result of the increasing awareness about environmental protection and more

stringent legal requirements worldwide, Chinese furniture manufacturers are more cautious in choosing

the materials for production.

Import– Export Analysis

Since China entered the WTO for several years, and implemented the related regulations, China has

replaced Italy as the largest furniture export country in the world. Obviously, it will incur more

competition for furniture industry.

In the Chinese furniture market, the total value of importation was much smaller than the total value of

exportation. The imported furniture products are mainly mid-high class furniture and special furniture

whose price is triple or even higher compared with that of domestic furniture. For those foreign

furniture companies want to enter the Chinese market, they must provide the good products satisfied

by local customers, also with suitable price.

Chinese Import

For the last decade,

China witnessed a quick

growth on furnishing

importation. The total

value of furnishing

importation got an

annual growth of 18.07%

in 2008, up from US$ 1.3

billion in 2007 to US$

1.53 billion in 2008.

However, this

development trend

becomes steadily in the

first half year of 2009,

even with a trend to fall

due to the world financial

crisis. The total importation valve from

January to June in 2009

is 0.77 billion, only with

a 3.05% increase

compared with the same

period in 2008.

Germany, Japan, United

States, South Korea, Italy

were the top five

countries by importation

value in 2008. Germany

was always the first, followed by Japan, the total importation value from these two countries accounted

over 1/3 of the total importation value in 2008, in which 20.17% of Germany with an amount of US$

309.18 million, 15.41% of Japan with an amount of US$ 236.27 million. But things were changed in

the first 6 months of 2009. Korean furnishing products seemed to be more and more popular among the

Chinese, especially the young people. From January to June in 2009, the importation value from Korea

has a 150% increase compared with the same period in 2008. Korea has replaced Japan and became the

No.2 in the imported furniture market in China, with a marketing share of 16.33%.

Italy is always the main player in the Chinese imported furniture market. In 2008, Italy was No.5, with

the importation value of US$ 102.73 million. The yearly importation valve from Italy increased by

8.18% compare to 2007.

2009 witnessed the big influence that the world financial crisis brought to the furniture market. Just in

the first 6 months of 2009, more than half of the top ten countries by importation value in the Chinese

furniture market have a significant drop in their importation business. Even through, Italy still gained a

stable importation value accounted by 6.22% of total furniture import value with an amount of US$

48.26 million from January to June.

Regarding the importation value of different categories of furniture in the recent 3 years, the top three

categories were always HS 9401 (Seats, other than those of HS 9402), HS 9403 (metal and wooden

furniture used in the office, kitchen and bedroom) and HS 9405 (lamps, lighting and fitting). In the first

six months of 2009, the total importation value of these three categories accounted by 91.65% of total

furniture importation of the country, in which 40.77% by category HS 9401 with an amount of US$

316.26 million, 25.72% by category HS 9405 with an amount of US$ 199.47 million and 25.16% by

category HS 9403 with an amount of US$ 195.17 million respectively.

As to the imported furniture products from Italy, the top one category by importation value was always

HS 9403, followed by HS 9401 and HS 9405. In the first six months of 2009, the importation value of

these 3 categories covered 94.91% of total importation value of the country, in which 61.52% by

category HS 9403 with an amount of US$ 29.69 million, 22.84% by category HS 9401 with US$ 11.02

million and 10.55% by category HS 9405 with US$ 5.09 million respectively.

Chinese export

The main markets of Chinese furniture export are Asia, North America and Europe. In 2009, Chinese

furniture was exported to over 100 countries (regions). The top 5 exportation countries (areas) for

Chinese furniture were: United States, Japan, United Kingdom, Germany and Russia.

The total value of Chinese furniture export has grown rapidly in the recent years, increased from US$

27.96 billion in 2006 to US$ 42.79 billion in 2008. Yet, the exportation value fell by 11.74% in the first

half year of 2009 due to the world financial crisis compared with the same period in 2008.

Contrary to Italy’s important position in the imported furniture market, Italy was only the No.14

among all the countries to which China

export its furniture product in 2008,

accounted by US$ 781.36 million. In the first

6 months of 2009, however, there is

significant drop of the furniture exportation

value to Italy, accounted by 14.02%

compared with the same period in 2008.

Regarding the exportation value of different

categories of furniture to Italy in the recent 3

years, the top three categories were HS 9401,

HS 9405 and HS 9403. In the first six months of 2009, the total importation value of

these three categories accounted by 86.63% of

total furniture importation of the country, in

which 33.71% by category HS 9401 with an

amount of US$ 113.46 million, 27.15% by

category HS 9405 with an amount of US$

91.37 million and 25.77% by category HS

9403 with an amount of US$ 86.72 million

respectively.