Furniture​ Industry Features

- Jan 04, 2019-

Glass Desktop Bar Furniture

Furniture industry features:

Furniture manufacturing as a “middle-stream” industry, its upstream is mainly for the wood, metal, plastics and other manufacturing industries, downstream for business or consumers, which also determines some of the industry characteristics of the furniture industry:

1. Relevance to the real estate industry. The furniture manufacturing industry has a certain correlation with the real estate industry, and the regulation of the real estate market will have an impact on the furniture manufacturing industry. There are two reasons: First, from the perspective of furniture consumption, the conversion of real estate sales to furniture consumption is higher. The data shows that the decoration or the reason for the housework caused the furniture consumption to exceed 65%, the damage and style obsolete accounted for 12.37% and 18.56%, respectively, and the demand for material replacement was only 4.1%. Second, young people who are the mainstay of home purchase demand account for a relatively high proportion of furniture consumption. From the age characteristics of household consumption, the age structure of household consumption groups tends to be younger. According to the survey data of SouFun Home Research Center, consumers aged 25-30 accounted for 40% of the total survey, consumers aged 30-35 accounted for 26%, and consumers aged 35-40 accounted for 13%, and the remaining proportion was relatively small.

2. Raw material costs account for a large share of business costs. The furniture industry is a raw material-intensive industry, and direct materials have a greater impact on the cost of the main business. The main raw materials needed for the production of furniture are fiberboard, fragrant boards, aluminum profiles, louvers, hardware fittings, etc.

3. The seasonal characteristics of production and operation are more obvious. Affected by factors such as the purchase of commercial housing and the demand for improved decoration, the production and operation of the furniture industry will have a certain seasonality. In particular, the sales revenue and cash flow of large-sized furniture show certain seasonal fluctuation characteristics. The sales season of industrial products is generally in the second half of the year.