In the face of the upcoming surge in affordable housing and the second wave of renovations, industry experts said that “the market demand will change in 2011, and building materials companies should focus on affordable housing and secondary decoration, launching a series of promotions. Activities, from the service, management, innovation and other aspects of efforts to promote the prosperity of the home market."
Some Chinese furniture industry entrepreneurs and industry association experts said in an interview with reporters that China's ongoing construction of affordable housing will bring huge business opportunities to the furniture industry and promote industry standardization and scale development.
The former Secretary-General of the China Furniture Association, Cao Winchao, said that China will build 36 million sets of affordable housing within five years. According to the calculation of 10,000 yuan for each set of furniture, it will generate a market of 360 billion yuan. This is still a conservative figure, and many families who live in affordable housing may spend between 20,000 and 30,000 yuan on furniture.
Small-sized furniture in the era of affordable housing is favored
For the construction of 10 million sets of affordable housing in 2011 and the establishment of 36 million sets of affordable housing in 5 years, most furniture people think it is a good thing. In addition to the left and right sofas mentioned above, furniture companies such as Fuyun Ideal Space, Peugeot Furniture, Yaobang, Jinfuya, Huawei, Gemma, etc. have launched or plan to introduce furniture for affordable housing and affordable housing.
In the next two to five years, small-sized units such as commercial housing, affordable housing, affordable housing, and low-rent housing will continue to sell well. Therefore, Gemma Furniture is trying to create a cost-effective panel furniture that is very similar to IKEA but that is more durable than IKEA. The Hengli brand launched by Yaobang Furniture is also designed for affordable housing, products, pricing and style, all for affordable housing.
In addition, some of the brand companies that previously focused on the high-end market also launched related furniture for affordable housing at the Guangdong show. For example, Fuyun’s ideal space is the “customized furniture†at the Dongguan Famous Furniture Fair – villas of up to 200, 300 square meters and apartments of up to 40 square meters have suitable products. Li Wei, general manager of Fuyun Ideal Space, said: "We have introduced customized furniture for different types of houses this year. This is in line with the affordable housing and affordable housing." According to him, the furniture of the ideal space of Fufu has been able to Meet the customization needs of 70% and 80% of customers, and this year's custom furniture is designed to meet the needs of customers 100%. Similarly, the latest Lafite series launched by Peugeot Furniture is a delicate and compact route that subverts the traditional European and American classical furniture.
Safe housing enters the market, low-end furniture sales
The second batch of affordable housing approval work in Shenzhen came to an end. It is reported that before the end of October this year, Shenzhen will start construction of 73,000 sets of affordable housing, and plans to build 62,000 sets of affordable housing and 10,000 sets of completed housing. The large number of affordable housing has entered the market, which is undoubtedly good news for the furniture and building materials industry downstream. The Southern Reporters have learned that Shenzhen home furnishing stores will use discounts, buy gifts, special offers and other means to cater to the needs of these owners.
“Investment in affordable housing will bring positive effects to the sales of furniture and building materials.†Ding Zhangfan, the relevant person in charge of Bonai Home Plaza, said that some time ago, due to the influence of the property market regulation, many people who have demand for housing are holding money for purchase. No shots have brought tremendous pressure on the furniture and building materials industry downstream of the real estate market, and the market is generally sluggish. Once the affordable housing is handed over to the building, it will effectively boost the consumption of household products.
Jin Jinma, manager of marketing department of South China Marketing Department, revealed that at the end of last year, the welfare room in the Futian Free Trade Zone was occupied by Hongshu Oasis. The owner of the community signed a total of more than 300 passenger orders in Jinhaima's Expo Center store, and the sales were considerable. This year, there are still 10,000 sets of affordable housing, which is expected to sweep away the previous downturn in the furniture market and spur consumption all the way.
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