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What influence will the property market change bring? - Furniture Circle

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At present, the real estate industry concentration is increasing rapidly; and with the implementation of the rental right policy, in the future,there are more house leasing institutions.

These two major changes in the property market will have a major impact on the furniture industry, especially the booming custom furniture industry.Accordingly the custom made furniture factories&suppliers will be influenced.

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What influence will the property market change bring?

Our Admin
2017-11-22
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    At present, the real estate industry concentration is increasing rapidly; and with  the implementation of the rental right policy, in the future,there are more  house leasing institutions.

    These two major changes in the property market will have a major impact on the furniture industry, especially the booming custom furniture industry.Accordingly the custom made furniture factories&suppliers will be influenced.

    The degree of monopoly of real estate enterprises deepens and there are shrinking market for the small and medium sized customized furniture enterprises.

    At present, the top 20 real estate enterprises account for 40% of the market share.

    The market monopoly of real estate enterprises gradually formed, for furniture industry is it a good thing or a bad thing?

    In the face of giant real estate enterprises, single furniture is too small. The centralized purchasing of real estate enterprises is beneficial to large enterprises in furniture enterprises.

    According to people familiar with the real estate industry, real estate companies like to do business with the top ranked furniture companies. The main reason is that the top ranking furniture enterprises usually have a strong production capacity, as well as all over the country's marketing network, convenient for the customers of real estate same with business all over China to get the corresponding after service.

    But usually, the order quantity of group purchase is huge, and sometimes the construction period is very tight. This is also the workload that small and medium-sized furniture enterprises can't finish.

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    Boutique room policy is directly impacting the kitchen cabinet Market

    At present, all over the country are gradually promoting boutique rooms. That means the houses that are delivered to the users have high standard for the interior decoration.Even for some houses, the user can live inside without doing anything.

    Of course, due to differences in the local economic development level, not all regions can reach that level. But as the basic equipment of the boutique room, kitchen cabinets are often given priority.

    Therefore, the earliest kitchen cabinet enterprises in custom furniture industry  will also feel the chill of the market. In fact, the kitchen cabinet enterprise recent profit margin is low, not only because of  too many competitive enterprises, but also because of the involvement of the real estate enterprises.

    Furniture business in real estate enterprises is not easy.

    The penetration of real estate enterprises into the furniture industry is being deepened, but the real estate industry is a capital intensive industry, the amount of money required is very large, even if you can get large orders of real estate enterprises, it may not be a good thing.

    The capital chain of most real estate enterprises is in a tight state. The top real estate companies in the industry will abide by contracts, pay on schedule, not allowed to delay. And for the real estate enterprises with bad reputation and lack of strength, the default payment is common.This means that the real estate enterprises on the one hand to buy furniture, the real estate enterprises have harsh requirements on the quality, delivery time, prices, on the other hand, real estate enterprises may not pay you the whole amount, or timely payment.

    The furniture industry, especially the custom furniture industry, is a consumer payment industry, suddenly from the use of customer money into production to taking up your money for customers, sometimes long-term occupation, so the market environment changes, will make a large number of furniture enterprises difficult to adapt to them.

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    Institutional tenants spawned small group purchasers

    Housing market new policy will give birth to a number of institutional housing tenants. With the transition and advocacy of the country's housing policy, the future wage earners may not have to become housing owners, as housing tenants can enjoy a lot of social welfare. Under such a new policy, the housing rental market is bound to have a rapid growth, the new housing rental market demand for new furniture will be enlarged.

Standard, prosperous housing rental market, will also promote the pace of furniture updating. Will the panel furniture come back with new business opportunities?.

    In May 1, 2018, the new wood-based panel standards will be fully implemented, the formaldehyde problem of panel furniture is expected to be solved fundamentally. In the two favorable changes in the demand side and supply side, for the demand for panel furniture there is a necessary condition for blowout.

   In short, the new changes in the housing lending market are a major boon for the furniture industry.

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