CHINA OFFICE FURNITURE INDUSTRY Tables and Figures………………………………………………………………………………………………………………….……………..…….….
8
Executive Summary…………………………………………………………………………………………………………………………….…………..
9
Part One
10
Overview of China’s Furniture Industry……………………………….….……….….…
Chapter 1 Market Description……………………………………………………………………....……………..…………………….……
11
1.1 Market Size…………………………………………………………………………………………………………..……………………..……….…
11
1.2 Consumption………………………………………………………………………………………………………………..…………………………..
11
1.2.1
Average spending…………………………………………………………………………….……….………….……….…
11
1.2.2
Rural consumers………………………………………………………..……………………….………….……….….……
11
1.2.3
Middle class…………………………………………………………………………………….…...……….………….…..…
12
1.2.4
High income stratum……………………………………………………………….…….………………….…………….
12
1.3 Market Players………………………………………………………………………………………………………….………………….………….
12
1.3.1
Wooden furniture……………………………………………………………………….…………………..………..………
13
1.3.2
Metal furniture……………………………………………………………………………………………..………….……….
13
1.3.3
Other furniture…………………………………………………………………………………………………….……….….
13
1.4 Export …………………………………………………………………………………………………………………………….…….………….…….
13
1.5 Import……………………………………………………………………………………………….…….…………………………….……………..…
14
1.6 Distribution Channels………………………………………………………………………………………………………….……….….……..
14
1.7 Regional Development……………………………………………………………………………………………………….……….……......
15
1.7.1
South China ……………………………………………………………………………..…………………….….……………
15
1.7.2
East China……………………………………………………………………………………….………………..……………..
15
1.7.3
Northeast China………………………………………………………………………….……………….…………….…….
15
1.7.4
North China……………………………………………………………………………….……………….…………….………
16
1.8 Market Outlook……………………………………………………………………………………………………………….……………………...
16
1.8.1
Challenges……………………………………………………………………………………………….……………..………..
16
1.8.2
Opportunities…………………………………………………………………………………………….………….………….
16
Chapter 2 Characteristics of the Furniture Industry………………………………………………….……….…………....
17
2.1 Competitive Edge…………………………………………………………………………………………………………….………………..……
17
2.1.1
Growth in China’s fixed assets investment…………………………………….…….………………….…….
17
2.1.2
Better designed furniture……………………………………………………………………….………….….………..
17
2.1.3
Regular furniture trade events……………………………………………………………………….….……………
17
2.1.4
China’s WTO membership…………………………………………………………………………….….……………..
17
2.1.5
Wider range of products………………………………………………………………………….……….………………
18
2.1.6
Brand loyalty………………………………………………………………………………………….…………….……….…
18
2.2 Industry Limitations…………………………………………………………………………………………………….……………………...…
18
2.2.1
Small scale of operations…………………………………………………………………….………………….….…..
18
2.2.2
Poor product quality…………………………………………………………………………..……….…………………..
18
2.2.3
Product imitations…………………………………………………………………………….….…….…………………….
18
2.2.4
Poor management skills………………………………………………………………………….………….……………
19
2.2.5
Lack of capital investment…………………………………………………………………….………….…………….
19
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2.2.6
Shortage of professionals……………………………………………………………………….………….…………..
19
2.2.7
Weak distribution system……………………………………………………………………….……….……………..
19
Market Demand for Office Furniture…………………………………………….…………..
20
Chapter 3 Beijing Office Market…………………………………………………………………………………….……….……………….
22
3.1 Business Locations…………………………………………………………………………………………….………….…………………..……
22
Part Two
3.1.1
Beijing East…………………………………………………………………………………………….………….………..…..
22
3.1.2
Beijing Central………………………………………………………………………………..…….………………….……..
22
3.1.3
Beijing West…………………………………………………………………………………..…….…………………….….…
22
3.2 Overview…………………………………………………………………………………………………………….……….………………………..…
22
3.3 Supply………………………………………………………………………………………………………………….…….…………………………….
23
3.4 Demand………………………………………………………………………………………………….………………….…………………………….
25
3.5 Rental and Price…………………………………………………………………..………………………………….……………………..……...
26
3.6 Vacancy……………………………………………………………………………………………………………………….……………………………
26
3.7 Outlook…………………………………………………………………………………………………………………….……………………….…....
26
Chapter 4 Shanghai Office Market……………………………………….………………………………….…………..……..………..
28
4.1 Business Locations…………………………………………………………………………………………………….………………..…….……
28
4.1.1
Hongqiao New Development Zone, Puxi…………………………………………….…………………………..
28
4.1.2
Jingan district, Puxi …………………………………………………………………………….……………….………….
28
4.1.3
Luwan district, Puxi ………………………………………………………………………….………………………………
28
4.1.4
Lujiazui Finance and Trade Zone, Pudong ……………………………………….…………………..……....
28
4.2 Overview…………………………………………………………………………………………………………………….……………………….…..
28
4.3 Take-up……………………………………………………………………………………………………………………….………….……………….
29
4.4 Demand…………………………………………………………………………………………………………………….…………….…………..….
30
4.5 Supply…………………………………………………………………………………………………………………….……….………………….....
30
4.6 Vacancy………………………………………………………………………………………………………………………….……………..……....
32
4.7 Rental and Price……………………………………………………………………………………….………………….……………………......
33
4.8 Outlook………………………………………………………………………………………………………………………….…………………....….
33
Chapter 5 Guangzhou Office Market……………………………………………………..………………….……………..…….……..
35
5.1 Business locations…………………………………………………………………………………………………….……………………..……..
35
5.1.1 Yuexiu and Dongshan districts………………………………………………………………………….…………………..….…………
35
5.1.2 Tianhe District……………………………………………………………………………………………………………………...……………..
35
5.2 Overview………………………………………………………………………………………………………………………….……………….…... .
35
5.3 Supply…………………………………………………………………………………………………………………………….………………………. .
35
5.4 Demand………………………………………………………………………………………………………………………….………………………. .
36
5.5 Vacancy………………………………………………………………………………………………………………………….………………..……..
37
5.6 Rental and Price……………………………………………………………………………………………………………….………………..…..
37
5.7 Outlook…………………………………………………………………………………………………………………………….…….……….……...
37
Chapter 6 Shenzhen Office Market…………………………………………………….……………………………….…………..….…
38
6.1 Business Locations……………………………………………………………………………………………………….…………….….……….
38
5 ®China Knowledge Press Pte Ltd. All rights reserved. Reproduction of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. China Knowledge Press Pte Ltd (CKP) disclaims all warranties as to the accuracy, completeness or adequacy of such information. CKP shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for opinions expressed herein, which are subject to change without notice.
6.1.1
Luohu district ……………………………………………………………………………………….………………….……..
38
6.1.2
Futian district ………………………………………………………………………………………….…………….………..
38
6.1.3
Nanshan district ……………………………………………………………………………………….…………….…..….
38
6.2
Supply……………………………………………………………………………………………………………………….…….……..……….
38
6.3
Demand…………………………………………………………………………………………………………………….…………....……..
40
6.4
Rental and Price………………………………………………………………………………………..…………………………………….
40
6.5
Outlook……………………………………………………………………………………………………….……………………….………….
40
PART Three Market Demand For Office Furniture…………………………..…………………………….
42
Chapter 7 Major Players in Office Furniture Market………………………………………………………………………....
43
7.1 Dongguan Lamex Furniture Co. Ltd………………………………………………………………………………………..………….…
43
7.2 China Resources Logic Office Furniture Co. Ltd…………………………….………………………………………………………
44
7.3 Aurora Corporation…………………………………………………………………………………………………………………………………
46
7.4 Shenzhen Changjiang Furniture Co. Ltd……………………………………………………………………………………….……….
48
7.5 UB (China) Co. Ltd………………………………………………………………………………………………………………………………...
48
7.6 Shenzhen Baoan Huali Furniture Co. Ltd……………………………………………………………………………………………….
49
7.7 Shenzhen Meihuaya Industrial Co. Ltd……………………………………………………………………………….…………………
50
7.8 Hong Kong Shingfeng Furniture…………………………………………………………………………………………………………….
51
7.9 Xiamen Keyu Furniture Co. Ltd……………………………………………………………………………………………………………..
52
7.10 Shanghai Ocean Brann Furniture Co. Ltd…………………………………………………………………………………………….
53
7.11 JongTay Furniture Manufactory Co. Ltd……………………………………………………………………………………………….
54
7.12 Landbond Furniture Group Co. Ltd……………………………………………………………………………………………………...
55
7.13 Wisdom Furniture (Hong Kong) Co. Ltd……………………………………………………………………………………………….
56
7.14 Dongguan Peng-Sheng Office Furniture Co. Ltd………………………………………………………………………………...
58
7.15 Shenzhen Heartily Furniture Co. Ltd………………………………………………………………………………….……….……...
59
7.16 Foshan Richang Furniture Company…………………………………………………………………………………………………….
59
7.17 Lipeng Office Furniture………………………………………………………………………………………………………….………………
60
7.18 Beijing Tiantan Co. Ltd……………………………………………………………………………………………………….………………..
61
7.19 Kinwai Furniture Decoration Co. Ltd…………………………………………………………………………………………………….
62
7.20 Guangdong Gotop Furniture Group Co. Ltd…………………………………………………………………….……………………
63
Chapter 8 Distribution…………………………………………………………………………………………..…………………….……………
65
8.1 Traditional Distribution Channels…………………………………………………………………………………………….……………..
65
8.2 New Furniture Distribution Modes …………………………………………………………………………………….….….…………..
66
8.3 Advantages of the “Suntend model”… …………………………………………………………………………….…………………...
66
8.3.1
Professional expertise………………………………………………………………………..…………………………...
66
8.3.2
Clear and consistent company image……………………………………………..………………………………
67
8.3.3
Chain of franchised stores……………………………………………………………………………………………..…
67
8.3.4
Swift response to consumer demand……………………………………………………………………………...
67
8.3.5
Co-operating with well-known furnishing marts…………………………….……………………………….
67
8.4 Ten Distribution Trends in the China Furniture Industry……………………………………………………….……………..
67
8.4.1
Lowering of import tariffs…………………………………………………………………………………..………..….
68
8.4.2
Focus on export….…………………………………………………………………………………………………………...
68
6 ®China Knowledge Press Pte Ltd. All rights reserved. Reproduction of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. China Knowledge Press Pte Ltd (CKP) disclaims all warranties as to the accuracy, completeness or adequacy of such information. CKP shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for opinions expressed herein, which are subject to change without notice.
8.4.3
Increased demand in small towns…………………………………………………………………………………..
69
8.4.4
Fairer competitive environment…………………………………………………………..………………………….
69
8.4.5
Consumer-oriented marketing practices………………………….………………………………..…………..
69
8.4.6
The “Cultural Factor”… …………………………………………………………………………………………………….
69
8.4.7
Establishing a marketing network………………………………………….…………………………….………….
70
8.4.8
New approaches in marketing………………………………………………………………………………………….
70
8.4.9
Marketing alliances………………………………………………………………………………………….……….…….
70
8.4.10 Professional sales personnel……………………………………………….………………..……………….………..
70
Chapter 9 Furniture Imports and Exports………………………………………………………………………….………………..
71
9.1 Furniture Imports……………………………………………………………………………….…….………………………….………………..
71
9.2 Furniture Exports……………………………………………………………………………………………………………….…………….…….
71
9.3 Market Analysis, by Country/Area……………………………………………………………………………….….…………………….
71
9.4 Market Analysis, by Administrative Region…………………………………………………………………….……………………..
73
9.5 Furniture Export Enterprises…………………………………………………………………..…………………….……………………….
74
9.5.1
Taiwan-funded furniture enterprises……………………………………………………………………………….
74
9.5.2
Singapore-funded furniture enterprises……………………………………………………………………….…
74
9.5.3
Overseas furniture enterprises………………………………………………………………………….…………….
74
9.5.4
Domestic enterprises……………………………………………………………………………………….……………….
74
9.5.5
Trade companies………………………………………………………………………………………..…………………….
75
Part Four Market Access…………………………………………………………………………………….………………………..
76
Chapter 10 Foreign Investment………………………………………….…………………..……………………………………..……..
77
10.1
Overview……………………………………………………………………………………………………………………………..…………..
77
10.2
Future Competition Trends………………………………………………………..……………………………….………………….
77
10.2.1
Burgeoning Chinese middle-income class……………………………………………………………………….
78
10.2.2
Foreign Competition………………………………………………………………………………………………….………
78
10.2.3
Singapore: Furniture Industry Park………………………………….………………………………….………….
78
Chapter 11 Key Issues on Market Entry….………………………….……………………………………………………….……….
80
11.1
Intellectual Property Protection…………………………………………………………………………………………….……….
80
11.2
Quality Control and Design Capability………………………………………………………………………………...……….
80
11.3
Taxation Policies………………………………………………………………………………………………………………….……..….
81
11.3.1
Benefiting from concessions…………………………………………………………………………………………….
81
11.3.2
Reinvesting profits…………………………………………………………………………………………………………..
82
11.3.3
Local income tax……………………………………………………………………………………………………..……….
82
11.3.4
Recent changes…………………………………………………………………………………………………………….….
82
Appendix…………………………………………………………………………………………………………………………………………………….…
83
7 ®China Knowledge Press Pte Ltd. All rights reserved. Reproduction of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. China Knowledge Press Pte Ltd (CKP) disclaims all warranties as to the accuracy, completeness or adequacy of such information. CKP shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for opinions expressed herein, which are subject to change without notice.
Tables and Figures in this Report Table 3.1
Beijing: Major Leasing Transactions in H1, 2004……………………………………..……..22
Table 3.2
Beijing: Major Sales Transactions in H1, 2004……………………………………….……… 23
Table 3.3
Beijing: Major Office Projects Newly Completed or Under Construction….…... 23
Table 4.1
Shanghai: Major Grade A Office Leasing Transactions in H1, 2004………..………30
Table 4.2
Shanghai: Major Premium and Grade A Office Supply in 2003-2007……………. 30
Table 5.1
Guangzhou: Major Grade A Office Leasing Transactions in Q1, 2004……….……35
Table 6.1
Shenzhen: Major Grade A Office Asking Rents and Prices, Mar-May 2004……………………………………………………………………………………………………….………….38
Table 6.2
Shenzhen: Major Leasing Transactions, Mar-May 2004………………………..………..38
8 ®China Knowledge Press Pte Ltd. All rights reserved. Reproduction of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. China Knowledge Press Pte Ltd (CKP) disclaims all warranties as to the accuracy, completeness or adequacy of such information. CKP shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for opinions expressed herein, which are subject to change without notice.
