Analysis of the Present Situation of China Outdoor Leisure Furniture and Supplies Industry

Comprehensive characteristics of the actual products, outdoor leisure furniture and supplies mainly refers to the open or semi-open outdoor space for the convenience of people fashion, comfort and health of public outdoor activities and set up a series of relative to the indoor furniture and supplies in terms of Utensils, which are the material basis for determining the function of an outdoor space and an important element in the form of an outdoor space.

1, outdoor leisure furniture and supplies industry profile

Outdoor leisure furniture and supplies major consumer regions in Europe and the United States. At present, the industry has formed a stable market scale in developed countries such as North America and Europe, and the industry has a high degree of maturity. The development of the industry and people's living habits and lifestyle are closely related. In developed countries such as Europe and the United States, most people live in single-family houses with courtyards and have large outdoor activities. People are more willing to choose outdoor leisure activities. Outdoor leisure furniture and supplies have become part of the quality of life, And a natural way of life integration, so Europe and the United States developed countries for outdoor leisure furniture and supplies in greater demand. According to the use of the general outdoor leisure furniture and supplies replacement cycle in 1-3 years. Outdoor leisure furniture and supplies, the average replacement cycle is generally 1.48 years, belong to the frequent updates of consumer goods. When the economic environment is good, people tend to shorten the replacement cycle as long as household expenditures are affordable.

Especially in recent years, outdoor leisure furniture and supplies market to personalized, fashion development. The demand for personalization and fashion has accelerated the upgrading of products, improved the update rate of outdoor leisure furniture and supplies, and promoted the growth of demand in the industry. Outdoor leisure furniture and supplies in the domestic market started late. However, with the improvement of people's living standard and improvement of living environment, the market demand of domestic outdoor leisure furniture and supplies begins to show tremendous growth potential. The increase in per capita disposable income provides the economic basis for people to purchase outdoor leisure furniture and supplies. The per capita disposable income of urban residents in China increased from 11,759 yuan in 2006 to 33,616 yuan in 2016. The per capita net income of rural residents increased from 3,587 yuan in 2005 to 12,363 yuan in 2016. Per capita income increase directly affects people's consumption behavior. Per capita housing area continues to improve as outdoor leisure furniture and supplies provide a space basis. Residents living environment improvement reflected in the increase in per capita housing area and the villa, the top duplex, jump type, the proportion of layers to improve, people began to have the opportunity to have their own outdoor patio, open air terrace or semi open outdoor terrace. The extension of living space will inspire people to create outdoor space and enjoy the greater demand for sunshine and rain, which has created a strong demand for outdoor leisure furniture and supplies.

2, outdoor leisure furniture and supplies industry market analysis

(1) the global market

1) The global situation

Outdoor leisure furniture and supplies belong to a segment of the furniture industry, the market has great potential. According to the UN Comtrade data, the total global market demand for outdoor leisure furniture and supplies in 2016 is about 33.995 billion U.S. dollars. The market demand in the developed countries in Europe and the United States accounts for a major part of the market, and a stable market size has been formed.

2009-2016 Global outdoor furniture market capacity of the specific circumstances



Source: Public information collation

According to historical data, the global market demand for outdoor furniture and supplies is expected to grow at a 3% to 4% growth rate in the next five years, reaching a market size of 37.9 billion U.S. dollars in 2019.

2) North America

North America is one of the major consumer areas for outdoor leisure furniture and supplies, with the United States being the largest single-country market for outdoor leisure furniture and supplies in the world. As the employment situation improved and the Federal Reserve maintained a low interest rate for a long time to promote the development of the real estate market, the demand for new and updated outdoor leisure furniture and supplies in the United States maintained a good growth trend. According to the statistics of UN Comtrade, in 2016, the sales volume of outdoor furniture and supplies in the U.S. market was 10.697 billion U.S. dollars. Details are as follows:

US outdoor furniture market size (100 million US dollars)



According to the historical growth rate, it is expected that the market demand in the United States will maintain a good growth in the next five years. Assuming a 2% growth rate, it is estimated that North American sales will reach 11.352 billion U.S. dollars in 2019.

3) Europe

Europe is an important market for outdoor leisure furniture and supplies. After the financial crisis in 2008, the consumption in the European market dropped significantly. In recent years, as the economy gradually recovered, the repressed replacement demand in the region was released, and the spending power showed a steady upward trend. Meanwhile, since 2012, the real estate market in Europe has shown a significant pick-up, boosting the growth of new purchase demand for the outdoor leisure furniture and supplies market. In 2016, sales of outdoor leisure furniture and supplies in the European region reached 4.329 billion U.S. dollars. Overall, sales in the European market have tended to stabilize. 2009 - 2016, the European outdoor furniture and supplies market capacity of the specific situation as follows:

European outdoor furniture market size (100 million US dollars)



Overall, sales of outdoor furniture and supplies in the European market have tended to stabilize. Assuming a growth rate of 2%, the sales in Europe will reach 4.594 billion U.S. dollars in 2019.

(2) the domestic market

Outdoor leisure furniture and supplies in the development of China started late, and subject to living conditions, the civilian market penetration is low. At present, outdoor leisure furniture and supplies are mainly concentrated in commercial areas, such as public shopping places, upscale clubs, resorts, scenic spots and other leisure and tourism venues. In recent years, as the level of per capita income in China has risen, people's material living standards have been raised, their spending power has been enhanced and their fashion concepts popularized. The demand for outdoor leisure furniture and articles by Chinese consumers has rapidly increased. Per capita disposable income of residents increased, urbanization accelerated and the thriving open-air restaurant industry will become the main driving force for outdoor leisure furniture and supplies industry:

1) With the increase of income and consumption level, the change of housing style will increase the demand for outdoor furniture and supplies. China's economy continues to maintain its rapid growth. According to statistics from the National Bureau of Statistics, the per capita disposable income of the entire nationwide population in 2016 was RMB23,821, up 8.4% over the previous year and actually increased by 6.3% after deducting the price factor. The living standards of the people have been further improved. The consumption structure is shifting from a subsistence-type to a well-to-do type and a wealthy one. The living environment of the residents is improving day by day. This is mainly reflected in the increase in housing area per capita and the increase in the proportion of villas and penthouses. People began to have their own outdoor small courtyard, open air terrace, semi-outdoor open terrace. Changes in consumer attitudes and habits, changes in the consumption structure and increase in per capita disposable income have led to the continuous expansion of the market capacity of consumer goods. The extension of living space will stimulate people to create outdoor space and enjoy the demand for outdoor recreation, thus giving birth to outdoor recreation Furniture and supplies needs.

2) Urbanization is one of the biggest drivers of the municipal engineering market. At present, China's urbanization is still developing rapidly. Large and medium-sized cities as well as numerous urban infrastructures in the integration of urban and rural areas are developing rapidly. Urbanization promotes the improvement of urban public facilities. The urbanization makes the image, function and environmental quality of the city begin to be taken seriously. The construction of public facilities in various cities is indispensable to the planning and furnishings of outdoor leisure furniture and supplies. According to the data from the National Bureau of Statistics of China, the level of urbanization in China is increasing year by year. In 2016, the urbanization rate reached 57.35%. As the urbanization level further increases, the demand for outdoor leisure furniture and supplies will surely increase simultaneously.

3) The open-air catering industry continues to develop. The exquisite outdoor leisure furniture and furnishings have become an important means of attracting customers to open-air restaurants. Unique outdoor awnings, dining tables and dining chairs not only serve as a beautiful landscape to decorate the city, but also create a comfortable dining environment for consumers as the key to appealing to consumers. In summary, although China's outdoor leisure furniture and supplies market is still in a pioneering stage, but with the economic development and urbanization accelerated, China's outdoor leisure furniture and supplies will have a rapid development of the commercial market; at the same time, consumer spending Constant capacity, changes in consumer attitudes and major consumer groups, outdoor leisure furniture and supplies of civilian markets will also be gradually opened.

3, China's outdoor leisure furniture and supplies exports analysis

Developed countries in Europe and the United States demand for outdoor leisure furniture and supplies market is larger, but its own production capacity is limited, the high dependence on imports. In recent years, China's outdoor leisure furniture and supplies industry has developed rapidly, the entire industry production and marketing, technical equipment, quality and efficiency have been fully improved. At present, China has become the largest producer and exporter of outdoor furniture and outdoor leisure products in the world. Some of the enterprises have basically got the overall strength of fully participating in global competition. The export of outdoor leisure furniture and supplies shows an overall increasing trend, and the global market share has rapidly increased improve. According to the statistics of the General Administration of Customs in 2016, the total amount of outdoor leisure furniture and supplies exported by China is about 12.86 billion U.S. dollars, mainly for developed countries and regions such as Europe and the United States, with the United States accounting for the highest proportion.

China's outdoor leisure furniture and supplies by country export rankings



Source: public information, Zhi-chi consulting and finishing

4, the industry risk characteristics

(1) the high degree of dependence on foreign markets risk

Outdoor leisure furniture and supplies the main consumer regions in Europe and the United States and other developed countries and regions. According to statistics, at present, the market in Europe and the United States has a mature market and strong demand. Domestic enterprises mainly export products to the above countries and regions and have a lower sales ratio to the domestic market. Therefore, the domestic outdoor leisure furniture and supplies industry has a high dependence on foreign markets and is easily affected by the economic situation, trade policies and exchange rate fluctuations in the countries and regions in Europe and the United States.

(2) Own brand influence is relatively weak

In recent years, outdoor leisure furniture and supplies manufacturing center has been transferred to China and other developing countries, but the sales channels are still in Europe and the United States large supermarkets, branded chain stores and other channels in the hands of domestic manufacturers mainly OEM production, independent brand products Do not have a strong market influence. China's outdoor furniture and supplies manufacturers at the end of the entire industrial chain position, bargaining power is weak.

(3) Risks of rising domestic labor costs

Outdoor Leisure Furniture and Supplies Due to the personalization of the production and the technological characteristics of the products, such as the production of rattan products, some of which are custom made, the production of the products depends to a large extent on handmade by workers. Therefore, most of the enterprises in the industry belong to Labor-intensive enterprises. In recent years, the tightening of supply and demand in the domestic labor market, workers wages tend to rise, causing greater cost pressures on the production of outdoor furniture and supplies. As labor costs rise further, the gross profit margin of the outdoor leisure furniture and supplies industry will be further reduced.

5, outdoor leisure furniture and supplies industry trends

(1) Huge potential for domestic demand and increasing international competitiveness

The huge market potential of developing countries represented by China will provide the industry with broad space for development. At present, our country has developed into a global manufacturing center for outdoor leisure furniture and supplies, and the industry is complete and complete. China's outdoor leisure furniture and supplies industry advantages of enterprises with its ever-increasing design capabilities and production technology, international competitiveness continues to strengthen.

(2) research and development capabilities determine the development of enterprises

The demand for outdoor leisure furniture and supplies is diversified. Specifically, the demand for personalized and high-end products in the market is increasing day by day. The demand for products is increasingly diversified due to the differences in culture, consumption preferences and climate. Product development and design capabilities determine the added value of enterprise products, technology content and brand competitiveness an important factor. Outdoor leisure furniture and supplies manufacturers need to quickly track changes in market demand, enhance product development and design capabilities, the introduction of personalized outdoor furniture and supplies tailor-made programs tailored to customer needs to meet customer demand for personalized products. In the future, with the upgrade of consumers' consumption concept, the independent design and R & D level of brand outdoor leisure furniture and supplies enterprises will directly dominate the premium ability of their products.

(3) The industry concentration gradually increased, the brand into the business focus

About 20 years of development, China's outdoor leisure furniture and supplies have begun to take shape in the production and trade volume in about 90 years in the early 1990s. However, the enterprises in the industry are seriously under-invested in brand building, weaker brand design ability, lack of popular national brands, and still have a big gap with high-end brands such as Italy and Germany. At present, China's outdoor leisure furniture and supplies industry, many participants, the industry concentration is low, with the outdoor leisure furniture and supplies industry continues to develop, the industry will gradually increase concentration, the dominant brands will dominate the market. In the future, the brand will become one of the most important factors for the outdoor leisure furniture and supplies industry to attract consumers. Therefore, brand management is the core of the business operation in the industry. Strengthen independent brand management and brand building, forming a clear brand positioning and brand content, is to enhance product competitiveness and brand value, as the future development of outdoor leisure furniture and supplies industry an important trend.

(4) New materials and new technologies are highly respected

The application of new materials and new technologies not only improves product life, increases product performance and function, but also effectively improves product profitability. Therefore, it is favored by enterprises in the field of outdoor leisure furniture and supplies such as the use of wood and wood Replace part of the wood, metal materials used in outdoor leisure furniture and supplies, so that products have a good touch at the same time have a stronger anti-corrosion function. The application of new materials to make the product beautiful and prolonged outdoor life. With the development of the domestic economy, people's living standards have greatly increased, and the demand for outdoor leisure furniture and supplies has also been moving toward health and environmental protection. Therefore, the use of new materials and new technologies to produce environmentally friendly, energy-saving, green products will become the future trend of outdoor leisure furniture and supplies market consumption.

(5) Information and mechanized production will become a trend

Diversification and personalization of product categories, making the industry information and mechanization of enterprises to a lesser extent. With the continuous development of business scale and continuous improvement of labor cost, the requirements for equipment efficiency, cost control and product quality are constantly increasing, making the application of information technology and the mechanization of production equipment gradually become the key to win the market competition . In the future, with the aggravation of international competition and the increase of labor cost, the enterprises in the industry will gradually develop toward the level of intelligence and mechanization.

(6) product sales channels will be increasingly diversified

At present, outdoor leisure furniture and supplies sales channels are still large-scale supermarkets, brand chain stores and other channels based. The development of e-commerce, will gradually change the existing industry sales model. Through the e-commerce platform, we can show consumers a clear and comprehensive sample, effectively reduce the sales cost, simplify the transaction flow and improve the transaction efficiency. In the future, the e-commerce model will become an effective complement to the existing sales channels and promote more efficient circulation of outdoor leisure furniture and supplies markets. (Source: China Industry Information)

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