The home improvement market in China is evolving, with an evolution of the population which is now urbn population for 52,6% in 2012, one percent more than in 2011. This implies a demand for new houses, there is a context for new houses and home improvement. this is simple : there is a double digit growth in 2012.
A company has gained nation recognition on this market, but the market is extremely fragmented and there is no real leader : Hangzhou Nabel group has only a 2% market share. The company is having a lot of communication activity, with a lot of prospects.
The government in China is determined to control housing prices, which means that the housing industry might have lowe growth rate. Still there is governemental plans to build 36 millions affordable homes to help young Chinese people to access he new « Chinese dream ».
Another trend is that landlords that want to have substantial gains on their real estate sales have an incentive to renovate the apartments. This might be an evolution towards a much more mature market.
About the furniture market, there is a strong cultural trend : the culture of parents buying houses for their children makes that there is a constant demand for home furnshing products. The prices are now so high that the burden of buying a new apartment is now shared by parents and children. Still, parents buy home furnishing products for their children, home textile and furniture. This incentive has helped this economic area to grow in 2012.
Among the leaders in this area, IKEA in China, with 5 billion RMB sales in 2012 and is planning to open new stores in 2013. Still, a large part of the market is very fragmented. The growth prospect is expected to be around 8% in the incomn years, which is not really a strong growth compared with the past trend on this market, but then again, China is still growing, people coming from the Chinese rural areas are going to make growth.
This market has important prospects if the Chinese market becomes more mature. These are fragmented markets with hundred of tousands of small producers that will continue to domainate the market, while there is a growing sector of cheap furniture for exportation is positive for the furniure industry.