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The young customers for comtemporary sofa manufacturers in china
Author:Tangshifu Furniture| release time:2020-10-14

The expansion of home furnishing companies has become the norm in recent years. The soft furniture giants focusing on sofas have extended from sofas to mattresses, and the entire industry structure is also facing unprecedented changes. Through mergers, acquisitions, etc., complete the product system and expand production capacity, and use the channels, customers and production base of the merged or acquirer to consolidate and strengthen the position and scale of comtemporary sofa manufacturers in china.

Industry consolidation

Industry consolidation and reshuffle have arrived. The giant companies Gujia Home Furnishing and Man Wah Holdings have moved frequently, the most obvious of which is the expansion of product territory. Gu Jia Home has carried out a series of mergers and acquisitions in a drastic way. Man Wah Holdings has started in 2016. , To develop new mattresses. "Expansion" has become the "gene" for giants to become bigger and stronger.
China has become the world’s largest consumer of upholstered furniture. In the process of urbanization, the market’s demand for upholstered furniture is gradually increasing.

It is expected that upholstered furniture will continue to maintain steady growth in the future. In the future, under the trend of consumption upgrading and younger consumers, The penetration rate and price of upholstered furniture are expected to continue to increase, and the market size is expected to reach 220 billion yuan in 2020.

However, under the huge market volume, the domestic upholstered furniture industry market shows the current situation of market fragmentation and low concentration. Compared with the United States, where the upholstery industry is mature, the top five brands in the mattress industry accounted for nearly 80% of the market share in 2014; while the top five brands in the domestic market in 2014 accounted for only about 15% of the market.

comtemporary sofa manufacturers in china

Market share

The market share of the top three sofa brands in the United States exceeded 40%; in contrast, the top three domestic brands about furniture, Man Wah Holdings and Gujia Home Furnishings had a combined market share of about 16%. Whether it is mattresses or sofas, the market concentration is far lower than that of the United States. However, with the great integration of domestic industries, this bottleneck may break through, ushering in a new era of comtemporary sofa manufacturers in China.

Gujia Home Furnishing and Man Wah Holdings, which are already giants in the sofa industry, have aimed at the mattress industry, which has huge room for development and integration. It is understood that in addition to the standardization of the product itself, the mattress industry has low cost and considerable profit margins, and there is no category leader in the industry. If comtemporary sofa manufacturers in china can integrate mattresses, it will affect and change the industry structure of upholstered furniture.

Although the current real estate cycle is down, consumption is weak, and industry competition is intensified, SMEs are struggling to survive, and software giants with strong brand power and productivity in the industry will benefit from the adjustment of the industry structure. Playing the "expansion" trump card has become a key step to seize the market.
For young customers, it is always said that rational consumption and a guide for buying furniture are very important.

It has the opportunity to become the first brand with a market share of more than 15%, and it has already moved frequently.

To seize the market,

To seize the market, we must first expand production capacity. In order to further improve the product supporting system, the mattress No. 1 was born by Gujia Home Furnishing, which means that it is no longer limited to the sofa industry. Gujia Home Furnishing has carried out a series of acquisitions and mergers after its listing. At the end of 2018, it plans to acquire Xilinmen.

It will gather advantages in capital, customers, channels, brands, and information technology, and create a rich product line through technology and market innovation. , To fully meet consumers' multi-category purchasing needs. The goal of Gu's family is from the living room to the bedroom or even the whole house.

Chivas is a well-known upholstered furniture brand under Man Wah Holdings (HK01999). Man Wah's "Chivas", "First Class", "Bourne Mingjia", "Earl House", "NICOLETTI", etc. are Chinese functional sofa brands. In 2016, Man Wah placed the Aimo mattress under the Chivas brand and upgraded it to Chivas five-star mattress, getting rid of its dependence on a single category of sofas.