Chinese Upholstered Furniture Market

Upholstered Furniture Industry Analysis in 2016 from BHI Index

2017-01-16    [Source:PUdaily]

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PUdaily, Shanghai-China building material and furniture market edges down and then up in H1 of 2016. It maintains the downtrend since 2015 with the worst performance of BHI in history from January to February. BHI starts to edge up since March with the persistent overheating of China real estate market in 2016, which boosts building material and furniture market. In May, sales of building material and furniture perform steadily, but BHI goes down slightly as consumers hold more cautious views on the market.

China building material and furniture market runs on the opposite in H2 of 2016 compared with H1.BHI index picks up continuously from July to September with China building material and furniture market undergoing peak season. BHI index starts to fall down since October with a series of measures for home purchase restrictions releasing amid the traditional year-end dull season.

As for China upholstered furniture industry, it maintains slight uptrend in 2016.There still is a vast potential for consumption in China upholstered furniture industry as it is still in development stage. And real estate market in first-tire cities booms in 2016, boosting demand in upholstered furniture. Nevertheless, many upholstered furniture companies still have to face the problems like fewer orders along with lower profit margin and higher production cost in the situation of tepid macro-economic environment in China, which greatly drags down the development of the industry. The whole upholstered furniture market will maintain the slow growth in the short term.

Sources:

The Ministry of Commerce circulation Industry Development Division;

China Building Materials Circulation Association (CBMCA)

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