Industry Analysis & Industry Trends
The Furniture Store industry in China accounts for about 34.0% of total revenue from China's furniture sector. The remaining sales are generated by other industries, such as furniture wholesaling, department stores and direct sales from furniture manufacturing. Over the five years to 2015, the Furniture Store industry has been growing at an annualized rate of 18.1% to $21.8 billion.
Industry demand is driven by growth in China's housing market and the rapidly developing economy. In 2011, the Chinese government began the construction of 10.0 million units of noncommercial residential housing (i.e. indemnificatory houses) to further improve the living standards of medium- and low-income families and promote the healthy development of the real estate market.... purchase to read more
Industry Report - Industry Investment Chapter
For every dollar spent on wages (including management and administration expenses) about 71 cents are invested in capital, indicating that the capital intensity of the Furniture Store industry is low.
The initial investment to establish large-scale furniture stores is high. However, the depreciation cost from equipment usage, such as lifting equipment and computers, is relatively lower. In many large furniture warehouse retail outlets, the warehouse operators pay large amount of depreciation expenses.
Compared to depreciation costs, industry wages are relatively large. Staff is needed to arrange storage and displays, clean the displayed products, provide information to customers, and provide extra services. However, the overall labor cost in China is low... purchase to read more