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 wholesalers, department stores and direct sales from furniture manufacturing industries. In the five years through 2014, the Furniture Store industry has been growing at an annualized rate of 22.2% to $20.2 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 million units of non-commercial 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 20 cents are invested in capital, indicating that the capital intensity of the Furniture Store industry is low.
Although the initial investment to establish large-scale furniture stores is high, the depreciation cost from equipment usage, such as lifting equipment and computers, is low. For the low-end retailers that make up large part of the industry, the capital intensity level is even lower. In some furniture warehouse retail outlets, the warehouse operators pay some depreciation expenses.
Compared to depreciation costs, industry wages are relatively large... purchase to read more