Industry Analysis & Industry Trends
China became the largest furniture exporter in the world in 2004, surpassing Italy. Wood furniture manufacturing made up the largest proportion of the Chinese furniture manufacturing sector in 2011, contributing about 59.0% of total furniture manufacturing revenue.
Wood furniture manufacturers are expected to generate revenue of $55.7 billion in 2012, up 13.8% from 2011, with annualized increases of 21.4% in the past five years. Industry profit is low, averaging 5.8% of industry revenue. This is due to low efficiency, high raw material costs and weak pricing levels across the industry. However, as household disposable income levels in China continue to increase, so will domestic demand, and manufacturers will be able to charge higher prices for their products.... purchase to read more
Industry Report - Starting a New Business Chapter
In general,this industry has low barriers to entry levels. This is shown by the large number of small- and medium-scale enterprises in the industry and the low requirements for start-up capital.Average start-up costs for a furniture manufacturing enterprise are about $38,000.
Shortage of qualified furniture designers
Unlike in Germany or Italy where there are furniture colleges that provide furniture design training courses, design and production skills in China are typically developed during apprenticeships. As a result, there is a shortage of qualified furniture designers in this industry, and employing foreign designers can be costly... purchase to read more