The interior design market in China
The rise of interior design in China
China has a long and profound history of home décor, and the modern home décor market in China is a fusion of traditional Chinese furniture with ancient roots and simple modern décor and furniture. The craft of interior design in China encompasses various prototypes of; lighting, statues, wall-décor, furniture, flooring and flowers using attractive colours such as red and gold which portray status and power. The home décor market in China can be traced back to the Eastern Zhou period (770B.C. – 221B.C.) where Chinese developed long, narrow tables to hold musical instruments or to display items of wealth and beauty such as jade, porcelain or flower arrangements.
Ancient roots of interior design in China
The architecture of interior design in China began with lanterns and furniture demonstrating the power and status of Chinese elite, since the Han Dynasty (25–220 AD) and Tang Dynasty (618-907 AD). Furniture height rose according to the “elevated to a position” of one’s status in society. The furniture makers of the Tang Dynasty began using high round and yoke back chairs for the wealthy elite. Lanterns are widely known to most of the Chinese people as the symbols of festival, worship and peace. They can be made from wood, bamboo, wood, rattan, created with silk or paper and being decorated with Chinese calligraphy, embroidery, painting and cut paper.
The era of modern interior design in China
In recent years, China became a fast growing economy with GDP of $14.22 trillion with the population of almost 1.4 billion and average growth rate of 9.5 as well as high level of urbanisation. With this, people become more fascinated with luxury and fashion. In 2018, the interior design market in China was estimated at $740 billion (RMB 5 trillion), according to a study by Yicai 2018, and that market keeps rising and evolving both online and physical stores. Home décor market in China seems to be one of the fastest growing businesses in the region with a high consumption power. Both domestic and international companies are now establishing more offices and showrooms in the cities such as Beijing, Hong Kong, Shanghai, Shenzhen and Guangzhou.
China’s interior design industry has incredible variety to fit the tastes of types of consumers. This not only includes different economic class of people, but also includes office design projects in business districts across China. Customers can be small companies, which seek to minimize their spending on office interior design thus not requiring high quality expensive furniture or lighting, while multinational corporations, for whom office design is crucial for meeting clients and partners, may ask for luxury European furniture with high quality lighting. Interior design companies in China can be divided into lighting, flooring, doors, furniture and wall murals companies.
Chinese interior design: global recognition
The interior design market in China is booming due to the rapid growth of the national economy as well as the industrial development and governmental policies. The interior design market in China is now witnessing an inconsistent demand, which extensively provides a remarkable opportunity for home décor market in China. In 2015, China occupied 34.64% of the revenue market. It is followed by Europe and North America, which respectively have around 27.52% and 17.08% of the global total industry. Other countries have a small amount of revenue. Despite the fact that the global interior design market is saturated, Chinese interior design is playing a pivotal role with an outstanding market share which has to do more or less with Chinese consumption power. Below are some interior design companies in China that are seems to be the main players in the market; China State Construction Engineering Corporation, Gold Mantis Construction Decoration, Shenzhen Grandland Decoration Group, Shenzhen Hongtao Decoration and Zhejiang Yasha Decoration, which enjoy only 1.6% of market revenue of which Gold Mantis accounted for 0.7% in 2013
Market segmentation in the home décor market in China
The furniture market in China
Furniture is an important part of the Chinese interior design market and culture. According to Mr. Xu Xiangnan, Chairman of China National Furniture Association
“The furniture industry is not just a traditional industry but also an evergreen industry. It is closely related to people’s wellbeing and socio-economic stability”.
In 2018, there were 6,300 scaled furniture companies in China, with a total market size of 701 billion rmb.
In recent years, the furniture market in China is persistently growing to become the largest in the world with a value of US$ 114 billion, accounting for 61% of the total Asian and Pacific market. Furniture market in China shows a strong potential for further growth.
Office furniture has played a vital role in the interior design market in China, and now the country is the leading office furniture manufacturer and exporter at a global level, with production exceeds US$ 16 billion in 2018, increasing by 10% on average in the last decade and representing 30% of the world office furniture output. For office furniture, the interior design market in China has increased drastically from 24% in 2009 to 36% in 2018 (USD 4.0 billion) of the global exports is the main supplier for the United States, Japan, France, the United Kingdom and Japan among others. The United States alone which seems to be the main customer, represent $1.3 billion about 33% of the whole Chinese office exports.
The following companies are the major key players in that market making it highly saturated and competitive; Lizhiyanghang, Paiger, UE Furniture, Wosen, Victory, Henglin Chairs, CR Logic, Saosen, Diou, Green Link, Sunon, Lamex, Jinwei, Mingli, Xinnou and Shengao with Sunon and Lamex. However, home décor market in China is significantly growing due to high luxury demand from Chinese customers, the presence of Furniture store market is growing fast in China with leading European and Chinese brands such as IKEA Group, Jinan Fangzhen Furniture Co. Ltd, Kinhom Group, Shenzhen Hoba Home Furnishings Chain, Yuexing Group. These four companies share most of the market.
Lighting market in China
Lighting has a long traditional and cultural background in home décor market in China since during Han Dynasty (25–220 AD), lighting market in China was famous to the rest of wold. Currently, China’s lighting industry has been developing rapidly and the country has become a world-leading lighting producer and consumer. Lighting market in China can be grouped into; Light emitting diodes (LEDs) with the output value of RMB636.8 billion in 2017, up 21% from 2016, and is expected to show an annual growth rate of about 18% in 2018-2020 and is set to break the RMB 1 trillion by 2020. compact fluorescent lamps (CFLs), electrodeless discharge lamps (EDLs) and organic light emitting diodes (OLEDs) are major products in the mainland lighting market with rapid market grew from USD530 million in 2011 to USD6.23 billion in 2016, representing an annual growth rate of 63.8%, and is expected to reach USD65 billion by 2023. Lighting market in China consists of a lot of manufacturing and selling companies including AD Lighting, Beghelli, Civilight, Cooper, Cree, CX Lighting, Crestron, Dahom,Davinci,Dongsheng, DZ-YC, Eglo, Elec-Tech, ESN Lighting, ET Lighting, Fagerhult,Feelux, FSL,Greeble, Huari, Huati, , Huayi Group, HuaYu Lighting, Ikea, JK Lighting, Jiufo, Kingsun, Koizumi, Meses, Nanker, Neo-Neon, Neonlite-Megaman, NVC, Okes, Olympia, Opple, Pak Electrical, Philips, Plusrite, Tao Light, TCL Light, TCPShanghai, Top Century, Top Lighting, Topstar, TopTech lighting, Toshiba, Tospo, Touve-Gangfeng, Unilumin, Violet Lighting, Yajiang, Yaming, Yankon, Youyao, Zhongfa, Zhongyu, Zhongzhen, Zumtobel. However, leading players in the market, which control considerable part of lighting industry, are Neo-Neon Group, NVC Lighting Technology Corporation, Opple Lighting Co. Ltd, Penglei Energy Saving Component Factory, Zhejiang Yankon Group Co. Ltd, with some companies being international while others being domestic.
Art market in China and the door market in Chinese interior design
Rapid Urbanization and home renovation seems to be the leading factor that influences the Chinese art market. It’s predicted that by the year 2030, China will add 310 million urban residents and the urbanization level will reach 70%. In 2017, the demand for doors in China rose to 8.5% amounted for RMB194.5 billion. Due to the huge demand for interior design market in China, wood doors have dominated the market for Chinese interior design with RMB 150billion sales in a 2017. Non-residential has the highest demand than residential. Also, due to the robust increases in construction activity, spurred by rapid progress in industrialization and subsequent rising personal incomes, the north western region has the highest demand for home décor market in China.
Flooring market in China
With increase in urbanisation and rising in personal incomes of the customers, the interior design market in China is growing rapidly with the high demand for floor coverings which is forecast to rise to 4% per year to 5.2 billion sq m in 2020. Ceramic tile is used for interior design in China more frequent than any other flooring material, Non-resilient flooring was the most popular floor covering of interior design in China which has 85% demand. Carpets and rugs represented 8% of floor covering demand in China in 2015, with resilient flooring accounting for the remaining 7%. The, Power Dekor, Nature, Anxin (ARK), Vohringer, Shiyou (Sunyard), Der, Sino-Maple, Krono and Rhineshine are some major key players in flooring industry.