As China market has always been a big cake appealing to variety of foreign investors, the wood flooring market in China has been focused on by many international leading manufacturers since early years. The attractiveness of this market is quite obvious with China’s wood flooring sales growing 6% year on year to 400 million square meters. Besides that, the wood flooring market in China has accounted for 20% of the global market. To seek the chances in this field, it is vital to have a comprehensive understanding of this market. This article will provide a brief introduction of the wooden flooring market in China and it specialities.
The Present of wood flooring market in China
The Chinese market in 2014 was affected by the depressed real estate sector, combined with a slowdown in growth rate, and the sales volume reached 390 million square meters. In 2015, the Government issued several favorable policies such as lowering the proportion of down payment for second house loans and the exemption of sales tax for ordinary housing which helped the recovery of commercial housing market and therefore raise the demand for wood flooring.
The present of wooden flooring market in China is expanding. Some researchers pointed out that this rise could be a result of the boom of the housing estate industry, which led to growing needs in house decorating. But it is not completely good news. With the aspect of foreign manufacturers entering the market for a long time, it is not optimistic that many big brands have encountered the problem: which is a sink of distribution channels. Though those international giant brands likeQUICK-STEP, WICANDERS, and EGGER have won the loyalty of customers in big cities such as Beijing, Shanghai and Guangzhou, they are of low fame in the western or relatively small cities in China where some domestic producers are popular. Those brands put more emphasis on wholesales than retail. Sometimes they even depend on the orders from huge construction projects.
Foreign brands meet quite a lot of competition from the local manufacturers. But they do have advantage over Chinese competitors’ current lack of certain kinds of material resources. China, which is already the world’s largest wood flooring manufacturing and exporting country, is also the largest importer of timber. There are quite a few kinds of wood that can be used to manufacture solid wood floor. So, most of the local brands choose to produce other kinds of products like laminated flooring instead of solid wood flooring. However, the needs of solid wood floors in this market is as large as the laminated ones. As a result, foreign manufacturers can focus more on the segment of solid wood flooring which is less competitive.
What do Chinese customers care about?
There are two important aspects that Chinese customers really care about, cost performance and service. The Majority of Chinese customers choose to omit the design of a product but also focus on price and quality. A kind of floor which is both durable and economical should be considered as the optimal option. Using quality as the global trend, the product being environmentally friendly has also become a necessary factor for Chinese customers to consider. In addition to quality, what makes a good image is the service the brand has provided when installing the floor. The service during installation is a vital part of customer experience correlating directly to an increase in brand image.
To sum up, China’s wood flooring market is still growing and is hungry for the solid wood floor market. Expand more sales channels benefits the transformation of traditional marketing modes that relies on large innovative projects, which can win more individual customers. In addition, environmentally friendly products with relatively low price and good service during installation appeal greatly to Chinese customers.
Daxue consulting Expertise
Daxue Consulting can provide you support in entering the growing wood flooring market in China. We conduct all the market research and consulting services you may need, such as store-checks, retail analysis, implementation feasibility, market survey etc. To know more about the Wood Flooring Market in China, do not hesitate to contact our dedicated project managers by email at firstname.lastname@example.org.
Follow us on Twitter to learn more:
How innovations in #China will change the world: From Artificial Intelligence to #mpayment https://t.co/Ne76zybkJF pic.twitter.com/ZlvQq7fz7q
— Daxue Consulting (@DaxueConsulting) August 18, 2017