The furniture industry is booming

The real estate market is selling well, the national building materials home boom index (BHI) is rising, the traditional home season is coming, and the furniture industry is beginning to pick up. According to Wind statistics, industry insiders said that 2013 is the sales year of the furniture industry, the custom furniture market will become the next growth point, and the performance of related listed companies will gradually increase.

Industry is reversed

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According to reports, from January to April, the sales area of ​​commercial housing was 297.61 million square meters, up 38% year-on-year; the sales of commercial housing was 198.7 billion yuan, up 59.8%. At the same time, the national building materials home prosperity index in April was 107.94, an increase of more than 25% from the previous month. The sales of home building materials above designated size in the country was 9.7 billion yuan in April, up 34.54% from the previous month.

Qin Zhanxue, vice president of China Building Materials Circulation Association, believes that the rise in BHI is affected by the renovation season. In addition, US real estate continued to recover. The National Association of Realtors (NAR) announced on May 22 that the annualized sales of existing home sales in the United States increased to 4.97 million in April, the highest level since November 2009.

Galaxy Securities believes that the US real estate recovery has been stable since last year. Since furniture sales usually lag behind 2-3 quarters, US domestic furniture companies have performed well this year. Yihua Wood, Meike shares and other companies that export to the United States will also benefit. It is understood that the Meikemeijia chain of Meike shares increased by more than 40% in the first four months of this year.

Guosen Securities expects 2013 to be the year of reversal in the furniture industry. Since the second half of 2012, the sales of domestic commercial housing have rebounded sharply, and the domestic sales of furniture will increase significantly in the traditional peak season in the second half of 2013. Brand enterprises that have completed the production base and sales channel layout in the country will benefit first. Sophia in the field of custom-made wardrobes, as well as Meike shares and Del homes are worthy of attention.

Custom furniture trends

According to the statistics of authoritative organizations, the size of the domestic furniture market will reach one trillion yuan in 2013. In 2012, custom furniture accounted for 10% of the overall furniture market. Based on this calculation, the custom furniture market will reach 100 billion yuan this year.

There are two trends in custom furniture today. One is integrated home and the second is intelligent. Some manufacturers choose materials differentiation strategies, such as aluminum wardrobes, new PE materials, and so on.

Although custom furniture can affect a given production process and the cost is not easy to control, the introduction of custom furniture brings a large market prospect to traditional furniture companies. According to the China Securities Journal reporter, many solid wood companies in Sichuan have recently launched customized services for solid wood. Liwei, who is mainly engaged in high-end custom furniture, told reporters that the company's sales in 2013 will reach 30 million yuan, which is expected to increase by 100%. Since the second quarter, Sophia's stock price in the custom-made wardrobe field has increased by more than 20%, which also indicates that the market is optimistic about the custom furniture market.

According to industry insiders, there is a huge market space for domestic furniture customization needs. Companies that offer personalized service and stronger supply chain management capabilities will take the lead.

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