The Home Improvement Markets in China have seen tremendous growth in recent years. In 2006, the market was worth around US$50 billion and was growing at 20% annually. Many domestic and international companies already had a presence in the country. Some of the largest players were B&Q from the UK, Home Mart from Germany, and Orient House from Hong Kong. The US’s Home Depot was considering entering the market. In spite of the recent growth, analysts disagreed about the future of the industry in China.
Market improvement has suffered
The traditional home improvement market in China has suffered from poor service, opaque interest patterns, and poor operational efficiency. The industry also lacks standardization and is not well-organized. Consumers in China often face problems when choosing a pre-decoration process and in maintaining their rights as the process progresses. In addition, the Chinese market is experiencing continued growth in demand, which is creating a difficult environment for new players.
Market is growing fast
China’s residential market is rapidly growing. According to the World Bank, the country’s population will surpass one billion people by 2020. Meanwhile, the demand for home improvement in China will continue to grow fast. In fact, the average Chinese household will invest about $150000 in home improvement in 2025, which is double the level of consumer spending in the US. Although hard furnishings will account for less than half of this total, the change in consumption distribution will create structural growth opportunities for the industry.
China’s economy is developing
The demand for Home Improvement in China has risen rapidly in the past decade, and it is expected to grow even faster in the coming decade. Consecutive increases in industrial output, import & export, consumer consumption, and capital investment will keep the Chinese economy moving at a high speed for the next two decades. This study will analyze the major players in the industry and their performance in the long-term. There will also be macroeconomic analysis and graphical representations of market trends
Home improvement demand is increasing
The demand for home improvement in China has been increasing rapidly for the past decade. As the economy grows, Chinese consumers are also purchasing new products, including appliances and furniture. The demand for home improvement products in China is growing rapidly. The Chinese population is growing at a fast rate, and the industry in China is still booming. As a result, foreign investors are still investing in the industry. Despite the recent growth in the domestic market, the demand for home improvement in the country is still incredibly large.
China’s economy is improving
The demand for home improvement products in China is growing fast. The Chinese economy continues to grow at high rates. Its industrial output, import & export, and consumer consumption all increase at a rapid pace. In addition, the Chinese economy is constantly improving, and its domestic market is no exception. The demand for home improvement products in China will continue to grow as the population increases. This study will cover the industry’s development in the next decade.
Possibility of growth of industrial structure
The growth in domestic demand for home improvement products in China has been accelerating over the past decade. The growth in domestic expenditure is a key indicator of the economy’s health and will account for approximately 24.6% of all disposable income in 2020. The average household in China spent about 150000 dollars on home improvement in 2017, which will rise to 200,000 in 2020. However, the proportion of hard furnishings in total domestic expenditure is declining, resulting in structural growth opportunities for the industry.
The Home Improvement market in China is expected to continue to grow fast over the next decade. The Chinese economy has been experiencing steady growth for the past decade, and it is anticipated that the demand for home improvements will continue to grow in the next few years. Furthermore, the Chinese population is increasingly wealthy, and the economy is growing in the near future. There is a strong demand for home improvement products and services, which are increasingly widespread throughout the country.