Real estate weakened, furniture to the sea encountered Waterloo, outdoor furniture is the next outlet
Time： 2023-04-27 09:39
The frenzy in the U.S. housing market has come to an end, and with it, the market for "big furniture", a property industry.
What happens to US housing after that?
How to realize self-redemption of Chinese furniture enterprises?
Where's the next outlet on the furniture track?
IAN will read them all.
First, the arrival of the United States real estate weakness cycle, furniture to sea along with the slump
The U.S. real estate market went crazy for two years during the pandemic (2020 and 2021). During the dividend period, the sales of large furniture, as a downstream industry of real estate, also went up and shipped out of China. But cross-border furniture companies have been caught off guard by the boom and bust of US real estate.
Let's take a look at some key new U.S. data releases since the first quarter of 2023.
In the United States, the year-on-year growth rate of new home sales in January 2023 was -19.4%, which has been negative for 11 consecutive months. Sales of existing homes rose -22.6% in February from a year earlier, the 18th straight month of negative growth. Growth in both new and existing home sales has been negative for a long time, suggesting that the housing market is still cooling. The main drag on US real estate is the Federal Reserve's continued interest rate hikes, mortgage rates are rising too fast, depressing demand for loans, many potential buyers are locked out. Interest rate hikes are not over yet, with further increases likely at the May meeting, and a continued rise in lending rates could drag down housing starts in the US. In the future, the U.S. real estate will remain under pressure.
The US Department of Commerce recently released retail sales data, including the full year 2022 US furniture retail sales reached 143.4 billion dollars, compared to last year's growth of 1%. But despite the increase, the rate of growth was the lowest in the retail sector as a whole.
Real estate market slump, housing loan rates continue to rise, can be said to be a very serious situation.
How to realize self - redemption after furniture enterprise?
Second, the habit of staying close to nature continues from the epidemic, and the demand for the allocation of outdoor furniture increases, with broad prospects
Because of the outbreak, people are spending a lot more time at home, and many are spending more time camping, gardening, barbecues and other outdoor activities. Therefore, outdoor household products in the European and American markets ushered in explosive growth opportunities. The global outdoor furniture market reached $47.8 billion in 2021, an increase of 179.53% from 2020. Among them, the market share in North America is as high as 42%, and the United States is the largest outdoor furniture market in North America, its sales reached 16.4 billion dollars, ranking the first place in the global outdoor furniture market.
Now, although the epidemic has ended, the habit of being close to nature with high quality has been retained, and people increasingly feel that this way of life is very healthy and interesting. And, we have gradually improved the requirements of outdoor furniture configuration, more attention to the design of the whole outdoor environment, comfort, harmony, sense of science and technology. More and more demand has exploded.
Based on this, outdoor furniture sea will become a dark horse in the furniture subdivision circuit.
Three, Chinese furniture overseas enterprises may wish to follow the tuyere, a little adjustment, the road will go wider
China has long been a major producer of furniture. It has the advantage of a solid supply chain in China. Exquisite and comfortable technology, intimate and practical design, and cost-effective price all guarantee the competitiveness of Chinese furniture brands abroad.
Now that the growth of indoor furniture has entered a period of weakness, and the U.S. real estate market is not likely to improve for nearly a year, overseas companies may want to keep up with the latest trends and explore the commercial space for outdoor furniture.