Since the reform and opening up, China's furniture industry has achieved unprecedented development, especially since the 1990s, creating a miracle of sustained rapid growth. As of 2010, the entire furniture industry, including enterprises above a certain scale, achieved a total industrial output value of 385.9 billion yuan, a year-on-year increase of 28.62%; sales revenue of 379.308 billion yuan, a year-on-year increase of 30.30%; and total profits of 18.64 billion yuan, a year-on-year increase of 46.15%. Overall, all economic indicators of the industry showed growth, with the growth rate of total profits exceeding 30%, indicating a healthy development trend in the furniture industry.
As a branch of the furniture industry, China's upholstered furniture industry has also achieved rapid development with the continuous updating of production technology, the increasing variety of products, the gradual formation of specialized production, and the continuous improvement of management levels. In 1999, the output value of China's upholstered furniture industry exceeded 50 billion yuan; in 2004, the output value was 81.9 billion yuan; in 2005, it was 98 billion yuan; and in 2007, the output value of China's upholstered furniture industry exceeded 100 billion yuan, accounting for about 30% of the overall furniture market. The domestic market demand for upholstered furniture accounts for approximately one-third of the overall furniture market, with a market size of around 100 billion yuan.
Globally, the strongest upholstered furniture companies are mainly located in Europe, the United States, and Japan.
Among Chinese urban residents, the ownership rate of upholstered furniture is only 6.8%, which is far lower than the average level of 72% in developed countries in Europe and the United States. With the rapid development of China's economic construction, the improvement of office conditions in government agencies, and the continuous expansion of banks, securities companies, schools, hospitals, and enterprises, the demand for upholstered furniture will continue to grow. At the same time, with the construction of modern office buildings, the large amount of upholstered furniture needed for existing office spaces, coupled with foreign companies setting up offices in China, the annual growth rate of demand for upholstered furniture is expected to reach over 20%. It is estimated that in the next five years, China will have a market capacity of 29 million sets of upholstered furniture, averaging 5.8 million sets per year. If calculated at an average price of 30,000 yuan per set, this represents an average annual market space of 174 billion yuan.
