Low concentration of custom home industry, multi-dimensional construction barriers for leading companies
Custom furniture has developed rapidly in the past few years, and the scale of the industry has continued to expand. According to the China Business Research Institute, the market size of China’s custom furniture industry in 2018 exceeded 250 billion yuan. However, in terms of penetration rate, China’s custom furniture penetration rate is still at a low level. According to the improvement of the penetration rate of hardcover houses, the continuous development of the stock market and the increase of custom home penetration rate, the customized home industry is expected to maintain good growth. From the perspective of sub-categories, China’s custom furniture market is mainly concentrated in the cabinets and wardrobes. The penetration rate of cabinets and wardrobes is relatively high. The penetration rate of custom cabinets and custom-made wardrobes in 2018 has gradually increased. According to the China Merchants Research Institute. In 2018, the penetration rate of China’s custom cabinets and custom wardrobes was about 65% and 45% respectively, and the corresponding market scale continued to expand. In 2018, China’s custom cabinet market reached 140 billion yuan, and the customized wardrobe market was 70 billion yuan. Customized wooden doors account for a relatively low proportion but have shown rapid development in recent years. According to the China Merchants Research Institute, the size of the customized wooden door market in 2018 exceeded 30 billion yuan, a year-on-year increase of about 65%.
Judging from the competitive landscape, there are currently 9 major listed companies in the custom home furnishing enterprises. From the perspective of the sales of these 9 companies in 2018, the custom home ladder is more obvious. The first echelon is based on the European home, Sophia and Shangpin. The main source of revenue is more than 5 billion yuan, of which Ou Pai Home is far ahead of the revenue of 11.5 billion yuan; the second echelon has a revenue of about 2 billion yuan, Zhibang Home, Haolaike, and Gold Kitchen Cabinets; The third echelon member’s revenue is about 1 billion yuan. I am at home, Piano, and Dinggu. Corresponding to 2018 custom cabinets, custom wardrobe industry scale, custom cabinet CR7 is only 8.10%, custom wardrobe CR8 is only 20.35%; from the custom cabinet faucet Ou Pai home and custom wardrobe lead Sophia market share, 2018 market share The overall concentration of the industry was 4.12% and 9.01%, respectively. melamine finish whole house custom factory
We believe that custom homes as a post-period product of the real estate industry are affected by real estate regulation and competition in the short term. Major companies have taken a number of measures, such as expanding product categories to increase customer unit prices, and retail channels sinking to a lower penetration rate. The fifth-tier cities and the expansion of the channels to the front-end assembly area of the renovation are competing for traffic. Secondly, driven by the hardcover housing policy, industry-leading home furnishing companies have collaborated with real estate developers to carry out bulk business, and small-scale home furnishing companies are difficult to implement or have smaller scales due to cash flow restrictions. Custom home businesses face traffic acquisition and balance the C-side retail business with the B-end bulk business and the packaged business. We believe that industry-leading companies mainly build barriers from products, channels, production capacity, information construction, brand building and other dimensions to enhance competitiveness and thus resist the adverse effects of real estate regulation. melamine finish whole house custom supply