Urbanization, household formation stimulate sales
The furniture industry benefited from urbanization and household formation. The growing interest in home décor and remodeling, driven by rising prosperity, also helped sales.
Other than Ikea, the dominant foreign brand, the category remains fragmented with many Chinese brands. One of them, Suofeiya, linked with the French company SALM to extend the Suofeiya brand, known for bedroom wardrobes, into other kinds of storage cabinets.
As consumers prefer to physically see and touch furniture before purchasing, the furniture category was less impacted by ecommerce than many other retail segments. However, brands developed online shopping sites to heighten awareness.
In the near term, the recent slowdown in real estate development, because of higher interest rates, could impact furniture sales. But over time growth potential is enormous, particularly in lower tier cities. Suofeiya is the only furniture brand included in the BrandZ™ China
Top 100 because it's the only brand in the category to meet all the ranking criteria.