Mar-07
The DIY market has gained
a foothold in China’s biggest cities
Since reaching RMB 195 billion in 2004, the DIY home furnishings
market in China has been growing at double-digit rates and is expected
to do so until 2010. The main pockets of this growth have centred
on Shanghai, Beijing, Guangzhou, Zhejiang and Tianjin, where residents
tend spend about 5% of their income on housing and decoration, the
highest percentage nation-wide.
DIY stores have gained in popularity, as they are recognized for
their quality assurance, after-sales service, and one-stop decoration
services where customers receive free advice on materials, design,
installation and budgeting.
This has been driven partly for the demand for ‘soft decoration’.
City dwellers are more likely to change living places and to spend
more on movable soft decoration, such as high-quality furniture, handcrafted
articles, collectibles etc. Younger consumers are also increasingly
living away from home, and are more likely to choose multifunctional,
lightweight, low cost furniture for themselves. Installing one’s
own kitchen and bathroom fittings is considered higher in priority
as these are in the most ‘personal’ areas of the home.
However, smaller contractors pose a threat to DIY businesses, as
their quality improves and awareness of DIY services remains relatively
low. Currently, small contractors still dominate 80% of the home decoration
market, and offer greater flexibility compared to DIY stores, which
tend to have stricter working hours and schedules. To counter this,
DIY stores will need to reach out to local consumers and raise awareness
of their services.
Visit our Consumer
& retail practice
About Fusion Consulting
Fusion Consulting is a business intelligence consultancy providing
strategic advice on Asia-Pacific markets. With offices in Shanghai,
Singapore and Hong Kong, and a network of 400 freelance industry consultants in 16 countries, the company conducts custom research and consulting
to help clients understand their markets, compete more effectively
and grow into new areas of opportunity. www.fusionc.com
Back
to Industry bulletins
|
