Analysis of the Development Prospect of China's Artificial Board Industry

China will actively promote urbanization and the urbanization rate in China will exceed 50% in the 12th Five-Year Plan. Every 1 percentage point increase will drive more than 10 million rural residents into urban living, living, schooling, and employment, bringing with them large-scale real estate construction projects and consumer demand. In particular, the prospects for low-end and middle-end cities in grades 3 and 4 are very promising. The growth rate of real estate investment in the next 20 years will maintain a relatively high growth. In the first three quarters of 2010, the national real estate investment reached 3351.1 billion yuan, an increase of 36.4% year-on-year; the new construction area was 1.194 billion m2, an increase of 63.1% year-on-year; the commercial housing sales area was 632 million m2, an increase of 8.2% year-on-year; the sales amount was 3.19 trillion yuan, year-on-year Increased by 15.9%.

Urbanization construction creates demand In the past 20 years, China's architectural decoration industry has also developed rapidly, and the market growth space has increased at an average rate of about 20% per year, far higher than the GDP growth rate over the same period. At present, the building decoration industry has grown into a large industry with 180,000 companies, 14 million employed people, and an annual output value of 2 trillion yuan. At present, there are 3,000 building materials markets with a total area of ​​more than 3,000 square meters and sales of more than 200 billion yuan. With the rapid development of real estate and interior decoration industry, demand for wood-based panels and furniture has steadily increased. Every year, China builds more than 2 billion square meters of various types of houses. According to an average of 100 square meters per suite, the annual demand for newly-built houses is more than 80 million cubic meters. With the re-decoration of second-hand houses, the total market demand exceeds 1 One hundred million cubic meters.

The rural market has great potential According to statistics, there are more than 600 prefecture-level cities in China, more than 2,100 county-level cities, and there are more than 12,000 townships, and the number of rural households accounts for 67.6% of the total national households. China currently has 720 million rural residents and 220 million rural households. About 20 million households need new housing each year. In 2009, the growth rate of rural consumption exceeded that of cities for the first time, and the retail sales of consumer goods at or below the county level was 0.2 percentage points faster than that of cities. In the first three quarters of 2010, the total retail sales of consumer goods reached 1,100.2 billion yuan, a year-on-year increase of 18.3%. Among them, the furniture category increased by 38.4%, the automotive industry increased by 34.9%, and the household appliances and audio-visual equipment increased by 28.1%.

The income of rural residents grew faster than that of towns. In the first three quarters of 2010, the total per capita income of urban households was 15,716 yuan. After deducting price factors, the per capita disposable income actually grew by 7.5%. The per capita cash income of rural residents was 4,869 yuan, a real increase of 9.7% after deducting price factors. The total household income of 12,000 villages and towns in the country is 50% higher than the total household income in the first and second tier cities. The population of the potentially affluent group is 135 million, which is equivalent to the total population of 137 million in the primary and secondary cities.

It is estimated that over the next 20 years, families with annual income of over 35,000 yuan will increase by 7.6 million households, an increase of 7%, while large and medium-sized cities will increase by 6.6 million each year, with an annual growth rate of only 5%. The total rural consumer market can reach 3 trillion yuan each year. With this attractive data gradually becoming a new consumer support point, major furniture brands have turned their attention from the city to the countryside. Who can start from the reality of the rural market to meet the actual needs of rural consumers, who will have the key to winning the market. In the next decade, rural consumption with huge potential will inevitably bring about 5-10 times growth for the company.