Home Improvement, DIY & Furnishings in China 2009: A Market Analaysis

Home Improvement, DIY & Furnishings in China 2009: A Market Analaysis

REPORT COVERAGE


This report concentrates on the emerging trend of home improvement, furnishings and DIY in the People’s Republic of China.

The report touches on the state of the housing and construction industry in China though is primarily concerned with consumers decisions regarding home improvement, DIY and the purchase of home improvement-related items such as furniture, ceramics and lighting.

The market is taken to include home improvements that can be undertaken by individual homeowners such as decorating, basic electrical work, kitchen and bathroom equipment, wall coverings and floorings. The report concentrates on those improvements that can be made without formal government approval, professional construction work or planning permission.

The report aims to examine the market’s size, trends, driving factors, future structure as well as retailers and suppliers concentrating on the home improvement market in China. The market includes the following sectors:

1. Lumber
2. Wood products
3. Rough Electrical
4. Rough Plumbing
5. Building Materials
6. Hardware
7. Window & Wall Fittings
8. Flooring
9. Toilet & Bathroom Fittings
10. Household Textiles, Soft Furnishings
11. Household Lighting
12. Kitchen Cabinets/Countertops
13. Furniture
14. Home Storage
15. Paint
16. Garden Tools & Accessories
17. Tools




KEY REPORT FEATURES


This recently updated report includes:
• An overview of China’s total non-food market with sales statistics up to 2008;
• The total value of the home improvement market, including sector breakdowns, up to 2008;
• Value provincial and urban/rural breakdown, up to 2008;
• Value sectoral analysis by subsector, up to 2008;
• Retail pricing trends for home improvement products by province up to 2008;
• Volume & value forecast total home improvement products market in China up to 2013;
• Key contacts & trade events;
• Overview of China’s demographics and macroeconomics.


Executive Summary


The total home improvements market in China (which includes DIY products, home furniture, bathroom and toilet ceramics, floorings and home lighting) combined to reach a total value of RMB49.10bn (US$5.93bn) in 2008. This value was 14.64% up on the previous year, indicating continuing strong market growth, and a full 93.75% up on 2002, with annual growth averaging about 10.66%. Growth had slowed slightly as the first major stage of home ownership and decoration has occurred in the major cities. However, in 2002 there was another surge in the market, as government encouraged new mortgage products helped to push up sales of homes in that year, helping to raise demand for home improvement and DIY products.

The market has grown rapidly thanks to the opening up of the private housing market, continuing rapid increases in average salaries and consumer spending power in the tertiary cities and the improved retail supply of goods all contributing to the strong growth.

The market is being fuelled largely by the government’s policy of selling its welfare housing stock in the early 1990s. Since then, about 50% of the country’s state-owned housing stock amounting to floor space of 2.5 billion m2 has been sold to occupants, raising an estimated RMB1.3trn for the state.

There are a growing number of specialist decorating, design and improvement companies that have been set up to cater to the new needs of householders. The China National Interior Decoration Association estimates that there are now 40,000 companies engaged in property redecoration employing approximately 2.6 million people.

Table of Contents

INTRODUCTION 1


Report Coverage 1
Executive Summary 1
Glossary 2
Relevant Access Asia Reports 3
Free Online Newsletter & Editorials 3

1 CHINA' S HOME IMPROVEMENTS RETAIL MARKET 4

1.1 Overview 4
1.2 China' s Total Non-food Market 5
1.2.1 Total Non-food Market: Food & Non-food Sales 5
1.2.2 Total Non-food Market: Food/Non-food Sales Split 5
1.2.3 Total Non-food Market: Urban and Rural Split 6
1.2.4 Total Non-food Market: Total Value Trends 6
1.2.5 Total Non-food Market: Urban Value Trends 7
1.2.6 Total Non-food Market: Rural Value Trends 9
1.3 China' s Home Improvements Market 10
1.3.1 Total Home Improvements Market: Total Retail Market Size in Value Terms 10
1.3.2 Total Home Improvements Market: Retail Non-food Market Significance 12
1.3.3 Total Home Improvements Market: Retail Sales & Trade Sales Compared 12
1.3.4 Total Home Improvements Market: Expenditure by Major City 13
1.4 Provincial Breakdown 14
1.4.1 Provincial Breakdown: Overall Market Value Sizes 14
1.4.2 Provincial Breakdown: Overall Market Value Growth & Breakdown 15
1.4.3 Provincial Breakdown: Overall Market Per Capita Spending 16
1.4.4 Provincial Breakdown: Retail Value Market Sizes 16
1.4.5 Provincial Breakdown: Retail Value Market Growth & Breakdown 18
1.4.6 Provincial Breakdown: Retail Per Capita Spending 19
1.5 Retail Sector Breakdown 20
1.5.1 Retail Sector Breakdown: Sector Sizes 20
1.5.2 Retail Sector Breakdown: Sector Shares 21
1.5.3 Retail Sector Breakdown: Growth Rates 22
1.6 Lumber 23
1.6.1 Lumber: Sector Retail Values 23
1.6.2 Lumber: Sector Breakdown 24
1.6.3 Lumber: Sector Growth 24
1.7 Rough Electrical 24
1.7.1 Rough Electrical: Sector Values 24
1.7.2 Rough Electrical: Sector Breakdown 25
1.7.3 Rough Electrical: Sector Growth 25
1.8 Building Materials 25
1.8.1 Building Materials: Sector Values 25
1.8.2 Building Materials: Sector Breakdown 26
1.8.3 Building Materials: Sector Growth 26
1.9 Hardware 26
1.9.1 Hardware: Sector Values 26
1.9.2 Hardware: Sector Breakdown 27
1.9.3 Hardware: Sector Growth 27
1.10 Window & Wall Fittings 27
1.10.1 Window & Wall Fittings: Sector Values 27
1.10.2 Window & Wall Fittings: Sector Breakdown 28
1.10.3 Window & Wall Fittings: Sector Growth 28
1.11 Flooring 28
1.11.1 Flooring: Sector Values 28
1.11.2 Flooring: Sector Breakdown 29
1.11.3 Flooring: Sector Growth 29
1.12 Toilet & Bathroom Fittings 29
1.12.1 Toilet & Bathroom Fittings: Sector Values 29
1.12.2 Toilet & Bathroom Fittings: Sector Breakdown 30
1.12.3 Toilet & Bathroom Fittings: Sector Growth 30
1.13 Household Lighting 30
1.13.1 Household Lighting: Sector Values 30
1.13.2 Household Lighting: Sector Breakdown 31
1.13.3 Household Lighting: Sector Growth 31
1.14 Furniture 31
1.14.1 Furniture: Sector Values 31
1.14.2 Furniture: Sector Breakdown 32
1.14.3 Furniture: Sector Growth 32
1.15 Paint 32
1.15.1 Paint: Sector Values 32
1.15.2 Paint: Sector Breakdown 33
1.15.3 Paint: Sector Growth 33
1.16 Garden Tools & Accessories 33
1.16.1 Garden Tools & Accessories: Sector Values 33
1.16.2 Garden Tools & Accessories: Sector Breakdown 34
1.16.3 Garden Tools & Accessories: Sector Growth 34
1.17 Tools 34
1.17.1 Tools: Sector Values 34
1.17.2 Tools: Sector Breakdown 35
1.17.3 Tools: Sector Growth 35
1.18 Urban & Rural Sales of Home Improvement & DIY Products in China 35
1.18.1 Urban & Rural Market: Total Sales 35
1.18.2 Urban & Rural Market: Growth Rates 36
1.19 Market Parameters 36
1.19.1 Market Parameters: Home Ownership 36
1.19.2 Market Parameters: Per Capita Living Space 37
1.19.3 Market Parameters: Total Residential Floor Space 38
1.19.4 Market Parameters: Household Expenditure on Home Improvement by Middle Income Earners by Major City in China 39
1.19.5 Market Parameters: Household Expenditure on Home Improvement by High Incomes Earners by Major City in Shanghai 40
1.20 Market Shares 40
1.20.1 Market Shares: Leading DIY & Furniture Store Chains Sales 40
1.20.2 Market Shares: Leading DIY & Furniture Store Chains Outlets 41
1.20.3 Market Shares: Leading DIY & Furniture Store Chains Sales Per Outlet 41
1.20.4 Market Shares: Leading Plywood Manufacturer Shares 41
1.20.5 Market Shares: Leading Fibreboard Manufacturer Shares 42
1.20.6 Market Shares: Leading Shipboard Manufacturer Shares 42
1.20.7 Market Shares: Leading Other Artificial Board Manufacturer Shares 43
1.20.8 Market Shares: Leading Wood Furniture Manufacturer Shares 43
1.20.9 Market Shares: Leading Metal Furniture Manufacturer Shares 44
1.20.10 Market Shares: Leading Other Furniture Manufacturer Shares 44
1.20.11 Market Shares: Leading Paint Manufacturer Shares 45
1.20.12 Market Shares: Leading Brick & Tile Manufacturer Shares 45
1.20.13 Market Shares: Leading Household Ceramics Manufacturer Shares 46
1.20.14 Market Shares: Leading Hand Tools Manufacturer Shares 46
1.20.15 Market Shares: Leading Other Tools Manufacturer Shares 47
1.20.16 Market Shares: Leading Plumbing Parts Manufacturer Shares 47
1.20.17 Market Shares: Leading Metal Doors & Windows Manufacturer Shares 48
1.20.18 Market Shares: Leading Household Metal Products Manufacturer Shares 48
1.20.19 Market Shares: Leading Electrical Tools Manufacturer Shares 49
1.20.20 Market Shares: Leading Household Lighting Equipment Manufacturer Shares 49
1.20.21 Market Shares: Leading Carpet Manufacturer Shares 50
1.21 Prices 50
1.21.1 Prices: Retail Price Indices 50
1.21.2 Prices: Selected Retail Prices 54
1.22 Home Improvement & DIY Products Outlook 57
1.22.1 Outlook: Total Market Value 57
1.22.2 Outlook: Sector Values 57
1.22.3 Outlook: Sector Breakdown 58
1.22.4 Outlook: Sector Growth 59
1.23 Current Issues 59
1.23.1 Current Issues: Legislation 59
1.23.2 Current Issues: The Furniture Manufacturing Industry 60
1.23.3 Current Issues: Paint 61
1.23.4 Current Issues: Plastic Home Improvement Products 61
1.23.5 Current Issues: Towards A Chinese Style 62
1.23.6 Current Issues: Clustering of Home Improvement & Furnishings Specialists 63
1.23.7 Current Issues: The Growth of New Fully-Furnished Apartments 64
1.23.8 Current Issues: Home Improvement Services 64
1.23.9 Current Issues: China' s Market for Paints and Coatings 65

2 MARKETING & DISTRIBUTION 68

2.1 Marketing & Advertising 68
2.1.1 Marketing & Advertising: Trends 68
2.1.2 Marketing & Advertising: Revenues by Leading Advertised Product Categories 69
2.1.3 Marketing & Advertising: Legislation Affecting China' s Advertising Industry 69
2.1.4 Marketing & Advertising: Brand Preferences in China 70
2.1.5 Marketing and Advertising in China: Brand Equity 71
2.1.6 Marketing & Advertising: Emerging Local Brands 72
2.1.7 Marketing & Advertising: Packaging & Presentation 74
2.1.8 Marketing & Advertising: Pricing Issues 75
2.1.9 Marketing & Advertising: Brand Marketing Strategies 75
2.1.10 Marketing & Advertising: Product Launches & Promotions 76
2.1.11 Marketing & Advertising: Geographical Expansion Within China 77
2.1.12 Marketing & Advertising: Direct Mail 78
2.1.13 Marketing & Advertising: Direct Sales 78
2.1.14 Marketing & Advertising: The Threat from Fakes and Counterfeits 79
2.1.15 Marketing & Advertising: Consumer Protection Policies 79
2.1.16 Marketing & Advertising: Home Improvement & DIY Marketing 80
2.2 Consumers 81
2.2.1 Consumers: The Chinese Consumer 81
2.2.2 Consumers: The Effects of Political Change 82
2.2.3 Consumers: Responses to Economic Change 82
2.2.4 Consumers: Urban Consumer Profile 83
2.2.5 Consumers: Rural Consumer Profile 84
2.2.6 Consumer Profile: Home Improvement & DIY Product Consumers 86
Urban Consumers 86
Rural Consumers 87
2.3 Wholesale Distribution 88
2.3.1 Wholesale Distribution: Opening the Market: Relaxing of Joint Venture Legislation 88
2.3.2 Wholesale Distribution: Opening the Market: Foreign Wholesale Involvement 89
2.3.3 Wholesale Distribution: Opening the Market: Expanded Foreign Involvement 89
2.3.4 Wholesale Distribution: Opening the Market: Imported Goods Distribution 90
2.3.5 Wholesale Distribution: Opening the Market: Imported Goods Tariffs 91
2.3.6 Wholesale Distribution: Opening the Market: Locally Produced Goods Distribution 92
2.3.7 Wholesale Distribution: Total Market Size 92
2.3.8 Wholesale Distribution: Market by Sector 93
2.3.9 Wholesale Distribution: Leading Home Improvement & DIY Products Wholesalers 94
2.4 Retail Distribution 96
2.4.1 Retail Distribution: Retail Sales by Outlet 96
2.4.2 Retail Distribution: Forecast Market Shape 98

3 SOURCES OF SUPPLY 100

3.1 Plywood Manufacturing Industry 100
3.1.1 Plywood Manufacturing Industry: Total Industry Manufacturers & Revenue 100
3.1.2 Plywood Manufacturing Industry: Total Industry Revenue & Profit 100
3.1.3 Plywood Manufacturing Industry: Regional Output Volume 101
3.2 Key Plywood Manufacturers 102
3.2.1 Key Plywood Manufacturers: Key Statistics 102
3.2.2 Key Plywood Manufacturers: Industry Revenue Shares 103
3.2.3 Key Plywood Manufacturers: Industry Profit Shares 104
3.2.4 Key Plywood Manufacturers: Profitability 105
3.3 Fibreboard Manufacturing Industry 107
3.3.1 Fibreboard Manufacturing Industry: Total Industry Manufacturers & Revenue 107
3.3.2 Fibreboard Manufacturing Industry: Total Industry Revenue & Profit 108
3.3.3 Fibreboard Manufacturing Industry: Regional Output Volume 108
3.4 Key Fibreboard Manufacturers 109
3.4.1 Key Fibreboard Manufacturers: Key Statistics 109
3.4.2 Key Fibreboard Manufacturers: Industry Revenue Shares 110
3.4.3 Key Fibreboard Manufacturers: Industry Profit Shares 111
INDUSTRY PROFITS, 2007 112
3.4.4 Key Fibreboard Manufacturers: Profitability 112
3.4.5 Key Fibreboard Manufacturers: Revenue Per Employee 113
3.5 Shipboard Manufacturing Industry 114
3.5.1 Shipboard Manufacturing Industry: Total Industry Manufacturers & Revenue 114
3.5.2 Shipboard Manufacturing Industry: Total Industry Revenue & Profit 115
3.5.3 Shipboard Manufacturing Industry: Regional Output Volume 116
3.6 Key Shipboard Manufacturers 117
3.6.1 Key Shipboard Manufacturers: Key Statistics 117
3.6.2 Key Shipboard Manufacturers: Industry Revenue Shares 118
3.6.3 Key Shipboard Manufacturers: Industry Profit Shares 119
3.6.4 Key Shipboard Manufacturers: Profitability 120
3.6.5 Key Shipboard Manufacturers: Revenue Per Employee 121
3.7.1 Other Artificial Board Manufacturing Industry: Total Industry Manufacturers & Revenue 122
3.7.2 Other Artificial Board Manufacturing Industry: Total Industry Revenue & Profit 123
3.7.3 Other Artificial Board Manufacturing Industry: Regional Output Volume 123
3.8 Key Other Artificial Board Manufacturers 125
3.8.1 Key Other Artificial Board Manufacturers: Key Statistics 125
3.8.2 Key Other Artificial Board Manufacturers: Industry Revenue Shares 126
3.8.3 Key Other Artificial Board Manufacturers: Industry Profit Shares 127
3.8.4 Key Other Artificial Board Manufacturers: Profitability 128
3.8.5 Key Other Artificial Board Manufacturers: Revenue Per Employee 129
3.9 Wood Furniture Manufacturing Industry 130
3.9.1 Wood Furniture Manufacturing Industry: Total Industry Manufacturers & Revenue 130
3.9.2 Wood Furniture Manufacturing Industry: Total Industry Revenue & Profit 130
3.9.3 Wood Furniture Manufacturing Industry: Regional Output Volume 131
3.10 Key Wood Furniture Manufacturers 132
3.10.1 Key Wood Furniture Manufacturers: Key Statistics 132
3.10.2 Key Wood Furniture Manufacturers: Industry Revenue Shares 133
3.10.3 Key Wood Furniture Manufacturers: Industry Profit Shares 134
3.10.4 Key Wood Furniture Manufacturers: Profitability 135
3.10.5 Key Wood Furniture Manufacturers: Revenue Per Employee 136
3.11 Metal Furniture Manufacturing Industry 137
3.11.1 Metal Furniture Manufacturing Industry: Total Industry Manufacturers & Revenue 137
3.11.2 Metal Furniture Manufacturing Industry: Total Industry Revenue & Profit 138
3.11.3 Metal Furniture Manufacturing Industry: Regional Output Volume 138
3.12 Key Metal Furniture Manufacturers 140
3.12.1 Key Metal Furniture Manufacturers: Key Statistics 140
3.12.2 Key Metal Furniture Manufacturers: Industry Revenue Shares 141
3.12.3 Key Metal Furniture Manufacturers: Industry Profit Shares 142
3.12.4 Key Metal Furniture Manufacturers: Profitability 143
3.12.5 Key Metal Furniture Manufacturers: Revenue Per Employee 144
3.13 Other Furniture Manufacturing Industry 145
3.13.1 Other Furniture Manufacturing Industry: Total Industry Manufacturers & Revenue 145
3.13.2 Other Furniture Manufacturing Industry: Total Industry Revenue & Profit 145
3.13.3 Other Furniture Manufacturing Industry: Regional Output Volume 145
3.14 Key Other Furniture Manufacturers 147
3.14.1 Key Other Furniture Manufacturers: Key Statistics 147
3.14.2 Key Other Furniture Manufacturers: Industry Revenue Shares 148
3.14.3 Key Other Furniture Manufacturers: Industry Profit Shares 149
3.14.4 Key Other Furniture Manufacturers: Profitability 150
3.14.5 Key Other Furniture Manufacturers: Revenue Per Employee 151
3.15 Paint Manufacturing Industry 152
3.15.1 Paint Manufacturing Industry: Total Industry Manufacturers & Revenue 152
3.15.2 Paint Manufacturing Industry: Total Industry Revenue & Profit 152
3.15.3 Paint Manufacturing Industry: Regional Output Volume 152
3.16 Key Paint Manufacturers 154
3.16.1 Key Paint Manufacturers: Key Statistics 154
3.16.2 Key Paint Manufacturers: Industry Revenue Shares 155
3.16.3 Key Paint Manufacturers: Industry Profit Shares 156
3.16.4 Key Paint Manufacturers: Profitability 157
3.16.5 Key Paint Manufacturers: Revenue Per Employee 158
3.17 Brick & Tile Manufacturing Industry 159
3.17.1 Brick & Tile Manufacturing Industry: Total Industry Manufacturers & Revenue 159
3.17.2 Brick & Tile Manufacturing Industry: Total Industry Revenue & Profit 159
3.17.3 Brick & Tile Manufacturing Industry: Regional Output Volume 159
3.18 Key Brick & Tile Manufacturers 162
3.18.1 Key Brick & Tile Manufacturers: Key Statistics 162
3.18.2 Key Brick & Tile Manufacturers: Industry Revenue Shares 163
3.18.3 Key Brick & Tile Manufacturers: Industry Profit Shares 164
3.18.4 Key Brick & Tile Manufacturers: Profitability 165
3.18.5 Key Brick & Tile Manufacturers: Revenue Per Employee 166
3.19 Household Ceramics Manufacturing Industry 167
3.19.1 Household Ceramics Manufacturing Industry: Total Industry Manufacturers & Revenue 167
3.19.2 Household Ceramics Manufacturing Industry: Total Industry Revenue & Profit 167
3.19.3 Household Ceramics Manufacturing Industry: Regional Output Volume 167
3.20 Key Household Ceramics Manufacturers 169
3.20.1 Key Household Ceramics Manufacturers: Key Statistics 169
3.20.2 Key Household Ceramics Manufacturers: Industry Revenue Shares 170
3.20.3 Key Household Ceramics Manufacturers: Industry Profit Shares 171
3.20.4 Key Household Ceramics Manufacturers: Profitability 172
3.20.5 Key Household Ceramics Manufacturers: Revenue Per Employee 173
3.21 Hand Tools Manufacturing Industry 174
3.21.1 Hand Tools Manufacturing Industry: Total Industry Manufacturers & Revenue 174
3.21.2 Hand Tools Manufacturing Industry: Total Industry Revenue & Profit 174
3.21.3 Hand Tools Manufacturing Industry: Regional Output Volume 174
3.22 Key Hand Tools Manufacturers 176
3.22.1 Key Hand Tools Manufacturers: Key Statistics 176
3.22.2 Key Hand Tools Manufacturers: Industry Revenue Shares 177
3.22.3 Key Hand Tools Manufacturers: Industry Profit Shares 178
3.22.4 Key Hand Tools Manufacturers: Profitability 179
2007 179
3.22.5 Key Hand Tools Manufacturers: Revenue Per Employee 180
3.23 Other Tools Manufacturing Industry 181
3.23.1 Other Tools Manufacturing Industry: Total Industry Manufacturers & Revenue 181
Table 3.210 TOTAL NUMBER OF OTHER TOOLS MANUFACTURERS AGAINST INDUSTRY REVENUES, 2003-2007 181
3.23.2 Other Tools Manufacturing Industry: Total Industry Revenue & Profit 181
3.23.3 Other Tools Manufacturing Industry: Regional Output Volume 181
3.24 Key Plywood Manufacturers 183
3.24.1 Key Other Tools Manufacturers: Key Statistics 183
3.24.2 Key Other Tools Manufacturers: Industry Revenue Shares 184
3.24.3 Key Other Tools Manufacturers: Industry Profit Shares 185
3.24.4 Key Other Tools Manufacturers: Profitability 186
3.24.5 Key Other Tools Manufacturers: Revenue Per Employee 187
3.25 Plumbing Parts Manufacturing Industry 188
3.25.1 Plumbing Parts Manufacturing Industry: Total Industry Manufacturers & Revenue 188
3.25.2 Plumbing Parts Manufacturing Industry: Total Industry Revenue & Profit 188
3.25.3 Plumbing Parts Manufacturing Industry: Regional Output Volume 188
3.26 Key Plumbing Parts Manufacturers 190
3.26.1 Key Plumbing Parts Manufacturers: Key Statistics 190
3.26.2 Key Plumbing Parts Manufacturers: Industry Revenue Shares 191
3.26.3 Key Plumbing Parts Manufacturers: Industry Profit Shares 192
3.26.4 Key Plumbing Parts Manufacturers: Profitability 193
3.26.5 Key Plumbing Parts Manufacturers: Revenue Per Employee 194
3.27 Metal Doors & Windows Manufacturing Industry 195
3.27.1 Metal Doors & Windows Manufacturing Industry: Total Industry Manufacturers & Revenue 195
3.27.2 Metal Doors & Windows Manufacturing Industry: Total Industry Revenue & Profit 195
3.27.3 Metal Doors & Windows Manufacturing Industry: Regional Output Volume 195
3.28.1 Key Metal Doors & Windows Manufacturers: Key Statistics 197
3.28.2 Key Metal Doors & Windows Manufacturers: Industry Revenue Shares 198
3.28.3 Key Metal Doors & Windows Manufacturers: Industry Profit Shares 199
3.28.4 Key Metal Doors & Windows Manufacturers: Profitability 200
3.28.5 Key Metal Doors & Windows Manufacturers: Revenue Per Employee 201
3.29 Household Metal Products Manufacturing Industry 202
3.29.1 Household Metal Products Manufacturing Industry: Total Industry Manufacturers & Revenue 202
3.29.2 Household Metal Products Manufacturing Industry: Total Industry Revenue & Profit 203
3.29.3 Household Metal Products Manufacturing Industry: Regional Output Volume 203
3.30 Key Household Metal Products Manufacturers 205
3.30.1 Key Household Metal Products Manufacturers: Key Statistics 205
3.30.2 Key Household Metal Products Manufacturers: Industry Revenue Shares 206
3.30.3 Key Household Metal Products Manufacturers: Industry Profit Shares 207
3.30.4 Key Household Metal Products Manufacturers: Profitability 208
3.30.5 Key Household Metal Products Manufacturers: Revenue Per Employee 209

4 SWOT ANALYSIS 210

4.1 Strengths 210
4.2 Weaknesses 211
4.3 Opportunities 212
4.4 Threats 212

5 COMPANY PROFILES 213

5.1 B&Q China Co., Ltd. 213
5.1.1 B&Q: Company Details 213
5.1.3 B&Q: China-based Activities 213
Trade Customers 214
OBI Purchase 215
5.1.4 B&Q: Future Strategy 216
5.2 BoConcept Holding A/S 218
5.2.1 BoConcept: Company Details 218
5.2.2 BoConcept: China Activities 218
5.3 The Home Depot Inc. 219
5.3.1 The Home Depot: Company Details 219
5.3.3 The Home Depot: China-related Activities & Future Strategy 219
5.4 Homemart (Haomeijia Decoration and Building Materials Co., Ltd.) 221
5.4.1 Homemart: Company Details 221
5.8.2 Homemart: Company Background 221
5.5 IKEA China 222
5.5.1 IKEA: Company Details 222
5.5.2 IKEA: Company Details & China Activities 222
5.6 Leroy Merlin 224
5.6.1 Leroy Merlin: Company Details 224
5.6.3 Leroy Merlin: China-based Activities 224
5.7 Orient Home (Dongfang Jiayuan Co., Ltd.) 225
5.7.1 Orient Home: Company Details 225
5.7.2 Orient Home: Company Background 225
5.8 Red Star Macalline 226
5.8.1 Red Star Macalline: Company Details 226
5.8.2 Red Star Macalline: Company Background 226

6 CONTACTS 227

6.1 Trade Associations 227
6.1.1 China Chain Store & Franchise Association (CCSFA) 227
6.1.2 China National Furniture Association (CNFA) 227
6.1.3 China Institute of Interior Design 227
6.1.4 China Building Decoration Association 227
6.1.5 China Ceramics Industry Commission 227

7 RELEVANT EXHIBITIONS & TRADE FAIRS 228

7.1 China International Floor Coverings and Carpet Fair 228
7.2 North National Building Decoration Materials & Bathroom Fixtures Exhibition 228
7.3 Building Decoration Materials, Bathroom Fixtures (Xiamen) Trade Fair 228
7.4 China International Building & Decoration Exposition 228
7.5 International Trade Fair for Floor Covering 228
7.6 Zhengzhou International Building Materials & Interior Decoration & Hotel Necessities Exhibition 229
7.7 China International Building & Decoration Expo (BATIMAT China) 229
7.8 Floor Coverings China 229
7.9 Kitchen & Bath China 229
7.10 Housing Decoration Design & Service Shanghai 229
7.11 Lighting China 230
7.12 China (Shenzhen) International Building & Decorating Material Exhibition 230
7.13 China International Building & Decoration Fair 230
7.14 China International Construction, Decoration Materials & Hotel Facility Exhibition 230
7.15 Changchun International Construction & Window, Interior Decoration Expo 231
7.16 China Building Decorative Materials & Hotel Equipment Show 231
7.17 National Interior Decoration Show 231
7.18 China Shenyang Building decorative Materials & Hotel Equipment Trade Show 231
7.19 World Well-Known Brand-Sanitary Ware, Kitchen Equipment & Ceramics Exhibition 231
7.20 Building China - International Exhibition on Building Materials, Building Services & Interior Decoration 232
7.21 China International Furniture Exhibition 232
7.22 International Exhibition of Woodworking Machinery & Furniture Manufacturing Equipment/International Exhibition of Furniture Accessories, Materials and Wood Products 232
7.23 China (Guzhen) International Lighting Fair 232
7.24 China International Housing & Architecture Fair 232

APPENDIX: MARKET BACKGROUND 233

A.1 Fast Facts 233
A.2 Regions of China 234
Map A.1 CHINA: PROVINCES AND MUNICIPALITIES 234
A.3 Demographics 235
A.3.1 Demographics: Total Population 235
A.3.2 Demographics: Population by Location 237
A.3.3 Demographics: Population by Province 237
A.3.4 Demographics: Population Density by Province 238
A.3.5 Demographics: Population Concentration 240
Map A.2 POPULATION CONCENTRATIONS BY PROVINCE, 2008 241
A.3.6 Demographics: Population by Gender 241
A.3.7 Demographics: Population by Age Group 242
A.4 Consumer Attitudes 243
A.4.1 Consumer Attitudes: Overview 243
A.4.2 Consumer Attitudes: Response to Political Change 243
A.4.2 Consumer Attitudes: Response to Economic Change 244
A.4.3 Consumer Attitudes: Changes in Lifestyle 244
Livelihood 244
Individual loans 245
Housing 245
Possessions 245
Travel 246
Entertainment 247
Health and Fitness 247
Purchasing Influences 248
Taboos 249
A.5 Consumer Wealth 249
A.5.1 Consumer Wealth: GDP and Cost of Living 249
China' s New Middle Class 249
Confident Shoppers 253
A.5.2 Consumer Wealth: Provincial GDP 254
A.5.3 Consumer Wealth: GDP Growth by Province 256
A.5.4 Consumer Wealth: GDP Per Capita by Province 256
A.5.5 Consumer Wealth: Concentration of Wealth by Province 257
A.5.6 Consumer Wealth: The Major Cities 258
A.6 Households 259
A.6.1 Households: Overview of Household Conditions 259
A.6.2 Households: Total Households by Size 260
A.6.3 Households: Total households by Urban/Rural Split 261
A.6.4 Households: Income Earners Per Household 261
2008 261
A.7 Employment 262
A.7.1 Employment: Number of Workers by Sector 262
A.7.2 Employment: Growth by Sector 262
A.7.3 Employment: Number of Workers by Gender 263
A.7.3 Employment: Number of Workers by Habitation 264
A.7.4 Employment: Urban Unemployment 264
A.8 Consumer Income 265
A.8.1 Consumer Income: Average Incomes by Sector 265
A.8.2 Consumer Income: Growth by Sector 265
A.8.3 Consumer Income: Average Incomes by Region 266
A.8.4 Consumer Income: Growth by Region 267
A.9 Consumer Market 269
A.9.1 Consumer Market: Spending Trends 269
A.9.2 Consumer Market: Per Capita Consumer Expenditure 269
A.9.3 Consumer Market: Retail Sales and Consumer Spending 270
A.9.4 Consumer Market: Urban Income and Spending Compared 270
A.10 Exchange Rates 271
A.10.1 Exchange Rates: China 271
A.10.2 Exchange Rates: Hong Kong 271