Market China: mai 2022

lundi 23 mai 2022

China's home decor market

China's home decor market offers many opportunities for producers and imports/exports. In the last decade, China's rising consumer consumption has transformed China's economy and society. China is a major producer of home decor and related consumer goods. China is far ahead of other countries in the world in terms of the growth of the market for goods and services. China's home decoration products are a large part.

DIY Decor is fashion in CHina

DIY home decor is becoming a popular trend due to its freedom to be created by the consumers. It can be used in the living, dining, and bedroom areas, as well as in the study. The market of more than 4 trillion yuan is often described as "a huge cake that cannot be ignored".

Digitalization and the Internet are key to marketing DIY home decoration. In 2016, more than 1000 Chinese consumers were surveyed. Over 60% of respondents said that they would use the internet to buy products and services for their home decor.

The Chinese DIY furniture market has grown at double-digit rate and is expected to continue growing until 2010. This growth has been mainly concentrated in Shanghai, Beijing, Guangzhou and Zhejiang. Tianjin is the most populous city, with residents spending approximately 5% of their incomes on decoration and housing.

This is partly due to the increasing demand for soft decoration. People who live in cities are more likely than others to move around and spend more money on soft decoration such as handcrafted items, high-quality furniture, collectibles, etc. Younger customers are increasingly moving out of their homes and choosing lightweight, multifunctional furniture that is affordable are more popular. Because these areas are the most personal, installing one's own bathroom and kitchen fittings is a priority explain this blogger

As their quality increases and DIY services are still relatively unknown, smaller contractors can pose a threat for DIY businesses. Small contractors currently dominate 80% of the home decor market. They offer more flexibility than DIY stores which have rigid working hours and set schedules. DIY stores must reach out to local customers and increase awareness about their services to counter this trend.

China's home-decorating market

China's home-decorating market refers to interior decoration of private houses.

[Data source: qianzhan.com. Market scale for home-decorating in China]

The continuous increase in real estate sales as well as the Chinese economy have provided the foundation for the home-decorating industry to continue growing. In 2018, the market size was Y=2.23 trillion rmb. It is expected to grow to Y=2.59 billion rmb by 2020. Source

source: qianzhan.com.

China's home-decoration market is driven by new homes. New home decoration contributes nearly 73% to the total revenue.

The biggest consumers in the home-decorating industry are the millennials. These are people who were born between the 80s and the 90s. They account for more than 60% of market revenue. The 70-year-olds are a significant consumer group with 16%. The remaining 22% are from other ages.

The growth of E-commerce home decorators

The Chinese E-commerce home decoration market has boomed in 2015. This has contributed to and intensified competition in the overall decoration market.

E-Commerce

China's E-commerce home-decorating market reached Y=258.9 billion rmb in 2018, and experienced a 36% increase in its market size. It is still experiencing a bottleneck period, with a penetration rate of less than 5%. This is a relatively low rate compared to E-commerce markets like car-hailing platforms or online travel agencies, which have around 1/3 penetration rates.

vendredi 6 mai 2022

Zero Covid policy + Ukraine make China becoming less competitive

The “zero Covid” policy in China and the war in Ukraine make the Chinese market less attractive for European companies. This is the conclusion of a study published this Thursday, May 5 by the EU Chamber of Commerce in China. Nearly a quarter of respondents would consider relocating part of their investments to other Asian countries.

-40% GDP in China

Nearly 40% of Chinese GDP affected by the confinement and semi-confinement of dozens of megacities in China. Inevitably, the “zero Covid” strategy also has an impact on foreign companies present on the Chinese market.

Of the more than 370 European companies questioned in this study, 60% expect a drop in income this year, 77% think that China is less attractive and, more seriously, 23% think of moving part of their investments, underway or planned, particularly in South and South-East Asia

Zero Covid and lack of prospects

A lack of confidence in the future which also has consequences on recruitment. Difficult to bring in talents accompanied by their families, when the borders are closed, not to mention the problem of schools.

Business is affected by covid Situation explain a business lawyer in China (jinwangassociates)

Education in China

turnover was 25% at the start of the 2021 academic year, 40% last year and, this year, it is believed that 50% of teachers in international schools will have to be replaced, with an average of six months of procedures for teacher visas. It's difficult, explained one of the speakers during the press conference this Thursday, May 5 in Beijing.

Changement in Shanghai

There is a “change of context”, underlines another: “Shanghai, which was once considered the best managed city in China, has been locked for a month and there is no end in sight (…) Even if it is a year from now, we need to know when China will reopen. “What kills business is uncertainty and the lack of prospects,” explain a distributor in China. (website)

Ukraine situation

A lack of horizon reinforced by the war in Ukraine, which interrupted the silk rail trains between China and Europe and forced a bypass of Russian and Ukrainian airspace, which further disrupted logistics and made the freight cost.

The European Union Chamber of Commerce report stresses that China should focus more on vaccinating its people. An economic imperative in the face of “whatever it costs” of “zero Covid”. The Chinese strategy of absolute non-tolerance with the virus is today undermined by Omicron, but still defended by the communist leaders in the name of the health of the Chinese.

Property market in China

Real estate is also decreasing with crisis. source seoagencyChina

Beijing’s strict real estate policies and deleveraging campaign have had a significant impact on the property sector. For the Chamber of Commerce of the European Union, a return to the "beautiful days" is necessary, knowing that China represents 30% of world trade.

https://scooparticle.com/personal-branding-in-china-with-ximon-lee/

https://www.ft.com/content/71b7fa2f-1158-4e4c-b6cd-b0ab309593a6

https://www.voanews.com/a/how-russia-s-ukraine-invasion-weighs-on-china-s-economy-/6476439.html

dimanche 1 mai 2022

Cosmetics in China in 2022 : $35.7 billion Market

With the easing of pandemic restrictions and the strong economic recovery, skin care sales are expected to re-emerge in China.

$35.7 billion market in 2021

Against this backdrop, the skincare market in China is expected to grow at a compound annual growth rate (CAGR) of 5.1%. from CNY230.1 billion ($35.7 billion) in 2021 to CNY295.5 billion ($46.3 billion) by 2026, according to GlobalData, a leading data and analytics company.

Cosmetics Market in China

GlobalData's report, "China Skincare Market Size by Categories, Distribution Channel, Market Share and Forecast, 2021-2026", reveals that market growth will be primarily driven by the hand care category, which is expected to register the highest CAGR. fast growth of 6.3% over 2021-2026, followed by the hair removal products category with a projected CAGR of 5.6%.

https://mediaspas.com/2022/04/12/top-asian-model-for-cosmetics-brand/

Anush Shaw, consumer analyst at GlobalData, says:

As COVID restrictions on public outdoor mobility and on-site venues are eased, the resumption of social gatherings, mass public events and tourist activities are driving the demand for skincare. The resurgence of out-of-home social gatherings will encourage consumers to up their skincare routine and look their best. The facial care category in China is one of the largest in the world, and major brands are targeting high growth areas such as anti-aging and skin repair creams with natural ingredients.

"Online retailers" were the top distribution channel in China's skincare market in 2021, followed by health and beauty stores.

skincare

Per capita spending (PCE) on skincare by Chinese consumers increased from $6.6 in 2016 to $12.5 in 2021, exceeding the global average ($9.8) and the regional average ($9.2 dollars). China's skincare PCE will reach $16.2 by 2026.