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The introduction of new urbanization policies will drive the expansion of the domestic furniture industry
“The biggest investment opportunity in the world is China’s urbanization.†With the continuous improvement of China’s urbanization rate, a considerable number of people will be transferred to cities every year, which will bring about a substantial increase in investment and a rapid increase in consumption. An urbanization percentage point corresponds to tens of thousands of consumption and investment, and future urbanization is a huge engine of China's economic growth. As the development of the real estate market driven by urbanization is more concentrated in the second and third tier cities, a populous province like Sichuan will face tremendous development opportunities. As one of the pillar industries of Sichuan economy and the home industry of the real estate downstream industry, it is bound to present a good prospect for the second take-off. The new urbanization led to the expansion of the furniture industry and urbanization was seen as “the greatest potential for expanding domestic demand†and “a huge engine of China’s economic growthâ€. China's urbanization rate has just exceeded 50%. For example, it is only about 35% based on the registered population, which is far lower than the average of nearly 80% in developed countries. In the next decade or two, China's urbanization rate will continue to increase. Every year, a large number of rural surplus labor and population will be transferred to cities. This will bring about a substantial increase in investment and a rapid increase in consumption, and will also provide multiple levels of urban development. Human Resources. Rong Weiwei, secretary-general of the Sichuan Chamber of Commerce for Import and Export of the Furniture Industry, believes that the root of Sichuan furniture in the mass consumer market, a new round of new urbanization development will undoubtedly add new vitality to the development of Sichuan furniture. For enterprises, the development of new urbanization is a strong point in the development stage. Enterprises should calm down, study the consumer market, change their business strategies, and better grasp the new generation of consumers. At the same time, enterprises should continue to adhere to the branding route to provide more professional, more efficient and more humane services to the market. Familiar with the mainland market, Sichuan furniture advantages. The industry believes that under the premise of the new policy, Sichuan furniture has more industrial advantages, product advantages and channel advantages. After years of development, Sichuan has become China's third largest furniture manufacturing base after Guangdong and Zhejiang. Especially worth mentioning is that Sichuan Furniture is based on the domestic second and third-tier markets, and is well versed in market consumption behavior and product demand. Unlike the furniture enterprises in the coastal areas of Guangdong, most of the coastal enterprises are mainly export-oriented. Under the general trend of industrial transfer in the east, the traditional furniture industry is restricted by land use in coastal areas. Without the foundation of development, there is bound to be a competitive weakness. The development of new urbanization has brought more market prospects to the furniture industry. In the new round of market competition, Sichuan furniture enterprises have obvious advantages. Building a furniture industry park in many places Sichuan has formed a western furniture industry with the whole industry chain centered on Chengdu, Sichuan. Xindu, Chongzhou, Pengzhou, Handan, Datun and other places have built a large-scale furniture industrial park to “Chengdu Furnitureâ€. The industrial park is centered on the furniture manufacturing and circulation business cluster, and the radiation surface covers the southwest and even the whole country. In Xindu Longqiao and its surrounding areas, we have gathered excellent home furnishing companies such as the Emperor's Standard, the Good Scenery, and the Sunshine Forest. According to industry analysts, the Sichuan home furnishing industry has formed a whole industrial chain from furniture manufacturing, research and development, training, trade to upstream furniture hardware, which is conducive to the expansion of Sichuan furniture enterprises. Today, Sichuan furniture enterprises have set up more than 20,000 specialty stores in more than 2,000 counties and cities nationwide, and sales outlets have extended to the cities, counties and township markets, covering the middle and low-end furniture consumption market.