First, the development history of global hardcover housing
At present, China's urbanization rate has exceeded 60%, and it is expected that China's urbanization rate is expected to increase to 70% in 2030, while generating 55-70 million new housing needs. On the one hand, the urbanization process provides incremental space for the hardcover market, on the other hand, policy promotion and upgrading of residents' consumption capacity will promote the penetration rate of China's hardcover housing market to gradually move closer to developed countries.
Source: Collation of publicly available information
Second, the analysis of the market status of China's fine decoration industry
Judging from the cumulative number of fine decoration / full decoration policies promulgated by various provinces and cities in China, according to statistics, in 2020, China's municipal policies will be 35 times, provincial policies will be 10 times, national policies will be 2 times, and the total number of policies promulgated will be 47 times.
In recent years, the country and various local provinces and cities full decoration, fine decoration policies have been introduced, in the Ministry of Housing and Urban-Rural Development "13th Five-Year Plan" clearly put forward that by 2020 China's newly started fully renovated finished residential area will reach more than 30%, in 2019 issued in the "Residential Project Specifications (Draft for Comments)" further proposed that new urban residential buildings should be fully renovated and delivered; according to the "14th Five-Year Plan" outline, full decoration, Fine decoration will also become a new driving force to promote the green and sustainable development of the construction industry, and meet the new needs of the whole society for green and healthy homes.
Related report: "2021-2026 China Fine Decoration Market Competition Pattern and Investment Strategic Planning Report" released by Huajing Industry Research Institute
Third, the analysis of the market status of China's fine decoration industry
The amount of real estate development investment is closely related to the development of the fine decoration market, and the amount of real estate development investment in China in 2020 141443 billion yuan, an increase of 7% year-on-year. As of January to August 2021, China's real estate development investment was 9,806 billion yuan, an increase of 10.86% year-on-year.
Source: National Bureau of Statistics, Compiled by Huajing Industrial Research Institute
Real estate as a pillar industry, in the context of the new crown epidemic in 2020, the cumulative number of hardcover houses in China has opened 325.1, showing a slight growth trend. In August 2021, the number of hardcover houses opened 228,000 units, down 20% month-on-month.
Source: AVC, compiled by Huajing Industry Research Institute
Cabinets, sinks, stoves, water purifiers and other parts are the main products of the fine decoration market, in 2020, affected by the new crown pneumonia epidemic, the demand for fine decoration parts such as water purifiers and dishwashers has soared, and the matching volume of dishwashers has totaled 372,000 sets, up 73.5% year-on-year. The growth trend of water purifiers, wall hanging furnaces, air energy water heaters, smart homes and other parts is also very obvious, with an increase of more than 50%.
Fourth, the traditional real estate home improvement industry fine decoration transformation trend
China's economic development has entered a period of steady growth, China's domestic decoration field has produced new changes under the development of the real estate industry, and traditional real estate home improvement enterprises continue to explore new explorations in the field of fine decoration. In 2017, China's Ministry of Housing and Urban-Rural Development issued the "13th Five-Year Plan" Prefabricated Housing Action Plan, which clearly pointed out that by 2020, the proportion of prefabricated buildings in the country will reach more than 15%, of which more than 20% will be promoted in key areas. This provides guidance for the transformation and upgrading of traditional real estate home improvement enterprises, and promotes the popularization and development speed of the field of fine decoration.
Compared with the fine decoration and home improvement enterprises, the profit acquisition speed of traditional real estate home improvement enterprises is slower, the marketing environment is getting worse and worse, and the business model has lagged behind; the corresponding fine decoration transformation and upgrading has entered a high-speed development opportunity with the new demand and the support of relevant national policies, the proportion of urban fine decoration continues to increase, and the development potential of low-tier cities is gradually tapped, with dynamic management, high technology utilization rate, The fine decoration field with the characteristics of ecological design concept will undoubtedly become the mainstream development trend of home improvement enterprises, but the transformation of traditional home improvement enterprises to the field of fine decoration is not without obstacles, there are still a series of problems in the real estate market bubble that is more serious, the "housing rent-to-sales ratio" is generally too high, the cost management system is not perfect, and how to find a balance between opportunities and challenges is the key to the smooth transformation of the industry.
Huajing Information Network is affiliated to Huajing Industry Research Institute, focusing on industrial economic intelligence and research in Greater China, and currently mainly provides products and services including traditional and emerging industry research, business plan, feasibility study, market research, special report, customized report, etc. It covers culture and sports, logistics and tourism, health and pension, biomedicine, energy and chemical industry, equipment manufacturing, automotive electronics and other fields, and also deeply studies emerging fields such as smart city, smart life, smart manufacturing, new energy, new materials, new consumption, new finance, artificial intelligence, and "Internet +".