Development of the furniture industry in 2021

In the past few years, we have observed that once distinct channels such as residence, hotel, office, elderly life and student housing furniture are becoming blurred, and one of the suppliers is seeking to expand its scale by providing the same or similar products for different channels. Multi sector / channel is becoming more and more common in wholesale companies.

For example, hotel service companies have turned to residential manufacturing and OEM work. With the new normal of working from home, office companies also began to serve residential buildings. The number one office player is now the number five residential player. We expect cross channel product pollination to increase for all participants.

Furniture manufacturers are marching into the wider furniture industry. Furniture and furniture are a subtle difference, but it is a meaningful difference that illustrates a broad evolution.

Historically, furniture companies have manufactured / designed / imported furniture. But as customers turn to wholesale brands they trust, they increasingly emphasize their ability to provide products for the whole family – lights next to sofas, carpets under chairs, cushions on tables. Historically, the vast majority of participants in the field of home furniture provided only a few product categories; Today, on the contrary, only a few companies still focus on narrow product segments.

The momentum of interior decoration renovation is increasing. With the extension of Asian supply chain and the soaring cost of containers this year, we see a pendulum moving towards domestic production of full-size interior decoration. At present, more than half of the interior decoration sold in the United States is made in the United States, Canada or Mexico. We believe that this proportion will continue to grow in 2022, but will still rely on imported cutting and sewing kits and parts. However, only a small part of the case products sold in the United States are domestically produced. In view of the EPA’s strict restrictions on the process of important case products, we don’t think this part will be re sold.

One of the disruptions we expected but did not see was that large retailers sought to control manufacturing to reduce costs and better control the increase in vertical integration of supply. But almost all players continue to choose OEM rather than large-scale acquisition. We are paying close attention to this trend and expect to make major announcements in this direction in the next few years.
We look forward to seeing how these trends will continue in 2022 and beyond!

Post time: Apr-13-2022