Global Living Room Furniture Market

China's outbound shipments of living room furniture are predicted to surpass US$7 billion in 2007.

Customs statistics show that between January and July 2007, export sales topped US$4 billion, up by 24 percent over the previous corresponding period. The majority of revenue came from the sofas category, which also includes upholstered loveseats, lounge chairs and recliners.

North America and the EU are the two largest markets, absorbing more than 70 percent of China's exports. In particular, the US, the UK, Canada, together with Japan and Australia, are the top five importing countries.

The following are some of the trends we see in China's living room furniture export industry:
� Sofas will continue to dominate exports in the line. Production will also keep on increasing in coming months, as more foreign-invested companies establish new factories in China.
� Prices will increase by 5 to 10 percent in the next six months, as suppliers grapple with rising overhead. Soaring raw material costs, the yuan's appreciation versus the US dollar, and reduced export tax rebates top the list of factors that will lead to markups.
� The use of alternative materials such as lauan plywood for solid wood, and treated PU or PVC leather for genuine cowhide is receiving increased attention. This is one of the measures China makers are taking to save cost without compromising product quality.
� Capacity expansions, mainly via production automation and procurement of additional machines, will be carried out by most China makers to meet growing demand.
� Most China suppliers will set their sights on the EU market to take advantage of the region's strong purchasing power and its steady demand for upscale furniture pieces.

This update focuses on sofas, entertainment units, coffee and end tables, and accent chairs. These categories constitute the bulk of China's exports in the line.

The Products & Prices section details the latest features and price ranges of various living room furniture categories. It also compares low-end, midrange and high-end models in terms of the cover, padding and frame materials used.

The Supplier Survey highlights the outlook on prices, capacity expansions, sales performance and product trends for 2008.

The Industry Overview section analyzes the key issues living room furniture makers in China are facing, and how these are addressed.

It also discusses the industry composition, and differentiates the production capability of small, midsize and large players. Year-on-year export performance is likewise presented in this section