Furniture consumption growth will lag behind real estate sales year on year growth 3--4 quarters. Since the "history of the most stringent regulation" - the purchase of start since the implementation of China's real estate market has always been more sluggish, 12 years from January to October home sales remain negative growth. Entering November, the real estate market is rapidly warming up. Due to the pre-purchase policy, a large number of currencies just need to wait and see. It is expected that the release of demand will continue for some time.
The furniture industry was dragged down by real estate, and the situation in 2012 was very optimistic. Due to the success of the old-for-new model of the home appliance industry and the better sales of home appliances, some furniture stores and furniture companies have launched trade-in activities at the enterprise level with a view to attracting popularity.
In November 2012, the first government-led furniture trade-in trial was launched in Beijing for a month. Judging from the pilot situation, the stimulating effect of trade-in on furniture sales is quite obvious. On December 17, the Beijing Municipal Commission of Commerce officially announced the results of the pilot period: within 30 days of implementing the new policy, the five companies that had pilot sales completed 150 million yuan of trade-in sales, and furniture trade-in sales accounted for 26.3% of sales; in the last week of the pilot alone, the trade-in volume exceeded 7,000, and the sales amount reached 46 million yuan.
If the trade-in policy is continued, in the context of the rebound in real estate sales in the fourth quarter of 2012, furniture sales in 2013 are expected to improve significantly. As the amount of subsidies for single products is limited, it is expected that mid- to high-end products with unit prices below 10,000 yuan will benefit the most.
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