2010 Changes In The Property Market Can Reduce Home Textile Demand?

Since April this year, the State Council and the Ministry of housing and housing have issued a series of new real estate policies, and regulations have been promulgated in various localities. But this has also raised concerns about the real estate related industries - home textile industry. Admittedly, the demand for home textile market is closely related to the development of the real estate market, but the purpose of policy adjustment is to "squeeze the bubble" instead of "freezing demand", and people's rigid demand for housing still exists. More importantly, with the continuous increase of per capita consumption expenditure, the continuous adjustment of consumption habits and the continuous change of consumption mode, the home textile products are quietly changing from the form of ordinary consumer products to the elements of home life and culture, and this irreversible consumption trend will further promote the demand growth of domestic textile products.

Worries about property market cooling

Along with the frequent adjustment of the "combination boxing" in the real estate market macro-control, the volume of housing turnover in the first tier cities has been showing off in recent years, and the shrinking volume is spreading to the second tier cities. According to data on housing transactions in key cities, by the beginning of May, the number of new home transactions in China's first tier cities dropped by 35% compared with the same period last year, and the average new home transaction area decreased by 6% over the same period last year.

New town housing transactions in key cities

The shrinking volume of property transactions and the loosening of housing prices indicate that the effect of the combination of real estate regulation has gradually emerged, but it has also caused concerns about the real estate related industries - home textile industry. Even analysts believe that once the real estate industry is sluggish, home textile demand or will be suppressed, industry development may enter a downward path.

Domestic textile demand is still strong.

The demand for home textile market is closely related to the development of the real estate market. According to the research, about 82% of Chinese consumers need to buy all kinds of home textile products to decorate their homes when they move into new homes or decorate. In 2009, the area of commercial housing sales in China amounted to 937 million square meters, which was 1.69 times the sales area of commercial housing in 2005, and the compound annual growth rate was about 14%. This provided a strong support for the market demand of China's home textile products. According to statistics, by 2009, China's home textile enterprises above Designated Size reached 175 billion 514 million yuan in total industrial output value, 2.3 times the total industrial output value of the textile industry in 2005, and the compound annual growth rate reached 23%. In the first quarter of this year, domestic textile enterprises above Designated Size reached 43 billion 938 million yuan of industrial output value, and the growth level remained above 23%.

Recently, the newly issued real estate deal has a real impact on property transactions, and it is justifiable for people to worry about the demand for home textiles. But we also need to make clear that the purpose of the state's introduction of the property market policy is to "curb the excessive rise of housing prices in some cities and solve the housing problem of urban residents" rather than fundamentally suppress the development of real estate. "Squeezing the bubble" does not mean "freezing demand", and the rigid demand for housing is still there.

More importantly, with the continuous increase of per capita consumption expenditure, the continuous adjustment of consumption habits and the continuous change of consumption mode, the home textile products are quietly changing from the form of ordinary consumer products to the elements of home life and culture, and this irreversible consumption trend will further promote the demand growth of domestic textile products.

The trend of consumption upgrading

With the continuous development of China's economy and the continuous improvement of living standards of urban residents, people's lives have changed from "food and clothing" to "well-off". People's demand for living environment and quality of life has gradually changed from practicality, economy to comfort, culture and personalization. Home textile products not only exist in the public life as consumer products, but also become the representatives of lifestyle and aesthetic culture to influence people's material and spiritual life.

In the textile consumption of developed countries in Europe and America, the proportion of clothing textiles, household textiles and industrial textiles is the same. The proportion of household textiles in the United States even exceeds that of clothing textiles. But in our country, the consumption of household textiles is still at a low level. In 2000, household textiles accounted for only 19% of the total textile consumption in China. In recent years, with the improvement of people's material and cultural living standards, the improvement of income and living conditions, and the influence of European and American home culture, Chinese residents began to pursue the functions of fashion, personality, comfort, health care and other functions of household textiles, thus promoting the scale of the home textile market and expanding the proportion of household textile products. With the continuous acceleration of China's urbanization process and the further improvement of residents' income level, the growth of domestic textile market will be broader.

Old habits, new and multiple support

While consumption growth is driving the demand for home textile products, we should also see an important supporting factor in China's home textile market - the rapidly growing market demand base. Including traditional wedding consumption and new hotel construction, all of them provide a huge demand base for the home textile market.

Our country has always pursued the custom of jubilation. Apart from the purchase of new home textiles as a symbol of new life, the first choice of gifts for friends and relatives is also home textiles. At present, China is entering the peak marriage period of the baby boom population in 80s. In 80s, the average annual birth rate was more than 20 million. These people grew up in the relatively abundant material life. They had a strong sense of individuality consumption, paid more attention to the home environment and pursued more intensely, and were willing to spend on decorating new homes. According to China's Ministry of civil affairs, the number of registered marriages reached 11 million 458 thousand pairs in 2009, 1.4 times that of 2005, and the compound annual growth rate is about 8.6%. Obviously, the huge wedding needs become an important support for the optimistic outlook of home textiles consumption.

At the same time, in recent years, with the improvement of people's living standard, tourism has gradually become a new way of life and a new way of consumption. The booming development of tourism has directly led to the rapid growth of the number of hotels, and the market demand for hotel products has also been expanding, thus providing a broad demand for home textiles products. According to statistics, at present, there are 16000 star rated hotels in China, including five star hotels, 463 hotels, and four star hotels, and the total number of hospitality facilities such as hotels and hotels in China is around 30. Experts predict that by the year 2015, the number of high star hotels in China will double, and the hotel industry will add more than 20 hotels and other reception facilities. Entering the high-speed development stage, the construction of hotel industry will become another strong support for the demand growth of household textiles.

In addition, the sustained growth of the middle and high income groups, the increasing demand for children's products, the further improvement of the social security system and the continuous improvement of the housing conditions of the residents will also contribute to the continued expansion of China's home textile market demand. It can be seen that the development space of home textile products in China is still vast.