Consumption upgrading is an emerging market phenomenon. In the future, the trend of China's consumption upgrading will become more and more obvious. This judgment has been verified in many fields and is consistent with the general law of world economic development. Then, in the furniture industry, which companies can harvest excess market dividends in the tide of consumption upgrading?
Signs of consumption upgrades are obvious
The capital market is the most important barometer of economic development. Since the supervision of the securities market, the speculative component of the securities market has been significantly reduced, and the preference of capital has been able to reflect the development of the company to a considerable extent.
Recently, companies with higher ROEs have seen their share prices continue to rise. Most of the enterprises with higher net asset yields are leading enterprises in various industries. Taking the leading Maotai industry in Guizhou as an example, their stocks have been rising. The investment logic behind this is: China's consumption upgrade is first reflected in the investment of leading enterprises. The rate of return continues to rise.
The most obvious manifestation of consumption upgrades is that people pursue brand and quality. Leading companies in various industries are naturally the first choice for people, which is reflected in the return on net assets. These indicators are also the best for these companies.
Judging from the general law of world economic development, when a country's national income reaches a certain level, people's consumption concepts are becoming more active as social security measures become more comprehensive and residents' expectations for income remain optimistic. Last year, China’s per capita GDP has reached 8,300 US dollars, and the further release of consumption power is also reasonable.
In addition, as the age structure of China's population is changing, the role of the market after the 90s and 00s is getting bigger and bigger, and the new consumption concept has also significantly improved the level of consumption.
Leading companies in the furniture industry have good operating results
Judging from the performance reports of listed companies, this year, the leading companies of various furniture categories have performed well, and profits and operating income have grown considerably. Those companies that are not listed, as long as they occupy a leading position in the industry, we also notice that their market development is constantly moving, showing that the company has strong market action, the branding of the furniture industry for many years, the establishment of quality internal control system, design technology The accumulation of strength is gaining returns in the market. This is a clear sign of consumption upgrades.
At the same time, it can be seen that imported furniture is becoming a market sales trend, and people have a huge demand for imported furniture. In view of such a good market situation, Italian furniture companies have recently formed a group to enter the Chinese furniture retail market.
At the Dongguan Famous Furniture Fair in August 2017, we found that a new category called “Light Luxury Furniture†appeared quietly. The so-called "light luxury" is a luxury that does not advertise. Light luxury furniture is the most obvious signal for the upgrading of China's furniture industry.
Good quality companies will get good returns
The furniture industry is a product with many product categories. The industry leader is a small number, but new furniture categories are constantly being created. Even if it is the industry leader, its market share is limited, and other companies still have a lot of room for development.
Therefore, in the context of consumption upgrading, those regional leaders and advanced enterprises in the industry have huge opportunities for development, and they can all share a piece of cake.
In the era of consumption upgrades, the requirements for enterprises are becoming more and more strict. As the market has emerged: companies that are too small are being phased out by policies. In fact, even if environmental protection policies are not eliminated, these companies will be in a very disadvantageous position in the brutal market competition.
The market for consumption upgrades will not bring dividends to all enterprises. With the upgrade of consumption, consumers have become more picky overall, and small and micro enterprises are more difficult to survive. This can explain the serious differentiation of the furniture industry: large enterprises continue to develop rapidly, and many small and micro enterprises are hard to survive. The economy is constantly developing, the society is constantly improving, and the overall upgrading of the furniture industry takes place at the moment.
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