Compared to 2011, China’s flooring
market boom showed decline in 2012, mainly affected by the rising costs of
labor , store rentals, etc., regulatory policies on downstream real estate
sector, and otherwise. In 2012, China’s wood flooring market reached sales
volume of 377 million square meters, a YoY fall of 5%.
Relative to the market downturn,
China’s wood flooring production capacity driven by investment saw excessive
growth. In 2012, China’s flooring output amounted to 679 million square meters,
a year-on-year increase of approximately 8%, and the problem of periodic
overcapacity already emerged.
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In 2012, there were more than 2,300
wood flooring manufacturers in China, primarily located in Zhejiang, Jiangsu,
Shanghai, Guangdong, Yunnan, Beijing, northeast and other places.
Judging from the market segments,
laminate wood flooring still held the first position in sales volume, yet
accompanied by a decreasing market share. Falling prices of high-end products
such as solid wood flooring and engineered wood flooring weakened the price
advantage of laminate wood flooring. In 2012, laminate wood flooring,
engineered wood flooring and solid wood flooring accounted for market share of
55.94%, 22.8% and 11.06%, respectively.
On the basis of analyzing Chinese
wood flooring industry environment and market competition, China Wood Flooring
Industry Report, 2012 also focuses on the operation and development planning of
leading domestic companies.
As a producer of medium-to-high
grade laminate flooring and engineered wood flooring, Der International Home
Furnishing Co., Ltd. embarked on the gradual fulfillment of the flooring supply
agreement with Poly Real Estate Group, Vanke Real Estate and Evergrande Real
Estate Group in the second half of 2012. As the three real estate leaders had
stronger bargaining power than ordinary purchasers, Der’s household products
over the corresponding period saw a decline in gross margin.
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In March, 2013, A&W (Shanghai)
Woods Co., Ltd. won the bidding of Vanke Group 2013-2014 CD Flooring Supplier.
In the next two years, Vanke’s CD projects are expected to consume
6.505-million-square-meter flooring products. In April 2013, A&W won the
bidding of GreenLand Group 2013 Share-Controlling Supplier. According to the
framework agreement, the flooring pavement will cover an area of over 700,000
square meters.
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