May 21, 2024

The overall demand for kitchen cabinets continues to grow and the prospects continue to improve.

The whole cabinet originated in Europe and America, and was introduced to mainland China in the late 1980s and early 1990s. Despite the late start, but benefited from the booming domestic real estate market, the overall cabinets have been rapidly emerging, and formed a huge market and mature industrial chain. The overall cabinet, with its six advantages of integration, health, safety, comfort, aesthetics and personalization, has become an inevitable trend in the future development.

In recent years, the domestic demand for kitchen cabinets has continued to grow, becoming the world's most promising consumer market for cabinet products, and the future prospects continue to improve. According to the data of the “Integrated Cabinet Industry Market Prospect and Investment Planning Analysis Report” released by the Foresight Industry Research Institute, in 2005, the proportion of households using cabinet products in China was only 6.8%; by 2015, this proportion has risen to 31.7%. However, it is still lower than the average of 65% in developed countries in Europe and America. It is estimated that the market capacity will reach 110.8 billion yuan in 2017.


China's overall cabinet market capacity (100 million yuan) (data compiled by Prospective Industry Research Institute)

At present, the cabinet industry is about 1068 brands. According to brand strength, channel layout, market share, user popularity and industry activity, it is divided into first, second, third and fourth cabinet brands. One or two brands accounted for nearly 30%, which is enough to see that the cabinet industry has a low brand concentration and is in a period of brand disputes. There are a large number of four-level brands, and many cabinet brands are still in the stage of brand building. The number of third-level brands is small, and the boundaries of each level are more obvious.

From the analysis of the whole cabinet crowd, 26-35 years old is the main crowd to buy the whole cabinet, accounting for 41%, mostly based on the newly-purchased people buying wedding new home decoration; 36-45 years old is experienced, tasteful, and purchasing power The group, which is also the main crowd of housing replacement upgrades, is only second to 26-35 years old, reaching 32%.

From the perspective of consumption area, influenced by economic income level and life concept, consumers in provincial capitals and municipalities directly under the central government still account for 39% of cabinet consumption; households in prefecture-level and county-level cities account for 33% and 21% respectively. On the one hand, benefiting from the accelerated development of third- and fourth-tier cities, consumers' economic level and cabinet consumption awareness are constantly increasing. On the other hand, cabinet enterprises are sinking, and market competition in third- and fourth-tier cities is intensifying.

As the first- and second-tier city cabinet market matures and stabilizes, in order to better develop the brand and open up the market, many cabinet companies have taken actions to shift their focus to the third- and fourth-tier cities. At present, the third- and fourth-line cabinet market is still dominated by low-end and medium-end consumption. The well-known brands have low occupancy rates, and there is a lack of standardized and integrated cabinet stores, resulting in a low volume in single stores.

With the increasing consumption power of third- and fourth-tier cities, it has gradually become the key development direction of the cabinet industry. Many cabinet brands have thrown out the preferential policies of “Come on the City”. In 2016, the county-level city has become the main source of cabinet agents at this stage, accounting for 54%.

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