Secretary General Gong Li: Only rigid demand can drive the furniture industry

Gong Li, Secretary General of Sichuan Furniture Industry Chamber of Commerce

At the end of 2011, there was a blowout in the amount of housing: the emergence of opportunities such as Tianfu New District and “Northern Reform”, a large number of new houses will be emerged, and housing will be guaranteed. In 2012, the furniture market in Sichuan will have huge rigid demand. In addition, Sichuan furniture has mature channel construction in the second and third tier markets, and a solid market share. The “good but not expensive” product positioning will create a favorable sales market.

In 2012, the impact of real estate regulation on the furniture industry was limited, and we must grasp these points. First, only the real rigid demand for housing has a pulling effect on the furniture industry. Speculative demand generally does not purchase furniture. As far as our observations are concerned, speculative demand accounts for a considerable portion. The sales of commercial housing caused by the decrease in speculative demand continue to fall, and the impact on the furniture industry will not be great. Second, the accelerated construction of affordable housing this year will provide a strong impetus to the furniture industry. With the accelerated construction of national affordable housing, rigid demand will effectively promote the development of the furniture industry.