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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