Shanghai Furniture Expo got information that The sunshade industry started earlier in other countries, especially in developed countries such as Europe and America, where market penetration has reached a high level and has produced several well-known brands, such as Hunter Douglas and Feifer.

In addition, the main markets of some Chinese sunshade giants are also concentrated in Europe and America.

Comparatively speaking, the sunshade industry in China started relatively late, but developed rapidly. After more than 30 years of accumulation, thousands of small and large enterprises have emerged, and hundreds of influential brands have emerged, forming a complete category pattern such as sunshades, umbrellas, sunshade fabrics, blinds, etc., which have been implemented in multiple scenarios such as commercial, household, transportation, and outdoor.

 

Especially with the emergence of several leading enterprises and listed companies, the rise of hundreds of key brands, the development of high-performance products, and the increasing recognition of the consumer market, multiple forces have intertwined to promote the expansion of the industry.

 

At the same time, there has been a shift in the market environment from incremental to stock, as well as an intensification of reshuffling. In recent years, sunshade enterprises are striving to cultivate new growth points, increasing their output towards functional products and new channels.

 

According to the statistics of the China Association of Building Sunshade Materials, in 2021, there were about 3000 enterprises in the sunshade industry, and about 180 enterprises with annual sales exceeding 30 million yuan, accounting for only about 6%.

 

In an analysis by Great Wall Securities, it was mentioned that as early as 2019, there were about 3000 functional sunshade enterprises in China, with an industry scale of 19.3 billion yuan in 2019 and possibly reaching 50 billion yuan in 2025.

 

If we look at the overall scope of the building shading industry, the total sales in 2019 have reached 631.2 billion yuan, of which the sales of fabric curtains are 591 billion yuan, accounting for 94%; Functional shading has reached 19.3 billion yuan, accounting for only 3%, with great potential for growth.

 

Due to factors such as increasing application scenarios and expanding sales channels, the scale of the sunshade market is still likely to continue to expand.

 

Taking application scenarios as an example, sunshade products are mainly used in leisure places such as family courtyards, terraces, restaurants, bars, beaches, parks, hotels, etc.

 

Shanghai Furniture Expo got information that Driven by factors such as an increase in the proportion of large unit housing transactions, an increase in improved decoration, upgrading of park environments, and upgrading of hotels, the demand for high-quality sunshade products has the potential to continue to rise.

 

Of course, the arrival of opportunities only belongs to some enterprises. In a dynamically changing market, there are constantly companies being eliminated and new ones entering.

 

It is worth noting that powerful sunshade brands have emerged one after another, among which there are several listed companies whose main business includes sunshade categories, including at least West Gate, Zhejiang Yongqiang, Zhengte, Yuma Sunshade, Pioneer New Materials, Yameite, etc.

Meanwhile, the differentiation between brands is further evident.

 

According to the information in the prospectus of Ximen, the sunshade industry has formed three levels. The first level of enterprises has a large production and sales scale, and their product quality and reputation are at the top level in China. There are mainly more than ten companies such as Pioneer New Materials, Ximen, and Yuma Sunshade, with a market share of about 20% of the total output value of domestic sub sectors. The second tier enterprises generally have a medium production scale, accounting for 30% to 40% of the total output value in the segmented fields.

Shanghai Furniture Expo got information that In this market landscape, the competition among sunshade brands is quite fierce. This competition unfolds in multiple directions such as domestic sales and exports.

 

In terms of exports, with Europe and America as the main regions, export channels include large chain supermarkets, brand merchants, e-commerce platforms, etc.

 

The domestic market is mainly dominated by distributors, decoration companies, and engineering procurement. In recent years, sunshade companies have appeared at various domestic exhibitions, one of which is to widely reach domestic merchants and expand the domestic market.

 

Objectively speaking, the overseas market is more mature, which is mainly reflected in the fact that in the revenue composition of listed companies, overseas revenue generally dominates, such as Yuma Sunshade, with overseas accounting for about 70% and domestic accounting for about 30%. In the revenue of Pioneer New Materials and Ximen, overseas also accounts for about 70%.

The domestic market in China is growing and its prospects are highly promising.

 

According to a report by Shanghai Securities News, the penetration rate of functional sunshade products in developed countries such as Europe and America is as high as 70%, while the penetration rate of functional sunshade products in China is less than 5%. Referring to the development experience of mature markets, there is huge room for improvement in the penetration rate, civilian demand, and concentration of the functional sunshade industry in China.

 

The current consensus is that functional sunshade products have excellent performance, with advantages such as light control, energy conservation, fire prevention and waterproofing, sun protection, mold and flame retardancy, antibacterial and anti fouling. With the improvement of residents' consumption level and the enhancement of high-quality living demand, consumers will tend to choose these more advantageous sunshade products.

 

The current policy also provides support for functional sunshade products. China has vigorously promoted green building materials, and new and existing buildings are being renovated according to energy-saving and low-carbon standards.

 

According to public data, window shading energy efficiency is about 10% to 24% of building energy consumption. Good shading design and products not only affect the aesthetics of buildings, but also are key measures for energy conservation. It is expected that the building shading industry will win a new round of development due to this impact, and functional shading will also benefit from the overall market expansion.

 

The main enterprises are making efforts to achieve this. Currently, the first and second tier sunshade brands are generally investing in the improvement of functional sunshade material technology and performance, grasping the trend of sunshade consumption, maintaining product innovation and leadership, creating popular products, and continuously providing customers with competitive products and services.

 

If you want to know more about the industry information and cutting-edge products, China Home Expo, which gathers a lot of furniture brands, is surely the right choice for you. CIFF Shanghai Expo 2024 will be grandly unfolded from September 11 to 14, 2024 at the NATIONAL EXHIBITION AND CONVENTION CENTER (SHANGHAL HONGQIAO).

 

 

Article source: Tencent

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