Outdoor Furniture

China produces more than half the world's outdoor furniture. In 2004, exports totaled more than US$2 billion, led by metal furniture (70% of the total).

In all, exports are forecast to rise 20% this year, even as the industry struggles with increases in material costs, shortages of labor and an inadequate power supply.

Your copy of this 91-page report will help you profit from this upcoming surge in supply-market activity, with manufacturer profiles and a detailed industry overview.

It will also help you flag new sourcing opportunities as it explains the steps that China's outdoor furniture makers are taking to meet production challenges.

What you'll get

In-depth profiles of 15 outdoor furniture makers, based on factory tours and personal interviews with senior managers. These offer detailed, inside information on suppliers' manufacturing capabilities, product offerings and future plans, and are available nowhere else

Profile tables of an additional 34 suppliers with key information, including number of assembly lines, machinery installed, exports by product type and market, and much more

A Product Gallery featuring 90 best-selling outdoor furniture models, with detailed product specifications and full-color pictures

The results of Global Sources latest supplier survey, with price, product and production forecasts plus R&D trends for the next 12 months

This report covers the following: metal outdoor furniture, wooden outdoor furniture and plastic outdoor furniture

How you'll benefit

Identify the critical differences between low-end, midrange and high-end models, including their respective features and price ranges

Examine the design innovations that suppliers are using to enhance the functionality, comfort and customer appeal of their furniture

Get a better understanding of the extent to which raw materials and components impact your bottom-line costs

Profit from easy-to-use Price Guides that focus on the most popular types of metal, plastic and wooden furniture available from China

Executive summary

China produces more than half of the world's output of outdoor furniture. In 2004, the country's exports amounted to an estimated US$2 billion, or roughly 90 percent of its total production.
The majority of China's output consists of metal outdoor furniture, which accounted for 70 percent of the country's exports at US$1.4 billion. Wooden outdoor furniture exports were at US$400 million, and plastic outdoor furniture exports amounted to US$200 million. With demand increasing in the main export markets of the European Union, Asia and the United States, shipments in 2005 are expected to grow by 20 percent.

One of the major factors driving growth is that suppliers are making a conscious effort to improve their design capability, as stiff competition in the industry has forced makers to realize that lower prices alone are not enough to ensure export sales growth.

The following are the major trends we see in China's outdoor furniture export industry:

• Metal outdoor furniture will continue to dominate exports from China as demand for the product line is expected to remain robust

• Design expertise will improve substantially as makers emphasize the importance of R&D. This will result in more in-house designs being released in coming 12 months, although OEM and ODM will remain the major focus for most makers.

• The rising cost of raw materials, power shortages and rising worker salaries have been pushing production costs up. Most suppliers will therefore take steps to counter these, without rasing prices, although a large number of suppliers also plan to increase export prices in the next 12 months.

• Power shortages will continue to be a problem for outdoor furniture makers, especially those based in the coastal provinces. Most large and midsize companies have already installed power generators, and some of the smaller companies are expected to follow suit.

• Foreign investments from the US, Japan, Taiwan, South Korea and other countries will continue to flow into the furniture industry in China in 2005.

China produces a variety of outdoor furniture, including patio and garden chairs and tables, lounge and beach chairs, park benches, swing chairs, garden umbrellas and pavilions. This report covers all these products which are categorized by frame material — metal, wood and plastic.

The Products & Prices section discusses the latest design trends in outdoor furniture, giving detailed price guides for low-end, midrange and high-end items in each category.

The Manufacturing section describes the processes and standard QC tests used by outdoor furniture makers in China, explaining how these differ in small, midsize and large makers.

The outdoor furniture industry in China consists of about 400 manufacturers. It is largely composed of small and midsize locally owned companies that focus on midrange and high-end products. Reflecting the industry structure, the majority of makers in this report are also locally owned. About 9 percent are foreign-invested or joint-ventures.

Industry overview

Exports of outdoor furniture from China have been steadily rising even as the industry struggles with sharp increases in material costs, labor shortage and inadequate power supply. The country exported an estimated US$2 billion worth of outdoor furniture in 2004, and this is expected to increase by about 20 percent this year.

Prices of most types of outdoor furniture are expected to increase moderately in the next six to 12 months to reflect adjustments in the cost of raw materials, including steel, aluminum, iron and plastic, whose prices have been fluctuating over the past 18 months.

In China, steel prices increased more than 50 percent in the latter part of 2004, while those of aluminum went up 30 percent. The cost of plastic has also gone up by almost 50 percent.

The cost of timber has been steadily rising as well, as local demand is increasing. Furniture suppliers already consume one-third of the country's output of wood. As this is not sufficient, they have been sourcing timber from Russia, Malaysia, Thailand and New Zealand, despite the 10 percent premium they have to pay for these materials. Some makers have shifted to plastic rattan, a cheaper but durable replacement to wood.

Depending on their size and capability, companies deal with rising production costs in different ways. Large companies with sufficient capital and large production capacity and output have been able to absorb increases in raw material costs. Some manufacturers have also expanded their overall production volume in an effort to achieve economies of scale. Many of them have invested in new machinery and generator sets or in additional production facilities to improve efficiency.

On the other hand, small and midsize companies with limited financial capability can absorb only a portion of cost increases. Since competition in the industry is high, these companies also find it difficult to increase export prices. Most of them have had to therefore squeeze profit margins to secure orders.

Some companies, especially in this bracket, are also re-examining their manufacturing procedures to find new ways of enhancing efficiency and reducing expenditure.

Outdoor furniture manufacturers are also facing pervasive design copying in the industry. The situation has worsened to such an extent that some makers go to the extreme of restricting access to company catalogs to qualified staff and potential buyers only. Some companies, especially those that develop high-end models, have been actively obtaining local patents for original designs to protect their investments in design and R&D technology. The pressure to guard their designs is greater on midsize and large companies.

As power shortage continues to affect production in Guangdong and Zhejiang provinces, a number of outdoor furniture makers are purchasing power generators to ensure delivery times are met. These are however used sparingly as the cost of one kilowatt produced by generators is about US$0.06 higher than regular power.

Off-peak season activities
The demand for outdoor furniture in the US and European markets is seasonal, and this determines the workflow of companies in China. During non-peak periods, suppliers manufacture products that use the same materials as their outdoor furniture. Some of them shift production to ladders, tents and sleeping bags, while others subcontract for makers of other products.

During off-season, most suppliers also develop new outdoor furniture designs, explore new markets and negotiate orders with buyers. Also during this time, small outdoor furniture makers tend to retain only technical and highly skilled staff and hire contractual workers when orders start to come in.

Industry composition
The home textiles industry in China is composed of more than 3,000 small, midsize and large suppliers producing bedding, drapery and towels.

Irrespective of size, the majority of companies make bedding products, with most offering both quilts and bed linen and some focusing on one or the other.

Suppliers that manufacture quilts can also produce bed linen, but those specializing in bed linen do not necessarily offer quilts. This is because quilt production requires specialized machines for cleaning, stuffing and quilting. Makers producing quilts usually also offer similar products such as pillows and cushions.

Very few companies focus on drapery, and even fewer specialize in table linen. Most suppliers have one or both of these product categories as their secondary lines and bedding as their primary line.

Makers offering towels usually specialize in the line, but some large companies offering multiple types of home textiles have separate factories dedicated to the product. The few small and midsize companies that offer towels as their secondary line usually subcontract production or dedicate a small portion of their factories to it. However, most of these makers might not be able to provide the expertise that towel specialists can offer.

Samples of supplier profile

Artic (Crafts) Ltd
Established in 1990, Fujian-based Artic is a manufacturer of metal outdoor furniture with resin components. Its total annual sales amounted to US$4 million, a 20 percent increase in the past 12 months.

The company's output for all products reaches an average of eight TEUs per month. Outdoor furniture comprises 80 percent of production, and the remainder is for resin ornaments, plant racks and flower stands.

The company's biggest market is Europe, which takes up 70 percent of shipments, while the United States and Asia absorb 20 and 10 percent, respectively. All exports go to OEM and ODM customers, such as Gift Co. Inc., Home Products Ltd and General Trade S.P.A.

In 2003, the locally owned company acquired the SA800 approval for social and ethical standards.

Products
Every year, Artic develops about 20 new models of chairs, tables and other outdoor furniture. The company's best-selling designs come in dark green shades with geometrical, seasonal and floral patterns. The tables and chairs are foldable and portable and can withstand loading capacities of up to 180 and 210kg, respectively.

Items are priced at around US$3 to US$30 per piece, depending on the size of the model.

Artic has a 30-member R&D team that mainly focuses on improving the furniture structure and design of resin parts. It uses CAD, 3DMAX and Photoshop software for designing products.

The frames of metal tables and chairs are made of locally sourced steel. The resin parts are varnished to make them waterproof and durable.

To prevent its designs from being copied, Artic does not release product brochures and catalogs.

The company will maintain prices in the next six to 12 months even though the cost of resin powder almost doubled in 2004.

Manufacturing
Global Sources toured Artic's 26,146sqm factory in Quanzhou in Fujian province. The locally owned company employs about 500 full-time workers, including 20 QC members. The company follows two essential phases of production — the preparation of steel frames and molding of resin plates.

The factory houses four cutting machines, 15 punching machines, a polishing machine and a number of bending machines. It has four assembly lines.

Production and QC begin at the warehouse where two IQC personnel check steel wires for their dimensions. After the inspection, the steel wires are spread out and cut to desired lengths using automatic wire stretching machines. They are then shaped with bending and punching machines. Depending on their size and thickness, the steel wires are then spot- or gas-welded into frames.

After welding, the frames are soaked in a vat filled with a mixture of chemicals for about 15 minutes. The process helps prevent rusting and corrosion. There are seven vats in the factory.

Sample of product gallery

Metal furniture Artic Model: GP11585+GP11586A Minimum order: 300 sets Packaging type: Polyfoam and box Delivery time: 45 days Indicated price: US$8.81 Description: Table and chair set in mushroom design; table dimensions 44x39x47cm, chair dimensions 27x24.5x24cm

And more... To see the full Executive Summary order now .

Global Sources Industry-specific China Sourcing Reports

All this column of information contained in China Sourcing Reports is the result of original, independent and impartial research conducted by Global Sources analysts.

If you'd like to order the China Sourcing Reports, please go to Global Sources website - http://www.globalsources.com, or click here. It is simply and convenient.