The U.S. bathroom market is five times that of China

Posted on April 02 2022

The U.S. bathroom market totaled $3 trillion, five times that of the Chinese market, and maintained growth. Among them, the home market is 2.25 trillion and the building materials is 750 billion US dollars. The retail industry in the United States is dominated by some large chains, and the market channels are very concentrated. For example, in the building materials market, home depot had sales of about $80 billion last year and Lloyd's about $60 billion. These two companies accounted for 18% of the building materials market share. It accounts for 4.5% of the total household and building materials. These chain stores purchase goods and retail them by themselves, with relatively high retail prices. Although the price is high, sales are still huge because consumers have too few choices.

The U.S. economy has fully recovered and steadily increased, the number of new and second-hand housing transactions has increased significantly, the proportion of American residents with independent property rights is very high, and people are willing to spend more money to decorate and upgrade their houses.

85% of houses in the United States were built before 1980, and home renovation is an important consumption power. The U.S. statistics agency conducted a questionnaire survey on "what kinds of home decoration projects will you do in the next two years" among 100000 families. The data show that more than 50% of Americans want to renovate their bathrooms or kitchens, and the budget is high. The average budget for kitchen renovation is about 170000 yuan, and the bathroom renovation is about 70000 yuan. It reflects the strong demand of American families for sanitary products.

The population of the United States has continued to grow in recent years, and the construction of new houses has continued to grow at a high rate. In particular, the population and economic growth in the southeast of the United States is significant. Florida has risen to the third largest state in the United States, surpassing New York, and its GDP is the fourth in the United States. Due to the land restrictions and high commercial costs in the Great Lakes region of North America and New York State, the manufacturing, trade and finance in the North tend to migrate to the south, and Georgia's GDP soared to the ninth place from more than a dozen a few years ago. Facing the high growth market in the southeast of the United States, how can Chinese manufacturers enter?

For most Chinese building materials manufacturers, the profit of OEM to these well-known hypermarkets is getting lower and lower, and they also face shipping and contract risks. Moreover, the cost of marketing through overseas exhibitions is getting higher and higher, and the effect is getting worse and worse. The manufacturer has reached a node that has to be changed. However, "going out" Chinese faucet manufacturers lack American resources and have no direction. How to do the American market, how to strive for good policies and reduce risks have become issues that "made in China" have to consider when entering the United States.

Faucet sanitary ware manufacturers must have a good platform and good guidance on how to cut into this cake and adapt to the American market. Entering the American market at this time will also be the time when the rent and labor cost are the lowest. Due to the consumption demand restrained by the economic decline in previous years, there will be an obvious release. Only by seizing the opportunity and arranging in advance can we enjoy the benefits brought by the next round of economic growth.