Domotex Asia Chinafloor Expo 2023
Domotex Asia Chinafloor is one of the largest floor covering trade fair there is globally. As the 2nd largest floor covering trade fair event, the exhibition has attracted more than 1600 companies and brands from over 30 different countries to participate. It is also the first international floor covering trade fair hosted since the end of pandemic lockdown in China.
Global Pandemic has caused Resilient Flooring Innovations to Postpone
The effect of Covid-19 pandemic has significantly effect both the global economy as well as business activities altogether. With distinctive change in consumer behaviors during the pandemic time, multiple industries including building and constructions sectors are highly influenced by the uncertainty risks in market fluctuation. Unexpectedly, during the first two years since the pandemic started, from 2020 to 2022, the building material industry has actually seen a significant growth in sales and revenue. However, as the market started to react to the event, a dramatic change in consumer demand has cause the market to stagnate. Much of production innovations and new product launch projects has all been postponed as a result, which includes building material sectors and resilient flooring sectors.
Innovation Projects that is been postponed:
- Non PVC Resilient Flooring Collections to replace PVC based LVT and SPC
- New Generation of Loose Lay Grip LVT to replace existing Peel & Stick LVT
- Digital Printed LVT and SPC
These 3 innovation flooring product development were slowed as consumer confidence has decreased to a point that both flooring businesses and consumers are not willing to spend on products that is not necessarily urgent. More consideration has been put into necessity spending and interior demands for renovation and remodelling are frequently ponspond.
Implications for Chinese Resilient Flooring Manufacturers
With reduced market demand, very few Chinese Resilient Flooring Manufacturers has keep up with the latest developments in Non PVC resilient floorings. Investment into product development for many small to mid sized manufacturers has decreased and even to none. In addition,the high tariff against China made LVT and SPC has also resulted many manufactures to shift their production plants in South East Asia regions, such as Vietnam and Thailand. Some manufactures also invested locally in United States and Mexico, focusing their international expansion with diversified supply chain rather then product innovations.
Our industry observation in China has categories the different strategic trends set out by manufacturers:
1st Tier Manufacturers
Focus on both international production expansion and innovation resilient flooring developments
2nd Tier Manufacturers
With less revenue to support both supply chain expansion and product innovation, 2nd tier flooring manufacturers will go into one of the two directions. Some invest in overseas production expansion, some continues to focus in new product developments.
3rd Tier Manufacturers
3rd tier manufacturers does not have sufficient revenue to effective expand their production base nor new product developments. However, with reduced overheads, 3rd tier manufacturers offer products with lower costs and prices. However, they are also limited by their production scale.