Sofa Produced by IAR Team Focus Technology Co., Ltd.

Sofa 2013.07 Produced by IAR Team Focus Technology Co., Ltd.

Contents 1. Industry Overview... 3 2. China Sofa Industry Export Data Analysis from Jan. to May in 2013... 5 2.1. China Bamboo or Rattan Seats Export Situation from Jan. to May in 2013...5 2.1.1. China Bamboo or Rattan Seats Export Volume and on Year-on-Year Basis from Jan. to May in 2013... 5 2.1.2. China Bamboo or Rattan Seats Export Value and on Year-on-Year Basis from Jan. to May in 2013... 6 2.1.3. China Bamboo or Rattan Seats The Top Ten Export Destination Countries/Regions from Jan. to May in 2013... 6 2.1.4. China Bamboo or Rattan Seats The Top Ten Export Source Areas from Jan. to May in 2013... 7 2.2. China Seats with Wooden Frames, Upholstered Export Situation from Jan. to May in 2013...7 2.2.1. China Seats with Wooden Frames, Upholstered Export Volume and on Year-on-Year Basis from Jan. to May in 2013... 7 2.2.2. China Seats with Wooden Frames, Upholstered Export Value and on Year-on-Year Basis from Jan. to May in 2013... 8 2.2.3. China Seats with Wooden Frames, Upholstered The Top Ten Export Destination Countries/Regions from Jan. to May in 2013... 8 2.2.4. China Seats with Wooden Frames, Upholstered The Top Ten Export Source Areas from Jan. to May in 2013... 9 2.3. China Seats with Metal Frames, Upholstered Export Situation from Jan. to May in 2013...9 2.3.1. China Seats with Metal Frames, Upholstered Export Volume and on Year-on-Year Basis from Jan. to May in 2013... 9 2.3.2. China Seats with Metal Frames, Upholstered Export Value and on Year-on-Year Basis from Jan. to May in 2013... 10 2.3.3. China Seats with Metal Frames, Upholstered The Top Ten Export Destination Countries/Regions from Jan. to May in 2013... 10 2.3.4. China Seats with Metal Frames, Upholstered The Top Ten Export Source Areas from Jan. to May in 2013... 11 3. Sofa Industry Data Analysis on Made-in-China.com from Jan. to May in 2013... 12 3.1. Furnishings Industry Buyers Attention Ranking List on Made-in-China.com from Jan. to May in 2013...12 3.2. Sofa Industry Hot Search Keywords Top Ten on Made-in-China.com from Jan. to May in 2013...13

1. Industry Overview Sofa is chairs fitted with springs or thick foam and etc., with handrails on both sides. Chairs, the frame of which made of wood or steel lined with cotton and other materials are overall more comfortable. Sofa can be classify according to materials as leather sofa, Lining Sofa, wood sofa, fabric sofa and rattan sofa; and American style sofa, Japanese style sofa, Chinese style sofa, European style sofa according to design. Chinese furniture manufacturing industry in general is divided into north and south the two basic camps South is composed of three plates: Pearl River Delta, Yangtze River Delta and Chengdu, which form the Southern Triangle the first furniture camp. North is composed of three plates: Northeast Region, Beijing-Tianjin Area and Northwest Region, which form the Northern Triangle the second furniture camp. The first furniture camp Southern Triangle includes: Pearl River Delta: mainly Shenzhen, Dongguan, Guangzhou, Foshan, Zhongshan, Zhuhai and other furniture production base. Yangtze River Delta: mainly Shanghai, Hangzhou, Wenzhou, Yuhuan, Suzhou, Ningbo and other furniture production base. South Central: mainly based in Chengdu, surroundings and Chongqing. The second furniture camp Northern Triangle includes: Northeast Region: mainly Yichun, Dalian, Shenyang, Changchun and other furniture production base. Beijing-Tianjin area: including Beijing, Tianjin, Hebei furniture production base. Northwest Region: mainly including Xi an and etc. The northern and southern furniture s characteristic is bright, the style is different, the difference is remarkable. It is not an easy matter for the northern and southern furniture to seep to opposite party market comprehensively. China Furniture Industry Major Commodity Export Situation from Jan. to May in 2013 From Jan. to May in 2013, the total export value of China furniture industry increased by 18.75% year on year. among them, the total export value of seats and parts (the same below) accounted for 43.93%, with an increase of 13.37%; wooden furniture accounted for 21.33%, with an increase of 2.68%; metal furniture accounted for 17.85%, with an increase of 50.08%; plastic furniture accounted for 1.36%, with an increase of 13.17%; medical furniture accounted for 0.84%, with an increase of 9.47%; spring mattresses accounted for 0.67%, with an increase of 8.52%; dentistry, barber chairs and parts accounted for 0.2%, with an increase of 29.79%; bamboo rattan wicker 3

and similar materials for furniture accounted for 0.07%, with an increase of -35.33%; other materials for furniture and furniture parts accounted for 13.75%, with an increase of 38.29%. 4

2. China Sofa Industry Export Data Analysis from Jan. to May in 2013 Note: HS Code 940151: Seats (Of bamboo or rattan) HS Code 940161: Seats with wooden frames, upholstered HS Code 940171: Seats with metal frames, upholstered 2.1. China Bamboo or Rattan Seats (HS: 940151) Export Situation from Jan. to May in 2013 2.1.1. China Bamboo or Rattan Seats (HS: 940151) Export Volume and on Year-on-Year Basis from Jan. to May in 2013 30,000 25,000 China Bamboo or Rattan Seats (HS: 940151) Export Volume and on Yearon-Year Basis from Jan. to May in 2013 134.3% 150.0% 100.0% 20,000 15,000 10,000 5,000 0-24.6% -61.9% -82.3% -73.2% Jan. Feb. Mar. Apr. May 50.0% 0.0% -50.0% -100.0% Export Volume (Set) From Jan. to May in 2013 total export volume of China Bamboo or Rattan Seats amounted to 75,260 sets, with a decrease of 56.2% year on year. 5

2.1.2. China Bamboo or Rattan Seats (HS: 940151) Export Value and on Year-on-Year Basis from Jan. to May in 2013 From Jan. to May in 2013 total export value of China Bamboo or Rattan Seats amounted to 2,846,000 USD, with a decrease of 59.3% year on year. 2.1.3. China Bamboo or Rattan Seats (HS: 940151) The Top Ten Export Destination Countries/Regions from Jan. to May in 2013 NO. Country Volume (Set) Value (USD) Volume Value 1 USA 28,477 637,228 4% -5.60% 2 Thailand 4,177 310,000-55% -16.40% 3 Malaysia 4,616 237,868 548.30% 675.40% 4 Indonesia 2,972 213,200 / / 5 Australia 7,872 210,740-9.10% 51.70% 6 Japan 5,528 206,251 21.10% 16.50% 7 Myanmar 1,618 100,316-70.90% -77.10% 8 Vietnam 1,554 96,348 300.50% 231.10% 9 Singapore 2,374 93,672-92% -91.50% 10 Russian Federation 776 86,746-89.40% -60.60% From Jan. to May in 2013, among the top ten China Bamboo or Rattan Seats export destination countries/regions, from the export value year on year, there was the largest increase in Malaysia (with an increase of 675.4% year on year), followed by Vietnam (with an increase of 231.1% year on year). 6

2.1.4. China Bamboo or Rattan Seats (HS: 940151) The Top Ten Export Source Areas from Jan. to May in 2013 NO. Country Volume (Set) Value (USD) Volume Value 1 Guangdong 30,432 902,052-36.8% -55.6% 2 Shanxi 12,459 865,068 118.3% 128.2% 3 Zhejiang 13,962 324,550-69.5% -84.5% 4 Anhui 776 273,297-95.8% -63.5% 5 Shanghai 6,924 183,632-54.8% -40.1% 6 Fujian 6,520 125,222-56.5% -66.3% 7 Beijing 1,890 100,956-56.6% -29.1% 8 Jiangxi 478 35,089-95.4% -90.5% 9 Jiangsu 1,258 15,050 31350.0% 9306.3% 10 Tianjin 116 12,605 / / Guangdong, Shaanxi and Zhejiang are our Bamboo or Rattan Seats main export source areas. The Bamboo or Rattan Seats export volume of the above three provinces accounted for 75.54% of total export volume from Jan. to May in 2013, and the export value together accounted for 73.49% of total export value. Among Our top ten Bamboo or Rattan Seats export source areas, there was the largest increase of both export volume and value in Jiangsu Province, with an increase of 31350% year on year of export volume and 9306.3% year on year of export value. 2.2. China Seats with Wooden Frames, Upholstered (HS: 940161) Export Situation from Jan. to May in 2013 2.2.1. China Seats with Wooden Frames, Upholstered (HS: 940161) Export Volume and on Year-on-Year Basis from Jan. to May in 2013 7.00 6.00 5.00 China Seats with Wooden Frames, Upholstered (HS: 940161) Export Volume and on Year-on-Year Basis from Jan. to May in 2013 11.2% 26.2% 30.0% 20.0% 10.0% 4.00 3.00 2.00-6.6% 1.3% 0.0% -10.0% 1.00 0.00-22.2% Jan. Feb. Mar. Apr. May Export Volume (Million Set) -20.0% -30.0% From Jan. to May in 2013 total export volume of China Seats with Wooden Frames, Upholstered amounted to 23378000 sets, with a decrease of 0.9% year on year. 7

2.2.2. China Seats with Wooden Frames, Upholstered (HS: 940161) Export Value and on Year-on-Year Basis from Jan. to May in 2013 6.00 China Seats with Wooden Frames, Upholstered (HS: 940161) Export Value and on Year-on-Year Basis from Jan. to May in 2013 40.0% 5.00 25.6% 29.2% 30.0% 4.00 20.0% 3.00 10.0% 2.00-1.3% 3.5% 0.0% 1.00-10.0% 0.00-17.6% Jan. Feb. Mar. Apr. May -20.0% Export Value (100 Million USD) From Jan. to May in 2013 total export value of China Seats with Wooden Frames, Upholstered amounted to 2.324 billion USD, with an increase of 4.9% year on year. 2.2.3. China Seats with Wooden Frames, Upholstered (HS: 940161) The Top Ten Export Destination Countries/Regions from Jan. to May in 2013 NO. Country Volume (Set) Value (USD) Volume Value 1 USA 9,853,162 935,463,828 1.8% 6.2% 2 UK 1,771,142 197,119,970 12.5% -3.3% 3 Japan 1,383,406 134,395,591-4.6% 6.5% 4 Australia 1,037,781 130,413,709 17.6% 10.8% 5 Canada 1,259,952 127,262,877-11.7% -7.2% 6 South Korea 574,118 78,712,237-2.4% 15.8% 7 France 755,546 63,861,707-28.4% -23.7% 8 Saudi Arabia 405,515 57,393,783 6.8% 13.5% 9 UAE 304,447 53,010,310 7.6% 32.0% 10 Germany 910,313 47,499,783 6.1% -10.1% From Jan. to May in 2013, among the top ten China Seats with Wooden Frames, Upholstered export destination countries/regions, from the export value year on year, there was the largest increase in UAE (with an increase of 32% year on year), followed by South Korea (with an increase of 15.8% year on year). 8

2.2.4. China Seats with Wooden Frames, Upholstered (HS: 940161) The Top Ten Export Source Areas from Jan. to May in 2013 NO. Country Volume (Set) Value (USD) Volume Value 1 Guangdong 9,203,307 1,068,328,197-4.9% 7.5% 2 Zhejiang 7,832,118 613,963,703 3.4% 7.3% 3 Jiangsu 1,208,795 250,740,173-2.3% -3.4% 4 Shanghai 1,273,751 186,009,035-14.2% -8.4% 5 Shandong 2,024,720 89,609,840 15.8% 16.3% 6 Fujian 824,165 38,092,357-5.1% -9.6% 7 Tianjin 175,902 18,301,991 76.5% 33.3% 8 Liaoning 268,078 12,061,162 8.5% -1.5% 9 Beijing 51,888 11,987,609-31% 24.3% 10 Xinjiang Uygur Autonomous Region 169,875 9,955,866-10.2% -8.6% Guangdong, Zhejiang, Jiangsu, Shanghai and Shandong are our Seats with Wooden Frames, Upholstered main export source areas. The Seats with Wooden Frames, Upholstered export volume of the above five provinces accounted for 92.15% of total export volume from Jan. to May in 2013, and the export value together accounted for 95.03% of total export value. Among Our top ten Seats with Wooden Frames, Upholstered export source areas, there was the largest increase of both export volume and value in Tianjin Province, with an increase of 76.5% year on year of export volume and 33.3% year on year of export value. 2.3. China Seats with Metal Frames, Upholstered (HS: 940171) Export Situation from Jan. to May in 2013 2.3.1. China Seats with Metal Frames, Upholstered (HS: 940171) Export Volume and on Yearon-Year Basis from Jan. to May in 2013 14.00 12.00 China Seats with Metal Frames, Upholstered (HS: 940171) Export Volume and on Year-on-Year Basis from Jan. to May in 2013 25.2% 30.0% 20.0% 10.00 8.3% 10.0% 8.00 6.00-2.6% 2.7% 0.0% 4.00-10.0% 2.00 0.00-24.1% Jan. Feb. Mar. Apr. May -20.0% -30.0% Export Volume (Million Set) 9

From Jan. to May in 2013 total export volume of China Seats with Metal Frames, Upholstered amounted to 53513000 sets, with a decrease of 0.4% year on year. 2.3.2. China Seats with Metal Frames, Upholstered (HS: 940171) Export Value and on Yearon-Year Basis from Jan. to May in 2013 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 China Seats with Metal Frames, Upholstered (HS: 940171) Export Value and on Year-on-Year Basis from Jan. to May in 2013 126.8% 150.3% 13.4% 7.3% 160.0% 140.0% 120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% 0.00-11.3% -20.0% Jan. Feb. Mar. Apr. May Export Value (100 Million USD) From Jan. to May in 2013 total export value of China Seats with Metal Frames, Upholstered amounted to 2.685 billion USD, with an increase of 34.5% year on year. 2.3.3. China Seats with Metal Frames, Upholstered (HS: 940171) The Top Ten Export Destination Countries/Regions from Jan. to May in 2013 NO. Country Volume (Set) Value (USD) Volume Value 1 USA 14,962,830 545,454,538 5.8% 5.1% 2 Germany 3,294,052 148,658,207-14.2% -16.1% 3 Netherlands 1,692,555 116,804,919-12.5% 13.1% 4 UK 2,114,916 105,608,746 4.7% 9.6% 5 Singapore 466,214 104,777,840-19.8% 113.5% 6 Malaysia 763,744 103,352,078-17.7% 66.5% 7 Canada 2,094,183 95,123,185 2.6% 12.3% 8 South Africa 505,897 76,686,198 38.8% 265.4% 9 Australia 1,050,593 75,493,453 20.4% 35.2% 10 UAE 755,643 70,020,677 13.1% 64.6% From Jan. to May in 2013, among the top ten China Seats with Metal Frames, Upholstered export destination countries/regions, from the export value year on year, there was the largest increase in South Africa (with an increase of 265.4% year on year), followed by Singapore (with an increase of 113.5% year on year). 10

2.3.4. China Seats with Metal Frames, Upholstered (HS: 940171) The Top Ten Export Source Areas from Jan. to May in 2013 NO. Country Volume (Set) Value (USD) Volume Value 1 Guangdong 16,413,229 1,481,202,254-7.2% 67.6% 2 Zhejiang 13,057,067 443,489,088 5.0% 2.9% 3 Fujian 12,111,330 132,290,458-10.2% -11.1% 4 Jiangxi 1,143,702 96,465,179 18.9% 14.2% 5 Jiangsu 2,046,065 88,195,955 31.1% 46.6% 6 Hebei 4,725,485 72,452,287 17.5% 34.0% 7 Chongqing 220,196 65,931,945-38.3% -57.9% 8 Anhui 293,801 57,292,187 176.6% 1681.9% 9 Liaoning 373,909 57,164,889-11.6% 241.1% 10 Shanghai 877,028 57,019,547 85.7% 63.0% Guangdong, Zhejiang and Fujian are our Seats with Metal Frames, Upholstered main export source areas. The Seats with Wooden Frames, Upholstered export volume of the above three provinces accounted for 77.7% of total export volume from Jan. to May in 2013, and the export value together accounted for 76.61% of total export value. Among Our top ten Seats with Metal Frames, Upholstered export source areas, there was the largest increase of both export volume and value in Anhui Province, with an increase of 176.6% year on year of export volume and 1681.9% year on year of export value. 11

3. Sofa Industry Data Analysis on Made-in-China.com from Jan. to May in 2013 3.1. Furnishings Industry Buyers Attention Ranking List on Made-in-China.com from Jan. to May in 2013 Made-in-China.com data show that from Jan. to May in 2013 furnishings industry buyers the highest attention is Sofa, followed by Bedroom Furniture ranked the second. 12

3.2. Sofa Industry Hot Search Keywords Top Ten on Made-in-China.com from Jan. to May in 2013 Sofa Industry Hot Search Keywords Top Ten on Made-in- China.com from Jan. to May in 2013 Sofa Leather Sof a Modern Furniture Living Room Furniture Sofa Set Fabric Sofa Sofa Bed Corner Sofa Modern Sofa Wooden Sofa According to Made-in-China.com sofa industry buyers hot search keywords from Jan. to May in 2013 we can see that buyers pay more attention to the following keywords: Leather Sofa,Fabric Sofa,Sofa Bed,Modern Sofa and Corner Sofa. 13

The IAR Team of Made-in-China.com dedicates to surveying,excavating and collating industry information for supplying the service of timely and exact information analysis, providing necessary information and dates for clients decision. Thanks for reading the report, if you have any questions,opinions or advices, please contact us. Name: Ms. Zhang Li E-mail: iar@made-in-china.com Web: http://www.made-in-china.com/communication/market-analysis.html

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