China Business Guide 中 国 商 务 指 南 2009 （The Light Industry）

Figure 1-2 Scale Map of Gross Output of China’s Light Industry in 2008 Unit: %

It is proposed in the Development Planning for Light Industry during the 11^th Five-Year Period that China aims to gradually become a powerful nation of light industry in about 15 years. During this period, domestic and foreign markets will be further opened. The scale and coverage of utilization of foreign investment will be further enlarged, while more forms will be adopted. Foreign investments have made use of the advantages in capital and technology in some sectors of the light industry to achieve rapid expansion, which has made us think over the security of China’s light industry. Nonpublic economy accounts for a larger and larger proportion in the light industry, and becomes the major component of China’s national economy, surpassing state-owned economy and collective economy. As for foreign trade, the problem in industry structure and unreasonable trade distribution are getting worse, while more trade frictions are emerging. Technical barrier has become the major obstacle. To upgrade the position of China’s light industry in the global industry chain and to adopt international trade rules have become an important task facing the development of the light industry.

Outputs of many products such as air-conditioner, refrigerator, washing machine, microwave oven, clock, bicycle, sewing machine, furniture, plastic processing machinery, ceramics for daily use, lamp, battery, beer, piano, plastic product, mulching film, down product and leather shoes rank first in the world. Their exports are also among world tops. Exports of industrial sewing-machines and bicycles account for 70% of the total trade volume of the world; ceramics for daily use, 65%; refrigerators and washing machines, over 40%; air-conditioners and microwave ovens, 70%; small-sized household electrical appliances, over 90%. These products have been exported to more than 200 countries and regions across the world. China has already become a giant producer and exporter of light industry products, serving as the international manufacturing and procurement center of a large number of light industry products as well as the important distributing center and supplying center for international trade.

1.2 Role of Light Industry in National Economy and Social Life

As the major consumer goods industry, China’s light industry boasts the features of satisfying domestic demands, export orientation, pillar for employment and offering services for agriculture-related sectors. Light industry plays an important role in China’s national economy, the major component of the consumer goods industry. It is an important industry for the national economy, assuming the task of improving the quality of people’s life, boosting domestic market, enlarging the export and earning more foreign exchange, accumulating construction fund, creating jobs and promoting economic development. Light industry is a kind of consumer goods industry. Its products are closely related to people’s daily life. In line with the conventional classification of industries, China's light industry is classified into 19 categories and 45 sub-industries, including over 500,000 kinds of products. These products cover food, clothing, accommodation and transport, including food, papermaking, chemicals for daily use, leather, household electrical appliance, plastic, ceramics, furniture, stationery and sports goods.

China’s light industry has gone through some historic changes since the country was liberated, from small to big, from weak to strong. Its gross output had risen to 7604.1 billion yuan in 2008 from 117.7 billion yuan in 1978. The gross profit and tax had soared up to 524.9 billion yuan in 2008 from 18.5 billion yuan in 1978. The gap between the technical equipment of China’s light industry, which has reached up to the international level in middle and late 1990s, and the world’s advanced level has been narrowing. Resources in the light industry have realized market-oriented allocation. Enterprises have become the major participants of market competition. China’s light industry has rapidly adopted the rules on world trade especially since its accession to the WTO, surviving the transition period smoothly. The international trade volume has grown annually, acting as an important supplier in the global consumer good market. Its products have been exported to over 200 countries and regions across the world. The light industry has earned US $ 270.3 billion through export in 2007, becoming the major source of foreign exchange reserve. It is playing a significant role in the whole national economy and for social development.

1.3 Light Industry Serves as One of the Pillar Industries of National Economy

Light industry is a traditional competitive industry of China, an important component of the national economy. China’s light industry maintained rapid growth since the beginning of the 21st century. The added value of light industry achieved by the enterprises above designated size had increased by 5.2 times from 2000 to 2008, with an average annual growth of 22.9%. In 2008, the added value of light industry reached up to 2,623.5 billion yuan, accounting for 20.3% of China’s industrial added value, 8.7% of the GDP. 627.8 billion yuan of profit and tax had been achieved from January to November of that year, accounting for 14.8% of the total achieved by all industries. The export competitiveness has witnessed a significant increase as China is becoming an important manufacturing base for global light industry products. The gross export value reached US $ 309.2 billion in 2008, accounting for 21.7% of China’s total export value. The figure was 3.4 times of that of 2000, and the average annual increase stood at 20.2%. The trade surplus created by China’s light industry has accounted for over 76% of the total for several years. The light industry represents large proportions in terms of number of enterprises, gross output, total asset and involved employees. A quarter of the products of China’s light industry have been exported to over 200 countries and regions across the country, which has enabled the light industry to become an important force for China to participate in international competition and cooperation in this age of global economic integration. A group of brands, such as Haier, Gree, Bosideng, Maotai and Qingdao Beer, have gained great fame home and abroad. Outputs of more than 100 kinds of products including bicycle, sewing-machine, battery, beer, furniture, ceramics for daily use, lamp, air-conditioner, refrigerator, washing machine, shoes and piano rank first in the world. In particular, household electrical appliance, leather, furniture, down products, ceramics and bicycles account for over 50% shares in the global market. China has become a great power in terms of light industry, while its light industry has boasted innovative competitiveness.

Figure 1 3 Proportions of China’s Light Industry in China’s Industry in 2008 Unit: %

The output value of the new products of China’s light industry had risen to nearly 660 billion yuan in 2008 from 333.7 billion yuan in 2005, with an average annual growth of 34.2%. Industries such as household electrical appliance, plastic and leather products have imported technologies and key equipment from foreign countries, gradually gaining the strong capabilities for integrated innovation and the capabilities of independent innovation at some certain degree.

1.4 Light Industry Is the Foundation to Satisfy Consumption Demands of Residents and the Society

Light industry is the major player in the consumer goods industry, assuming the task of boosting market and improving the quality of people’s life. Therefore, as the consumption industry, the light industry covers those major industries related to people’s life. No matter it is the agricultural and sideline food processing industry, food manufacturing industry, beverage manufacturing industry with agricultural products as the primary materials or the stationary & sports product industry and the daily-use chemicals manufacturing industry with non-agricultural products as the primary materials, they all aims to offer consumer goods of certain quantity and quality and related services to consumers at different levels as well as gradually enrich and satisfy the consumption demands of residents and the society. China’s light industry has played a positive role in boosting market, offering consumption guide, expanding domestic demands, promoting rapid growth of GDP, earning foreign exchanges through export, creating more jobs for several years.

Since 1979 when China began to adopt the reform and opening-up policies, Chinese people’s consumption level and capacity have seen significant increases as their incomes are growing. It has provided the light industry with a huge space for development expansion. As of the end of the 20^th century, the production system of the light industry, with a comparatively completed industrial structure and able to satisfy various consumption demands, had formed. The variety quantity of light-industry products has increased by over ten times and already reached up to nearly 300,000, which has significantly enrich the consumer goods market and satisfy the growing demands of Chinese people. Outputs of light-industry products have witnessed significant increases, and the whole industry has initially achieved the transition from a seller’s market to a buyer’s market. The supply-demand relation has gone through fundamental changes. Economic growth mode has begun to transform from being quantitative growth oriented to being quality and effect oriented. Outputs of some products such as air-conditioner, refrigerator, washing machine, microwave oven, clock, bicycle, sewing machine, furniture, plastic processing machinery, ceramics for daily use, lamp, battery, beer, piano, plastic product, mulching film, down product and leather shoes rank first in the world. China’s industry not only satisfies the demands from domestic markets but also plays an important role in world trade, making China a great power in terms of light industry.

1.5 Light Industry Is the Major Industry Absorbing Labors for Employment

At present, China’s light industry is still a kind of labor intensive industry. Most enterprises covered in the industry are of medium and small sizes. Enterprises under designated size form a comparatively large proportion. Labor employment is not only related to the increase of people’s living standards but also the social stability and economic development. The current employment situation allows no optimism. There is still a lot of surplus labor force in rural areas. College graduates are facing a grave situation in employment. It is hard for laid-off workers in urban areas to land a job. From 2007 to 2008, millions of college graduates failed to get employed each year, while nearly over six million students had graduated during this period. College students are under huge pressure of employment. Moreover, China's economy is affected by the global financial crisis, while enterprises are forced to shut down. The demands for labor are inevitably cut down because of this. Some enterprises have begun to slash jobs in response to changes in the market. The migrant workers in China also need to get employed. Therefore, the labor employment situation will allow no optimism in coming years.

Light industry is the major solution to address the problem of labor employment. In 2008, 20.42 million people got employed by the enterprises above designated size in the light industry, accounting for 25% of those employed by all enterprises above designated size in China. With those enterprises under designated size, the light industry absorbed the employment needs of over 35 million people. A large number of medium- and small-sized enterprises in the light industry offered a large number of jobs for migrant workers and urban lab ours at grass root level. China’s light industry has become the backbone benefactor for agriculture, farmers, and rural areas. China’s light industry is facing with a product market with shrinking demands. Those medium- and small-sized enterprises depending on export are running at half capacity or have stopped production, while employees are on leave. China is currently implementing the plan of reviving light industry for the major purpose of address the employment problem. Because the light industry is closely related to rural areas, the development of light industry has not only boosted related agricultural development but also helped create jobs for about 200 million people from rural areas. Seventy percent sectors and 50% output of the light industry are related to deep processing of farm produce, while over 200 million farmers are benefiting from it. The light industry is playing an irreplaceable role in increasing farmers’ income, promoting the industrialization of agriculture and accelerating urbanization. The light industry has already had more than 150 characteristic regions and industrial clusters with an annual output of 1,200 billion yuan, accounting for about 16% of the total. They have become the important powerhouse to promote the development of light industry and regional economic development. Therefore, the development of China’s light industry plays a key part in addressing labor employment.

Chapter 2 Overview of the Development of Global Light Industry

The world has not a clear classification for industries at present. The classification of light industry doesn’t exist in some countries and regions in Europe and America. As for the classification of light industry in China, it is classified as consumer goods industry in foreign countries. Moreover, consumer goods are further classified into fast moving consumer goods and durable consumer goods according to lengths of their life cycles. Fast moving consumer goods generally include packaged food, personal hygiene products, tobacco, alcohol and drinks. “Fast moving” means they are daily necessities and consumed by consumers repeatedly and frequently, while profits and values are realized through market volumes of certain scales. Typical fast moving consumer goods include chemicals for daily use, food, drinks and tobacco. The papermaking industry, food industry, beverage industry, alcohol industry, dairy industry, daily chemical industry and battery industry in China belong to fast moving consumer goods industry.

Durable consumer goods generally include furniture and household electrical appliances which have longer life cycles and are purchased by consumers less frequently. The furniture industry, household electrical appliance industry, bicycle industry, clock industry and metal hardware industry in China fall into durable consumer goods industry.

2.1 Food Industry

Food industry is the largest industry in the world, acting as an important criterion to measure economic development and quality of people’s life in a country. At present, the global food industry is developing toward the direction featuring multi-sectors, multi-gradations, deep level, low energy consumption, full utilization, high efficiency and sustainable ness. Thanks to technical innovation, food processing industries in developed countries have seen continuous development. In 2005, the annual sales volume of global food processing industry stood at about US $4,000 billion. The US accounted for 25%, while Europe 20%, Japan 15% and China only 6%.

The food industry in developed countries has a noticeable feature of high processing rate and high added value. In developed countries, raw materials for food generally have a processing rate of over 70%, some even reaching up to 92%. The rate is only 20-30% in China and other developing countries. Developed countries have a full range of food processing machineries, over 3,000 kinds. Processing equipment of their food industry has a high level of mechanization and automatization. The outputs are very considerable. New principles, technologies, techniques and materials have been constantly adopted, which has promoted the development of food machinery industry and helped achieved reliable and stable product quality as well as a high level in standardization, generalization and serialization.

The major dairy producers include the US, Russia, India, Germany, France, Brazil, Ukraine and Britain. The major exporters include German, Netherlands, France, New Zealand, Belgium, Ireland, Denmark, Britain and Austria. As for quick frozen products and frozen products, the products from Europe account for nearly all the global market shares. Excluding ice cream products, quick frozen products have maintained a growth rate of 17% in turnover for nearly 10 years.

As for meat and meat products, major exporters include Australia, EU, the US, New Zealand, Argentina, Canada, Brazil, Ukraine and India, while major importer include the US, Japan, Russia, the EU, Canada, South Korea, Brazil and Egypt. As for pork products, pork processing industry account for 21% of the total turnover of the processing industry of member countries of the European Economic Community. The major producers include German, France, Italy and Brazil.

World’s most renowned food enterprises:

Nestle was founded in 1867, headquartered in Velvety, Switzerland. It is the world’s largest food manufacturer. The company was ranked 57 among the Fortune 500 Companies by the Fortune magazine for its operating revenue of US $89.63 billion and profit of US $8.87 billion. It owns over 500 plants across the world with nearly 280,000 employees. Its business coverage has expanded into drinks, seasonings, pet food, dairy products, chocolate, ice cream and drugs.

PepsiCo., Inc. is one of the world’s largest food and beverage companies. It has 185,000 employees in over 200 countries and regions across the world. Its sales revenue stood at US $39.47 billion in 2007. Pepsico ranked 184 among the Fortune 500 Companies in 2008.

Coca-Cola Co. is the world’s largest beverage manufacturer, also the leader in soft drink market. It ranked 275 among the Fortune 500 Companies in 2008.

Dan one, headquartered in Paris, is a multinational food and beverage companies with diversified businesses. It ranked 423 among the Fortune 500 Companies in 2008. Its operating revenue stood at US $20.13 billion in 2007. The company has about 76,000 employees across the globe. Dan one is the world’s largest dairy manufacturer, the world’s second largest bottled-water producer, the world’s second largest and Europe’s largest baby food manufacturer, and the world’s third largest manufacturer of health and nutrition products.

2.2 Plastic Manufacturing

The output of global plastic and rubber equipment increased to 19.6 euros in 2006 (18.6 euros in 2005). Plastic and rubber equipment manufacturers in German account for 24.9% market shares, ahead of China (13.7%), Italy (12.4%), the US (9.3%) and Japan (8.8%). PChina has exceeded Japan, the US and Italy in terms of market shares held by its plastic and rubber equipment manufacturers.

The US has always taken the lead for the output of its plastic manufacturing industry. Its plastic machinery market was worth about US $2.4 billion in 2000, US $2.8 billion in 2005. The export of plastic products reached up to US $43.4 billion in 2006, an increase of 12.3%.

Japan is a big producer and consumer of plastic products. Its output of plastic products had exceeded six million tons in 1999 and 2000, reaching about 5.9 million tons in 2004 and 6.14 million tons in 2005. The packaging industry is the largest application field of Japan’s plastic manufacturing industry. Nearly one third plastic products are used to produce various packaging materials and containers. Another one third is used for construction materials. Japan’s total output of thermoplastic materials reached up to 12.57 million tons in 2006. The output of five major kinds of general plastics stood at 9,983,300 tons in 2006.

Germany is one of the major plastic producers in the world. German’s output of plastic materials (resin) stood at 18 million tons in 2005. It is the world’s third largest plastic producer, following the US and China. German has taken the lead in terms of both plastic processing machinery and plastic manufacturing industry.

France’s plastic manufacturers are distributed in nearly all regions across the country. According to the statistics (by the end of 2006), France’s domestic plastic manufacturing industry was composed of 1,370 large- and medium-sized enterprises which had over 20 employees. The total number of employees of these enterprises reached up to 160,000. Their turnover stood at 27.2 euros, accounting for about 4% of that of the whole manufacturing industry. As of 1990s, like other European countries, France had maintained an annual growth rate of about 6% in production of its plastic manufacturing industry. Although France’s plastic manufacturing industry has maintained sound growth in production since 2000, the growth has been slowing down because of economic slowdown and competition pressure from other rising countries. The annual growth stood at only 2-3%.

2.3 Papermaking and Paper Product Industry

Asia boasts the highest output of paper and cardboard in the whole world, followed by Europe and North America. In 2007, their outputs were 151.76 million, 114.07 million and 100.93 million tons respectively, accounting for 38.5％, 28.9％, and 25.6％ of the total global output. In terms of individual country, the US boasts the highest paper and cardboard output, followed by China and Japan. Their outputs stood at 83.56 million, 73.5 million and 31.27 million tons respectively in 2007. China, German, Italy, South Korea and Japan witnessed comparatively high imports of paper pulp. Their total import reached up to 20.118 million tons.

The global output of paper pulp stood at 188.13 million in 2007, an increase of 1.03% compared with 186.43 million tons in 2006. The output of chemical pulp was 129.1 million tons, an increase of 1.2% compared with that of 2006. The output of mechanical pulp was 34.94 million tons, a decrease of 2.2% compared with that of 2006. The total output of paper pulp in North America stood at 75.78 million tons, accounting for 40.2% of the total global output, a decrease of 1.4% compared with 2006. The total output of paper pulp in Europe and Asia was 51.46 and 36.7 million tons respectively, accounting for 27.3% and 19.5% of the total global output. North America and Europe were two major producers of mechanical pulp, with an output of 14.83 million and 16.1 million tons respectively. The total output of the two areas accounted for 88.5% of the global output. The US, Canada and China were listed as the world’s top three in terms of output of paper pulp. Their outputs of paper pulp are 53.46 million, 22.31 million and 19.07 million tons respectively. The global apparent consumption of paper pulp stood at 196.19 million tons in 2007, a decrease of 1.1% compared with 198.29 million tons in 2006. The apparent consumption of North America was 69.17 million tons, Europe 56.13 million tons, Asia 56.74 million tons, Latin America 9.48 million tons, Africa 2.44 million tons, and Oceania 2.23 million tons.

World’s Renowned Enterprises:

Founded in 1898, International Paper is currently the world’s largest paper and forest products company. It is also one of the only four listed companies in the US with a history of over 100 years. The company’s global headquarters is located in Memphis, Tenn. The Asian headquarters of International Paper was established in Hong Kong in 1990. The company has production and sales bases in China, Japan, South Korea, Thailand, Singapore, and India.

Weyerhaeuser Company, founded in Washington in 1900, is one of the world’s largest comprehensive forest products company. It is the world's largest private sector owner of softwood timberland, the world’s largest producer of softwood board and commercial timber. Weyerhaeuser Company has taken the lead in export of forest products in the US.

2.4 Household Appliance Manufacturing

The US is a big producer and consumer of household appliances. The survey on the household appliance market in the US announced by the Consumer Electronics Association (CEA) announced suggests that the sales volume of household appliances in 2008 increased by 7.3% compared with that of 2007 to US $173 billion.

Germany is a comparatively advanced country in terms of household appliance, with comprehensive development of its household appliance industry in production, consumption, import and export. Germany has ranked third in terms of house appliance output for a long term, behind the US and Japan. As a giant producer and consumer of household appliance in Europe, Germany mainly produces high-end household appliances. Its annual output of household appliances steadily stands at over eight billion euros. There are more than 200 household appliance enterprises in Germany, and most of them are medium- and small-sized enterprises. Family-owned enterprises have strong strength, while some of them are world renowned enterprises. Some household appliance giants like Bosche, Siemens and Electrolux are located in Germany.

Italy, situated in south Europe, boasts a developed industry. Its household appliance industry has a long history and has undergone comprehensive development. It has been titled as the Kingdome of Household Appliance. Early in 1970s, Italy exceeded Britain and France in terms of output of household appliance industry, ranking fifth and only behind the US, Japan, Soviet Union and Federal Republic of Germany. Italy’s production capacity of household appliance far exceeded its domestic demands, making Italy the world’s most important exporter of household appliances. Italy’s major household appliances include refrigerator, washing machine, dishwasher and freezer. The country has also taken the lead in production of small household appliances.

Brief Introduction of World Renowned Enterprises:

Whirlpool Corporation, founded in 1911, is headquartered in Michigan, the US. The company announced to acquire Philips’ product line of large-sized household appliances in 1991, becoming the world’s largest manufacturer of white goods and setting a milestone in the household appliance manufacturing industry. Whirlpool Corporation now spreads its business to over 120 countries and owns more than 30 workshops in Europe and the US. It has over 40,000 employees across the world.

Germany-based Siemens, founded in 1847, is one of the world’s top 10 electronics companies. It ranks first in Germany’s electrical appliance industry and owns 15 subsidiaries and holding companies, with over 400,000 employees. Siemens has more than 50 plants in German and over 30 plants in foreign countries. Its business has spread to 129 countries and regions across the globe.

Sweden-based Electrolux was founded in Stockholm, which also hosted its headquarters, in 1919. It is the world’s largest manufacturer of electrical appliances, also one of the largest industrial companies. Electrolux now has more than 100,000 employees, making it one of the private enterprises with the largest number of employees across the world. Its annual sales volume stands at 138 billion yuan. Over 60 million items of Electrolux products are sold to the whole world each year. About 350 million families across the world have or are consuming household appliances manufactured by Electrolux.

2.5 Leather, Fur, Feather and Down Product Industry

The leather output in Asian regions accounts for 53% of the world’s total output, raw hide 40%. The leather output in European regions, represented by Italy, Spain, France and Portugal, accounts for 27% of the world’s total output, raw hide 18%. The leather output in North and Middle America accounts for 10% of the world’s total output, raw hide 17%. The leather output in South America accounts for 8% of the world’s total output, raw hide 13%.

China’s leather industry has gone through rapid development since 1979 and already become a giant leather producer recognized by the whole world, ranking first in leather output and export. The annual output of light leather stands at over 500 square meters, accounting for over 20% of the world’s total and ranking third in the world. The international market has been the major target for the import and export of China’s finished leather for five years. The leather output fails to reach a large quantity, but a large number of leather products are exported.

India’s leather industry is playing an important role in its national economic activities. India produces 194 million heads of yellow cattle, 70 heads of water buffalo and 9,500 goats every year. According to the latest statistics, the number of livestock and export of its leather products have witnessed significant increases during the past 10 years, while the export structure has also been readjusted. In 1970s, the export of finished leather products with high added value accounted for 20% of the total export of leather products. The proportion has already increased to 84%, making India ranking first in this field. It raises 48 million heads of sheep every year, ranking sixth in the world.

As a traditional leather producer boasting the undisputed leading position in Europe and the whole world at large, Italy accounts for 20% of the total leather output of the world, 65% of the Europe. There are 2,300 leather manufacturers in Italy, and their sales volume reached up to 6.2 billion euros in 2002, accounting for 65% of that of the EU members. Its output accounted for 20% of the world’s total. According to the statistics of the Italian Federation of Leather Industries, Italy exported its finished leather products to 127 countries and regions in 2006. The export accounted for about two thirds of the total sales volume. Raw hide of Italy’s leather manufacturing industry was imported from 120 countries and regions.

Turkey’s leather industry has a long history and the country used to be the center of the world’s fur manufacturing industry. It is still be entitled as one of the world’s six major leather markets. Turkey’s leather industry has a long history of 500 years. Turkey, with the most advanced leather industry, plays an important role in the world and has been regarded as the World’s Fur Plant. Turkey is one of the countries with the world’s largest production capacity for processing of animal skin. Its daily capacity for cowhide is 22,000 pieces, sheepskin 280,000 pieces. The annual slaughter capacities of cattle, sheep and goat are respectively three million, 15-17 million and four-five million heads.

2.6 Furniture Manufacturing Industry

The global output of furniture stood at US $80 billion in 1980s. The furniture manufacturing industry has through significant changes during the past 20 years, and the figure increased to US $200 billion in 2002. The output of the global furniture industry was about US $250 billion in 2005, while seven major industrialized countries, the US, Italy, German, Japan, British, France and Japan in order, accounted for 56% of that. The furniture output of developed countries formed 73% of the global total. The top five furniture importers are the US, Germany, British, France and Japan. The top five exporters are China, Italy, German, Poland and Canada. The trade volume of the global furniture industry reached up to US $86 billion in 2006, a year-on-year increase of 7.5%.

The US is the world’s largest furniture consumer, the retail sales of its furniture markets reached up to US $ 64.12 billion in 2001, an increase of 1.7% compared with that of 2000. The figure soared to US $66.9 billion in 2002 and US $73 billion in 2004, accounting for over one third of the global output. The sales volume of furniture reached up to US $75 billion in 2005, representing 38% of the global output.

Germany’s furniture industry is of a large size and with a long history. The country used to be the world’s second largest furniture manufacturer. As China replaced its place in 2002, German became the third largest manufacturer and decreased to the fourth position in 2006. There used to be over 1,500 furniture manufacturers in Germany, with about 170,000 employees. The industry had lost nearly 45,000 jobs in the country since 2000. The number of furniture producers decreased from 1,500 to 1,100. Germany’s furniture industry has made greater efforts in collective purchasing during the past several years. In Germany, 90% of furniture shops adopt collective purchasing, and 50% of the furniture market is under the control of 20 procurement groups.

The number of Russia-based furniture manufacturers had doubled, from 2,820 to 5,770, from 1999 to 2003. Russia’s furniture market volume has already reached up to US $6.10 billion in 2007.

Introduction of Renowned Enterprises:

IKEA was founded in 1943 in Sweden. “To create a better everyday life for the many people” has remained as the company’s vision since its establishment. During the past 60 years, it has opened a total of 180 chain stores in 43 countries across the globe, with more than 70,000 employees.

2.7 Hardware Industry

The US, Canada and Brazil are giant hardware producers in America, while the US is the world’s largest hardware market. The major hardware products manufactured by the US are hand tools, saw, garden tools and electric tools. The output of the country’s hardware industry was US$ 7.18 billion in 1995. The market was worth US$125.8 billion in 1995 and increased to US$142 billion between 1996 and 1997, ranking first in America and the whole world at large. The figure was 2.7 billion Canadian dollars (about US$1.9 billion), ranking second in America. With a turnover of its hardware, Brazil ranked third in America. In Europe, according to the statistics on sales volumes of European hardware markets in 1997, German ranked second in Europe and the whole world at large with 67 billion German marks, while France ranked third in Europe and fifth in the world with 26 billion German marks. Major Asian hardware producers include Japan, China, South Korea as well as Hong Kong China and Taiwan of China.

Japan currently ranks first in Asia and third in the whole world in terms of market size. Hong Kong Special Administrative Region of China has become a major hardware supplier for the whole world in recent years. Taiwan of China has undergone rapid development during past several years, witnessing huge potential. In conclusion, the US, Germany and Japan are the world’s major hardware sellers and buyers.

The US, Germany, France and British are the world’s major hardware consumers. High-income families and countries form the mainstream consumers in the global hardware market. According to statistics on consumption, the US, Germany, France and British boast higher per capita consumption volume, followed by Czech and Russia. Consumption volumes of developing countries are lower than those of the two countries.

2.8 Other Light Industries