"General State of Interior Fabrics Business Market Size Determitation"2005JAPAN

Nippon Interior Fabrics Association, JAPAN

General Remarks

Current state of the Interior Fabrics product MarketWindow treatment products 242.6 billion yen
Floor covering products 304.3 billion yen
Wall covering products 113.6 billion yen
In fiscal 2005, the overall scale of the interior fabrics industry (on a wholesale basis) grew 1.7% from the previous fiscal year, to 660.5 billion yen, supported by the strong number of new housing starts, which grew 4.7% from the previous fiscal year. The size of the three segments of the market for interior fabrics products (on a wholesale basis) was estimated at 242.6 billion yen (increasing 1.0% from the previous year) for window treatments, 304.3 billion yen (rising 2.8%) for floor coverings, and 113.6 billion yen (up 0.3%) for wall coverings. Although there are uncertain factors, such as the spike in raw material prices and sluggish personal consumption, the size of the market for interior fabrics products grew the third consecutive year, even though the growth was minimal, and all three segments, namely window treatments, floor coverings, and wall coverings, recorded an increase. These developments are considered encouraging.

Window treatment products

The market for window treatments for fiscal 2005 was estimated at 146.3 billion yen for curtains (increasing 2.1% from the previous year), 31.3 billion yen (rising 0.3%) for blinds, 37.6 billion yen (up 0.1%) for screens, and 27.4 billion yen (dropping 2.4%) for curtain rails, giving an overall market of 242.6 billion yen (representing a 1.0% increase in comparison with the scale of the previous year). With respect to curtains, NIF launched its own study in fiscal 2002 to obtain more accurate estimates of market size, enabling a clearer and more realistic understanding of the size. In fiscal 2005, the size of market for both domestic products and imports increased 1.1% and 7.1% year on year, respectively. Specifically, the increase in imports was mainly attributable to an increase in ready-made curtains. The market for domestic products also grew, supported by higher unit prices as a result of efforts to differentiate the products by focusing on functionality and design originality, offsetting a decline in volume sales. The move away from aluminum blinds in the housing market is advancing, but demand for wooden blinds has grown. As a result, sales of blinds remained almost on a par with those of the previous year as a whole. The overall market for screens, which had been growing consistently, moved up again a slight 0.1% from the previous year, but sales of roll screens declined 4.7% for the first time in six years. This decline was attributable to the further expansion of cheaper plain roll screens. Demand for Roman shades increased significantly (rising 9.1%), as demand for curtains shifted to that for Roman shades. Demand for pleated screens also achieved an impressive double-digit increase of 10.3% as a result of the shift in demand from roll screens. In the curtain rail market, given the increasing popularity of screens, such as Roman shades and pleated screens, demand for ornamental rails dropped significantly 6.5%.

Floor covering products

Although the range of floor covering products is diverse, across the three key materials of fiber, plastic and wood, as in the past, the market size of the floor covering (floor materials) section was calculated based only on carpets and plastic floorings. These are the two areas in which Nippon Interior Fabrics Association (NIF) members are more closely involved. The market size for floor coverings during fiscal 2005 was estimated at 230.5 billion yen (a year-on-year increase of 3.7%) for carpets and 73.8 billion yen (up 0.2%) for plastic floorings, giving 304.3 billion yen (up 2.8%) overall. Sales of domestic carpets rose 2.2% after the market appeared to have bottomed out of its decline during the previous year. Meanwhile, the volume of imported carpets rose as much as 16.2% from the previous year, with sales up 5.4%. For plastic floorings, in the tile market, sales of other composition tiles increased 3.6% from the previous year. In the sheet market, sales of regular vinyl sheets rose 4.7% from the previous year, while sales of anti-slip vinyl flooring sheets and other PVC sheets climbed 5.8% and 12.0%, respectively. The market size for composition tiles has tended to shrink recently because of the diversification of flooring products, with a year-on-year decrease of 8.9%. The market for cushioned floorings also declined 8.2% from the previous year, because use of the products for housing is limited to certain parts of the house. The market for inlaid sheets, which have strong durability and design flexibility, also declined a marked 12.9% even though the products have been used at large-scale buildings, such as medical, educational and commercial entities.

Wall covering products

Again this year, the market size for wall coverings was calculated based only on wallpaper. The market size for wallpaper products in fiscal 2005 was estimated at 113.57 billion yen, rising 0.3% from the previous fiscal year. A regulatory change was made in fiscal 2002, under which fireproof wall covering materials are to be qualified for each business. Consequently, since fiscal 2003, we have been able to provide year-on-year comparisons for each section. Although the total quantity of wallpaper shipped within Japan increased only slightly, to 729.75 million m2 (up 1.8% from the previous year), the industry remained above 700 million m2 for the third consecutive year. An increase in new housing starts (up 4.7% from the previous year) appeared to have led to an increase in shipments. Viewed by type (in value base), only vinyl wallpaper, the key product, exceeded sales for the previous year (up 2.3%), but sales of all other wallpaper declined from the previous year. Sales of plastic wallpaper, which had enjoyed support as environmentally friendly, also continued to decline from the previous year (down 7.3%). Sales of paper-based wallpaper, which have fallen since 2001, continued to drop markedly in fiscal 2005 (down 9.0%). Sales of fiber-based wallpaper declined 6.1% from the previous year, while sales of inorganic wallpaper and other wall paper declined 9.3% and 21.4% respectively. The volume of shipments has been moving at a comparatively stable pace on the strength of heavy demand, reaching as much as 700 million m2, but the shift toward (mass produced) products that are cost effective and easy to use in construction is being strengthened in the more severe market conditions. Moreover, given concerns over rising costs due to the surge in raw material prices, the outlook of this segment is uncertain.

[Reference Material]Trend in New Housing Starts (By Use)

(Unit: 1,000; figures in parentheses are as percentages of previous yeafs figures)

  Total Lived in by owner Rental Employee housing Condominium
Fiscal 2001

1,173 (96.7)

377 (86.1)

442 (105.8)

9.9 (90.0)

344 (99.3)

Fiscal 2002

1,145 (97.6)

365 (96.8)

454 (102.7)

9.5 (96.0)

316 (91.9)

Fiscal 2003

1,173 (102.4)

373 (102.2)

458 (100.9)

8.1 (85.3)

333 (105.4)

Fiscal 2004

1,193 (101.7)

367 (98.4)

467 (101.9)

9.4 (116.2)

349 (104.6)

Fiscal 2005

1,249 (104.7)

352 (96.0)

518 (110.7)

8.5 (90.4)

370 (106.0)

Source: gIntegrated Statistics on Construction Workh Ministry of Land, Infrastructure and Transport

[Reference Material]Trend of Floor Area of New Homes (By Use)

(Unit: 1,000m2, figures in parentheses are percentages of previous yearfs figures)

  Total Lived in by owner Rental Employee housing Condominium
Fiscal 2001

108,800 (92.6)

51,668 (84.9)

22,723 (102.6)

685 (88.1)

33,725 (99.9)

Fiscal 2002

103,438 (95.1)

49,640 (96.1)

22,736 (99.9)

688 (100.4)

30,374 (90.1)

Fiscal 2003

104,945 (101.5)

50,284 (101.3)

22,391 (98.5)

573 (83.3)

31,697 (104.4)

Fiscal 2004

105,531 (100.6)

49,280 (98.0)

22,144 (98.9)

648 (113.1)

33,459 (105.6)

Fiscal 2005

106,651 (101.1)

47,162 (95.7)

24,176 (109.2)

574 (88.5)

34,739 (103.8)

Source: gIntegrated Statistics on Construction Workh Ministry of Land, Infrastructure and Transport

[Reference Material]Trend of Floor Area of New Homes (By Use)

(Unit: 1,000m2, figures in parentheses are percentages of previous yearfs figures)

  Total Residential Non-residential
Fiscal 2001

178,903 (92.0)

115,928 (93.0)

62,975 (90.2)

Fiscal 2002

171,030 (95.6)

110,139 (95.0)

60,891 (96.7)

Fiscal 2003

176,533 (103.2)

111,786 (101.5)

64,747 (106.3)

Fiscal 2004

182,774 (103.5)

112,077 (100.3)

70,697 (109.2)

Fiscal 2005

185,681 (101.6)

113,465 (100.7)

72,216 (102.1)

Source: gIntegrated Statistics on Construction Workh Ministry of Land, Infrastructure and Transport

[Reference Material]

Trends in Floor Area for Each Use (Unit: 1,000m2, figures in parentheses are percentages of previous yearfs figures)
  Office Store Factory Warehouse School Hospital Others
Fiscal 2001

8,321 (101.8)

8,383 (70.0)

10,628 (75.1)

7,240 (93.3)

4,700 (104.1)

3,520 (89.7)

20,183 (104.5)

Fiscal 2002

6,833 (82.1)

10,361 (123.6)

8,812 (82.9)

6,770 (93.5)

4,945 (105.2)

4,443 (126.2)

18,727 (92.8)

Fiscal 2003

7,550 (109.7)

10,637 (102.7)

9,945 (112.9)

7,343 (108.5)

4,602 (93.1)

3,892 (87.6)

20,779 (111.0)

Fiscal 2004

8,076 (107.0)

11,433 (107.5)

13,521 (136.0)

7,918 (107.8)

4,260 (92.6)

3,708 (95.3)

21,781 (104.8)

Fiscal 2005

7,759 (96.1)

12,501 (109.3)

14,226 (105.2)

9,137 (115.4)

4,658 (109.3)

3,034 (81.8)

20,900 (96.0)

Source: gIntegrated Statistics on Construction Workh Ministry of Land, Infrastructure and Transport

 

Window Treatment Products

[Curtains]
The general market size for curtains in fiscal 2005 was determined and verified based on the NIFfs independent survey in the same manner as the previous year. The size of the market was estimated at 146.3 billion yen (with a year-on-year increase of 2.1%), exceeding that of the previous year by small margin. In summary, sales of both domestic products and imported products rose 1.1% and 7.1% respectively from the previous year. In particular, the quantity (m2) of imports, mainly those of ready-made curtains, increased while sales of domestic products climbed, boosted by a rise in unit prices, offsetting a decline in the number of products sold. With progress in the nationwide expansion of new stores by major chain stores and others, the full-scale direct imports of products produced in China and other countries commenced, resulting in a further increase in the volume of imported products. Meanwhile, given the rise in costs due to the surge in raw materials and the increased number of orders in smaller lots, it became difficult for the domestic products to compete on price. To deal with this situation, the manufacturers of domestic products sought to differentiate their products by strengthening functionality and designs to offset the lower sales quantities. Business conditions of domestic products by type have changed after their sales continued to decline for several years. In particular, overall sales of piece-dyed products expanded as demand from contract routes remained comparatively steady. Total production of curtains during fiscal 2005 was 129 million m2, a year-on-year fall of 6.6%, a continuing decline after peaking in 1997. The socioeconomic feature of fiscal 2005 was that new housing starts recorded approximately 1,250,000 households, exceeding the benchmark of 1,200,000 households first time for several years. In particular, the number of high-grade apartments in urban areas and the number of houses built for sale by local builders mainly in local areas increased significantly, supporting the growth of each market. However, the market conditions for curtains still remain difficult as consumer needs have become diversified over the last several years and the size of the window area has been declining with changes in the structure of houses. <Statistical materials used to determine market sizes>
1) Domestic products The market size was determined by calculating average units and the ratio of made-to-order curtains to ready-made products, while referring to reports on actual shipment by NIF members, based on the data from the gCurtain Shipment Volume and Value by Product Type.h
2) Imported products The market size was determined based on a survey of the curtain conducted by Sen-i Kenkyu-jyo. *The sizes of the markets for both domestic and imported products are calculated based on average unit prices of products from NIF members, which makes it impossible to verify differences compared to actual prices in the markets.

Table 1. Size of the Curtain Market (wholesale basis)

(Unit: 100 million yen; figures in parentheses are percentages of previous yearfs figures)

  Fiscal 2002 Fiscal 2003 Fiscal 2004 Fiscal 2005
Total size

1,470 ( - )

1,504 (102.3)

1,433 (95.3)

1,463 (102.1)

@ Domestic products

1,224 (91.3)

1,268 (103.6)

1,194 (94.1)

1,207 (101.1)

Imported products

246 ( - )

236 (95.9)

239 (101.3)

256 (107.1)

 Table 2. Size of the Domestic Curtains (by type and category, wholesale basis)

(Unit: 100 million yen; figures in parentheses are percentages of previous yearfs figures)@

  Fiscal 2002 Fiscal 2003 Fiscal 2004 Fiscal 2005
Total

1,224 (91.3)

1,268 (103.6)

1,194 (94.1)

1,207 (101.1)

@ Ready-made products

141 (71.6)

118 (83.7)

101 (85.6)

109 (107.9)

Order-made products

1,083 (94.7)

1,150 (106.2)

1,093 (95.0)

1,098 (100.5)

Yarn-dyed products

349 ( - )

332 (95.0)

346 (104.2)

334 (96.6)

@ Ready-made products

36 ( - )

27 (75.0)

28 (103.7)

27 (96.4)

Order-made products

313 ( - )

305 (97.3)

318 (104.3)

307 (96.6)

Cloth-dyed products

570 ( - )

616 (108.1)

555 (90.1)

587 (105.8)

@ Ready-made products

68 ( - )

59 (86.8)

47 (79.7)

53 (112.8)

Order-made products

502 ( - )

557 (111.0)

508 (91.2)

534 (105.1)

Lace casement

304 (96.6)

320 (105.2)

293 (91.5)

286 (97.6)

@ Ready-made products

37 (64.9)

32 (86.5)

26 (81.3)

29 (111.5)

Order-made products

267 (103.6)

288 (107.8)

267 (92.6)

257 (96.2)

@          
[Reference Material]

Curtain Production Volume by Product Category

(Unit: 1,000m2; figures in parentheses are percentages of previous yeafs figures)

  Fiscal 2002

Fiscal 2003

Fiscal 2004 Fiscal 2005
Total

157,850 (96.2)

147,936 (93.7)

138,490 (93.6)

129,300 (93.4)

@ Yarn-dyed products

37,360 ( - )

32,864 (88.0)

31,180 (94.9)

27,910 (89.5)

Cloth-dyed products

66,730 ( - )

63,232 (94.8)

61,250 (96.9)

58,980 (96.3)

@ Race-casement

53,760 (98.3)

51,840 (96.4)

46,060 (88.9)

42,410 (92.1)

(Source: Textile Market Research Center)Reference: Nationwide Demand for Curtains
Nationwide demand for curtains in fiscal 2005 (on a cloth converted basis) slightly declined to 254,996,000 m2, 99.6% compared with the previous year. Production in Japan (domestic products) was 129,300,000 m2, 93.4% or a decline of 6.6% compared with the previous year, but imported products increased 6.8%, to 125,696,000 m2. With the market of 50.7% being shared by domestic products and 49.3% by imported products, the share of domestic products declined 3.4 points from the previous year, just maintaining a majority share of the market. Among imported products, fabric imports was a mere 1,310,000 m2, declining further to 91.0% compared with the previous year, but imports of ready-made products (on a cloth converted basis) increased to 124,386,000 m2, 107.0% compared with the previous year. Nationwide demand in fiscal 2005 features sluggish personal consumption and persistent demand for low-priced products, as well as the stagnant consumption of end-users. In addition, budgets to stimulate public works, which have been postponed due to the prioritized spending on disasters, have not materialized. Although new housing starts for fiscal 2005 increased 4.7% from the previous year, to 1,249,000 households, the increase was attributable to an increase in the number of three-story houses and high-rise apartments. Following changes in the structure of houses, the size of the window areas is smaller on average, resulting in reduced demand for fabrics. As consumer needs for window decoration have changed, shades (blinds) and cafe curtains (blinders) have become popular, but this could not increase the overall demand for curtains. An increase in imported products was attributable to the expansion of new stores of the large-scale furniture chain stores, which have been actively promoting ready-made curtains produced in China as an interior product. (The above chain stores have maintained their competitiveness by directly importing products through the business alliance with weaving and sawing factories in China.) The manufacturers of domestic products have become even more cautious on the business outlook because (1) as a result of competition with imported products, a share of order-made curtains exceeded 80%, (2) production costs increased following a rise in prices of original yarns, (3) profitability has deteriorated as the order unit of sample books for the manufacturers have been reduced to approximately ten bolts for one design from between 20 and 30 bolts, (4) thin voile fabrics have eroded the demand for lace curtains, (5) there are not enough product developments to meet consumersf needs, (6) sales unit prices have been declining, and (7) there are uncertain factors following the bankruptcy of a major manufacturer. In the Hokuriku region, sales of voile fabrics have been brisk over the last few years, but as demand for the products peaked and to differentiate themselves from other production regions, the local manufacturers have started developing flat yarns, which create characteristics on the fabric surface, to manufacture value-added products. Cloth imports continued to decline as importers have been increasing the volume of product imports. (Source: Textile Market Research Center)
Nationwide demand for curtains in fiscal 2005 by domestic products and imported products (January to December)
(Unit: 1,000 m2, changes in % from the previous year)

Curtains

Nationwide Demand

@

Remarks

Domestic Products

Imported Products

Fiscal 2004

Fiscal 2005

Changes

Fiscal 2004

Fiscal 2005

Changes

Fiscal 2004

Fiscal 2005

Changes

@

256,142

254,996

99.6

138,490

129,300

93.4

117,652

125,696

106.8

Figures in parentheses are for domestic products.

@

Fabrics

185,833

185,083

99.6

92,430

86,890

94.0

93,403

98,193

105.1

@

Yarn-dyed

(31,180)

(27,910)

(89.5)

(31,180)

(27,910)

(89.5)

0

0

@

Piece-dyed

(61,250)

(58,980)

(96.3)

(61,250)

(58,980)

(96.3)

0

0

@
@

Plain

(49,530)

(47,710)

(96.3)

(49,530)

(47,710)

(96.3)

0

0

@

Printed

(11,720)

(11,270)

(96.2)

(11,720)

(11,270)

(96.2)

0

0

@

Lace

68,549

68,403

99.8

44,300

40,900

92.3

24,249

27,503

113.4

Casement

1,760

1,510

85.8

1,760

1,510

85.8

0

0

@

Curtains

Imported Products

Cloth

Products

Fiscal 2004

Fiscal 2005

Changes

Fiscal 2004

Fiscal 2005

Changes

@

1,440

1,310

91.0

116,212

124,386

107.0

@

Fabrics

1,010

710

70.3

92,393

97,483

105.5

@

Yarn-dyed

@ @ @ @ @ @

Piece-dyed

0

0

@

0

0

@
@

Plain

@ @ @ @ @ @

Printed

@ @ @ @ @ @

Lace

430

600

139.5

23,819

26,903

112.9

Casement

@ @ @ @ @ @
@ [Blinds]
The market size for blinds during fiscal 2005 was estimated at 25.88 billion yen (rising 0.6% year on year) for Venetian blinds, 5.41 billion yen (declining 1.3%) for vertical blinds, and 31.29 billion yen (up 0.3%) in total. In the blind market during fiscal 2005, the move away from aluminum blinds in the housing market continued, but demand for wooden blinds has grown. As a result, sales of blinds remained almost on a par with those of the previous year as a whole. Although demand for cloth slats mainly for condominiums remained brisk, this could not offset a decline in the market for vertical blinds, in which demand has been sluggish due to the contraction in the building market. As the market for vertical blinds expands, prices of the products are expected to become lower in the future. Considering economical wooden blinds have already penetrated the market for horizontal blinds, the challenge for this segment is to prevent the product prices from falling. <Statistical materials used to determine market sizes>
  1. gReport on the Shipment of Interior Fabrics, etc.,h NIF
  2. g2003 Statistics on Blinds,h Nippon Blind Industry Association

Table 3. Market Size of Blinds (wholesale basis)

(Unit: 100 million yen; figures in parentheses are percentages of previous yearfs figures)

  Fiscal 2002 Fiscal 2003 Fiscal 2004 Fiscal 2005
Blinds total

335.9 (98.3)

300.1 (89.3)

312.0 (104.0)

312.9 (100.3)

@ Venetian blinds

280.8 (99.4)

251.1 (89.4)

257.2 (102.4)

258.8 (100.6)

Vertical blinds

55.1 (93.1)

49.0 (88.9)

54.8 (111.8)

54.1 (98.7)

[Screens]
The market for screens during fiscal 2005 was determined to be 23.68 billion yen (a year-on-year decline of 4.7%) for roll screens, 9.08 billion yen (down 9.1%) for Roman shades, and 4.83 billion yen (up 10.3%) for pleated screens. The overall market size was 37.59 billion yen (an increase of 0.1% over the previous year). The market for roll screens declined for the first time in six years. Despite steady demand for roll screens not only from houses, but also from buildings, as a result of increasing popularity of low-priced plain products, the quantity of the products sold did not fall notably. However, sales fell significantly, producing the market downturn. As demand for roll screens appears to be shifting to pleated screens, the industry needs to make efforts to develop attractive products once again. Demand for Roman shades, particularly for small windows, increased as demand for curtains have partially shifted to Roman shades following the diversification of consumersf preferences and changes in the shape of windows in houses. The market for pleated screens expanded significantly in terms of both sales and quantity, boosted by an increase in the number of long and thin windows over the last few years and the popularity of pleated screens that use different materials for the upper side and lower side of the screens, which have become the most popular type of pleated screens. The situation in the market for screens, in which roll screens were leading products, has significantly changed and it appears that now demand for other fabric products has increased, eroding the market for roll screens. The overall size of the market remained unchanged from the previous year.

<Statistical materials used to determine market sizes>

  1. gReport on the Shipment of Interior Fabrics, etc.,h NIF
  2. g2003 Statistics on Blinds,h Nippon Blind Industry Association
Table 4. Market size of Screens and Shades (wholesale basis)(Unit: 100 million yen; figures in parentheses are percentages of previous yearfs figures)
  Fiscal 2002 Fiscal 2003 Fiscal 2004 Fiscal 2005
Total

347.8 (103.8)

369.8 (106.3)

375.4 (101.5)

375.9 (100.1)

  Roll screens

234.8 (103.1)

248.1 (105.7)

248.4 (100.1)

236.8 (95.3)

Roman screens

84.0 (103.2)

87.0 (103.6)

83.2 (95.6)

90.8 (109.1)

Pleated screens

29.0 (111.1)

34.7 (119.7)

43.8 (126.2)

48.3 (110.3)

[Curtain rails]
The market size for curtain rails in fiscal 2005 was estimated at 24.74 billion yen (a year-on-year decrease of 1.4%) for curtain rails themselves, 1.84 billion yen (down 7.6%) for curtain-related products, and 0.86 billion yen (down 17.7%) for others. New housing starts_mainly in the sectors of condominiums and houses built for sales_moved higher. In line with this increase, demand for curtains in terms of both quantity and sales remains higher than that of the previous year. In the curtain rail market, however, as this is a market in which functional rails, the unit prices of which are lower than those of decorative rails, are commonly used, the size of the market for curtain rails declined 2.4%, to 27.43 billion yen. The increasing popularity of screens, such as Roman shades and pleated screens, also impacted on the market for curtain rails. With respect to the size of the market for curtain rails by types, the market for functional rails amounted at 18.65 billion yen (up 0.4% from the previous year), almost unchanged from the previous year. In contrast, the market for decorative rails declined 6.5%, to 6.09 billion yen. <Statistical materials used to determine market sizes> 1) Materials for determining market size from the Japan Curtain Rail Industry Association @

@Table 5. Market size of Curtain Rails (wholesale basis)

(Unit: 100 million yen; figures in parentheses are percentages of previous yearfs figures)@

  Fiscal 2002 Fiscal 2003 Fiscal 2004

Fiscal 2005

Curtain rail total

290.3 (91.8)

291.0 (100.2)

281.2 (96.6)

274.3 (97.6)

  Curtain rails

253.9 (89.3)

256.4 (101.0)

250.9 (97.9)

247.4 (98.6)

    Functional rails

184.1 (88.2)

194.5 (105.6)

185.7 (95.5)

186.5 (100.4)

  Decorative rails

69.8 (92.5)

61.9 (88.7)

65.1 (105.2)

60.9 (93.5)

  Related parts

23.8 (107.7)

21.5 (90.3)

19.9 (92.6)

18.4 (92.4)

  Others

12.6 (124.8)

13.1 (104.0)

10.4 (79.4)

8.6 (82.3)

@

Floor Covering Products

[Carpeting]
The market size of carpets for fiscal 2005 rose 3.7% from the previous year, and is estimated at 230.5 billion yen, consisting of sales of 118.7 billion yen (with a year-on-year increase of 2.2%) for domestic products and 111.8 billion yen (up 5.4%) for imported products. The carpet market expanded for the second consecutive year as the economy continued to gradually recover. The overall quantity of imported carpets rose remarkably (with a year-on-year increase of 16.2%), and also expanded in value terms (up 5.4%). The vast majority of imports came from China, a trend witnessing continued growth, with an increase of 31.8% in terms of quantity and an increase of 25.8% in value terms over the previous year. These volumes account for nearly 60% of total imports. In terms of import quantity, China was followed by Thailand, India and Belgium, with these four leading countries accounting for over 80% of total imports. In value terms, the leading exporters included China, Belgium, India and the United States, which together accounted for just under 80% of imports to Japan. Characteristically, the volume of imported woven carpets and imported tufted carpets increased remarkably (with a year-on-year increase of 24.0% and 14.4% respectively). In the construction market, the number of new housing starts increased to approximately 1,250,000 households (rising 4.7% from the previous year) for the third consecutive year. The total floor area of construction starts of all buildings was determined at 185,680,000 m2 (up 1.6%), also the third consecutive year of growth. Among non-residential buildings, the construction floor area of offices declined 3.9% from the previous year, the first decline for three years, but that of shops increased 9.3%. Consequently, the quantity of carpet tiles rose 3.9% over the previous year. Sales of piece and rug increased significantly (with a year-on-year increase of 9.9%) although sales of roll carpets continued to decline. The total number of automobiles produced was 10,800,000 (a year-on-year increase of 2.7%), achieving positive growth for the fourth consecutive year. This contributed to the rise in the overall quantity of carpets for transport use, registering an increase of 4.2% over the previous year. In contrast, the value of carpets installed in automobiles declined slightly. This reflected a reduction in tufted carpet sales, in favor of more needled-punched carpet, a move taken to reduce costs. <Materials used for formulating market sizes> 1) For average unit prices: Results of a questionnaire-based survey by NIF 2) For domestic products: gStatistics on Changes in Carpet Production and Importsh and gStatistics on Tile Carpet Productionh Japan Carpet Manufactures Association 3) For imported products: Trade Statistics, Ministry of Finance Japan 4) Statistics on production, Japan Automobile Manufacturers Association, Inc. 5) Statistics on New Housing Starts for 2005 (Summary), etc., Ministry of Land, Infrastructure and Transport
Table 6. Market Size of Carpets (wholesale basis)
(Unit: 100 million yen; figures in parentheses are percentages of previous yearfs figures)
  Fiscal 2002 Fiscal 2003 Fiscal 2004 Fiscal 2005
Total

2,189 (96.1)

2,150 (98.2)

2,223 (103.4)

2,305 (103.7)

@ Domestic Products

1,181 (93.5)

1,164 (98.6)

1,162 (99.8)

1,187 (102.2)

Imported Products

1,008 (99.2)

986 (97.8)

1,061 (107.6)

1,118 (105.4)

Table 7. Market Size of Domestic Carpets (by product category, wholesale basis)

(Unit: 100 million yen; figures in parentheses are as percentages of previous year's figures)

Category Fiscal 2002

Fiscal 2003

Fiscal 2004

Fiscal 2005

Total

1,181 (93.5)

1,164 (98.6)

1,162 (99.8)

1,187 (102.2)

@ Tufted

660 (89.7)

632 (95.8)

618 (97.8)

631 (102.1)

@ Regular use

576 (89.7)

550 (95.5)

537 (97.6)

548 (102.0)

Automotive use

84 (89.4)

82 (97.6)

81 (98.8)

83 (102.5)

Tufted tile

300 (101.0)

311 (103.7)

321 (103.2)

330 (102.8)

Woven carpet

61 (96.8)

58 (95.1)

59 (101.7)

60 (101.7)

Plain weave

6 (100.0)

8 (133.3)

8 (100.0)

8 (100.0)

Hooked rug

51 (89.4)

48 (94.1)

49 (102.1)

50 (102.0)

Needle punch

97 (100.0)

101 (104.1)

101 (100.0)

102 (101.0)

@ Regular use

26 (86.7)

25 (96.2)

24 (96.0)

23 (95.8)

Automotive use

71 (106.0)

76 (107.0)

77 (101.3)

79 (102.6)

Others

6 (85.7)

6 (100.0)

6 (100.0)

6 (100.0)

@ [Plastic Floor Covering Materials]
The market size of plastic floor materials in fiscal 2005 is estimated at 73.8 billion yen, a small increase from the previous year, after accounting for the increase and decrease of each product. Vinyl flooring materials have the largest share of the market for plastic flooring materials. The market size for vinyl flooring has been estimated since 2003 by adding five new variations, including homogenous tiles, other composition tiles, anti-slip vinyl flooring sheets, inlaid sheets and other PVC sheets to three traditional variations including composition tiles, regular vinyl sheets and cushioned flooring.In this survey, gcomposition tilesh refer to general-purpose products of a semi-hard type. With its good durability and ease of installation, this is one of the leading flooring materials used as an inexpensive PVC tile in non-residential buildings such as offices and schools. However, the market has recently entered a gradual decline because of diversification of flooring material products. As a result, the market for composition tiles declined 8.9% from the previous year.gHomogenous tilesh are vinyl flooring tiles with a binder component of 30% or more, such as vinyl resin or elasticizer. Homogenous tiles include products with sophisticated designs, such as printed tiles with a transparent vinyl layer overlaid on a printed layer and inlaid tiles with patterns made by kneading and spraying chips. JIS A 5705 of vinyl flooring materials has been revised since March 2005 and the ready-made floor tiles (Symbol: HTL) have been included. HTL can be easily installed on double flooring, such as office automation floors, by using a peel-up binding agent. HTL is expected to attract interests because it can be easily detached and replaced and has advantages in terms of recycle. The gregular vinyl sheeth is called a long PVC sheet. This sheet can be used in a wide range of general-purpose applications without the need to install a foam layer. It is used as a highly durable sheet flooring material in schools, hospitals, welfare institutions and factories. As the usability of the product appeared to have been recognized once again, the market size in fiscal 2005 increased 4.7% from the previous year.gAnti-slip vinyl flooring sheetsh have concaves and convexes on the surface of the sheet to ensure that they have anti-slip properties in case of a water leak. This material is becoming more popular and is used in the public corridors, balconies and stairs of apartments more frequently. As a result, the size of the market in fiscal 2005 rose 5.8% from the previous year.gCushioned flooringh is flooring with a foam layer, which has a decorative feature enhanced by a printed layer. The product comes in two types, depending on the thickness of the superficial layer (i.e., a transparent PVC layer) and the total thickness, for residential and commercial applications. Residential cushioned flooring is 1.8 or 3.5mm thick, while commercial cushioned flooring has a thickness of 2.3 mm. The material for commercial use has been increasingly used in apartments in recent years. The type for household use is only used in damp areas such as kitchens, washstands and toilets, and only a small quantity is used in each house or apartment. The market size for cushioned flooring continues its downward trend. The market size in fiscal 2005 declined 8.2%.Inlaid PVC sheets are sheets with patterns created by sprinkling chips or pellets on a base material. This product enjoys high durability and has high designed quality. Although these sheets are used by large-scale buildings, such as medical, educational and commercial facilities, the market size for the sheets declined 12.9% from the previous year. <Statistical materials used to determine mrket sizes>
  1. Shipment volume: Statistical volume from the Interior Floor Industrial Association

Table 8. Market Size of Plastic Floor Covering Materials (wholesale basis)

(Unit: 100 million yen; figures in parentheses are as percentages of previous year's figures)

Category

Fiscal 2002

Fiscal 2003

Fiscal 2004

Fiscal 2005

Total

374 (95.2)

749 ( - )

737 (98.4)

738 (100.2)

  Tiles Composition tiles

41 (97.6)

38 (92.7)

35 (92.1)

32 (91.1)

Other composition tiles
-

56 ( - )

56 (100.0)

58 (103.6)

Homogenous tiles
-

116 ( - )

114 (98.3)

113 (99.4)

Sheets Regular vinyl flooring sheets
105 (94.6)
108 (102.8)

103 (95.4)

108 (104.7)

Antislip vinyl flooring sheets
-
92 ( - )

91 (98.9)

97 (105.8)

Cushioned flooring
228 (95.0)
217 (95.2)

214 (98.6)

196 (91.8)

Inlaid sheets
-
18 ( - )

15 (83.3)

13 (87.1)

Other PVC sheets
-
104 ( - )

108 (103.8)

121 (112.0)

@@ @ @ @

Wall Covering Products

[Wallpapers]
The market size for wallpaper in fiscal 2005 was calculated at 113.57 billion yen, representing an increase of 0.3% over the previous year. Among the product categories, regulations for fireproof wall covering materials were amended in fiscal 2002 to change the qualifying system in which each manufacturer is to obtain qualification, while the grades of fireproof performance and the gclassificationsh of materials were also modified. This survey was conducted in a similar way as in the previous year. By product category, sales appeared to be 2.66 billion yen for gpaper-based wallpaper,h 2.34 billion yen for gfiber-based wallpaper,h 94.84 billion yen for gPVC resin wallpaper,h 7.72 billion yen for gplastic wallpaper, 5.02 billion yen for ginorganic wallpaper,h and 0.99 billion yen for gothers.h Sales of imported wallpaper were found to be 0.70 billion yen. (It is difficult to classify imported wallpaper, so the sales figure is added to the sales of gothers.h)The total volume of shipped domestic wallpaper was 729,750,000 m2 (a year-on-year increase of 1.8%), slightly exceeding the previous yearfs result and exceeding 700,000,000 m2 for the third consecutive year.Viewed by type, however, sales rose on a year-on-year basis only for PVC vinyl wallpaper, the key product, (with sales up 3.3%). For this product, mass produced wallpaper accounts for more than half of all shipments. Sales of gplastic wallpaperh (olefin wallpaper such as acrylic wallpaper and EVA wallpaper), which had enjoyed favorable support as an environmentally friendly option, declined 11.7%, a sharp decline from the previous yearfs results, posting negative growth on a year-on-year basis for the second consecutive year. Sales of paper-based wallpaper also continued to decline. Although the rate of sales decrease somehow slowed from the 20% decrease recorded in the previous year, the products still recorded double-digit negative growth rate this year (with a decline of 12.0% from the previous year). Sales of gfiber-based wallpaperh continued to fall, albeit at a slowing pace (down 3.8%). This could be a sign that the fall is coming to end. Sales of ginorganic wallpaperh continued to decrease from the previous yearfs results although the pace of decrease is slowing (with a decline of 6.9%). Sales of gothersh declined sharply on a year-on-year basis, although shipments were small in volume (with a decline of 69.7%). This decline was attributable to a decline in contract demand primarily for painting wallpaper.The number of new housing starts rose 4.7% from the previous year, the third consecutive year of increase, to 1,249,000, surpassing the benchmark of 1,200,000 for the first time in five years. This helped wallpaper expand, but the key point is how the wallpaper industry can shift its sales of present products to those of value-added products in the stock housing market given that the time may come when the number of new housing starts falls to 800,000 in the long term.In terms of shipments, the industry enjoys demand for up to 700,000,000 m2 and shipments seem to be stable, but we can say that there is an increasing shift to products that facilitate construction and that offer a flexible price policy (mass-produced products), given the more severe market conditions. Meanwhile, the industry has faced challenges since last year with the surge in raw material prices fueled by high oil prices. Although some brand manufacturers raised prices of their products to pass rising costs onto retail markets, the industry is still facing an uncertain future as the impact of higher costs remains unknown. <Statistical materials used to determine market sizes> 1) Documents of the Wall Covering Association were used as a reference.

Table 9. Market Size of Wallpaper (domestic products, imported products, wholesale basis)

(Unit: 100 million yen; figures in parentheses are as percentages of previous year's figures)

 
Fiscal 2002
Fiscal 2003
Fiscal 2004
Fiscal 2005
Total

1,137.3 (89.4)

1,121.3 (98.6)

1,132.5 (101.0)

1,135.7 (100.3)

@ Domestic products

1,128.7 (89.0)

1,115.2 (98.8)

1,125.2 (100.9)

1,128.7 (100.3)

Imported products

8.6 (195.4)

6.6 (76.7)

7.3 (110.6)

7.0 (95.9)

* Total shall be the same as"Total" described in Table given below.

* Documents of the Wall Covering Association were used as a reference for Imported Products.
* The period is between April 2005 and March 200

@ Table 10. Market Size of Wallpaper (by product category, wholesale basis)

(Unit: 100 million yen; figures in parentheses are as percentages of previous year's figures)

 
Fiscal 2002
Fiscal 2003
Fiscal 2004
Fiscal 2005
Total

1,137.3 (89.4)

1,121.3 (98.6)

1,132.5 (101.0)

1,135.7 (100.3)

  Paper wallpaper

46.3

34.5 (74.5)

29.2 (84.6)

26.6 (91.0)

Cloth wallpaper

30.1

27.8 (92.6)

24.9 (89.5)

23.4 (93.9)

Polyvinyl chloride resin wallpaper

901

904.5 (100.4)

927.2 (102.5)

948.4 (102.3)

Plastic wallpaper

77.6

86.6 (111.6)

83.2 (96.1)

77.2 (92.7)

Inorganic wallpaper

66.4

55.0 (82.8)

55.4 (100.7)

50.2 (90.7)

Other wallpaper

15.9

12.9 (81.8)

12.6 (95.4)

9.9 (78.6)

* Sales were estimated based on documents of the Wall Covering Association. * Imported products have been categorized under "Others wallpaper" as their fabric details are not available.
* The period is between April 2005 and March 2006.
[Reference Material]Wallpaper Production and Shipment
(Unit: 1,000m2; figures in parentheses are as percentages of previous year's figures)
 
Fiscal 2002
Fiscal 2003
Fiscal 2004
Fiscal 2005
Percentages of previous year's figures
Adhesive Volume

3,484

3,509

2,171

2,171

61.9

Value (including imported products)

1,976,103

1,344,935

1,223,709

1,223,709

91.0

Re-damp@@@@@@@

PVC volume

1,724

1,056

955

955

90.4

PVC value

695,566

270,879

253,697

253,697

93.7

Cloth volume

0

0

0

0

0.0

Cloth value

0

0

0

0

0.0

Paper volume

642

404

215

215

53.2

Paper value

149,468

90,407

44,000

44,000

48.8

Imported volume

0

0

0

0

0.0

Imported value

0

0

0

0

0.0

Non-glue@

Volume

362

830

246

246

29.6

Value

60,732

114,446

122,150

122,150

106.7

Volume for others (raw glue)

@

2,440

1,459

1,459

59.8

Value for others (raw glue)

@

433,257

425,343

425,343

98.2

Total volume

5,850

8,239

5,046

5,046

61.2

Total value

2,821,137

2,253,924

2,069,010

2,069,010

91.8

(Unit: 1,000m2; figures in parentheses are as percentages of previous year's figures)
 

Fiscal 2002

Fiscal 2003 Fiscal 2004 Fiscal 2005

Paper wallpaper

Production

15,927

11,396 (71.6)

8,973 (78.7)

8,349 (93.0)

Shipment

16,675

12,088 (72.5)

9,505 (78.6)

8,368 (88.0)

Cloth wallpaper

Production

3,812

3,511 (92.1)

3,147 (89.6)

3,021 (96.0)

Shipment

3,756

3,520 (93.7)

3,142 (89.3)

3,023 (96.2)

Polyvinyl chloride resin wallpaper

Production

605,729

629,073 (103.9)

641,800 (102.0)

659,582 (102.8)

Shipment

603,658

626,289 (103.7)

639,170 (102.1)

660,336 (103.3)

Plastic wallpaper

Production

36,149

39,314 (108.8)

37,994 (96.6)

32,089 (84.5)

Shipment

36,754

39,287 (106.9)

37,665 (95.9)

33,241 (88.3)

Inorganic wallpaper

Production

31,827

24,845 (78.1)

24,494 (98.6)

22,707 (92.7)

Shipment

33,218

27,361 (82.4)

26,139 (95.5)

24,330 (93.1)

Other wallpaper

Production

2,938

2,295 (78.1)

1,453 (63.3)

448 (30.8)

Shipment

2,768

2,275 (82.2)

1,521 (66.9)

461 (30.3)

Total

Production

696,382 (96.1)

710,434 (102.0)

717,861 (101.0)

726,196 (101.2)

Shipment

696,829 (95.3)

710,820 (102.0)

717,142 (100.9)

729,759 (101.8)

* "Wallpaper Production and Shipment Volume" of the Wall Covering Association
* The period is between April 2005 and March 2006.