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2007 General State of the Interior Fabrics Business and Market Size Determination JAPAN
Nippon Interior Fabrics Association, JAPAN General Remarks The Interior Fabrics Market Window treatments 234.5 billion yen Floor coverings 304.8 billion yen Wall coverings 106.0 billion yen In the interior fabrics industry, the size of the entire interior fabrics market (on a wholesale basis) for 2007 decreased by 3.2% from the previous year, to 645.3 billion yen, due to a sharp decline in housing starts caused by the amendment of the Building Standards Law. The market size of the three sectors of the interior fabrics market (on a wholesale basis) was calculated at 234.5 billion yen for window treatments (down 3.0% from the previous year), 304.8 billion yen for floor coverings (down 3.0%), and 106.0 billion yen for wall coverings (down 4.4%). The size of the entire interior fabrics market had previously shown increases for four consecutive years. However, in 2007 it fell from the previous figures in all three sectors.
Window Treatments The size of the window treatment market in 2007 was calculated at 137.5 billion yen for curtains (down 4.1% from the previous year), 32.7 billion yen for blinds (up 0.9%), 37.2 billion yen for screens (down 1.0%), and 27.1 billion yen for curtain rails (down 4.3%), with a total market size of 234.5 billion yen (down 3.0%). The market size of domestically produced curtains for 2007 declined 3.4% from the previous year, showing a decrease for the second consecutive year. In addition, the market size of imported curtains, which had continued to rise, declined sharply by 7.2% from the previous year. In terms of domestic products, the sales volume of all products other than lace fell sharply, the same as in the previous year. There was a marked fall in the sales volume of ready-made products, especially yarn-dyed products. With regard to imported products, imports of Chinese products did not decline as expected, but imports of European products (including those from Turkey) fell sharply due to the effects of a steep rise in the price of crude oil and the appreciation of the euro. Looking to blinds, the market size of horizontal blinds decreased due to a sharp rise in the prices of raw materials and crude oil, slowing consumer spending growth and the effect of the amendment of the Building Standards Law. In terms of vertical blinds, however, the market size of fabric slats remained high. As a result, the total market size of blinds rose, showing an increase for four consecutive years. Meanwhile, the market size of screens declined for two consecutive years, showing a slight decrease of 1.0% from the previous year. The market size of roll screens (down 2.1% from the previous year) and Roman shades (down 0.3%) also declined. However, the market size of pleated screens (up 3.2%) remained high and continued to rise. The decline in the market size of roll screens, which is the major screen product, had an adverse effect. With regard to curtain rails, the market size of decorated curtain rails fell steeply by 15.0% from the previous year, due mainly to the effect of the amendment of the Building Standards Law. The total market size fell 4.3% due to the impact of the ongoing shift from curtains to a variety of screens, such as Roman shades and pleated screens. Floor Coverings The floor coverings (flooring materials) sector is wide-ranging, including three major materials: fiber, plastics and wood. In terms of market size, however, this time we determined the market size of carpets and plastic flooring materials, on which the members of this Association rely heavily, the same as we have in the past. The market size of floor coverings for 2007 was calculated at 232.7 billion yen for carpets (down 1.9% from the previous year) and 72.1 billion yen for plastic flooring materials (down 6.2%), both showing a decline from the previous year, with a total market size of 304.8 billion yen (down 3.0%). The market size of carpets continued to increase in 2004 and beyond, but showed its first decline in three years in 2007. The market size of domestic products declined for the first time in two years. Meanwhile, the market size of imported products, which had continued to rise for three consecutive years, decreased, albeit only slightly, by 1.0% from the previous year due to the effect of the amendment of the Building Standards Law and rapid deterioration in the market environment. In terms of plastic flooring materials, tiles showed a decline in the market size of all of composition tiles (down 6.5% from the previous year), other composition tiles (down 20.0%) and homogenous tiles (down 6.3%). Slip-resistant vinyl flooring sheets showed a rise in market size (up 2.7%), but all other sheet types showed a decline in market size. The market size of slip-resistant vinyl flooring sheets, the only sheet type to show a rise, was pushed up by demand for repairs and improvements, despite a decline in housing starts. Meanwhile, other composition tiles that showed a sharp drop in market size were affected by a decline in construction starts of large commercial facilities. Wall Coverings In the wall coverings sector, we determined the market size based on wallpaper this time as well. The market size of wallpaper for 2007 was calculated at 105.96 billion yen (down 4.4% from the previous year). With regard to wallpaper, fire resistant wall materials started to be applied through individual authorization from 2002 onward. Comparisons with the previous year have therefore been possible for each type since 2003. The total volume of domestic wallpaper shipments declined 3.0% from the previous year to a total of 708.26 million m_, the first drop in five years, but it just managed to maintain the 700,000,000 m2 level. All types showed a decline in shipping volume from the previous year. In terms of amount, all wallpaper types apart from “other” showed declines. Olefin wallpaper such as plastic wallpaper, acrylic wallpaper and EVA wallpaper, popular as environmentally-responsive wallpapers, showed a sharper decline than the previous year (down 8.8%), decreasing for the fourth consecutive year. Paper wallpaper appeared to be coming to a halt. Inorganic wallpaper continued to decline sharply by 25.6% from the previous year. In 2007, the market share of vinyl chloride resin wallpaper expanded further, to 93.3%. In terms of exports, the shipping volume increased sharply by 33.8% from the previous year, although the volume was low. Wallpaper enjoys strong demand, as seen in its shipping volume of 700 million m_. However, manufacturing, distribution and construction companies need to develop by accumulating knowledge, with a focus on the advent of the age of 800,000 housing starts. [Reference Material] Trends in New Housing Starts (By Use) (Unit: 1,000; figures in parentheses are percentages of the previous year’s figures)
Source: “Integrated Statistics on Construction Work” Ministry of Land, Infrastructure and Transport [Reference Material] Trends in Floor Area of New Homes (By Use) (Unit: 1,000m2, figures in parentheses are percentages of the previous year’s figures)
Source: “Integrated Statistics on Construction Work” Ministry of Land, Infrastructure and Transport [Reference Material] Trends in Floor Area for Each Use (Unit: 1,000m2, figures in parentheses are percentages of the previous year’s figures)
Source: “Integrated Statistics on Construction Work” Ministry of Land, Infrastructure and Transport [Reference Material] Trends in Floor Area for Each Use of Non-Residential Buildings (Unit: 1,000m2, figures in parentheses are percentages of the previous year’s figures)
Source: “Integrated Statistics on Construction Work” Ministry of Land, Infrastructure and Transport Window Treatments [Curtains] When determining the market size of curtains for 2007, the total market size was established by studying_directly inquiring about_the actual conditions of production areas on the basis of an original NIF investigation, which was carried out the same as it was the previous year. The market size was calculated at 137.5 billion yen (down 4.1% from the previous year). The market size continued to decrease from the previous year, the same as in 2006. In summary, domestic products continued to show a decline in market size by 3.4% from the previous year, the same as last year. However, the market size of imported products showed a sharp decrease of 7.2%, in contrast to last year’s strong increase of 8.6% from the previous year. Imported products were affected by deterioration in the domestic market environment. However, products imported from China with a large market size did not fall as feared. Products imported from Europe (including Turkey), which showed a sharp increase last year, fell steeply due to the effects of a strong rise in the prices of crude oil and the appreciation of the euro. Meanwhile, in terms of domestic products, there was a significant fall in overall volume, apart from lace products. There was a marked fall in readymade products, especially yarn-dyed products. Cooling consumer sentiment caused by deterioration in the domestic market environment was the largest contributing factor. However, it appears that lace products, with their high replacement demand, managed to avoid this. The total domestic production volume of curtains in 2007 declined 2.7% from the previous year, to 121.68 million m_, showing an ongoing decline after peaking in 1997. In terms of the social and economic background in 2007, housing starts declined sharply from July 2007 onward due to a delay in applications for building consent and confusion caused by the amendment of the Building Standards Law (enacted on June 20, 2007). The housing start statistics published by the Ministry of Land, Infrastructure, Transport and Tourism showed a 19.4% decline in housing starts from the previous year, to 1,035,598 houses (about 250,000 fewer houses). In particular, there was a delay in the approval of applications for building consent for large properties such as condominiums. The market experienced a sense of helplessness due to the pension problem and people’s concerns about the outlook for their livelihoods. People tried to reduce expenditure, and no revitalization was seen in the economy. With regard to the market conditions for curtains, it is true that needs had diversified over the past few years, with an increase in the number of purchasers seeking high quality and high added value. However, actual conditions showed an increase in the number of purchasers attaching importance to price due to concern about the overall economy and deterioration in the market environment. The environment is expected to become more challenging in the future. <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 “Curtain Shipment Volume and Value by Product Type.” 2) Imported products The market size was determined based on a survey of interior fabric imports by NIF members and the Import Items List by Countries and Items. *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 year’s figures)
Table 2. Size of the Domestic Curtains (by type and category, wholesale basis) (Unit: 100 million yen; figures in parentheses are percentages of previous year’s figures)
[Reference Material] Curtain Production Volume by Product Category (Unit: 1,000m2; figures in parentheses are percentages of previous yea’s figures)
(Source: Textile Market Research Center) [Blinds] The market size for blinds during fiscal 2007 was estimated at 25.51 billion yen for Venetian blinds (down 2.1% year on year), 7.23 billion yen for vertical blinds (up 13.1%), a total of 32.74 billion yen (up 0.9%). The decrease in Venetian blinds came on the back of the weaker market environment, which was brought on by the steep increase in crude oil and material prices, the stagnation in private consumption, the low level of public and private spending on facilities, and the decline in new housing starts affected by the revision of the Building Standards Law. However, fueled by strong demand for fabric slats, vertical blinds maintained a high level of sales and increased in volume, lifting the overall market size for blinds. <Statistical materials used to determine market sizes>
Table 3. Market Size of Blinds (wholesale basis) (Unit: 100 million yen; figures in parentheses are percentages of the previous year’s figures)
[Screens] The market for screens during fiscal 2007 was calculated at 22.41 billion yen for roll screens (down 2.1% year on year), 9.62 billion yen for Roman shades (down 0.3%), and 5.17 billion yen for pleated screens (up 3.2%). The overall market size was 37.20 billion yen (down 1.0% over the previous year). The market for screens declined for the second consecutive year. While roll screens still remain the major window-covering product, the decrease in the size of the contract market brought on by various problems is believed to be the major contributing factor. With regard to Roman shades and pleated screens, the trend of responding to changes in house window shapes has led to an increased need to adapt to smaller windows and a shift away from curtains and roll screens, which has been continuing for the last few years. For pleated screens in particular, manufacturers are competing fiercely to develop fabrics and improve specifications to keep up with the substantial growth that has taken place over the last few years, and they are maintaining market activity at a high level. Overall screen sales have fallen slightly below those of the previous year despite the solid performance of products other than roll screens, which have shown lackluster performance. <Statistical materials used to determine market sizes>
* For Roman shades, the quantity shipped out from the curtain manufacturers as shades has increased since fiscal 2005. The data has come closer to the actual situation, and its use is being continued. Table 4. Market size of Screens and Shades (wholesale basis) (Unit: 100 million yen; figures in parentheses are percentages of the previous year’s figures)
[Curtain Rails] The market size for curtain rails in fiscal 2007 was estimated at 24.47 billion yen for curtain rails themselves (a year-on-year decrease of 4.0%), 1.93 billion yen for curtain rail related products (down 1.0%), and 0.68 billion yen for others (down 20.9%). In fiscal 2007, new housing starts for both privately-owned houses and those built by developers took a tremendous hit, with the revised Building Standards Law coming into effect in June. In particular, construction starts for condominiums saw a significant decrease. Looking at housing starts individually, the number of houses built by developers decreased by 26.1% year on year, privately-owned houses fell by 12.3% and houses for rent dropped by 19.9%. The overall decrease was 19.4%, which has had a significant effect on the shipment of curtain rails. Linked with the decrease in new housing starts, sales of decorative rails saw a significant decrease to 6.45 billion yen (a 15.0% decrease year on year), while sales of functional curtain rails, which are strongly connected to condominium construction, remained constant at 18.02 billion yen (up 0.6%). This was because of the longer construction period from start to completion and the limited material effect of the large drop in construction starts in fiscal 2007. The declining trend in curtain rails is not only affected by new housing starts, but also by the shift away from curtains to Roman shades, roll screens, vertical blinds and various other types of screens in response to changes in tastes and house window shapes that have become evident in recent years. On the other hand, electric curtain rails have seen an increase, although they only enjoy a minor share of the total, and picture rails, currently included in the curtain rail category, sustained only a slight decrease, indicating some distinct movements worth noting. <Statistical materials used to determine market sizes> 1) Materials for determining market size for fiscal 2007 from the Japan Curtain Rail Industry Association 2) New housing starts for fiscal 2007 (Summary), Ministry of Land, Infrastructure Transport and Tourism. Table 5. Market size of Curtain Rails (wholesale basis) (Unit: 100 million yen; figures in parentheses are percentages of the previous year’s figures)
Floor Covering Products [Carpeting] The size of the market for carpets in fiscal 2007 decreased 1.9% from the previous year, and is estimated at 232.7 billion yen, consisting of 119.4 billion yen for domestic products (down 2.7% year-on-year) and 113.3 billion yen for imported products (down 1.0%). The carpet market decreased for the first time in three years with the sudden downturn in the market environment, including the large drop in housing starts stemming from the revision of the Building Standards Law and the sudden surge in material costs resulting from high crude oil prices. The overall quantity of imported carpets decreased by 2.7% compared to the previous year, and also decreased by 1.0% in value terms. The vast majority of imports came from China, a trend experiencing continued growth, with 101.8% in terms of quantity and 103.0% in terms of value compared to the previous year. This volume and the value account for over 70% and 60% of total imports, respectively. In terms of import quantity, China was followed by Thailand, India and Belgium, with these four countries accounting for over 90% of total imports. In value terms, the top four were China, Belgium, India and Thailand, which together accounted for over 80% of imports to Japan. In the construction market, the number of new housing starts was 1,035,598 (down 19.4% year on year), a decrease for the first time in five years. The total floor area of construction starts was 157,220,000 m2 (down 16.2%), also a decrease for the first time in five years. Among private non-residential buildings, shops saw a large increase of 14.6%, but offices declined by 6.7% (a shift to a decrease from an increase the previous year), and the shipment quantity of carpet tiles decreased by around 4-5%. In addition, with the large drop in housing starts, pieces and rugs moved from an increase the previous year to a decrease, and roll carpets continued their downward trend. The total number of automobiles produced was 11,590,000 (up 1.0% year-on-year), achieving positive growth for the sixth consecutive year. This contributed to the rise in the overall quantity of carpets for transport use, registering an increase of 2.1% over the previous year. In the case of carpets installed in automobiles, the trend for needled-punched carpets continued to increase, but in value terms, tufted and needled-punched carpets for transport use were almost equal. <Materials used for formulating market sizes> 1) For average unit prices: Results of a questionnaire-based survey by NIF 2) For domestic products: “JCM News,” 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 2007 (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 the previous year’s figures)
Table 7. Market Size of Domestic Carpets (by product category, wholesale basis) (Unit: 100 million yen; figures in parentheses are percentages of the previous year's figures)
[Plastic Floor Covering Materials] The total market size for plastic floor covering materials in fiscal 2007 was estimated at 72.1 billion yen (a year-on-year decrease of 6.2%). Fiscal 2007 saw a significant decrease in the new construction market, brought on by the substantial drop in the construction start floor area resulting from the revision of the Building Standards Law that came into effect in the previous year, and a slump in the market. Plastic flooring materials include vinyl flooring, linoleum, rubber flooring and olefin flooring. Of these, vinyl flooring materials have the largest share of the market. The market size for vinyl flooring has been broken down into separate categories: composition tiles, other composition tiles, homogeneous tiles, regular vinyl sheets, anti-slip vinyl flooring sheets, cushioned flooring, inlaid PVC sheets and miscellaneous PVC sheets. “Composition tiles” are the most standard semi-rigid, general-purpose product. They maintain their color and pattern even after wear, have a long life, and have excellent durability overall. The product is easy to install, and is one of the leading flooring materials used as a low cost PVC tile in non-residential buildings, such as offices and schools. However, the market has entered a gradual declining trend, and it decreased by 6.5% from the previous year. “Other composition tiles” include those that are soft, semi-rigid, and anti-static for retail and commercial facilities. Manufacturing companies have made efforts to enhance the design and texture of these tiles, giving them the appearance of marble or wood, however the decrease in large-scale commercial facilities has seen a the market size drop by a significant 20.0%. “Homogeneous tiles” are vinyl flooring tiles with a binder component of 30% or more, such as a vinyl resin or an elasticizer. Homogeneous tiles include a variety of products, such as printed tiles with printed patterns and inlaid tiles with patterns made by kneading and spraying colored chips. Compared to composition tiles, they feature a high level of design. There are products such as ready-made floor tiles that can be easily installed using a peel-up binding agent, but the market size is on a downward trend and declined by 6.3%. The “regular vinyl sheet” is a vinyl flooring sheet that is also known as a long sheet with no foam layer. It is highly durable and easy to install, and is used as a flooring material in schools, hospitals, welfare institutions and factories. This category decreased by 5.2% due to a drop in construction starts. “Anti-slip vinyl flooring sheets” have concave and convex areas on the sheet’s surface to ensure sufficient contact is maintained between soles of the shoes and the floor material when wet, thereby enhancing anti-slip properties. This material is widely used in public corridors, on balconies and on condominium stairs. Soundproof products to reduce noise to the floor below are also available. Although new construction starts have decreased, the market showed a slight increase of 2.7%, supported by renovation demand. “Cushioned flooring” is a vinyl flooring sheet with a foam layer and an enhanced decorative feature provided by a printed layer. The product comes in two types depending on the thickness of the surface layer and the total thickness: residential (total thickness 1.8 mm, 3.5 mm, etc.) and commercial (2.3 mm). The 2.3 mm material for commercial use has been used more and more frequently in housing complexes in recent years. The residential type is used mainly in wet areas, such as kitchens, restrooms and toilets, but it declined by 4.2% with the drop in new housing starts. “Inlaid PVC sheets” are sheets patterned with multi-colored chips or pellets on their base material. Unlike printed products, the colors and patterns on this product do not wear off and are extremely durable. Although they comprise a small proportion of vinyl floor sheets, they are used in large buildings such as medical, academic and commercial facilities, but saw a significant drop of 23.1%. “Miscellaneous PVC sheets” are mainly fashion vinyl flooring sheets that combine a vinyl flooring sheet with a foam layer laminated with a print layer. They also include vinyl flooring sheets with special properties such as anti-static, antibacterial or dynamic load-bearing properties. They showed stable growth until two years ago when they exhibited an abrupt downturn, with a 10.5% decrease in fiscal 2007. <Statistical materials used to determine market sizes>
Table 8. Market Size of Plastic Floor Covering Materials (wholesale basis) (Unit: 100 million yen; figures in parentheses are percentages of the previous year’s figures)
Wall Covering Products [Wallpapers] The market size for wallpaper in fiscal 2007 was calculated at 105.96 billion yen, representing a decrease of 4.4% over the previous year. By product category, sales were 2.01 billion yen for “paper-based wallpaper,” 2.17 billion yen for “fiber-based wallpaper,” 92.02 billion yen for “PVC resin wallpaper,” 6.45 billion yen for “plastic wallpaper,” 2.24 billion yen for “inorganic wallpaper,” and 1.07 billion yen for “other wallpaper”. Sales of imported wallpaper were 0.88 billion yen. (It is difficult to classify imported wallpaper, so the sales figure is included in “other wallpaper”.) The total shipped volume of domestic wallpaper was 708,260,000 m2 (a year-on-year decrease of 3.0%), a decline for the first time in five years, but it just managed to maintain the 700,000,000 m2 level. The factors that caused both the market size and quantity shipped to decrease compared to the previous year for the first time in five years are considered to be the huge drop in construction and new housing starts from July 2007 onward, brought about by the delays and confusion caused by the tightening of the building consent application process accompanying the change in the Building Standards Law that came into effect from June 20, 2007. Particularly in the second half, the quantity shipped was greatly affected, dropping by 5.4%, and the effects of the unstable factors continuing into the following year cannot be ignored. The number of new housing starts was 1,035,598 (down 19.4% year on year) and the total floor area of construction starts was 157,220,000 m2 (down 16.2%), decreases for the first time in five years in both cases. The wallpaper market was also affected by them.
Although the figures for exports are small, shipments increased significantly by 33.8% year on year. Wallpapers have met substantial demand exceeding 700 million m2 in shipment quantity, supported by quality and ease of application. However, with the arrival of an era where new housing starts are down to 800,000 shattering the 1 million barrier, there is an immediate need to ensure strong development by combining the knowledge of manufacturers, distributors and builders. The market needs to be expanded by stimulating demand for interior renovation. Increase customer satisfaction by enhancing the sales of high value added wallpaper. Open up sales routes for overseas markets. Seize the difficult times as an opportunity to change, and plan to take a great leap forward. “Yes, we can!” <Statistical materials used to determine market sizes> 1) Uses “Production/shipment quantity” data for wallpaper, taken from the Wall Covering Association statistics. The Wall Covering Association (formerly the Wall Covering Materials Association) was reorganized on March 1, 2002, and is operated by companies engaged in manufacturing, distribution and installation to provide quality information management systems for wallcovering materials to prevent fire. The Association consists of members from 67 member companies and 141 associate member companies. Its statistics on production/shipment quantity for wallpaper is a compilation of performance reports from member manufacturing companies on their monthly production and shipment. We used the data as a reference because of its reliability. 2) In calculating the scale of imported products, since there were no public documents available through to 2001, we based our calculations on the Report on the Shipment of Interior Fabrics, etc., and estimated the market share that NIF members represent. Calculations from 2002 use the Wall Covering Association's data on production/shipment quantity data for wallpaper, as with domestic wallpaper. *Figures for the total quantity of wallpaper in each table are rounded off, and therefore may not necessarily match the figures for total quantity in each category. Table 9 @Market Size of Wallpaper（idomestic products, imported products／^wholesale basis）j (Unit: 100 million yen; figures in parentheses are percentages of the previous year's figures)
Table 10. Market Size of Wallpaper (by product category, wholesale basis) (Unit: 100 million yen; figures in parentheses are percentages of the previous year's figures)
[Reference Material] Wallpaper Production and Shipment (Unit: 1,000m2; figures in parentheses are percentages of the previous year's figures)
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