Holiday decoration

Holiday decoration is one of the fastest-growing segments in China's furniture industry. However, the industry is heading toward a potential shakeout as it grapples with rising material costs, inadequate power supply and increasing competition from large foreign-invested companies. China exported about $8 billion worth of holiday decoration in 2005. This figure accounted for approximately 30 percent of all holiday decoration exports from the country. In terms of volume, overseas shipments comprised an estimated 15 million coffee and end tables, 7 million sofas and 5 million entertainment units. Although export sales are growing by about 20 percent annually, the industry could be headed for rough times as it deals with numerous challenges including rising material costs, power shortages, and increasing competition. China's holiday decoration exports are dominated by upholstered furniture such as sofas, and wood-based models including entertainment units, and coffee and end tables.