Along with the rapid development of economy and society, people’s growing demand on human living environment, as well as the stimulus of a series of national policies, the landscaping industry flourishes in China in recent years. The CAGR of the industry scale exceeded 20% from 2001 to 2010, and the market size hit RMB250.7 billion in 2010. China Landscaping
Chinese landscaping industry generally falls into municipal garden, real estate garden and ecological restoration. Municipal garden is the largest category, accounting for roughly 46% of the total industry scale. Moreover, in the wake of urbanization, local governments gradually increase the investment in the urban garden construction.
Real estate garden ranks No. 2 in scale which makes up 30% of the total industry. Affected by the macro-policy control on real estate sector, the growth rate of the industry declines. Nevertheless, as the investment in indemnificatory housing construction increases, the real estate garden will maintain steady growth benefiting from the rigid demand for housing. It is expected that the market size of Chinese real estate garden will rise by 15% in the upcoming 3 to 5 years.
Ecological restoration only takes 16% of the landscaping industry because it sets higher requirements on technology but features low profit. The growth rate is expected to be less than 10% in the next 3 to 5 years.
Although the landscaping industry characterizes large scale and bright prospects, the industry in China is swarmed with small companies because of low entry barriers. Chinese landscape enterprises add up to 16,000, only 560 of which have obtained first-class qualifications in urban landscape. Since the landscaping industry involves all aspects of social life, both large and small landscape players in China strive to have a foothold in the industry, but their operation and profitability vary greatly due to their different main businesses.
Municipal garden enterprises enjoy high operating revenue and growth rate. For instance, the operating revenue of Orient Landscape soared to RMB2.91 billion in 2011, up 100.21% YoY, slightly higher than that of Palm Landscape Architecture (92.79%), the giant real estate garden company and that of Shenzhen Techand (98.3%), the leader of ecological restoration companies. In H1 2011, the gross margin of Orient Landscape reached 36.96%, the highest in the industry.
Find More: China Landscaping Industry Report, 2011-2012
