China Building Decoration Industry Development in the End of 20th Century (1978 – 2000)

Huang Bai, Director of Industrial Development Department & Council Member of China Building Decoration Association, and Chief Editor of “China Building Decoration”

The period between 1980s and 1990s experiences the fastest development of China building decoration industry. No one would know at the time that building decoration industry will grow to be a huge industry with annual production value of RMB 300 billion. During the 100 years in 20th century, as guided by reform and opening policy, just like national economy, China building decoration industry only spends 22 years to create such a great miracle.

Building decoration is an ancient industry in the world or even in China, and decoration will exist so long as there’s building. With progress of reform and opening in China, modern building decoration industry experiences a rapid development combined with market economy, science and technology, culture and art, and knowledge. In 2000, the production value in China building decoration industry exceeds RMB 300 billion, accounting for 3.37% of GDP in the year (RMB 8,900 billion), 100 times of that in 1978 (RMB 3 billion), including RMB 150 billion of home decoration which is 50 times of that in 1990 (RMB 3 billion). During the 20 years of reform and opening, one of the most popular 50 words is rightly “decoration”, which is the conclusion published by Shanghai TV on February 7, 1999 through a public opinion survey. The annual national economy report made by Ministry of Statistics on December 30, 2000 indicates that home decoration has become the three new hot consumptions together with tourism and education.

1. 22 Years’ Development of China Building Decoration Industry since 1978

1996-2000: during the ninth “Five-Year Plan” period, the production value of China building decoration projects amounts to RMB 1,000 billion with average annual value of RMB 200 billion and average annual growth rate of 32%, among which the production value of home decoration amounts to RMB 480 billion with average annual value of RMB 96 billion and average annual growth rate of 46%.

1990-2000: in 1990s, the production value of China building decoration projects amounts to RMB 1,228 billion with average annual value of RMB 116.3 billion and average annual growth rate of 43%, among which the production value of home decoration amounts to RMB 557 billion with average annual value of RMB 50.6 billion and average annual growth rate of 43% (see Table 1 and Table 2 for details).

1978-1988: during the 10 years after reform and opening, the production value of China building decoration projects amounts to RMB 150 billion with average annual value of RMB 15 billion and average annual growth rate of 25%.

1988-2000: during the 12 years after reform and opening, the production value of China building decoration projects amounts to RMB 1,234 billion with average annual value of RMB 102.8 billion and average annual growth rate of 41%.

1978-2000: during the 22 years after reform and opening, the production value of China building decoration projects amounts to RMB 1,384 billion with average annual value of RMB 62.9 billion and average annual growth rate of 32% (see Table 3 for details).

During the 23 years after reform and opening, China building decoration industry has experienced four development stages:

Stage 1 – rise: during the 10 years between 1978 and 1988, the average annual production value of building decoration projects reaches RMB 15 billion with average annual growth rate of 25%.

Stage 2 – fall: during the 2 years between 1989 and 1990, the average annual production value of building decoration projects reaches RMB 7 billion with average annual growth rate of 4%.

Stage 3 – restoration: during the 3 years between 1991 and 1993, the average annual production value of building decoration projects reaches RMB 26.6 billion with average annual growth rate of 71%.

Stage 4 – development: during the 7 years between 1994 and 2000, the average annual production value of building decoration projects reaches RMB 471.4 billion with average annual growth rate of 35%.