Editor's Note
This editor’s note highlights the key facts and market implications behind “LX Hausys Stands Shoulder-to-Shoulder with Leadi”, with emphasis on sourcing, product fit, fabrication, logistics, or buyer impact.
Engineered Stone Business Sees Over 70% of Sales from Overseas
LX Hausys has been selected as a key player poised to lead the global engineered stone market. Engineered stone is a premium artificial marble product containing approximately 90% natural quartz-based materials. It is widely used for kitchen cabinets, washbasins, and materials for facility counters and wall panels in hotels, hospitals, and other business settings.
On the 3rd, Indian market research firm HTF Market Intelligence Consulting forecast that the global engineered stone market will grow at an average annual rate of 5.3% over the next six years until 2030.
HTF Market Intelligence Consulting picked LX Hausys as a company exerting influence in the global market. It now stands shoulder-to-shoulder with leading overseas firms such as Johnson Marble & Quartz (USA), Quartzforms (Germany), and Quarella (Italy).
LX Hausys is accelerating its efforts to target the North American market, a key global market. As its performance slumped due to factors like a decline in domestic housing, the company is seeking a breakthrough in overseas markets. LX Hausys's sales for the first quarter reached KRW 849.5 billion, a mere 1.1% increase compared to the same period last year. Sales have remained below the KRW 900 billion mark for three consecutive quarters since Q3 of last year.
LX Hausys has focused on expanding its local operations through the establishment of a production plant in Georgia, USA in 2011, the founding of a Canadian sales subsidiary in 2017, the expansion of its third engineered stone production line in Georgia, USA in 2020, and the opening of a New York showroom last year.
In February, the company participated in 'KBIS (The Kitchen & Bath Industry Show) 2024', North America's largest kitchen and bathroom exhibition, to conduct promotional activities targeting the local market. At the exhibition site, it set up a promotional booth and dedicated efforts to introducing over 50 types of artificial marble products, including new items such as 14 types of engineered stone 'Viatella' and 3 types of acrylic-based artificial marble 'Himax'.
The active push to expand North American operations has proven effective, with the overseas sales proportion of its engineered stone and artificial marble business exceeding 70%. LX Hausys plans to further strengthen its localization strategy in production and sales while focusing on securing new clients to solidify its position in the North American market.
It is anticipated that global demand will continue to concentrate on engineered stone due to its recognized advantages, such as excellent durability and superior aesthetics. In particular, growth in the global engineered stone market is expected to continue, centered on the North American market, including the US, where a construction boom persists.
Meanwhile, as the US federal and state governments implement policies to expand housing supply, the local market—the world's largest—is expected to continue growing. In February, the US Department of Housing and Urban Development and the Treasury Department announced an expansion of financing initiatives for the construction and reconstruction of public rental housing.
Source: Read the original article | Published: June 03, 2024