According to the official news from the National Bureau of Statistics on December 27, 2021, from January to November, the total profit of industrial enterprises above the designated size in the country was 7,975.01 billion yuan, a year-on-year increase of 38.0%. Among them, the operating income of the furniture manufacturing industry from January to November was 712.26 billion yuan, A year-on-year increase of 14.1%; operating costs were 593.91 billion yuan, a year-on-year increase of 14.1%; total profits were 38.32 billion yuan, a year-on-year increase of 10.9%.
In recent years, the sales area of commercial housing in China has maintained an upward trend, while the completed area has declined slightly. According to data released by the National Bureau of Statistics, in 2021, the sales area of commercial housing in China will be 1,794.33 million square meters. As a result, the home improvement industry has grown into a trillion-dollar industry. Including upstream building materials raw materials, downstream various semi-finished products and finished products, as well as the dismantling, modification, installation, and other services involved in the whole process, the total size of China's home decoration market has exceeded 3 trillion yuan. The real estate market demand continues to grow, providing a good development space for the home furnishing industry. According to McKinsey's relevant market data forecast, in 2025, the domestic home improvement market will reach 6 trillion; in 2025, the market size of third-tier and below cities will grow significantly, and it is expected to account for more than 60%. There are few giants in such a large market space, so the home improvement market has naturally become the focus of the industry.
In addition, under the influence of multiple factors such as 5G, the Internet of Things, and the rapid development of the Internet home improvement market, the scale of China's smart home market continues to expand. In 2020, the scale of China's smart home market will increase by 11.4% year-on-year to 170.5 billion yuan. It will exceed 200 billion yuan.
1. The continuous transformation and upgrading of high-end home furnishing
Looking at China's haute couture home market in 2021, the leading brands in the home furnishing industry are vigorously developing custom fittings. In the past, they were only customizing cabinets for consumers, but now they range from single cabinet items to whole house customization to The whole package, in which design is the core strength, opening up all links. If you want to go further in the future, you must have a supply chain, design power, brand power, etc. that are enough to match the haute couture market. Therefore, the transformation and upgrading of Haute Couture are still going on.
For example, TuSimple and Beijing Buying Intelligent Technology have joined forces to cater to the trend of intelligent life and form a model of "high-end customization + whole-house intelligence". In July 2021, Tucson will launch a product specially designed for high-end home space - advanced customized smart suits, which can realize the control of smart devices in the home, automatic adjustment of lighting effects and music atmosphere, and user health management, so that consumers can feel the whole House Gao defines a smart lifestyle. From whole wood customization to natural and comfortable log color, from emphasizing the value of a single material to expressing the combined beauty of multiple materials. Tucson is a high-end custom home furnishing company, focusing on high-end home improvement woodwork customization and home space creation. Adhere to the concept of sustainable development, and use high-standard, high-quality, highly flexible personalized services to achieve people's longing for better home life. It is the choice of successful people with pursuit and taste at home and abroad.
Modern simplicity and modern light luxury are the two mainstream styles of couture, and oriental aesthetics is a new idea for couture. The value of haute couture is not only to reconcile the relationship between products and space, but also to shorten the transaction chain of consumers, and to make consumers more convenient and efficient to realize the dream of "lazy living". At the same time, the whole package is a service, and the value of the product is amplified through the service.
Especially under the policy of "housing, not speculating," housing has returned to residential demand. How to rationally use the space that just needs to be improved to meet the personalized life needs of people in different scenarios, such as meeting guests, work, parties, sleep, fitness, raising pets, etc., has become a breakthrough point in home couture design. Through CMF (color, material, craft, pattern) to explore the deeper value of material and the inner creative life and spiritual resonance, not only the sensory expression on the surface and the value of the material itself. Touching life with design, based on the innovation of life aesthetics, giving users more humanistic care, and enhancing the sense of happiness and sense of belonging in daily life at home has also become another design breakthrough point of Haute Couture.
2. Half of the "fixed enterprises" enter the bureau for complete equipment
Under the demand for home improvement of the younger generation who pursue personalized and one-stop consumption experiences, consumers are more concerned about the individualization, diversification, and added value of products. This leads to the whole installation mode to the next stop: whole installation + whole house customization. The popularity of the whole house is no less than the "Qianlong" whole house customization. In 2021, Shangpin Home Furnishing announced a comprehensive transformation and refurbishment, and is committed to creating a one-stop home improvement solution platform that "watches BIM for decoration".
According to incomplete statistics, there are currently 20 customized companies that have publicly launched the whole package strategy in the industry: Shangpin Zhaipei, Moganshan, Oupai, Dekor, Weiyi Custom, Sophia, Hollywood, Gold Medal, Piano, Margo, Dinggu, Siniman, Ador, Baidexing, Erica, Panasonic Living Space, Wrigley, Zhang, Vantage, Kanoa.
An obvious feature of the home furnishing industry at present is that the traffic entrance is constantly forwarded. Just like the material suppliers who had cooperated with distributors before, they are now trying to cooperate with decoration companies, because the decoration companies can fully access users, so the whole decoration is a The present is also the trend of the future.
Whole house decoration + whole house customization can solve the two major pain points of consumers' personalization and bag check-in, and truly save consumers' worry, time, and effort in decoration. The decoration company actively embraces complete decoration + whole-house customization, which is the golden track to embrace the next decade of the home furnishing industry.
Since 2021, business giants have continued to enter the home improvement industry. Shell finds a house to acquire 100% equity of Shengdu Decoration at a total price of no more than 8 billion; Gome officially announces a new home improvement strategy; ByteDance strives to build a pan-home digital marketing service platform Zhuxiaobang; JD.com strategically invests in Shangpin Zhaipei. With the entry of Internet giants, while bringing huge traffic and abundant funds to the whole packaging industry, it will also reconstruct the value chain and resource allocation of the whole packaging industry in terms of technology, scenarios, and industrial chains. The refurbishment has become a new track for secondary growth. In the future, the refurbishment will become an important growth point for customized home furnishing companies to break through the bottleneck of 10 billion and sprint to the goal of 100 billion.
3. BIM digitization, a new generation of black technology for self-assembly
BIM is an information technology applied to large-scale buildings. It optimizes the entire project construction through virtual design and construction simulation. From construction to home improvement, BIM also has a revolutionary role in solving many problems in the whole installation.
For example, through visualization technology, customers can see the real simulation of the whole construction process and the whole process before decoration, so that customers can understand and understand; through AI optimization simulation, it is possible to discover and avoid possible existence in actual construction in advance. By promoting the refined and intelligent manufacturing of decoration components and transparent construction scheduling management, the interior decoration will become factory-like and assembled, and it is no longer completely dependent on the personal ability of the construction personnel.
It is worth mentioning that BIM home improvement has already broken through the concept stage. Through on-the-spot visits to HOMKOO, it is found that BIM has already been digitally applied in the field. A 5G smart construction site smart screen is placed on the construction sites of some of its member companies. Through BIM 3D modeling and 5G construction models, construction instructions and progress are displayed in real-time. All construction drawings, joints, and models can be displayed by the construction personnel just by clicking on the screen. By scanning the QR code, the owner can immediately view all site information, from construction renderings to material lists to construction standards, all at a glance.
"Using technology to make decoration easier", improving customer consumption experience, and improving industry efficiency, this is the core driving force for the development of the new generation of BIM digital decoration. New demands lead to new technologies and business models, which in turn lead to new industry changes. The new generation of self-assembly will definitely break the boundaries of the industry, drive the industry and integration, and will eventually reconstruct a new batch of elite self-assembly enterprises.
4. Emerging fields such as "specialization, specialization and new" will be the first to give birth to "little giants"
In 2021, policy documents to promote the development of SMEs will be issued intensively. In September, the Beijing Stock Exchange was established, aiming to become a "specialized capital market development platform that effectively serves specialized, specialized, and new SMEs". "Specialized, refined and new" refers to enterprises with the characteristics of "specialization, refinement, specialization, and novelty". "Little Giant" enterprises are the best among them. They focus on market segments, have strong innovation capabilities and High market share, master key core technologies, excellent quality, and efficiency.
Zhejiang Meige Machinery is specialized in the manufacture of advanced mechatronics equipment, a national high-tech enterprise, and a provincial-level technology research and development center. For 25 years, it has led the development from quantity to quality, and the national sales account for more than 65%. It has won three-second prizes for innovation in China's forest products industry, one of China's top 100 home furnishing brands with comprehensive strength, and two honors for Zhejiang's "made-in-products" logo. In the early days, wood-based panels were rarely used in the era when there were no veneer materials. Since Meige Machinery developed a special veneer printing machine for wood-based panels, all kinds of wood-based panel substrates have been transformed, and the value and production capacity have doubled. It has also driven the two huge industrial chains of home furnishing and wood-based panel materials, such as flooring, furniture, door industry, and decoration. At present, both of them have become the world's largest. Relying on the core technical expertise of science and technology and the industrial chain, the company is leading the development strategy of China's decorative paper (film) for the third 10 years and the third time. "Specialized, refined and new" smart factory industrial chain digital economy development, is now ready to assist the integration of upstream and downstream industrial chains, and at the same time, domestically, it can lead to the development of the three provinces of southwest, northwest, and east. service development in the Middle East, North Africa, and Southeast Asia.
In recent years, the concentration of the construction industry has been increasing. With the help of policy support, the development of "specialization, specialization, and newness", especially the integration of new technologies and the expansion of new development space, will be an opportunity for the development of small and medium-sized enterprises in the construction industry and an important direction for future transformation. Yunnan, Shandong, and other places have issued relevant documents on building "specialized, specialized, and new" construction enterprises.
At present, it is very likely that "specialized, special and new" and "little giants" will emerge first in the fields of intelligent construction, prefabricated buildings, and digital construction software companies.
5. Turn on the "acceleration mode" for the whole house smart home
In recent years, small smart door locks, smart speakers, and large smart home appliances have entered the homes of ordinary people, changing people's lifestyles. The country's strong support for the Internet of Things technology also provides a good environment for the development of the smart home industry. The market scale is growing rapidly. As the world's largest smart home consumer, China accounts for 50% of the global smart home market consumption share- 60%. In the face of fierce market competition, the home furnishing industry creates products that meet the needs of consumers through technological innovation and gradually moves towards the development direction of whole-house intelligence.
For example, as a domestic smart home giant, Xiaomi has launched products such as smart TVs, smart speakers, and smart cameras. Lei Jun once said that Xiaomi has listed whole-house intelligence as its core strategy, and will accelerate the launch of overall solutions, and cooperate with real estate, hotels, etc., home improvement, and other industries to speed up business promotion, facilitate installation services, and lower the threshold for user experience.
Similarly, as the first brand to explore the development of the smart home industry, Haier Smart Home also has its advantages in whole-house intelligence. It satisfies users' smart home experience through scenarios and provides users with a complete set of scenario solutions, covering clothing, food, and housing. , entertainment and other full-scene schemes, as well as partial renovation and refurbishment schemes for kitchens, bedrooms, bathrooms, and other spaces.
With the application and implementation of Huawei's Hongmeng OS in the smart home field, Midea and Huawei have cooperated to build a whole-house smart scene, combining Midea's IoT devices with Huawei's Hongmeng OS to realize the interconnection of more devices and services. screen to enable the “acceleration mode” for the whole-house smart scene construction.
It can be seen that more and more companies have begun to join the smart track of the whole house, making users' lives more convenient and fast. Whether it is whole-house customization or whole-house intelligence, for consumers, it is an evolution of the way of home consumption. The digital upgrade of home furnishing enterprises is nothing more than seeking differentiation based on consumer needs and building their core competitiveness.
6. Changes in consumer concerns and preferences
With the advent of the wave of consumption upgrading, people's understanding of home space has gradually changed from "a stable and practical living space" to "a space for the expression of life concepts". In contrast, brand awareness and artistic features are not the primary considerations for consumers when purchasing furniture products.
It has more demand for household products, from single meeting the needs of life, towards more added value, and has more expectations for quality, experience, design, service, and even deeper spiritual needs. With the rise of the "lazy economy", this group of consumers is "lazy but smart". In terms of home decoration, they prefer one-stop, convenient, and worry-free decoration, and at the same time, they also pursue high-quality life. They are reluctant to spend a lot of time on self-purchasing building materials, monitoring the construction site, and monitoring the progress, but they also emphasize environmental protection of materials, transparent price concessions, construction quality, and beautiful design. "Whether the environmental protection meets the standards" and "The construction quality is not satisfactory" have become the top two issues that consumers are most worried about.
Among various decoration styles, modern minimalist style and Nordic style are more popular, accounting for 35.2% and 24.9% respectively, followed by American style, new Chinese style, and French style. In addition, young people between the ages of 19 and 30 prefer European and American-style decoration with a mix of fashion styles, while middle-aged and elderly people aged 41 and above prefer Chinese style.
However, there are also many chaos and problems in the market, such as different companies having different standards for the installation, which links and problems need to be paid attention to in the installation, and so on.
7. The home improvement industry has shifted from incremental to a stock game era
In the past, the growth of China's furniture industry was mainly due to the rapid growth of the new housing market. In recent years, the slowdown in the growth rate of new housing, second-hand housing, and existing housing will become new growth points in the home furnishing industry. The arrival of the stock era will promote the home furnishing industry chain and consumption. Structural changes in the market.
Some analysts pointed out that with the changes in the real estate market, the home improvement industry has shifted from incremental to the era of stock games, and more entrants have gradually made industry competition increasingly fierce. At the same time, the core consumer groups are getting younger and the industry concentration needs to be improved. In this context, the digitalization and standardization of the home improvement industry are imperative, especially for small and medium-sized home improvement enterprises. Embracing digitalization has become an important way to enhance competitiveness and improve efficiency.
