2021 China National Decoration Industry Development Blue Book Announced
In recent years, my country’s real estate industry has developed steadily, with prominent residential properties, consumers’ demand for home furnishing has further released, and real estate has gradually moved towards the stock housing market.
At the same time, as the consumption power, aesthetic needs and service expectations of the new generation of consumers increase, people pay more attention to the creation of a beautiful living environment. Therefore, the current one-stop and convenient installation model is favored by consumers, and the home improvement industry has become a building material. An important drainage channel for home furnishing brands.
To this end, the media conducted on-site visits and exchanges and online consumer surveys for many well-known decoration companies across the country, multi-dimensional insights into the Chinese domestic decoration market and consumption characteristics of Chinese people, combed and summarized into the "2021 China National Decoration Industry Trends Report", which is a home building material company In-depth links to expand new home improvement channels to provide more comprehensive and practical explanations, with a view to providing thinking and reference for the development direction of the industry.
In recent years, the state has repeatedly emphasized the concept of "no housing speculation" and implemented new concepts and related policies. The investment attributes of housing have been squeezed, the housing attributes have become more prominent, and consumer demand for home furnishings has been further released.
In 2020, the national commercial housing sales area will reach 1.76 billion square meters, and the home furnishing market has huge potential. In the future, the scale of new house transactions may decline, and the second-hand house market transaction scale will gradually increase, and the market will gradually shift from an incremental market to both stock and increment.
The "China Rural Development Report 2020" report pointed out that "it is expected that China's urbanization rate will reach 65.5% by 2025, and it is conservatively estimated that the new rural migrant population will exceed 80 million." The continuous increase in the urbanization rate means more people. Transformed into urban population, its requirements for improvement of living conditions at home will boost the further development of the home furnishing market.
The current residents' lives continue to improve, and their wealth is mainly concentrated in real estate, which brings more direct impetus to the consumption of the home improvement industry.
Post-80s and 90s have become the core consumer group in the home furnishing industry. Users are becoming younger and their spending power continues to increase. They are more willing to spend money for the needs of happiness and development, and their consumption patterns are gradually shifting from essential products to enjoying services and other good ones.
According to the current development speed of residential decoration and the layout of the home improvement market, it is estimated that the market size of the home improvement industry will exceed the 3 trillion mark by 2023.
Due to the large market size of the home improvement industry, low entry barriers, serious homogeneity of products and services, fierce market competition, and low industry concentration.
Major participants in the home improvement market: home improvement companies, Internet service companies and product companies
The evolution of the home improvement industry can be roughly divided into the following six stages. In the development process, market demand and technology are the key factors that promote the development of the home improvement industry. At present, the home improvement industry is gradually moving towards a stage of deep integration of industrial technology.
According to a survey of 50 home improvement companies, the average annual output value of home improvement companies in the past three years has two obvious tracks, one is below 300 million yuan, and the other is sprinting more than 1 billion yuan.
It is worth noting that the main business model of home improvement companies has exceeded 60% (60.5%). The main business models of companies with an average annual output value of 1 billion yuan and above are almost all packaged.
Almost all (98.1%) home improvement companies believe that "more hard-covered houses in the market" is the biggest challenge for the home improvement industry to achieve sustainable high growth in the future, followed by fierce price wars (71.2%) and hard-to-find talents (50.0%).
With the continuous adjustment and implementation of my country's hardcover housing policy, the traditional home improvement industry in the deep downstream has been significantly impacted, but the transformation is not easy. Nearly half of the decoration companies have no intention to deploy the hardcover business.
Rigid demands such as newly-married houses, new houses and house renovations are still the main motives for home improvement.
The need for upgrading such as improving the living environment, changing houses due to changes in members, and aesthetic changes has gradually become prominent. People have a clearer attitude towards the quality pursuit, emotional expression and appearance design of the living environment, and the market potential of improved home improvement is being released.
(Article source: Tencent Home Furnishing, invasion and deletion)