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What is the development status of China's home furnishing industry? Which business model can represent the future trend? What kind of home improvement services can truly meet the quality needs of consumers in the new era? A few days ago, the "2021 China National Decoration Industry Research Report" released by iResearch pointed out that the home improvement industry is showing a pattern of five modes coexisting and competing with each other; under the wave of personalized demand, it truly provides homeowners with "home solutions" "The one-stop installation will be the focus of competition for installation enterprises in the future.

The home improvement market presents five major models

Since 1998, the reform of the public housing system has brought about the "golden decade" of the development of the real estate market, which also opened the prelude to the vigorous development of the home improvement industry. Carry out industry and industry reforms and upgrades. After more than 30 years of development, the home improvement industry has moved from a traditional home improvement model with low industry concentration, long supply chains, irregular processes, long construction periods, and poor reputation to a new type of home improvement with industrial chain system integration, intelligent/digital empowerment The model continues to iterate and upgrade.

The "2021 China National Decoration Industry Research Report" shows that the current home improvement industry mainly presents five major models: a "vertical self-support" model that provides diversified and high-quality home improvement services represented by Dongyi Risheng; Provide one-stop home improvement service "home improvement + tooling + franchise" model; provide home improvement platform + self-operated decoration services represented by Qijia.com as a "home improvement platform + self-operated" model; provide Internet represented by Tubatu The "home improvement platform" model of home improvement platform services; the "vertical self-operating + standardization" model that provides one-stop self-contained services represented by AiSpace; the five models are diversified and advanced, and each has its own unique competitive advantages.

Recommendations and personalization become a winning weapon

Behind the iterative upgrade of the model is the update of the mainstream consumer group. The report survey shows that the post-80s and post-90s have gradually become important consumer groups in the home improvement market. Taking the self-assembled head company Love Space as an example, users aged 26-35 accounted for 36.7%, and users aged 36-45 accounted for 31.2%. , 26-45-year-old users accounted for more than 65%. Compared with the consumption concept of the older generation, the new consumer group has a higher brand awareness, higher requirements for the quality of the overall service, and more attention to the reputation of the home improvement company’s products. Among the surveyed companies, Aispace is the most praised by consumers in terms of punctual construction schedule, construction standardization, and acceptance quality. It is expected to further enhance brand awareness through word-of-mouth effects.

At the same time, the personalized needs of the new generation of owners have become more obvious. According to the survey data of iResearch, 51.0% of users prefer to customize style schemes according to their personal preferences, and 49% hope that home improvement companies can provide a wealth of design schemes for them to choose from.

In order to meet the ever-increasing individual needs, the service concept of home improvement companies has gradually shifted from being merchant-centric to consumer experience-centric, striving to strengthen the richness in design styles and material selection to achieve customization.

Competition focuses on "home solutions"

The wave of personalized demand is coming. Under the general trend of the upgrading of the purchasing power of the owners and the continuous improvement of the aesthetic level, the one-stop "home solution" is becoming the first choice of most users; research data shows that the choice of self-contained enterprises The reason for TOP3 is that home improvement companies can provide professional (accounting for 41.4%), worry-free (accounting for 37.0%) and cost-effective (accounting for 35.7%) decoration products and services. Compared with traditional home improvement, the level of professionalization of the whole installation service is higher, and the user's decoration experience is better. IResearch believes that standardized and professional assembly services will become the focus of competition among assembly companies in the future.