Recently, iiMedia Consulting released the 2020-2021 China Home Furnishing Industry Big Data and Benchmarking Enterprise Research Report, which analyzes the development driving factors of China's home furnishing industry, industrial chain, import and export data, etc., and focuses on the finished furniture and customized home furnishings. In-depth research in large subdivisions, combined with industry benchmarking enterprise cases, to predict the development trend of the home furnishing industry.

The driving force for the development of China's home furnishing industry: residents' income

As the disposable income of Chinese residents continues to grow, residents' spending power has greatly increased. In 2020, the per capita disposable income of Chinese residents was 32,189 yuan, a nominal increase of 4.7% over the previous year. After deducting price factors, the actual increase was 2.1%. Analysts believe that the continuous growth of residents' per capita disposable income has laid the foundation for the upgrading of domestic consumption, thereby driving the consumption of household products.

The driving force for the development of China's home furnishing industry: quality of life

According to data, in 2020, 51.5% of Chinese home furnishing users expressed the hope that they can get a good sleep at home, followed by the hope that smart homes can improve life efficiency, and also hope that they can enjoy the process of dining at home and relax more with their families. IiMedia Consulting analysts believe that in the context of consumption upgrades, the general public has a higher consumer demand for home furnishings, requiring the home environment to have "comfort, enjoyment and other functions." The improvement of the public's home furnishing taste has forced the home furnishing industry or enterprises to carry out product innovation and improve the quality of services to meet the needs of consumers.

The epidemic brings new momentum to the sluggish growth of the home furnishing industry

Affected by various factors such as the international foreign trade situation and the environment of upstream furniture enterprises, China's furniture industry has entered a period of slow growth since 2018. In 2020, affected by the epidemic, the home furnishing industry will be affected to a certain extent. Data shows that from January to October 2020, the retail sales of furniture will be 124.4 billion yuan, a year-on-year decrease of 8.7%.

The surge in demand for foreign household products has become a new driving force for industry growth

The sharp increase in orders for foreign home furnishing products has become a new growth driver for the home furnishing industry. Data show that from January to November 2020, the cumulative export value of Chinese furniture and parts was 365.07 billion yuan, a year-on-year increase of 11.2%. With the spread of the global epidemic situation, China took the lead in stabilizing the epidemic situation, and with a complete industrial chain system to make up for the international furniture supply gap, China's furniture exports ushered in development opportunities.

The home furnishing industry is developing towards individualization and intelligence

The customized furniture and whole-house customization models in the home furnishing market are characterized by their professional customization, which can better show the personality of the home and the owner, conform to the personalized consumption trend of contemporary consumers, and become a trend in the development of the industry. In addition, the development of 5G, AR/VR, artificial intelligence and other technologies has promoted the growth of the overall smart home market. It is expected that China's smart home market will increase to 192.3 billion yuan in 2021.

Scenarios of Chinese consumers buying household products in 2020

According to the survey, in 2020, in the distribution of household products purchased by Chinese household users, "sale after decoration" accounted for the highest proportion of bedroom purchases of household products, accounting for 74.8%; the reason for decoration is "buying second-hand houses", buying household products for the living room products accounted for the highest proportion at 64.1%; purchasing household products for the study to "improve the quality of living" accounted for the highest proportion in each scenario, at 48.1%. Analysts believe that the bedroom, as a place for people to sleep and relax, is bound to become the first choice for home users to "sell after decoration" and buy home products.

Analysis of factors considered by Chinese consumers in purchasing household products

The data shows that when consumers buy household products, they mainly consider the factors of "environmental protection", "material" and "design", which account for 53.17%, 52.62% and 49.86% respectively. Analysts believe that as the concept of environmental protection and healthy consumption gradually gains popularity, consumers have higher and higher requirements for the quality of household consumption. In the future, healthy, safe, and green household products will become a new consumption trend.

Data analysis of China's smart home market scale from 2016 to 2022

Under the influence of multiple factors such as 5G, the Internet of Things, and the rapid development of the Internet home improvement market, China's smart home market has shown a vigorous development trend. Data show that from 2016 to 2020, 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. With the increase in the penetration rate of the Internet home improvement market, the scale of China's smart home market is expected to further expand, and is expected to exceed 200 billion yuan by 2022.

Analysis of China's smart home consumer market in 2020

According to the survey, in 2020, the smart home products most used by household users in China are sweeping robots (40.8%), followed by smart door locks (39.4%) and sensor switches (39.1%). Analysts believe that from the perspective of smart products used, convenience and energy saving are the main factors for home users to purchase smart home products. In addition, smart door locks, sensor switches and other devices can also effectively ensure home safety and electricity safety ,improve the quality of life.

As the overseas epidemic is still spreading, many overseas companies have successively implemented "remote office" plans at home, which has led to a sharp increase in the export demand for China's home furnishings. The data shows that in September 2020, the large furniture, home office chairs and other household products on AliExpress have achieved varying degrees of rise. While domestic furniture export orders are booming, the prices of upstream raw materials for home furnishings have also fluctuated, and raw materials such as leather, sponge, and wood have all seen price increases.