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How did haute couture home furnishing become a new outlet in the industry?

Affected by factors such as repeated epidemics, shrinking demand for housing, and short-term policy adjustments, the real estate market has cooled for more than a year. Aowei Cloud (AVC) data monitoring shows that from January to July 2022, there were 1,116 refined decoration projects, a year-on-year decrease of 41.1%; the number of refined decoration sets was 834,700, a year-on-year decrease of 47.8%. Among them, 181 new projects were launched in July, a year-on-year decrease of 32.2%; the number of refined decoration units was 134,500, a year-on-year decrease of 38.2%. The market has not yet ushered in a recovery period. Cabinets are an essential home life product. Let’s take a look at how it performs in the hardcover market.

The trend of branding is highlighted, and the development volume of Boloni users grows against the trend

In the hardcover market, cabinets are mainly customized brands. From January to July 2022, the customized share of cabinets is 34.6%, a year-on-year decrease of 7.8 percentage points. The effect of brand customization is significantly weakened, and the trend of branding is prominent. In addition to customization, the TOP5 brands in the hardcover market share a total of 68.2%, and the brand concentration is significant; OPPEIN, GOLDEN, Zbom, Boloni and other brands are in the forefront, and the brand share has increased to a certain extent, and the brand competition is fierce. Vanke, Poly, China Overseas Real Estate, etc., the top developers of cabinet supporting scale, cooperate closely with brands such as Youfeel, BORCCI and Sophia. In terms of the number of brand users, Boloni has grown against the trend, with 30 cooperative users, a year-on-year increase of 15.4%.

Consumer groups change, and demand brings changes to the home furnishing market

As the household consumer groups turn to the post-90s, post-95s and even post-00s, the word “high-definition home furnishing” begins to appear frequently. At the same time as the change of consumer groups, the mainstream consumption concept is also changing, and the change of consumption concept has promoted the market trend. change. The new generation of consumers has new requirements for the appearance design, material texture, spatial layout, and sense of use of household products, and the traditional model can no longer meet the needs of consumers. Of course, “high-definition” is not the same as “expensive”, it refers to being able to fit with consumers to the highest degree. Therefore, how to meet the personalized needs of the new generation of consumers is a new challenge for home furnishing companies, and it also brings new opportunities to designers, producers, process technologies and even the entire industry chain.

The challenges facing haute couture home furnishing

Haute couture, short for high-end custom home furnishing, is actually a new subdivision of whole house customization.
At present, the development of whole-house customization enterprises is also facing great challenges, which are as follows:

1.Slowing growth and diminishing dividends

In the field of whole-house customization, popular whole-house customization enterprises have formed a preliminary brand pattern, and the competition in terms of price and marketing is extremely fierce, and the industry has entered the red sea stage. Need to find a new blue ocean.

2.There are two trends in the whole-house custom home furnishing industry

The first is the scale. The head brands represented by OPPEIN, Sophia, and Shangpin Home Collection produce standardized customized products with a very large scale;
The second is to fight for characteristics and differentiation. For small and medium-sized whole-house customization enterprises, faced with strategic choices, it is impossible to take the route of giving priority to scale and efficiency. The only way out is to take the differentiated development route. A new blue ocean discovered.

3.Consumption upgrades, and the retail market drives companies to take a high-end route

With the diversion of real estate hardcover and refurbishment channels, the retail market is now and in the future, the main customer group will be the improved customer group. This part of the customer group pays great attention to the design and quality of the overall home improvement, and has higher requirements for the living environment. Strict, especially after the epidemic, many people are self-isolating at home, prompting them to have a more personal feeling about the home environment. They are relatively insensitive to price. In order to cater to this part of the consumer group and at the same time pursue the maximization of customer order value and gross profit margin, Gao Ding has become the choice of many customized enterprises.

4.Promotion of mainstream store channels

The offline retail customer flow continues to decrease, so that mainstream sales channels including Red Star and actually realize that providing high-end brands with design and space solutions as the core will become the main business direction. Mainstream channels are also consciously and actively adjusting the direction of store operations, which will provide better position and policy support for haute couture brands and merchants.

Therefore, the rise of haute couture seems to be a comprehensive product of channel changes, consumption upgrades, and corporate stratification in the household consumer market.

In short, in the next ten years, there may be a very large space for rapid development of high-end home furnishing. With the improvement of the per capita consumption capacity and consumption level of the people, the market space for haute couture will become larger and larger. In addition, there will be more and more home furnishing companies entering the field of high-definition. The scope of the audience will become larger and larger, and its market share will naturally have an extremely huge growth space.


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