lundi 23 mai 2022

China's home decor market

 China's home decor market offers many opportunities for producers and imports/exports. In the last decade, China's rising consumer consumption has transformed China's economy and society. China is a major producer of home decor and related consumer goods. China is far ahead of other countries in the world in terms of the growth of the market for goods and services. China's home decoration products are a large part.

Further reading

https://marketingtochina.com/strategic-guide-market-home-decor-brand-china/

China's home decor market and its decor furniture market offer many marketing opportunities. Consider the home decor furniture market. Statistics show that there were approximately 440 million households across all Chinese provinces, autonomous regions, or municipalities. The rising purchasing power of Chinese people has led to a boom in home decor products and the furniture market in China. According to the industry report, total home decor furniture sales by wholesalers or retailers exceeding a certain size grew 13.9% to Rmb227.30 trillion in 2014.


DIY Decor is fashion in CHina

DIY home decor is becoming a popular trend due to its freedom to be created by the consumers. It can be used in the living, dining, and bedroom areas, as well as in the study. The market of more than 4 trillion yuan is often described as "a huge cake that cannot be ignored".


Digitalization and the Internet are key to marketing DIY home decoration. In 2016, more than 1000 Chinese consumers were surveyed. Over 60% of respondents said that they would use the internet to buy products and services for their home decor.



The Chinese DIY furniture market has grown at double-digit rate and is expected to continue growing until 2010. This growth has been mainly concentrated in Shanghai, Beijing, Guangzhou and Zhejiang. Tianjin is the most populous city, with residents spending approximately 5% of their incomes on decoration and housing.


This is partly due to the increasing demand for soft decoration. People who live in cities are more likely than others to move around and spend more money on soft decoration such as handcrafted items, high-quality furniture, collectibles, etc. Younger customers are increasingly moving out of their homes and choosing lightweight, multifunctional furniture that is affordable are more popular. Because these areas are the most personal, installing one's own bathroom and kitchen fittings is a priority explain this blogger


As their quality increases and DIY services are still relatively unknown, smaller contractors can pose a threat for DIY businesses. Small contractors currently dominate 80% of the home decor market. They offer more flexibility than DIY stores which have rigid working hours and set schedules. DIY stores must reach out to local customers and increase awareness about their services to counter this trend.



China's home-decorating market

China's home-decorating market refers to interior decoration of private houses.


[Data source: qianzhan.com. Market scale for home-decorating in China]


The continuous increase in real estate sales as well as the Chinese economy have provided the foundation for the home-decorating industry to continue growing. In 2018, the market size was Y=2.23 trillion rmb. It is expected to grow to Y=2.59 billion rmb by 2020. Source 


 source: qianzhan.com. 

China's home-decoration market is driven by new homes. New home decoration contributes nearly 73% to the total revenue.



The biggest consumers in the home-decorating industry are the millennials. These are people who were born between the 80s and the 90s. They account for more than 60% of market revenue. The 70-year-olds are a significant consumer group with 16%. The remaining 22% are from other ages.


The growth of E-commerce home decorators

The Chinese E-commerce home decoration market has boomed in 2015. This has contributed to and intensified competition in the overall decoration market.


E-Commerce 

China's E-commerce home-decorating market reached Y=258.9 billion rmb in 2018, and experienced a 36% increase in its market size. It is still experiencing a bottleneck period, with a penetration rate of less than 5%. This is a relatively low rate compared to E-commerce markets like car-hailing platforms or online travel agencies, which have around 1/3 penetration rates.

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