Analysis of Aesthetic Home Decor Market in China

Source:iResearch May 31,20191:21 PM
Traditional home furnishing brands/distributors work hard to develop offline market. Internet brands enter home furnishing industry. Aesthetic Home Decor refers to mid- and high-end furniture brands which have good original design and usually cooperate with domestic and foreign designers. These furniture brands generally prefer high online operation, which can provide online purchase and delivery, thus forming a certain internet celebrity effect.

Key Points
Gradual online and offline integration
As low-frequency and high-priced consumer goods, furniture are more relied on consumers' personal experience. Therefore, many online home furnishing e-commerce companies have begun to develop offline stores, and the traditional offline furniture malls are also developing online.
It is easier for mass consumption furniture brands to expand. The home furnishing brands with good design have higher-end consumers. 
The mass consumption brands cover a wide range of consumers, and most of them have large offline stores or malls in major cities. More SPU are gathered, which can be used as a one-stop shopping destination for home decoration. The high-end design brands can only cover first- and second-tier cities. They usually only open medium-sized stores, and have more requirements for furniture SPU.
Domestic furniture brands are highly developed online, while foreign furniture brands mainly open offline stores.
Benefited from the domestic e-commerce platforms, domestic brands have developed a lot online. Many pure Internet players enter the furniture industry, such as Xiaomi, NetEase and Taobao.
Taking Zaozuo as an example, many aesthetic home decor brands solve the pain points of traditional furniture from the aspects of products, supply chain and channels

The brand barrier in the home furnishing market is high. Successful home furnishing brands will be sellers of new lifestyles. 

Future direction
The offline store not only provides merchandise display, but also provides a beautiful lifestyle.

Currently, InYard, Ziinlife, TBH and other aesthetic home décor brands mainly focus on online stores. At the same time, they have opened mid-sized offline stores, whose main function is to show a lifestyle that is approved by consumers and enhance consumers' expectation of home furnishing
Another development direction of offline stores is to provide other home furnishing
products with good design in addition to furniture, as well as the introduction of libraries, art exhibitions, high-quality coffee and other forms of businesses. "Peak-End Rule” will help consumers to remember the small surprises in the service, such as the cheap restaurant in IKEA and the 1 yuan ice cream set at the exit of the mall.
More diverse and more accurate marketing methods
The brands increase their customers through social networks and celebrity marketing online to build well-known brands in a highly dispersed market.
 For example, they push news via Xiaohongshu ad WeChat public accounts and hold exhibitions regularly.
Brands can get consumers' interests and shopping data offline by analyzing consumers' behaviors via artificial intelligence. For example, Macalline and Tencent cooperated to build IMP intelligent marketing platform. Easyhome cooperated with the new retail business of Alibaba.
Improve supply chain efficiency, maintain quality control while ensuring control on cost
Credibility is especially important for high-end design furniture brands. Therefore, high-end design furniture brands have higher requirements for materials. In the future, major aesthetic home décor brands need to keep quality cost and manufacturing cost within a certain range while ensuring high-quality products.

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