Table of Contents
Executive Summary
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- The market
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- Figure 1: Best- and worst-case forecast of total furniture market value, China, 2013-23
- Companies and brands
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- Figure 2: Market share of top 10 furniture brands/manufacturers, China, 2013-17
- The consumer
- Consumers are active in decorating their home
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- Figure 3: Attitudes towards home decoration and home retail products, August 2018
- Essential homeware items are the most purchased home retail products
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- Figure 4: Home retail products purchased in the last 12 months, August 2018
- Functionality or emotional need, what drives consumers to buy?
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- Figure 5: Reasons to purchase home retail products, August 2018
- Functionality comes before appearance
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- Figure 6: Top three factors influencing choices of different home retail products, August 2018
- Online channels outshine different offline channels
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- Figure 7: Purchase channel for home retail products, August 2018
- Consumers like to get information from offline and online
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- Figure 8: Source of information for home retail products, August 2018
- What we think
Issues and Insights
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- Retailers need to be more approachable online and offline
- The facts
- The implications
- Consumers care more for lifestyle brought by brands than prices
- The facts
- The implications
- Extra functions on home retail products will become essential
- The facts
- The implications
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- Figure 9: OOO My Design’s Shy chair set
The Market – What You Need to Know
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- Challenges brought by control on real estate and environmental regulations
- Upgrade in consumers’ needs will empower the market again
- Transformation in business brought by digitisation
Market Size and Forecast
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- 2018 is a challenging year
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- Figure 10: Total sales, wholesale and retail sales of the furniture market, China 2013-18
- Market will suffer for few more years but still has potential to rebound
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- Figure 11: Best- and worst-case forecast of total furniture market value, China, 2013-23
Market Factors
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- Government control on real estate and on environmental issue
- Consumers’ upgraded needs on home decorating will empower the growth of market
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- Figure 12: Attitudes towards home and home decoration, August 2018
- New capitals starts to push transformations in home retailing
Key Players – What You Need to Know
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- Local retailers/brands are dominating the market
- Fully assembled products are still the main stream though customised products are uprising
- Distribution is getting streamlined as well as multichannel
- Innovations are brought by technologies and reformation in distribution
Market Share
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- Fully assembled furniture brands are leading the home retail market
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- Figure 13: Best- and worst-case forecast of retail furniture market value, China, 2013-23
- Figure 14: Market share of retail sales value of top 10 furniture companies, China, 2013-17
Competitive Strategies
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- Home retail business is streamlined by digitisation
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- Figure 15: Purchase channel for home retail products, August 2018
- Emphasis on lifestyle instead of functionality itself
- Increase customer touch points at different consumption scenarios
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- Figure 16: Shangpin collection store in Shanghai, 2018
- Customisation can be affordable
- Leverage young consumers’ desire for sharing
- New marketing strategies move towards home retail
Who’s Innovating?
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- VR/AR assist home décor
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- Figure 17: Placing IKEA virtually via IKEA Place in real environment, 2018
- Well suited for different living scenarios
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- Figure 18: Bene’s Work and Life table piece
- Bringing your home living elsewhere
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- Figure 19: MUJI hotel’s room
- A more eco-friendly home
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- Figure 20: EcoQube greenhouse set, 2018
The Consumer – What You Need to Know
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- Consumers like to decorate home and to buy home retail products
- E-commerce channels are most popular
- Consumers are purchasing for both functional and emotional reasons
- Function factors drive choices
Attitudes towards Home Decoration and Home Retail Products
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- Home reflects personality and style
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- Figure 21: Perception of the importance of home decoration, August 2018
- Home should be multifunctional
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- Figure 22: Attitudes towards home functions, August 2018
- Continuous willingness to spend on decorating home
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- Figure 23: Attitudes towards keeping informed of and purchasing home retail products, August 2018
- Figure 24: Attitudes towards purchasing and updating home retail products, by family status, August 2018
Home Retail Products Bought
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- Essential homeware items are more welcome than decorative ones
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- Figure 25: Home retail products purchased in the last 12 months, August 2018
- Consumers aged 20-24 are least likely to buy kitchenware
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- Figure 26: Kitchenware purchased in the last 12 months, by age, August 2018
- Decorative homeware items are popular among 80s and 90s consumers
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- Figure 27: Home air fresheners and home decoration products purchased in the last 12 months, by generation, August 2018
- Household population determines purchase incidence for furniture
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- Figure 28: Furniture purchased in the last 12 months, by demographics, August 2018
Factors Influencing Choices of Home Retail Products
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- Consumers consider functionality of home retail products first
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- Figure 29: Top three factors influencing choices of different home retail products, August 2018
- Consumers aged 20-24 care about design of furniture mostly
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- Figure 30: “Good-looking design” as a factor influencing choice of furniture, by age, August 2018
- Natural materials are important for household linens
- Brand name would affect more choices for essential home items
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- Figure 31: “Brand” as a factor influencing choice of kitchenware, by demographics, August 2018
- Eco-friendly factor is effective enhancer for decorative homeware choice
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- Figure 32: “Eco-friendly” as a factor influencing choices of decorative homeware items (home decoration products and air fresheners), by age, August, 2018
Reasons to Purchase
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- Purchasing home products is a functional and emotional decision
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- Figure 33: Reasons to purchase home retail products, August 2018
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- Figure 34: Reasons to purchase home retail products, by age, August 2018
- Consumers aged 30-49 purchase mainly for upgrade existing product
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- Figure 35: “Renewing items with upgraded features” as a reason to purchase, by age, August 2018
- 20-24-year-olds buy home retail products for basic function
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- Figure 36: “Replace worn-out/broken items” as a reason to purchase, by age, August 2018
- Figure 37: “Make home premium and luxurious” and “keep up with latest fashions” as reasons to purchase, by age, August 2018
- Post-80s and post-90s contradict on personal styles and limits through living situations
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- Figure 38: Housing situation of consumers, by generation, August 2018
Purchase Channels
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- Welcome to the era of e-commerce
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- Figure 39: Purchase channel for home retail products, August 2018
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- Figure 40: E-commerce and supermarkets/hypermarkets as purchase channel for home retail products, by age, August 2018
- Stores specialising in home retail are less competitive
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- Figure 41: Different channels used for purchasing furniture, August 2018
- Fast fashion retailers have their best chance in decorative homeware
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- Figure 42: Decorative home retail products purchased cross-channels and at fast fashion retailers, August 2018
- Variety stores are favoured by female consumers under 30
Sources of Information
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- Consumers use both offline and online sources for ideas and inspirations
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- Figure 43: Source of information for home retail products, August 2018
- Consumers with higher income would like to get information from more sources
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- Figure 44: Repertoire analysis of information sources, by household income level, August 2018
- Lifestyle content impacts consumers aged 25-29 most
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- Figure 45: Lifestyle content as information for home retail products, by age, August 2018
Meet the Mintropolitans
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- Mintropolitans enjoy lifestyle content more
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- Figure 46: Selected source of information for home retail products, by consumer classification, August 2018
- Mintropolitans seek more eco-friendly home retail products
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- Figure 47: Selected factors influencing choices home retail products – eco-friendly, by consumer classification, August 2018
Appendix – Market Segmentation
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- Figure 48: Total value sales of home retail market, by segment, China, 2013-23
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Appendix – Methodology and Abbreviations
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- Methodology
- Fan chart forecast
- Abbreviations
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