In 2023, the real estate industry remained sluggish.
Consequently, the home furnishing market has also been navigating through uncertainty. Additionally, consumers’ financial behaviors have shown notable changes, characterized by “increased savings” and “cautious spending.” In this uncertain environment, finding ways to alleviate consumer anxiety and attract user attention will be key challenges for home furnishing companies in 2024.
With the advent of the digital economy era, the rise of short videos and live streaming has provided new opportunities for the development of the home furnishing industry. Home furnishing brands are embracing change by accelerating digital transformation, creating new marketing opportunities, and gradually integrating “content,” “platforms,” and “operations” to build a comprehensive online ecosystem.
By analyzing from the content, brand, and user perspectives, we identify five major trends that offer market insights and guidance for the industry. These trends aim to help home furnishing companies penetrate both online and offline markets and provide new ideas and opportunities for their rise and breakthroughs.
Online Marketing Provides Certainty for Industry Exploration
Embracing online platforms and integrating multiple scenarios to shape trends
Despite the macroeconomic uncertainty in the home furnishing industry, online platforms show that user interest and consumption potential remain strong. The thriving online ecosystem is fostering a new wave of consumer spending, with platforms like Douyin (TikTok) becoming crucial marketing tools for the industry.
Insights into Home Furnishing Potential Tracks
Providing trends in platform categories for businesses
Data insights reveal that “lighting fixtures” have become a high-potential category in the lighting sector, while “bedding sets” are the top demand in the home textile category. Overall search trends indicate that consumers are increasingly focused on indoor decoration and functionality. Businesses need to adapt product design and marketing strategies to meet these evolving consumer demands.
In addition to category trends and search popularity, platforms also offer precise audience targeting support. By clustering target groups, businesses can create more targeted marketing strategies, such as identifying potential consumers like seasoned middle-class individuals, emerging white-collar workers, discerning mothers, Gen Z, urban blue-collar workers, urban seniors, small-town middle-aged individuals, and young people. This helps businesses penetrate new markets and reach their target audiences effectively.
Five Major Trends Driving Industry Iteration and Upgrade
Trend 1: Smart Living
Transition from Single Product Intelligence to Whole Home Intelligence
The trend towards smart living reflects users’ pursuit of a lifestyle tailored to their needs. Smart home products offer thoughtful services to users who are “lazy” yet seek convenience and sophistication. With advancements in technology and industry improvements, smart home products are becoming increasingly diverse and intelligent. The smart home market is evolving into a new engine for driving growth in the home furnishing industry, with the market size expanding continuously.
Trend 2: Health First
From Pre-Renovation to Living Spaces, Integrated into All Scenarios
As people’s awareness of health upgrades, the concept of eco-friendly home furnishing has gained widespread acceptance. This has led consumers to consider the environmental and health aspects of home products more critically. The health trend is driven by a sense of responsibility toward oneself and one’s family.
Moreover, users’ demands for home health are becoming more comprehensive. Whether during pre-move-in renovations or in daily living, users exhibit strong demands for health. Before moving into a new home, users focus on purchasing and using health-conscious materials, such as low-formaldehyde flooring, silk wall coverings, and natural wood. Data shows that content related to home health before moving in has increased by 55.5% year-on-year, with low-formaldehyde flooring, silk wall coverings, and natural wood seeing the most significant growth.
Trend 3: Personal Preferences
Aesthetic Evolution and De-Styling for Self-Expression
Beyond the main themes of health and smart living, many users also seek to incorporate elements that reflect their personal tastes and values into their living spaces. This trend of personal preference reflects an evolution in aesthetic standards. Traditional styles no longer meet the needs of all users, who now seek unique home products and designs that align with their lifestyles, highlighting the trend towards personalized home furnishing.
Trend 4: Innovation Demand
Re-Defining Home through Emerging Innovation Needs
With the younger, more diverse, and trend-conscious consumer base, the demand for innovative home products is booming. This trend is driven by a desire to address the shortcomings of traditional home spaces and meet new needs. Research data shows that kitchens, among all living spaces, are identified as “relatively important yet problematic,” indicating opportunities for innovation.
Trend 5: Emotional Value
The Rise of High-Level Needs Driving the Shift from Utility to Emotional Value
The concept of “emotional value” has gained significant attention in the consumer market and is making waves across various industries, including home furnishing. As living standards improve, people are increasingly focusing on the emotional and experiential aspects of home furnishing, beyond just the physical structure. Users’ needs have evolved from basic survival and living requirements to seeking emotional connection and resonance. This emotional value is conveyed through home furnishing products, creating a deeper connection between people and their homes.
Data indicates that users’ focus on ideal living environments includes three aspects: basic attributes of the home, living experience, and spiritual and aesthetic belonging. Overall, users prioritize the soft value of living over the hard metrics, with emotional value becoming increasingly prominent in their lives.
LINKDWELL’s Evaluation of 2023 Trends in the Chinese Home Furnishing Industry
In 2023, the Chinese home furnishing industry navigated a challenging landscape characterized by a sluggish real estate sector and shifting consumer financial behaviors. Despite these obstacles, several key trends have emerged, shaping the industry’s future trajectory. LINKDWELL recognizes the significance of these trends and offers the following evaluations:
1. Embracing Online Marketing
The rise of digital platforms and online marketing has provided new opportunities for the home furnishing industry. LINKDWELL acknowledges the importance of leveraging these platforms, such as short video and live streaming, to engage with consumers. By integrating online content, marketing strategies, and operational models, companies can tap into the growing online ecosystem and drive consumer interest. We believe that a strong digital presence will be crucial for brands to reach and resonate with their target audiences effectively.
2. Transition to Smart Living
The shift from single smart products to comprehensive whole-home smart solutions reflects users’ desire for personalized, convenient living environments. LINKDWELL is committed to leading this transformation by offering advanced, integrated smart home solutions that cater to evolving consumer needs. As the smart home market expands, we are dedicated to enhancing the user experience through innovation and technological advancement.
3. Prioritizing Health
The growing emphasis on health and eco-friendliness in home furnishing is a trend we fully support. LINKDWELL is committed to incorporating health-conscious materials and practices in our products. By focusing on environmentally friendly and health-focused solutions, we aim to meet the increasing consumer demand for healthier living environments. Our goal is to contribute to the creation of homes that prioritize well-being and sustainability.
4. Addressing Personal Preferences
The trend towards personalized home environments reflects a broader shift in consumer expectations. LINKDWELL recognizes the need for unique and customized home solutions that reflect individual tastes and lifestyles. We are dedicated to offering products and designs that align with diverse consumer preferences, providing a high level of personalization and aesthetic appeal.
5. Innovating for New Needs
The demand for innovative home solutions is driving significant change in the industry. LINKDWELL is focused on redefining traditional home spaces through creative and forward-thinking approaches. By exploring new applications and addressing emerging needs, we aim to offer products that enhance functionality and meet modern expectations.
6. Enhancing Emotional Value
The rise of emotional value in home furnishing underscores a shift towards deeper, more meaningful connections with living spaces. LINKDWELL understands the importance of creating products that resonate on an emotional level, providing not just physical comfort but also a sense of belonging and emotional fulfillment. Our commitment is to design home solutions that foster emotional connections and enrich the overall living experience.
In summary, LINKDWELL is dedicated to addressing these trends with innovative, health-focused, and personalized solutions. By staying attuned to industry shifts and consumer preferences, we aim to drive positive change and support the ongoing evolution of the home furnishing market.