With the large scale, new retail of home in China has grown rapidly. In 2016, brand owners and service providers of new retail of home in China had the market scale close to RMB 5 trillion, with the annual growth up to 8%, which was far ahead of that in the European and American market. At the same time, the back-end network permeability in the new retail of home in China equaled to that in Europe and America. In 2016, the online permeability of the back-end home appliance reached 20%, which was higher than that in the European market (14.9%) and equaled to that in the American market (19.2%).

Five latest development trends of new retail of home in China in the digital age are as follows:

I. From the single-product sales to the scenarized lifestyle permeatio

“Lifestyle first” has become a key word. The brand owners influence the consumers and draw their attention to the products by creating and propagating the life concepts. In the means of delivery, they adopt the real and virtual scenes to bring the intuitive feelings to the consumers, making the experience become the main decision-making factor for buying.

II. From cross-channel to full-channel integration

The Chinese consumers are used to the active cross-channel skip. The basic technical support for realizing the full channel is IoT and smart home.

III. From meeting the basic demands of the most of the people to meeting the improved and personalized demands of the segment groups

New segment groups, formed by the “generation born in the 1980s and the 1990s” (the main consumer groups of new retail of home), have the unique demands, and have preferred the customized furniture. The customized service has extended to the relatively standardized home appliances industry from the furniture industry.

IV. From purchasing the single products to users’ solutions

It has upgraded from single-product sales to single product + service sales. In the context of ecological integration, the borders of products have also been obscure. It has been upgraded to the full set of solutions to provide the consumers with the high-quality solution of whole sets of services from design to soft decoration.

V. From the non-standard and chaotic market to the standard market for which the platform provides the standards and quality assurance

Brand owners and distributors are striving to provide the healthier and safer basic building materials, and the consumers’ buying experience will approach to the integrated scene-mode products and service from the scattered and disordered multi-channel market where a lot of compromise is required.

(Source: JJGLE.COM)