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The Top 7 Keywords of China's Furniture Industry in the First Half of 2018

In the first half of this year, hot words including new retail, environmental upgrades, and customization continued, and new industry hot words appeared. These will likely become important signals in the industry development process in 2019.
I. Environmental Protection
In recent years, national environmental protection standards have become higher and higher, and the requirements are becoming more and more strict. In 2018, the national level paid more attention to environmental protection. First, on the structure, on March 13, 2018, the Ministry of Ecology and Environment was established to integrate the relatively dispersed ecological environmental protection duties. Secondly, the central cooperated with the local governments, the environmental protection efforts continue to increase, and the furniture industry, which is a major VOC emission emitter, is the key target to be monitored.
In the home furnishing industry, on May 1st, the new national standard "Formaldehyde release limit for interior decorative materials and its manufactured products" was officially implemented, as the only mandatory national standard for wood-based panels and their products industry, for wood-based panel enterprises. The requirements for the production of downstream and panel furniture are more stringent.
II. Whole-house Decoration
If we say that the “Whole-house Decoration” in 2017 is only the beginning, then in 2018, “Whole-house Decoration” is already an important battleground between the pan-home giants.
In addition to the whole house custom Oppein, Sofia, Shangpin Home collection, there are other companies also aiming at "Whole-house Decoration": there are real estate giants extending downstream, including decoration, furniture appliances, such as Country Garden, Evergrande, Vanke; and Internet platforms open up multiple barriers, and strive to realise the flow of traffic; there are ceramic tile building materials, home appliance enterprises have begun to do the whole house decoration; relevant associations are committed to housing industrialization, in order to start from the demand of consumption, reverse the thinking of the entire housing-related industry...
In the case of custom furniture from 60% to less than 30% growth slowdown, in the case of product homogenization, who can seize the "Whole-house Decoration" voice, who will seize the future generations of consumer groups The traffic portal has become the leader in the next home consumption trend.
III. Poor Management
In 2017, there was a precedent for the break of the capital chain of home improvement enterprises. Many home improvement companies were not well managed and had to close the store to stop the whole assembly business. In 2018, there were more home improvement enterprises escaped: March 15, 2018, Hubei Apple Decoration (Hunan Apple Decoration Wuhan Branch) began to be complained by a large number of owners, reflecting that after signing the contract and collecting the money, there was a delay in starting work or a stoppage, and the quality of the home improvement and quality assurance were full of problems. 
IV. Overseas Acquisition
Also in May, the H-share listed Nature Home released news that it officially acquired Wellmann, a high-end cabinet brand owned by the well-known German cabinet manufacturer ALNO Group. From "going out" to "bringing in", the domestic furniture market is taking an international development path with Chinese characteristics, not only to lay out overseas markets, but also to seize the high-end domestic and international high-end market.
V. Price Increase
Just entering March 2018, the entire paint circle "price increases." The cause stems from the rising prices of chemical raw materials earlier than a few months ago, and international and domestic chemical companies have raised prices.
As the raw material manufacturers' TDI, titanium dioxide, PU, PE, and UV resins rise, the prices of solvents, monomers, and blue water are soaring, resulting in a sharp increase in production costs.
The rise in chemical prices will inevitably affect the net profit of furniture companies. For example, the first half of the financial report of Lily shows that due to the sharp increase in the prices of raw materials, especially chemical materials, and the increase in exchange losses between the US dollar and Chinese Yuan, the net profit fell by more than 60% year-on-year. In addition to chemicals, plates, cartons, labor prices, and various taxes are also rising year by year, which also makes the net profit margin of furniture companies have been compressed.
VI. New Retail
The essence of the new retail is to reconstruct people, goods, and fields, and finally let customers achieve "what you see is what you get" with the shortest time, the fastest speed, and the closest distance.
On the one hand, the development of new retail in the home benefited from the development of the software platform: On March 9, Kujiale announced that it completed the D round of financing of 100 million US dollars, and the valuation was 600 million US dollars after the completion of financing. The lead investment in this round of financing was jointly created by Lei Jun and Xu Dalai; 3vjia followed closely and announced on March 29 that it completed the B round of financing of 300 million yuan. This round of financing was led by Red Star Macalline, and the old shareholders Softbank China and Guangfa Xinde followed suit.
On April 15th, Tmall & Beijing Sophia's smart store opened in Easyhome, Beijing. After reinstalling the revised version, the Sophia store was completely renewed, reinterpreting “new retail” with the technology provided by Ali and new hardware.
In addition to furniture companies, home stores are also creating more consumer scenes. For example, Easyhome Experience MALL has absorbed the catering and cinema presence, including Freshhema and the Sports Monster, which is popular in the Korean market, will continue to enter the market, realizing the consumption of fresh supermarkets, catering theaters, sports and fitness, children's entertainment, home care, digital intelligence and other major consumer formats layout. Actually, the company also cooperated with Tmall to open the “6·18” event. Jimei Home and Jingdong held the theme of “Jimei 6·18 Coupon to enjoy the capital”, and the cross-border integration of online and offline has become a new trend.
VII. Accessible Luxury
Acessible Luxury spreads from fashion to home industry in 2018. At the major furniture fairs in Guangdong in March this year, the existence of accessible luxury furniture brands can be seen everywhere.
From building materials to furniture, from assembly to customization, from lamps to fabrics, while paying tribute to “Accessible Luxury” in different ways, it also opened up a new window for the transformation and upgrading of the home industry in the context of consumption upgrading.
(Source: JJGLE.COM)