The data of the first half of the year just appeared one after another. Summing up the first half of 2018, these "Keywords" of China's home furnishing industry are worthy of attention and reflection.

environment protection

In recent years, the national environmental protection standards are higher and higher, and the requirements are more and more strict. In 2018, the national level paid more attention to environmental protection. Firstly, the Ministry of ecological environment was established on March 13, 2018 to integrate the previous relatively scattered responsibilities of ecological environment protection. Secondly, the joint efforts of the central and local governments to improve environmental protection continued to increase, and the furniture industry, as a major VOCs emitter, was the focus of monitoring. In 2018, a number of heavyweight environmental protection documents came into effect, especially the environmental protection tax on the air, water, solid and noise of the factory, which is a new expense for the furniture manufacturing industry. In the home furnishing industry, on May 1, the new national standard "formaldehyde emission limit of wood-based panels and their products made of interior decoration materials" was officially implemented as a man-made product As the only mandatory national standard in the board and its products industry, the requirements for wood-based panel enterprises and their downstream panel furniture production are more stringent.

With the continuous increase of environmental protection efforts, a number of small factories that are difficult to meet the standards have been eliminated, and resources are gathered towards large enterprises, some people are happy and others are worried. In particular, the "one size fits all" phenomenon in the implementation process of environmental control policies has made many furniture factories have no time to adapt. They closed down overnight, and the factories that have not closed down or closed down for the time being have to face the heavy cost pressure from environmental rectification and environmental protection tax. Many factory owners are crying in the face of the dilemma of "returning to the pre liberation overnight". Although on May 28, the Ministry of ecological environment specially studied and formulated the "one size fits all" working opinion on environmental protection, strictly prohibiting such rude practices as "all shut down" and "stop first and then" and so on, the actual effect remains to be seen.

Package

If we say that the "whole decoration" in 2017 is just the beginning, then in 2018, "whole decoration" has become an important battlefield for Pan home furnishing giants. In this year's Construction Expo, from Shangpin's "xinju whole decoration" to Eurogroup's "Xingju whole decoration", the price difference is not big, which makes the two competitors from the whole house customization to the whole decoration battlefield. In addition to Eurogroup, Sofia, Shangpin, and holak, there are more commercial forces aiming at the "whole decoration" Blue Ocean: some real estate giants are going down Travel extension, covering decoration, furniture and home appliances, such as country garden, Evergrande, Vanke; Internet platform to break through multiple barriers, efforts to cash the flow; ceramic tile building materials, home appliances enterprises also began to do the whole house decoration; relevant associations are committed to housing industrialization, with the reverse thinking from the beginning of consumer demand to connect the whole housing related industries (Shenzhen Association of home decoration Research) Hospital) In the case that the growth rate of customized furniture is slowing down from more than 60% to less than 30%, and all kinds of popular styles and packages are flying together from product homogenization, whoever can seize the discourse power of "whole decoration" will seize the traffic entrance of the new generation of consumer groups in the future and become the leader of the next household consumption trend.

make off with money

A large number of capital poured into the "package", the "burning money" development of the great leap forward brought many problems, and many "martyrs" left the scene in dismay. In 2017, the capital chain of home decoration enterprises has broken precedent, and the real creation decoration and colorful decoration enterprises have fallen into poor management, and have to close stores to stop the whole decoration business; in 2018, more home decoration enterprises are running away: on March 15, 2018, Hubei Apple decoration (Hunan apple decoration Wuhan Branch) began to encounter a large number of complaints from owners, reflecting that they did not start work or go out of business after signing the contract and collecting money Now, there are problems in shutdown, home decoration quality and quality assurance. Subsequently, apple decoration stores in Nanning, Hefei, Nanjing, Wenzhou, Nanchang, Chongqing and other places are suddenly "empty"; after May Day in 2018, many stores in Chengdu, the chain decoration platform "No.1 home network", suddenly closed. According to the preliminary statistics of customers and suppliers, the amount of decoration payment, overdue payment and construction payment may reach tens of millions. In addition to lemon tree decoration, I love my family, and famous craftsman decoration, there are some shops running away.

In addition to home decoration companies, the phenomenon of running away from stores of customized furniture enterprises was also repeatedly exposed in 2018. On the one hand, it reflects the supervision problems caused by the blind expansion of customized furniture enterprises in the pursuit of rapid development and the acceleration of market reshuffle.

Overseas acquisition

In the first half of 2018, many enterprises started the road of overseas acquisition, with the help of the capital market, and joined hands with the world's first-class home brands to achieve brand breakthrough. On January 8, Merck home purchased 60% equity of m.u.s.t. Holdings Limited and Rowe fine furniture holding On January 10, 2018, Gu Jiaju announced that it would establish a joint venture with Natuzzi - natuzi Trading (Shanghai) Co., Ltd., with Gu Jiaju holding 51% of the equity of the joint venture; in May, Qumei Jiaju announced that it would make an offer to acquire Ekornes, a listed company on the Oslo stock exchange of Norway ASA has at least 55.57% of the issued shares; also in May, nature home, which is listed in H shares, announced that it has officially acquired wellmann, a high-end cabinet brand of the famous German cabinet manufacturer AlnO group. From "going out" to "bringing in", the domestic furniture market is taking an international development road with Chinese characteristics, not only to lay out overseas markets, but also to seize the domestic and foreign high-end markets with higher brand premium.

Price increase

At the beginning of the new year, there will be a "rising price tide". As soon as March comes in 2018, the whole coating industry will see a "rising price". Due to the price rise of chemical raw materials a few months ago, international and domestic chemical enterprises have increased their prices. With the rise of TDI, titanium dioxide, PU, PE and UV resins of raw material manufacturers, the prices of solvents, monomers, blue water and other materials are rising, resulting in a sharp increase in production costs. Zhanchen, Jiabaoli group, China Resources Coatings and Bauhinia coatings have announced to adjust the prices of furniture paint products. Furniture paint has formed a new rising tide in the industry, but the rising times of furniture paint are far lower than that of upstream raw materials The price increase rate is far lower than that of raw materials. The rising trend of chemical price will affect the net profit of furniture enterprises. According to the financial report of dream Lily in the first half of the year, the net profit decreased by more than 60% year on year due to the sharp rise in the price of raw materials, especially chemical materials, and the increase in the exchange loss between us dollar and RMB. In addition to the chemical industry, the price of board, carton, labor and various taxes are also rising year by year, which also makes the net profit space of furniture enterprises have been compressed.

New retail

The essence of new retailing is to reconstruct people, goods and markets, so that customers can achieve "what you see is what you get" in the shortest time, the fastest speed and the shortest distance. On the one hand, the development of new home retail benefits from the development of software platform: on March 9, kujiale announced the completion of round D financing of US $100 million, with an estimated value of US $600 million. This round of financing was jointly founded by Lei Jun and Xu Dalai. On March 29, three dimensional family announced the completion of round B financing of RMB 300 million. This round of financing is led by red star Macalline, followed by old shareholders Softbank China and Guangfa Xinde. As a result, the three giants represented by Yuanfang, 3D home and kujiale provide soft support for the construction of information system of artificial intelligence and big data, and the opening of the whole ecological line of stores, management and factories. On April 15, the smart store of tmall & Beijing Sofia Co., Ltd. opened in Beijing North Fourth Ring Road. After the renovation, Sofia's store took on a new look, reinterpreting "new retail" with the technology provided by Ali and new hardware. After Shanghai C store, Shangpin home delivery opened its second C store in Beijing in July, delivering the "home" lifestyle and becoming a lifestyle experience center integrating "eating, drinking, playing and having fun".

In addition to furniture enterprises, home stores are also creating more consumption scenarios. For example, the experience mall of home unexpectedly has absorbed the entry of catering and cinemas, including HEMA Xiansheng and sports monster, which are popular in the Korean market, to realize the full layout of big consumer formats such as fresh supermarket, catering and cinemas, sports and fitness, children's entertainment, home care and digital intelligence. Unexpectedly home and tmall also jointly launched the "6.18" activity. Jimei home and Jingdong jointly held the activity with the theme of "Jimei 6.18 tickets to enjoy the capital". The cross-border integration of online and offline has become a new trend.

Light luxury

Light luxury, which has been popular for many years, has spread from the fashion industry to the home furnishing industry in 2018, and swept the whole home furnishing industry with a prairie fire. If we say that in the second half of last year, light luxury furniture was still an undercurrent in the market. At several major furniture exhibitions in Guangdong in March this year, light luxury furniture has become a torrent of the market. Even the most insensitive eyes can find that light luxury furniture is everywhere.

Although furniture exhibitions usually have functional divisions, Chinese style, modern, European and American pavilions seem to be quite different, this year's furniture exhibition, whether European and American furniture, Chinese style furniture, or modern furniture, is boasting of luxury. It seems that luxury is not easy to fall behind. From building materials to furniture, from decoration to customization, from lamps to cloth art, while paying homage to "light luxury" in different ways, it also opens up a new window for the transformation and upgrading of home furnishing industry under the background of consumption upgrading.

In the second half of 2018, the furniture industry is facing greater challenges. The systematic impact of the trade war on the overall economy has filled the way with new uncertainties. Furniture makers need to show greater courage and wisdom to face the challenges.