Smart home companies are deeply connected to the real economy, and it's clear that manufacturing plays a crucial role in this industry. At various exhibitions, whole-house customization has become a major highlight. While the Internet+ concept remains an important aspect of the home industry, it still needs further development. One of the biggest challenges for companies is attracting merchants to join their ecosystems. Xiao Bian provided an overview of four key trends in the home industry during the second half of 2017, aiming to help businesses better understand their position and opportunities.
**Information Construction: The Key to Future Growth**
Observant readers may have noticed that, in addition to expanding production and building strong brands, many home industry companies listed recently have also invested heavily in information systems—ranging from tens of millions to over 100 million yuan. This reflects a growing recognition of the need for digital transformation. Despite the low level of informatization and limited awareness of new technologies in the sector, operational efficiency has been significantly affected. However, recent efforts by listed companies show a positive shift, with increased focus on enterprise information construction and greater willingness to invest in this area.
In today’s competitive environment, efficiency and cost control are the two main factors determining success. As information construction becomes more critical, no company wants to remain stuck in traditional methods. The home industry is now undergoing a digital revolution, and there are numerous opportunities emerging. From software solutions to smart homes, companies like 3D Homes and Custom Homes are making their mark in the market.
**ToB Channel Development: Building a Strong Brand Foundation**
While ToB channel development isn’t a brand-new trend, its impact has become more pronounced in recent years. In addition to retail channels, companies are now focusing on engineering channels, targeting property developers. Installers have also emerged as a new channel, with many home companies shifting their strategies toward renovation firms. Some companies are even establishing "integration departments" to avoid relying on third-party distributors.
There are two common approaches to managing these channels: one is direct collaboration with packaging companies through separate product systems (a form of F2C), and the other is transforming channel providers into service operators. This model offers a logical middle ground and opens up new opportunities for channel partners.
Home companies may vary in their distribution capabilities, but they are all starting from a similar position when it comes to ToB channels. To seize new opportunities, they must quickly access upstream and downstream resources. More importantly, they need a strong brand presence—ideally with nationwide influence, as we live in an era where branding is key.
**Whole House Customization: Market Overheating and Innovation**
2017 was a standout year for the home market, with whole-house customization reaching unprecedented levels of popularity. Exhibitions consistently featured custom home displays as the most popular attractions. While the market appears to be overheated, the reason is simple: whole-house customization requires comprehensive capabilities, including design, R&D, branding, information application, sales networks, and large-scale flexible customization.
Looking ahead, we believe whole-house customization will continue to be a major trend. However, it demands a strong sales and service network. At this stage, investment promotion is still a common strategy among home companies. Although this approach faces increasing challenges, it remains an effective way to reach end users. Even in a hot market, without solid channel foundations, companies cannot rely solely on trends.
**Smart Manufacturing: The Next Big Trend**
Smart manufacturing is not just a challenge for companies—it has also become a national priority. Financially strong home industry players are now focusing on intelligent, industrialized, and digitized solutions, using big data and cloud computing as core drivers for innovation and transformation.
There is no doubt that smart manufacturing will become the next big topic. However, while the vision is promising, the reality is complex. Only a few companies with strong awareness and scale are leading the way. Many others are still struggling to keep up. The pace of digital transformation in China’s home furnishings industry is relatively slow, and there is still a long way to go. Yet, with the gradual maturation of AI technologies, the future holds great potential for the industry.
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