Smart Home Industry Development Trend Analysis Smart Manufacturing in the Future Will Become a New Topic

Smart home companies are deeply connected to the real economy, and it's clear that the power of manufacturing is driving the home industry forward. At various exhibitions, whole-house customization has become a major highlight. While the concept of "Internet+" remains an important aspect of the industry, it still needs further development. One of the biggest challenges for companies is attracting merchants to join their platforms. 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 roles and strategies.  **Information Construction: The Key to Growth** Observant readers may notice that, in addition to expanding production capacity and building strong brands, many home industry companies have also invested heavily in information construction—ranging from tens of millions to over 100 million yuan. Despite the low level of informatization and limited awareness of new technologies in the sector, which has led to inefficiencies, recent trends show that listed home companies are beginning to prioritize this area. This shift reflects a growing recognition of the importance of digital transformation in improving operational efficiency. In today’s competitive environment, efficiency and cost control are crucial. As information technology continues to advance, companies can no longer afford to lag behind. The home industry is on the verge of a comprehensive digital revolution, with opportunities emerging at every level. From software solutions to smart homes, innovative players like Three-Dimensional Homes and Customers are starting to make their mark. **ToB Channel Development: Building a Strong Brand Foundation** Although ToB (business-to-business) channel development isn't a new trend, its impact has become more pronounced in recent years. In addition to traditional retail channels, engineering channels—targeting property developers—have gained traction. In the past two years, installation enterprises have emerged as a new distribution path, prompting many home companies to shift their focus toward home improvement firms. Some companies are even setting up dedicated integration departments to manage these relationships more effectively. There are two main approaches to leveraging ToB channels: one is to bypass distributors by directly collaborating with packaging companies through different product systems, akin to a pseudo-F2C model. The other is transforming channel providers into service operators, creating a more logical middle-ground that offers new opportunities for both parties. While home companies may vary in their distribution capabilities, they are all starting from a similar position when it comes to ToB channels. To capitalize on new opportunities, they need quick access to upstream and downstream resources. More importantly, a strong brand foundation—especially one with national reach—is essential in this era of intense brand competition. **Whole House Customization: Market Overheating and Innovation** 2017 was a landmark year for the home market, with whole-house customization becoming exceptionally popular. It was almost unthinkable to be out of the trend, as custom home exhibits consistently drew large crowds at trade shows. However, from a rational perspective, the market appears somewhat overheated. The reason is simple: whole-house customization requires a full range of capabilities, including design, R&D, branding, IT application, sales networks, and flexible customization at scale. Despite the current hype, we believe that whole-house customization will remain a major trend in the future. However, it demands a robust sales and service network. At this stage, investment promotion is still a common strategy among home companies. Strong demand is expected to last for another three years. Even though the investment model is facing increasing challenges, it remains an effective way for companies to connect with consumers. Without a solid channel foundation, no matter how hot the market becomes, it cannot sustain long-term success. **Smart Manufacturing: The Next Big Trend** Smart manufacturing is not just a challenge for individual companies—it has now become a national priority. As a result, it is being taken seriously at the highest levels. Financially strong home material companies are focusing on intelligent, industrialized, and digitized solutions, using big data and cloud computing as core drivers of innovation and transformation. It's clear that smart manufacturing will be the next big topic. However, while the vision is promising, the reality is still challenging. Only a few companies with strong awareness and large-scale operations are leading the charge. Many others are struggling to keep up. China's home furnishings industry is still in the early stages of smart transformation, and there's a long way to go. Still, there's reason to be optimistic. As AI and other new technologies mature, the potential for smart manufacturing in the home industry is vast and full of possibilities.

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