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In the Era of Consumption Upgrade, How Can Home Furnishing Enterprises Break Through and Innovate?

Published on: 2019-04-29

With the development of the national economy and the continuous improvement of people's living standards, the new middle class, centered on the post-80s and post-90s generations, has begun moving toward higher and better standards in personal and household consumption. This transformation is especially evident in the home furnishing consumption field. In residential living, people's requirements for living space are also constantly upgrading, and quality, brand, environmental protection, and fashion are gradually becoming essential conditions for home furnishing and decoration. Consumers are becoming more demanding about product and service details, and they pay more attention to whether products can satisfy their taste in life.


Changes in end-market demand in the furniture market are quite obvious, and this has become a major factor driving the continuous spread of consumption upgrading.

How Can Home Furnishing Enterprises Break Through and Innovate During the Consumption Upgrade Stage?


When purchasing furniture products, the main consumer groups are moving from the traditional model of visiting a single physical store toward product internet-of-things connectivity. They are shifting from simple touch-based perception and positioning to recognition of brand-value consumption. The combination of convenient and smooth online purchasing channels with offline services enables them to compare products more efficiently. The steady growth of urban and rural residents' incomes, the expansion of the middle class, and the growing maturity of consumer awareness are all providing the basic conditions for consumption upgrading in the furniture industry.


Consumption upgrading drives the transformation of furniture manufacturing



In the past, the various furniture styles purchased by consumers through large shopping malls and retail terminals were single in type, and design styles were also very limited. Today, under the advocacy of concepts such as 'new retail' and the 'fourth retail revolution,' consumer interconnection is trying to integrate online, offline, and logistics into one connected system.


In fact, part of the consumption upgrading downstream in the industry comes from the push of industrial science and technology. Under the background of consumption upgrading, whether enterprises can skillfully apply new technologies, cost management models, and innovative operating methods such as process reengineering to demonstrate innovation, realize value extension, and achieve structural transformation has become a major challenge facing the furniture manufacturing industry. Many furniture manufacturers with strong competitive advantages within the industry have already taken the lead in recognizing the necessity of proactive change and have begun to make adjustments. In coastal regions such as Zhejiang, Dongguan, and Foshan, factory automation and intelligent manufacturing levels have been improving year by year, and some furniture factories have achieved automation rates of over 60 percent.


How can home furnishing enterprises break through and innovate?


The overall transformation of the furniture manufacturing industry chain triggered by consumption upgrading has also greatly increased the R&D and production costs of traditional furniture manufacturers. For example, they need to adjust their original linear production lines, replace outdated equipment and facilities, redevelop upstream and downstream supplier channels, and make timely changes to their ideas for launching furniture products into production.


This also means that enterprises that cannot control cost factors well will gradually be pushed to the edge of the industry and may even be eliminated. However, current consumption upgrading is not urging all furniture manufacturers to blindly follow trends, transform, and pursue new models. Instead, it requires enterprises to make systematic and well-directed adjustments based on their own foundations and demand characteristics, and these adjustments need to be gradual.


The home furnishing manufacturing industry is also in an unprecedented state of transformation. Changes in the external market and internal technological innovation are reshaping the competitive landscape of the industry. To meet changing market demand and improve competitiveness, large-scale digital deployment and the establishment of organizational structures that are more collaborative, flexible, and efficient have become the key to enterprise transformation.


Soonfor Furniture ERP Informatization Solution takes C2M as the underlying logic of the entire digital management system. On this basis, it enhances product customization capability, enables responsible production, and brings higher manufacturing efficiency. This is digital transformation empowered by intelligent technology and connected devices, enabling enterprises to cope with increasingly complex orders and ever faster production cycles.
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