Stimulating consumer potential has been one of the main themes of China's economy in recent years. As one of the "big four" consumer sectors, alongside automobiles, appliances, and dining, home furnishing consumption has also become a key area of focus for policies aimed at restoring and expanding consumption this year. Innovations and trends showcased at the Shanghai Home Furnishing Expo highlight what are the current development characteristics of home furnishing consumption.

Projected to Exceed 5.3 Trillion Yuan by 2027

Pan-home furnishing consumption demonstrates strong growth elasticity The "2024 China Home Market Consumption Insights" report (hereinafter referred to as "the report") focuses on the Chinese home industry. Based on thorough research of the market background and current consumption status, it explores from both the supply side and the demand side of home consumption in the new era. The core touchpoints of home consumption and the current operational status and development paths at the industry supply level are deeply analyzed. Key insights from the Shanghai Home Furnishing Expo are included to forecast future trends in home consumption, thereby predicting development opportunities. The report's statistics on the home consumption market show that pan-home all-channel sales reached 4.6 trillion yuan in 2023 and are projected to exceed 5.3 trillion yuan by 2027, demonstrating strong growth elasticity driven by the release of existing housing demand and innovation in smart home categories.

This judgment is based on a reasonable forecast under the current background and status of home consumption insights: On the policy side, recent real estate incentives and pro-home consumption policies have jointly promoted the healthy development of the home industry; on the industrial side, growth in improvement needs in the existing market provides new momentum; on the demand side, the urbanization rate in regions with lower economic development levels shows a good growth trend, with some incremental housing demands yet to be released. Meanwhile, the growth in demand for second-hand homes and old home renovations is gradually leading the home decoration and furnishing market into an era of existing inventory. At the recent Shanghai Home Furnishing Expo, it was noted that consumers are increasingly willing to invest in a high-quality living environment. As users trend younger, channels are also diversifying. Additionally, one-stop services have become the choice of mainstream consumers in home decoration and furnishing, and the integrated decoration model has great potential, further stimulating the growth potential of the home consumption market.