Shanghai Home Expo has learned that the home industry has officially entered a structural transformation phase dominated by existing stock renovation. The traditional development model relying on new home deliveries and natural foot traffic at offline stores is no longer viable, as the market consumption landscape has undergone comprehensive change.

Current home consumption is characterized by personalized demand, content-driven decision-making, and omnichannel distribution. Over 70% of market demand now comes from old home renovation and home upgrades. Consumers increasingly prioritize comprehensive value for money, willing to pay for living solutions that align with their personal lifestyles. Industry competition has shifted from price wars to comprehensive contests of service, supply chain, and user operations.

Consumer demand has moved beyond standardization, with markedly different needs across demographic segments: younger consumers favor compact home storage solutions and lightweight smart products; middle-aged and elderly consumers prioritize age-friendly safety features; pet-owning households require stain-resistant home furnishings. Nearly half of consumers already use smart home products, while 40% have purchase plans. Green sustainability, spatial adaptability, and comprehensive value for money have become core purchasing criteria. Enterprises can no longer apply one-size-fits-all products; they must break down segmented scenario needs and translate personalized demands into scalable, standardized solutions.

Offline store foot traffic continues to shrink, with over 60% of consumers screening brands through online channels such as short-form videos and live streaming, while offline stores serve merely as experience and transaction venues. In 2025, total furniture retail sales rose by 14.6%, yet traditional stores continued to struggle. The complete consumer journey has evolved into online discovery, offline experience, and local fulfillment—no single channel can sustain business alone. Enterprises must build omnichannel operation systems, using home decoration content to drive traffic, upgrading stores into scenario-based experience showrooms, and pairing them with community sample homes and factory-direct purchasing to reduce customer acquisition costs.

Leveraging AI design tools to rapidly generate whole-home solutions, enterprises can split general modules for batch production while customizing appearance and dimensions on demand. Product R&D focuses on four directions: eco-friendly substrates, lightweight smart products, multifunctional storage, and minimalist versatile design, aligning with current living needs.

Service is the core of differentiated competition, as the industry shifts from single-product sales to full-cycle living services. Enterprises are building integrated systems encompassing pre-sales design, construction management, after-sales maintenance, and partial renovation. Lightweight old home renovation services achieve a repeat purchase and referral rate 42% higher than traditional full-package renovation, enabling brands to break free from low-price competition.

The industry is currently undergoing structural kinetic energy conversion, with extensive, homogeneous enterprises gradually being phased out. The market is clearly stratified: the high-end segment emphasizes design, the mid-range segment focuses on functionality, and the lower-tier segment prioritizes practicality. The core of future competition lies in user value, scenario adaptability, and service capability. Only enterprises that complete comprehensive upgrades across products, channels, services, and supply chains can build sustainable growth advantages in the stock market.

Source: weixin