What will furniture companies and design companies do

Facing the "Silver Age", what will furniture companies and design companies do

In the past fifteen years, China's real estate industry has developed at an average annual growth rate of over 20%. During this period, it has been known as the "golden age" of real estate, and there have been frequent sales scenes of real estate projects being sold out overnight. The favorable market atmosphere has driven the development of related industries, and design studios have sprung up like mushrooms after rain. With the introduction of a series of government property policies, the national real estate industry has finally entered the "silver age". The number of real estate projects is decreasing sharply, and the design industry, which is directly affected, has entered a new normal. After the storm, design professionals have entered a period of calm thinking on how to prepare for the winter before the real estate market cools down again.

New Concept Housing Emerging New Problems

Faced with repeated administrative regulation of the real estate market by the government, the real estate market has transformed from a situation of supply shortage to a scene of demand on the streets. Under heavy pressure, developers are doing everything they can. Some developers have proposed delivery standards for residential decoration, and some have collaborated with furniture stores and well-known home brands to attract more consumers with better after-sales service and accelerate capital recovery.

Demonstration unit for high-end residential decoration

The cooperation between fine decoration standards and furniture has indeed brought convenience to homeowners. A large number of fine decoration residences have grandly entered the market, partnering with furniture brands to do community "group buying", saving homeowners money, time, effort, and worry. Since the launch of the new concept housing type, residential sales have been able to increase. Even the concept of smart homes has emerged, providing more possibilities for future homes. Faced with an increasing number of high-end residential units being launched into the market, problems are gradually emerging.

All the fine decoration standards address personalized home systems such as fixed decoration and storage during the construction of buildings, which is equivalent to solving the process of homeowner design and decoration at the source. However, there are matching issues with furniture products, such as the general bedding being 1.5 or 1.2 meters wide, but in furnished homes, unconventional bed frames of 1.3 meters may appear. Alternatively, the cabinet size may differ from previous standards and the placement of home accessories may need to be adjusted. At this point, standardized household products on the market cannot adapt to the actual environment.

The sensational 18 square meter concept of high-end residential and smart home has been put into the market

Previously, clients were real estate companies, but now they can also be homeowners

After reaching its peak in 2014, the total amount of real estate investment gradually declined and then entered a recession period. Since data records began in 2000, the investment in real estate development in China has dropped to its lowest point, only 1%, and the number of commercial housing has sharply decreased. In addition, the significant decline in real estate sales has had a huge impact on the design industry. There are fewer people in need of housing, fewer model houses, and fewer people in need of decoration. Design companies have to face transformation or reform to adapt to the changing market environment. Since 2015, design companies have been continuously expanding their project business. For example, developing home accessories, or investing in boutique hotels through joint ventures, directly targeting the market with designs to reflect their value in terms of popularity.

A furniture brand developed by a certain design company

When residential decoration becomes the main means of real estate sales, the emergence of new problems also confirms the demand for professionalism. The supporting plan for residential decoration can meet the functions of residents, but personalized design and product customization still need to be improved and strengthened. Based on years of experience in providing homeowners and real estate services, design companies need to solve new problems from a professional perspective. Many of these design companies have seen market prospects, such as Impression Space and Uyi Design, which have been vigorously promoting the development of related projects.

Model houses are commercial means provided by developers to stimulate sales, while residential properties are designed to meet the rigid needs of homeowners. There is a significant difference between the two, while design firms can provide space design for both commercial and home use. Therefore, real estate developers, in conjunction with design companies, will delve into the design of high-end residential properties, vertically deepen the concept of "moving in", increase design levels, and further solve the whole house customization of soft furnishings.

For design companies, their previous clients were real estate companies, but now they have become homeowners. Facing the home-based communities of the whole or even multiple communities, there are different needs from different family structures to different age groups. Designers need to participate in more industries to achieve a one-stop design platform from hard to soft furnishings.

Impression Space Design and Founder Wang Jieming worked in space design at a well-known furniture company before establishing an interior design company. In a series of real estate issues, Wang Jieming interpreted that real estate has a profound understanding of the market, but neglected to make good use of professional teams to create the current situation. Wang Jieming is about to develop a home product line called "Impression Space" for the standardization of high-end residential projects, and plans to build a physical exhibition hall of several thousand square meters, focusing on customized home products. "Although the real estate market is constantly changing, customized mobile furniture, kitchenware, and accessories will not be limited to furnished homes, and this market will have great prospects."

Qi Pengda, the founder of Uyi Design, believes that achieving a true "carry in" service system requires more professional manufacturers or teams to participate in projects and work together to solve furniture or jewelry customization in each community. For manufacturers, this is another wholesale channel.

Furniture bundling design, professional portal to solve home problems

How can furniture manufacturers combine design companies for mutual benefit and win-win results? There is specialization in art and expertise in industry. Designers believe that collaboration between furniture factories and designers places higher demands on all parties involved. The design company has been closely cooperating with the real estate industry and maintaining close communication with different homeowners and real estate developers. They have a clear approach to whole house design, but furniture customization will weaken project efficiency. Furniture manufacturers need to have a comprehensive customization system, which is a key factor in participating in the overall "move in" of the community. As this business is slowly developing, it provides ample time for cooperation between the design industry and the furniture industry.

In mid July of this year, the integrated soft and hard decoration "move in" project designed by Yuyi was about to be launched in Longgang. This is the most satisfactory result achieved by Qi Pengda through multiple practical experiences. "I still hope that more furniture companies and design companies can penetrate each other, and industry integration can open up a larger market situation."