The market size exceeds 800 billion! These blue ocean products are revealed

As we all know, the home furnishing category has exploded during the epidemic, and many cross-border e-commerce sellers in the home furnishing category have also made a fortune. However, Europe and the United States have now relaxed epidemic prevention and control, and the dividends of the "stay-at-home economy" have gradually faded. Many people can't help but ask: What is the future outlook for the home furnishing category and what are the trends? What should be paid attention to when planning this category? What are the product opportunities?

On July 17, the 49th China International Furniture Fair (Guangzhou) was held at the Pazhou Exhibition Center for 4 days (July 17-20). Yesterday (July 18), the "Home Furnishing Cross-border Summit Forum" co-organized by China International Furniture Fair (Guangzhou) and Ennet was held at the exhibition site, inviting many home furnishing sellers to share their operating experience and analyze category trends. At the same time, relevant persons in charge of cross-border e-commerce platforms also shared product selection opportunities under the home furnishing category at the forum.

my country has always been a major exporter, especially in the home furnishing category, where the export volume has always remained in the leading position. In the past, most of this category was traded offline in bulk. In recent years, as the overseas environment such as logistics has become increasingly mature, more and more Chinese manufacturers have turned their attention to online. It is reported that among the popular export categories of cross-border e-commerce in 2021, the home furnishing category ranked second with a share of 26%.

Supporting this export volume is the vast market space. Data shows that from 2017 to 2020, the global household goods market size has an annual compound growth rate of 1.12%. The market size in 2020 is US$677.278 billion, and it will reach US$851.984 billion in 2025. From the perspective of North America, the main market for cross-border e-commerce sellers, the growth curve of furniture and household appliances in the North American market is a microcosm of the global market trend. In 2021, the market size of furniture and household appliances in North America is US$85.3 billion. By 2025, its market size will reach US$98.3 billion based on an increase of 15%.

my country is the world's largest furniture exporter, and wooden furniture accounts for a large proportion of exported furniture. The SWOT Analysis of my country's Wooden Furniture Export Trade points out that compared with other wooden furniture exporting countries, my country's wooden furniture export trade has two obvious advantages:

1. Labor costs and land resources are relatively low. Judging from the absolute wages of furniture industry workers, labor costs in Europe and the United States are nearly 20 times that of my country. In addition, my country has a long history of furniture manufacturing and has a lot of familiar labor. my country's labor time system is also relatively flexible, and the cost of labor use is low. In addition, my country's land rent and investment costs are relatively low. The cost of building a furniture factory in China is about 60% lower than in the United States.

2. Advantages of wooden furniture industry clusters. In 2007, among the 114 wooden furniture enterprises in China, there were 25 in Guangdong, 14 in Shandong, and 10 in Guangxi. The wooden furniture industry clusters in East China, South China, and Central China are more obvious: the East China wooden furniture industry zone centered on Zhejiang, Jiangsu, and Shandong has 33 wooden furniture enterprises; the South China wooden furniture industry zone centered on Guangdong and Guangxi has 36; and the Central China region centered on Henan, Hunan, and Hubei has 19.

The demand for wooden furniture will continue to rise in the future. Li Ruilang, chairman of Foshan Huaineng E-commerce Co., Ltd., pointed out at the meeting that there will be another wave of rising opportunities for furniture in emerging markets, because with the rapid economic development of these countries, the income level of residents is also constantly increasing, and the demand for furniture will continue to grow. Moreover, with the advancement of urbanization, the urban population is constantly increasing, and the demand for furniture will further increase.

In fact, home furnishing covers almost all home furnishing categories, from all kinds of furniture, cabinets to tiles, floors, walls, ceilings and other products. Gao Shujie, director of the Guangzhou Service Center of AliExpress, disclosed some opportunities in the home furnishing category of the platform at the forum and pointed out that the home furnishing category of AliExpress has increased by more than 50% year-on-year, and home furnishing products with a certain richness, style and cost-effectiveness are more popular with overseas consumers.

The core products are mainly crafts, decorative paintings, wall stickers, posters, clocks, vases, candlesticks, fragrances, and tapestries priced between $10 and $30. In terms of subdivision, wall decorations include decorative paintings, wall stickers, posters, clocks, tapestries, decorative signs, photo walls, decorative mirrors, and decorative films; desktop decorations include crafts, vases, candlesticks, fragrances, music boxes, photo frames, decorative bottles, and decorative coins; outdoor decorations include decorative flags, garden decorative stakes, garden signs, garden windmills, and mailbox decorative covers.

In addition, he also gave the direction of supplementary products. On the one hand, it is the deficiencies in mature categories, including sofa blankets, professional cool sofa covers, outdoor floor mats, cool floor mats, Islamic pattern carpets, and linen carpets. On the other hand, it is the blue ocean sub-categories of the home textile industry, including solid color high-weight towels, bath towels, as well as solid color quilt cover sets, bed sheet sets, pillows, and quilts.

Innovation is the core of an enterprise and an industry at any time, and the home furnishing industry is no exception. And "intelligence" is the future direction of home furnishing products. Liu Fuxian, general manager of Foshan Hongqiangxuan Crafts Co., Ltd., which once supplied products to many cross-border e-commerce companies and created Amazon's best-selling dressing table, said that they are currently developing products such as smart bedside tables.

The trends of enterprises are guided by the market. According to relevant data, the European smart home market is expected to grow from US$26.7 billion in 2022 to US$41.2 billion in 2027; it is expected to grow at a compound annual growth rate of 9.0% from 2022 to 2027.

Smart home product adoption is high in Germany. According to a survey conducted by German industry group Bitkom, 41% of Germans had installed at least one smart home device by 2021. Ease, convenience and comfort were cited as the main motivations for purchasing smart home products by 78% of respondents, while 69% wanted to make their home safer. 62% of respondents rated energy efficiency as a high purchase criterion.

The trend is also true in the United States. According to the PYMNTS publication "The Connected Economy Monthly Report," which surveyed 2,696 U.S. consumers, 32% of consumers (an estimated 83 million people) used smart home or automated household technology in May, about 4 percentage points higher than six months ago. The two most popular smart home and automated household devices are home security applications and climate control.

In smart homes, smart furniture equipped with smart systems or controllers is particularly popular. According to a report released by Next Move Strategy Consulting, the global smart furniture market accumulated US$2.84 billion in 2021 and is expected to reach US$4.27 billion by 2030, with a compound annual growth rate of 4.6% from 2022 to 2030. The increase in demand for space-saving furniture and the popularity of online shopping have driven the growth of the smart furniture market.

It is reported that the 49th China International Furniture Fair (Guangzhou) opened on the 17th in Pazhou, Guangzhou, with an exhibition area of ​​510,000 square meters, more than 2,700 exhibitors, and a 4-day exhibition period (17th-20th). In addition, the Office Environment and Commercial Space Exhibition and the Equipment and Ingredients Exhibition will be held on July 26th-29th, with a larger scale. If sellers are interested, they can scan the QR code in the picture below to participate.

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