The rapid advancement of digital technology is not merely embellishing the existing home decoration industry; it is fundamentally reshaping the entire supply chainAs we stand at the threshold of a new era, experts in the field are beginning to recognize that the underpinning logic of generative business models is poised to revolutionize traditional marketing methods within the home decoration sectorThis evolution is further manifested through innovative collaborations with various industries, enabling a competitive expansion into realms such as eco-friendly building materials and health-conscious home furnishing solutions.
As we look toward 2024, the Chinese home decoration market has witnessed a whirlwind of significant developmentsThere have been instances where companies have grappled with operational difficulties due to cash flow issues, a reflection of the broader economic landscape
Amidst these turbulent conditions, many enterprises within the industry are actively searching for new avenues of growth.
Artificial Intelligence (AI) is surfacing as a prominent catalyst for these transformationsWang Guobin, the CEO and founder of Tu Ba Tu, declared during the 10th Tu Ba Tu Ecological Conference that the company is initiating the "Starlight Plan" for 2025. This comprehensive strategy aims to enhance the AI infrastructure across the industry and integrate AI technologies into key facets of the business, including design, customer service, precise matching, and marketing strategiesAdditionally, collaboration with home decoration firms is set to be emphasized to further solidify supply chains, digital showrooms, and reputation systems in preparation for the challenges ahead.
So, how exactly is AI redefining the home decoration landscape? Taking Tu Ba Tu as a case in point, the firm has already made significant strides in improving its platform services using AI in 2024. For example, they have enhanced features such as AI design tools, online consulting services, and 3D panoramic imaging capabilities
- Dollar Retreats, Oil Prices Rebound
- The Downfall of Japanese Automotive Giants
- Slight Decline in the Dollar Index
- Dollar/Yen Hits Five-Month High
- Embrace Change with Patience
Moreover, quality inspections and reputation assessments have benefited from AI optimizations, contributing to smoother operational processesThe company leverages AI-generated promotional materials, including posters and videos, to bolster marketing campaigns and enhance supply chain efficiency through innovations like cloud showrooms and product display substitutions.
Wang Guobin elaborated on the rationale behind the integration of AI in the home decoration industryToday's consumers tend to be more cautious in their spending, extending their decision-making timelinesThere is a pronounced increase in demand for partial renovations and minor modifications, as homeowners are spending more time in their living spacesFurthermore, the growing reliance on the internet for decision-making signals that AI can present unique opportunities for industrial change, allowing manufacturers of furniture and building materials to adapt to a more personalized home decoration market.
Wang noted that the home decoration industry is heavily reliant on human labor, highlighting that the core of modern AI is to enhance productivity and address management challenges
Historically, many downstream manufacturers of home furnishings have derived a significant portion of their revenues from real estate, particularly through bulk procurement and large-scale project ordersHowever, as fluctuations in the real estate market have decreased the volume of polished apartment procurements, the demand for personalized home decoration is surging—indicating a transformation in the entire downstream supply chain.
Discussing AI's impact on the home furnishing sector, Liu Jun, Vice President of Shenzhen Zhongming Technology Group, pointed out that AI is modifying product designs, marketing tactics, and even the environments in which these products are showcasedInnovations such as foldable LED screens and smart LED tables, when combined with AI technology, pave the way for a more immersive and interconnected smart home experience.
Additionally, Wang Guobin shared the company's operational performance for 2024, indicating a commendable 21% growth in total user base, a 36% increase in platform invitations, a 31% expansion in space measurement services, and a 27% rise in offer verifications.
In terms of current market demands, Wang emphasized that while fluctuations in the real estate sector have posed challenges to the home decoration industry, the appetite for partial renovations and micro-improvements is rapidly gaining momentum
The traditional view of home decoration as a high-cost, low-frequency expenditure is shifting towards a model characterized by medium to high costs but higher frequency of engagement.
Furthermore, he noted a cultural shift where individuals are increasingly seeking tranquility and comfort in their living spacesThe consumer landscape has evolved dramatically over the past few years due to rampant economic growth, compounded by global economic shifts, leading individuals to seek solace and a serene atmosphere within their homes.
Given these emerging trends, Wang firmly believes that the market for micro-renovations and targeted improvements will drive the entire industry towards increased standardization and heightened expectations for quality and service.
On the broader topic of Chinese companies venturing into international markets, Wang expressed a cautious approach when considering overseas expansion, having explored several countries in pursuit of potential opportunities
He emphasized the importance of collaborating with reputable local businesses to ensure a nuanced understanding of target markets and leverage supply chain advantagesThere is a strategic intention to chart a path toward international markets as and when conditions are favorable.
"I've explored markets in the United States, Japan, and Southeast AsiaThe strength of China's supply chain is undoubtedly formidable," he remarkedHowever, he acknowledged the necessity of understanding cultural and consumer behavior differences across various target markets, as home decoration is deeply intertwined with cultural norms and valuesCompanies planning to expand internationally should seek synergistic partnerships with local firms to foster integration and understanding within the target market, maximizing complementary strengths.
Moreover, Wang highlighted the need for strategic optimization of the supply chain, particularly in the home furnishing and material sectors