Custom vs. Standard Who will lead the future of the home furnishing industry?
Customization and Standardization at a glance
Standardization School: 'Nowadays, even high-end customization is gradually declining. At the moment when the price, construction period, and quality are uncertain, only standardization can solve the chronic problems of home improvement. Only the group of designers with uneven levels, mixed with gray selection basis , It is difficult for consumers to feel efficient, transparent, and no dead ends of home improvement.'
Customization School: 'Standardization is a reversal of history. The whole world is shifting from industrialization to respecting human nature and individuality. Standardized home improvement at the expense of the individual needs of users is ultimately the wishful thinking of enterprises. As consumption upgrades , The customer group must have more advanced pursuits and are willing to pay for personalization.'
Centrist: In the next ten years, both customized home improvement and standardized home improvement will exist for a long time, and gradually integrate and develop. Without standardization, customization will not go long; without the customization of industrial production, the standardization of components loses its meaning. Standardized home improvement needs to grasp the current mainstream group, that is, the low-end group; and customized home improvement is the future trend and future of mid-to-high-end home improvement.
Just in need or improvement, consumer groups determine the future of home furnishing
In fact, customized home furnishings and standardized home furnishings are aimed at different customer groups. From the current point of view, standardized home furnishings can effectively improve the cost-effectiveness due to their ease of industrial scale production. They are suitable for first-time buyers of rigid-needed households and rely on volume to make profits. The customized home furnishings are aimed at high-end customers, with high unit prices and high profit margins. Who can represent the next decade depends mainly on whether the mainstream customer base just needs more or improves more.
What is the mainstream customer base in the future? We can make some speculations from the two recent news.
According to a recent survey by HSBC, 70% of young people in China own a house, and 91% of young people plan to buy a house in the next five years. Ranked first in the world. In the next 10 years, the improvement needs of this group of young people will be very impressive.
Another piece of news is about the urbanization rate. According to the statistics of the National Bureau of Statistics, the urbanization rate of the registered population in China in 2016 was 41.2%, and the urbanization rate of the permanent population increased by 1.25%, which is still at a low level. The reason is that China's demographic dividend is gradually disappearing, and the household registration reform has not yet been fully implemented. According to previous plans, China's urbanization rate will reach 60% in 2020 and 70% in 2030. Along with this process, it is the most important process of migrant workers' citizenization in the household registration reform. This process will release a large amount of rigid demand for housing.
Generally speaking, whether the future home furnishing industry will be dominated by customization or standardization is the final word, and it is inseparable from consumer groups and related policies. Whether it is standardization or customization, there is no doubt that the overall development trend of the home furnishing industry is improving.