At the end of 2022, the home building materials industry, which has been hindered by uncertain factors, has ushered in the hope of market recovery under the drive of a new round of regulation and control policies of the state and real estate.

Entering 2023, under the market environment such as the post-epidemic era, the post-real estate era, and the upgrading of competition, the home building materials industry will move towards a new road of transformation and upgrading. So, in 2023, what kind of development trend will China's home building materials industry show?

Trend number one:

Property policy easing will continue

In the second half of 2022, many real estate policies were introduced, which led to the recovery of the real estate downstream home building materials market. At the end of 2022, a number of policies have been issued with a clear attitude, alleviating the pressure on real estate through various measures, and driving the home industry to usher in a new inflection point.

On January 10, 2023, China Galaxy Securities said that the central government issued a number of policies to ease the pressure on the real estate, the landing of the policy is expected to drive the boom, the early developers to hoard a large number of unfinished projects, the financing side of the repair will promote completion, the subsequent completion of the improvement will support the demand for home. At the same time, the central government proposed to establish a dynamic adjustment mechanism for the first set of housing loan interest rate policy, and some cities that meet the conditions are expected to further reduce the first set of mortgage interest rates, and future policy increases are still expected.
Trend two:

Seize the "dividend" of the stock market such as old renovation and secondary renovation

With the stable development of the real estate industry, the development trajectory of the home building materials industry has also changed, one of the obvious trends is: the growth of new homes has slowed down, the transaction volume has declined, the stock housing market has gradually become a new battlefield for enterprise competition, and the "dividend period" of China's home retail market has just begun.

Through the exploration and attempt of the previous head industry in the old transformation and secondary renovation business, the current home building materials industry has the problem of the overall delivery experience to be improved in the stock market.

Therefore, we infer that in 2023, the stock housing market based on old renovation, old house renovation and secondary renovation will provide stable increment for the head enterprise to develop the sustainable development of the housing construction and installation market, and it is also the business support point for many home enterprises. Home building materials enterprises or will focus on the product + service delivery model, in order to further open the door to the stock housing market.

Trend three:

The hot momentum will continue to spread delivery strength

In the home building materials industry, the weakening of single products is already an irreversible fact. With a certain degree of advanced nature, the whole package has become the tuyere of the home building materials industry in recent years.

However, in terms of consumer experience and the demand for full delivery, the whole package has not achieved the ultimate consumer demand experience. With the constant changes in market demand, with assembly services as the carrier entry, providing one-stop retail services for full-chain products such as building materials, furniture soft installation, home appliances, and smart homes will become an important challenge for the home building materials industry to enter the bureau assembly.

Therefore, we predict that in 2023, the home building materials industry will further integrate the supply chain and deepen the landing delivery of the assembly, so as to further compete for the large cake of the assembly market.

Wang Jianfeng, secretary-general of Xi 'an Residential Decoration Association, said that with the loosening of epidemic prevention policies and good real estate, it can be basically determined that the home building materials market will usher in a rebound in 2023. Since 2022, a number of home head enterprises have landed in the assembly, promoting the assembly to become a new outlet. Under the general trend of the recovery of the home building materials market, it is expected that the hot momentum of the assembly will continue to 2023.

Trend four:

Enterprise transformation and upgrading is still a hot topic

At present, affected by market changes, the fierce competition in the home building materials industry and the normalization of "internal volume", therefore, the transformation and upgrading of home building materials enterprises is still one of the important tasks in 2023.

Upgrading and transformation, usually have these three strategies: first, product diversification, to more diversified products, to provide consumers with more comprehensive services; Second, integrate supply chain to provide supply chain support for more enterprises; Third, the transition to assembly and decoration has provided more and more consumers with more diversified new choices.

The market is always changing, transformation and upgrading is the eternal topic of the home building materials industry. In 2023, the home building materials industry will also accelerate transformation and upgrading driven by the market!

Trend five:

The sleep industry will become an industry outlet

From the development trend of the sleep industry in 2022, we can know that the development potential of the sleep industry is huge, and bedding brands are on the rise.

The "2023 Research Report on the Development of China's Home Decoration Industry" released by the "Sloth Research" on January 3, 2023 mentioned that the market size of the entire bedding track is about 150 billion yuan when mattress and bed frame, pillow and other bedding products are integrated.

According to the financial column of CCTV, the market size of China's sleep economy will exceed 400 billion yuan in 2020, and it is expected to exceed one trillion yuan by 2030. As a new business form of modern life, "sleep economy" contains new business opportunities. At the same time, the Chinese people suffer from sleep problems, the market of related products is becoming broader, the existing sleep products are far from meeting the domestic demand, and more updated sleep products or services are still incubating.

In 2022, in the context of the explosion of the sleep economy, home furnishing companies have also begun to look for opportunities to cut to the track. Whether it is the head brand that started from the traditional bedding field such as Xi Linmen and Mousi, or the industry leaders that "turn" and enter such as Gu Jia and Sophia, they are emerging in the new space of sleep economy.

Therefore, in 2023, more home building materials companies will enter the healthy sleep, customized sleep, smart sleep and other tracks, and the sleep industry will gradually enter the one-stop software home era from the era of single products!

Trend six:

Soft clothing consumption potential is being activated

Recently, we found that soft clothing broke into the core plan list of 2023 China Home Expo (Guangzhou).

In 2023, the main side of the China Home Expo (Guangzhou) organized the CIFF soft decoration aesthetic design exhibition, which refers to the first exhibition of China's soft decoration, invested in six single category exhibition halls and two soft decoration space exhibition halls, covering the whole case supply of decorations, curtains, carpets, bedding, and the introduction of the whole soft decoration, and the ambition can be seen.

This means that, by the upgrading of home consumption, as well as the prosperity of the whole customization, bag occupancy, the whole house, finished products + customization and other formats, soft decoration consumption is further active. Coupled with wall cloth, curtains, ornaments, murals, carpets and other categories of integration of the overall soft outfit format speed up, a second line of brands focus on force, and has driven more and more dealers to enter.

With the help of the China Home Expo (Guangzhou) aggressively cut into the soft wear track, in 2023, the penetration rate of soft wear will be further improved, more families will buy brand soft wear, and tend to one-stop delivery of the whole house soft wear, there will be more home building materials companies through cross-border or integrated soft wear supply chain, to compete for soft wear market opportunities!

Trend number seven:

Tap the incremental market, compete for speed and plate size

The market competition in the home building materials industry is becoming increasingly fierce, and single products can no longer meet the needs of terminal stores and consumers. Through cross-border, business expansion, alliance and other ways to tap the incremental market, will become a new round of competition for home building materials enterprises in 2023.

In the past few years, due to the consumer market has been hit by the epidemic and other aspects, home consumption demand has been pressured down, and many consumers would rather wait and see first and then consume, resulting in a "closing tide" of home stores in 2022. However, as long as the "house" is still there, everyone's consumer demand will be suppressed, but it will not disappear.

Therefore, in 2023, home building materials companies will face a big competition to tap the incremental market. How to reawaken the delayed home improvement consumer demand in the New Year, how to expand the channel capacity to help dealers improve customer ability and transformation ability, how to combine online and offline drainage and penetration, how to present the product portfolio more completely to consumers through integrated design solutions, will be the focus of 2023 home building materials enterprise layout incremental market.

Trend eight:

Organizational capability reconstruction based on digital capability

In recent years, digitalization has been the focus of the home building materials industry. Digitalization offers endless possibilities for enterprises to improve efficiency. It also puts forward higher requirements for the original ability of enterprise organization.

One is the need for a complete digital transformation model. In the face of the Uka environment (VUCA), if you continue to use the original logic to do things, many playing methods are or have failed. Exploring a complete set of digital transformation models and paths has become an important strategic direction to adapt to changes in market demand and drive business changes.

The second is to identify the entry point of digital transformation. If the home improvement company wants to do digital change, it is also a heavy decision, first of all, to find a good entry point, which is the first step of the strategy, and then have the courage to continue to invest, talent, capital, time, patience.

The third is to build a management and sales team with digital capabilities, which is the capacity construction that home building materials enterprises must focus on under the digital background.

The consumer durables properties of the products of home building materials companies have become slightly difficult in the context of digital goods. Although live e-commerce is on the rise, it has little reference significance for enterprises in the home building materials industry. In the difficulties to explore a suitable road for the development of the industry, is still the home building materials industry in 2023 needs to actively strive for the direction.