On December 21, 2023, the Yuezhou Carnival Conference of the Excellent Material Alliance was held in Shaoxing, and Zhou Fang, research director of the real estate and home furnishing division of Aowei Cloud Network, attended the forum and delivered a keynote speech on "Analysis of the Home Improvement Market Structure Driven by the Transformation of Old Houses", which comprehensively analyzed the trends of China's home decoration industry and the characteristics of residential units.
Zhou Fang pointed out that in recent years, affected by multiple superimposed factors such as repeated epidemics, sluggish real estate market, and sluggish terminal consumption, the scale of the home improvement market is in a stage of low consolidation, and it is expected that in 2023-25, the renovation of old houses driven by second-hand houses and stock houses may make a more important contribution to the home improvement market. In terms of the number of sets, the scale of the home improvement market fluctuates around 20 million sets, and 2021 is the recent high, reaching 212160,000 sets, which will decline to 2036 in 202240,000 sets, but 2087 is expected to recover in 202340,000 sets.
With the slowdown in the development and sales of new homes, in 2022, Beijing and Shanghai will take the lead in the era of second-hand housing leading real estate development, and the proportion of second-hand houses and new houses in high-tier cities such as Guangzhou, Nanjing, and Chengdu is also relatively close to that of old housing renovation, which has become the core driving force for the growth of related industries. In the new market environment, the relevant industrial structure is facing transformation. Driven by the efficiency upgrade of domestic and foreign difficulties, the mobility of elements in the home improvement industry chain has gradually increased, the direction of transformation and upgrading has highlighted the trend of industrial integration, and industrial resources have gradually gathered in the middle of the industrial chain.
From the perspective of the middle of the industrial chain, in 2022, home improvement companies will show a trend of "big industry, small company", the scale of decoration enterprises is relatively scattered, the concentration of head decoration enterprises is low, the first echelon and the second echelon are less than 10%, and the market is relatively scattered. But then, industry resources are expected to accelerate the concentration of leading enterprises.
At the same time, driven by changes in consumer demand, leading decoration companies have laid out the whole assembly business, and the penetration rate of the whole installation has continued to increase, gradually becoming an important engine for the collection of decoration enterprises.
Next, Aowei Cloud Network used the sampling results of new housing supply in the past ten years to study the trend of old house renovation.
The study found that in the past 10 years, the average area of living rooms and balconies has increased significantly, and the area of toilets has also been in the growth channel in the past three yearsComparatively speaking, the importance of bedrooms is declining, and the average size of different bedrooms is declining.
In the past ten years, the proportion of new houses with the integration of living room and dining room and dining room balcony in the sample has been steadily increasing, and the proportion has exceeded 50% in the past two years. At the same time, as a scarce resource of traditional house types, the average area width is also in the process of continuous extension, among which, the average area width of first-tier and second-tier cities continues to grow, while the third- and fourth-tier cities have large fluctuations. And this also means that the long side hall and long bay window create an all-bright space, and the LDK + side hall + 270-degree viewing balcony creates a harmonious symbiosis experience between man and nature, which is gradually entering the field of vision of improving the customer group. From the perspective of consumer demand, LDK and LDKB units can adapt to the changes in the life cycle of different families, and ensure the personalized activities of different family members in the same space that is "visible", creating a multi-functional "synchronic" activity space.
From the perspective of changes in the kitchen, under the penetration of Western kitchen culture, the social communication function of the kitchen has begun to be valued, and semi-open and U-shaped kitchens have gradually become popular. Among them, the average kitchen area in third- and fourth-tier cities has been steadily increasing in recent years, while other cities are in a downward trend.
Influenced by the structure-function design concept, the change of house type returns to the continuous improvement of the user experience, and the different area of house type presents differentiated characteristics
Small apartment (65-90 square meters): Compact layout is the mainstay, sacrificing the area of a single space to increase independent space.
The first renovated house type (90-120 square meters): began to pay attention to the separation of dynamic and static, the integration of guest dining and kitchen, master bedroom suite, etc.
Remodeled (more than 130 square meters): there is separation of host and guest, large living room, variable space, landscape balcony, multiple suites, etc.