In the wake of last year's challenges, many home furnishing retail companies have taken a step towards e-commerce, aiming to explore new sales channels and adapt to the evolving market. This shift has become a strategic move for businesses seeking to stay relevant in an increasingly digital world.
Recently, major players such as Debao, Meikemeijia, and large home building materials shopping malls have announced their entry into Tmall, signaling a broader trend. This marks the first large-scale online push by home improvement retailers, following the earlier steps taken by home appliance and supermarket industries.
Prior to this, furniture manufacturers like Qumei, Elvis, and Meiyijia had already started exploring e-commerce platforms, achieving some initial success. Reports also suggest that Red Star Macalline is set to launch its own e-commerce platform, "Hongmei Mall," further expanding the digital presence of the industry.
According to iResearch analyst Zhang Jing, while entering the e-commerce space is a logical step for expansion, the impact on overall business may not be immediately visible. However, it could still contribute to long-term growth and brand visibility.
Mo Daiqing from the China E-Commerce Research Center agrees that going online is a natural evolution for offline home stores, but emphasizes that e-commerce should complement rather than replace physical experiences. Household goods often require hands-on interaction, making consumer experience a critical factor.
Industry experts also point out that pricing strategies, logistics, and after-sales services remain significant challenges for online home sales. These factors can complicate the transition from traditional retail to digital platforms.
In 2012, many home furnishing stores faced declining performance, leading to store closures. Home Depot, for instance, shut down all its seven stores in China. Later, the company chose to partner with Tmall, establishing an online flagship store to reach a broader audience. The collaboration aimed to tap into the growing demand for high-quality, eco-friendly, and personalized products.
Zhang Jing highlights that Tmall’s user base and traffic advantages make it an attractive partner for home retailers. With over 50% of the B2C market share, Tmall offers a powerful platform for brands to connect with consumers.
Lijia’s president, Qian Mingfa, emphasized the importance of reaching more customers through multiple channels, especially online. As first-tier city markets become saturated, third-tier cities are emerging as key growth areas, and e-commerce is seen as a vital tool for rapid expansion.
E-commerce offers numerous benefits over traditional marketing, including lower costs, precise targeting, and better customer engagement. It also helps build brand reputation and foster loyal customer bases.
Despite these advantages, the home furnishing industry faces unique challenges when transitioning online. Consumers often struggle to visualize product sizes and textures without physical interaction. Additionally, bulky items can be difficult and costly to transport, making returns and replacements complex.
Pricing strategies also pose a challenge, as online sales may disrupt existing offline pricing systems. This can create tension between suppliers and retailers, affecting profit margins and cooperation.
Gong Wenxiang of Huaqiangbei Online suggests that successful online expansion requires integrating online marketing with physical displays. Brands must differentiate online and offline offerings while maintaining competitive pricing and protecting their existing market structures.
The online business model for home stores is still evolving. Zhang Jing recommends that home e-commerce adopt unique promotional strategies, such as offering free design consultations or other value-added services.
Many industry insiders believe that the best model for home furnishing is O2O (online-to-offline), where online and offline operations work together to create a unified customer experience. Meikemeijia, for example, sees Tmall as a starting point for e-commerce experimentation, aiming to integrate product flow, logistics, and customer flow effectively.
As the industry continues to evolve, the path to successful e-commerce will require careful planning, innovation, and a deep understanding of consumer behavior.
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