Recently, the Department of Circulation Industry Development and China Building Material Circulation Association jointly released the National Building Material Home Prosperity Index. According to the data, BHI continued the upward trend in the first quarter, rising by 5.28 points annually, but due to the hedging effect of the national real estate market regulation, the BHI annular ratio rose only slightly. Through the change of BHI index, we can predict that the development of home building materials industry will present five development trends in the market opportunities of the property market, such as the overall warming of the property market, the structural reform of the supply side and the 'one belt and one road'.

The development of China's home building materials industry will present five new trends.

Trend 1: Diversification of E-commerce Channels into Key Enterprise Projects

Just two years ago, 'e-commerce' was still a new thing in the home industry. Whether the home industry is suitable for the development of e-commerce is still a controversial topic. Nowadays, more and more brands begin to build their own e-commerce system. Network channel has become an important part of brand development. In addition, channels such as stores, engineering, decoration companies and designers are becoming more and more important. Channel construction has become the key layout of brand development in the future. During last year's 'Shuang11' period, the brand Tiancat flagship store became the main position of e-commerce channels, many brands entered the 'billion club' because of its sales performance of more than 100 million yuan. Unlike in the past, most of the online sales channels of home brands have achieved the same and common resources with offline stores, such as the same price of the same product, the availability of online preferential stores and so on, which reduces the harm caused by online and offline interaction.

Some people in the industry say that although at present, the sales of household goods through network channels are far below those offline, the advantages of network sales are more obvious in some standardized building materials and furniture categories. Enterprises also attach great importance to this. In the future, e-commerce will become a hot spot in the industry. Corresponding to this is the construction of enterprise's network sales channels. Household goods are more expensive than other consumer goods, such as warehousing, logistics, installation and so on. Many enterprises have quietly built their own service system to further reduce the cost of online sales. Of course, if the system is built, the larger the load capacity and the higher the utilization rate, the construction cost will be diluted.

Therefore, some enterprises specially aim at the industry 'intermediate link' market. Some brands in the layout of home logistics business, before specializing in home services and building materials marketing business brand also positioned itself as 'home integrated service provider', aimed at customers at both ends of the market - production brands and consumers, online platforms, offline services and other aspects, to build a full channel system.

Trend 2: Home Group Development will become more and more common

The scale of the household industry is considerable, but the scale of the individual economy can be called 'huge' enterprises are few and far between. With the acceleration of industry integration, some enterprises have begun to expand their scale and enter into multi-field industries relying on the capital accumulated in the industry for many years. In the future, large groups will become more and more common in the industry development. Enterprises intend to expand the scale of development, first of all in the industry. In addition to splitting more cakes in the market scale, the brand has gradually extended to other household-related industries, building a 'big group' of household business.

Trend 3: More and more foreign capital enters the household industry

Home industry has a long chain, more pain points and more opportunities, so it attracts a large number of capital to enter. Enterprises with abundant capital in the industry are also using capital means to lay out all kinds of business inside and outside the industry. The power of capital is emerging. In the future, besides focusing on basic manufacturing and marketing services, capital has also become a hand to control the development of the industry. For example, recently Amazon, an e-commerce giant, announced that it would make a big push into online home.

The most obvious areas for foreign capital to enter the household industry are Internet home furnishing and smart home. These two fields have a relatively short history and are more capable of attracting capital. In the past two years, many real estate and public garment enterprises have laid out Internet home decoration business. In the field of smart home, Dell Home, Mercury Home Textiles, Guangtian Group and Mengjie Home Textiles in the industry have announced their investment, while Mei Group and Jingdong Group outside the industry have also made a lot of moves.

Trend 4: More and more technology innovation technologies will be applied to the home industry

In the past two years, 'innovation and upgrading' has become a hot word in the industry. But unlike previous slogans, the industry is beginning to feel the pressure of innovation. With the high cost of manpower and stricter restrictions on production emissions, most manufacturing enterprises are facing the pressure of upgrading production technology. The emergence of new technologies such as VR and smart home also brings excitement for innovation and upgrading in the industry.

VR technology is a hot spot in last year's industry. Whether decoration companies or furniture brands, they hope to show consumers a more real product effect through VR technology. 'WYSIWYG' is a term that has been mentioned in the industry for many years, such as VR design system, which allows customers to roam around their future homes in 30 minutes of rapid interactive design. The emergence of VR, so that consumers have a more authentic experience, has become more and more brand stores of the standard. Some insiders assert that in the future, similar VR technology will become the infrastructure of the home industry.

Along with VR comes smart home technology. Although the related products have not been widely spread, many families have more or less appeared smart home facilities. Among them, remote control and alarm systems are the most common. Smart home technology is rooted in many technology and product platforms such as home, home appliances, Internet of Things, and attracts many people.