Recently, Ministry of Industry and Information Technology, Ministry of Housing and Urban-Rural Development, Ministry of Commerce, the General Administration of market supervision and other four departments jointly issued the action plan for promoting high-quality development of home furnishing industry (No. 20 [2022], hereinafter referred to as the Action Plan), this is the first national policy guidance document for the household industry, which means that the domestic household industry has entered an unprecedented "policy opportunity window" and has great and far-reaching significance.
Qin zhanxue, president of China Building Materials Circulation Association
the following is an in-depth interpretation:
I. Release background of action plan
during the epidemic, the association proposed to the State Council in the suggestion letter of "taking home decoration as the starting point and promoting consumption upgrading", which proposed "taking green, intelligence, safety, health care, environmental protection concept promotes the development of home furnishing industry". During this period, the Ministry of Commerce and other relevant departments and bureaus of ministries and commissions have repeatedly consulted the Association on how to "promote consumption and stimulate domestic demand" in the industry. In the same year, in the executive meeting of the State Council, for the first time, relevant policies for the development of building materials and home furnishing industry are put forward: promote the consumption of household appliances, promote the consumption of furniture, promote the consumption of home decoration, and encourage regions with conditions to give subsidies to eliminate old household appliances and buy green intelligent household appliances and environmentally friendly furniture. The Ministry of Commerce also gave feedback on this: the main content of the building materials and home furnishing development that you will propose has been adopted. Thank you for your policy suggestions.
Since 2022, the international environment has become more complex and severe, the world economic recovery has slowed down, the global inflation pressure has reached highly complex, the domestic local epidemic has spread more, and the domestic economic downward pressure has plus-sized, in order to thoroughly implement the spirit of the executive meeting of the state council, stabilize the economic market, expand domestic demand, promote the home industry to optimize the supply system, improve the supply level, lead and create new demands with innovation-driven and high-quality supply, the Ministry of Industry and Information Technology, Ministry of Housing and Urban-Rural Development, Ministry of Commerce, General Administration of market supervision and other four departments jointly compiled the action plan. The action plan covers a number of policy suggestions repeatedly put forward by China Building Materials Circulation Association to various ministries and commissions of the State Council, and is also closely related to the ongoing and upcoming work of the association, the future association will actively guide the implementation of the action plan and practice the high-quality development of the industry in combination with the characteristics of the industry and the needs of enterprises.
Second, the home furnishing industry has great potential and can help build a new development pattern.
The household industry is an important industry that carries people's livelihood consumption and a large number of jobs. It has the characteristics of large scale, strong consumption drive and wide industrial coverage. Household appliances, furniture, lighting appliances and hardware products are four key industries covered by the home furnishing industry. In 2021, the operating income of enterprises above scale reached 3.8 trillion yuan, accounting for nearly 20% of the light industry. The household industry has many categories and complete industrial chains, which is of great significance for stabilizing the traditional industrial basic disk.
However, under the current triple pressures of demand contraction, supply shock and expected weakening, China's economy is speeding up the construction of "taking the domestic circulation as the main body, the new development pattern of domestic and international double-cycle mutual promotion" is an inevitable choice to maintain the stable, healthy and sustainable development of China's economy. Choosing the big head in consumer markets such as home furnishing and building materials (civil) as an important driving point to promote consumption is of great importance to smooth the internal circulation of the national economy.
In recent years, with the promotion of consumption upgrading and technological progress, the quality benefit of home furnishing industry development has been steadily improved, but it also faces the lack of innovation leading in key industries, the low level of quality refinement, problems such as inadequate development of intelligence, by giving full play to its important role in expanding domestic demand, it will surely accelerate the transformation and upgrading of the industrial chain and supply chain of the home furnishing industry, promote the home furnishing industry to make up for short boards, cultivate long board and excellent products, guiding resource elements to promote high-quality industrial development and agglomeration will effectively promote industrial development to a new level.
3. Strong resilience of home demand and vast space for upgraded consumption increment
household products belong to durable consumer goods, which is the second largest consumption expenditure of households after cars. If it is linked to home decoration, the entire industrial chain is larger than cars. Since the beginning of this year, domestic demand in the home furnishing industry has emerged. The rigid demand for building materials and home furnishing suppressed by the epidemic is gradually released, and the consumption demand for home furnishing products is relatively tough. According to the BHI (national building materials and home Prosperity Index) issued by the circulation industry development department of the Ministry of Commerce and China Building Materials Circulation Association, from January to June 2022, the cumulative sales of building materials above the national scale home furnishing stores was 637.171 billion yuan, up 32.47 percent year-on-year.
At present, China's real estate market is in the transition period from incremental market to stock market. China has more than 0.3 billion sets of stock housing market. The first batch of commercial housing in China was built in the 80's of last century. According to the calculation of 10-15 years as a housing renovation cycle, about half of them have the demand for redecoration, the market space is very large.
In addition, judging from the consumption trend, the signal of upgrading the consumption of household building materials is already very obvious. 0.4 billion the consumption ability and concept of middle-class consumer groups are upgrading simultaneously, changing from basically meeting the demand of "living" to diversified and personalized demand, superimposing the new demand emerging during the epidemic, and the changes in consumption habits caused by the epidemic, the persistence of the epidemic may make some consumption more cautious, but most decoration users do not want to lower their standards of quality life, intelligence, green, health care, safe building materials and household products are increasingly favored by consumers. According to the survey results of relevant institutions Big Data Research Institute, in the first half of 2022, the National Decoration budget increased by year on year.
In the action plan, high-quality supply leads the creation of consumption increment, which contains five keywords: "intelligence, green, health, safety and digitalization", pointing out that suitable for the elderly, children, the demand direction of the supply of high-quality products such as smart home and puts forward the direction of convenient, comfortable, healthy and safe home environment to improve the ability of design to lead the demand. Moreover, taking design as the guide and promoting consumption upgrading are also a major feature of the action plan, namely "reverse Customization". This is also the first time proposed at the level of relevant national policies. The so-called "reverse customization" is a business model that enterprises respond quickly according to consumers' common behavioral preferences on the basis of full investigation of consumer behavior.
IV. Focus on rural consumption potential and tap county economic potential
rural consumption is an important part of consumer market. From the perspective of income growth, rural areas continue to maintain the situation that income growth is faster than that of cities and towns, because the nature of work and family leverage ratio are quite different from those of cities, and a large number of rural residents' future consumption, employment expectation is weaker than that of cities due to the influence of macro environment.
In the process of promoting rural revitalization strategy, beautiful rural construction, rural dilapidated housing rehabilitation, rural environmental governance, toilet revolution policy, etc., the sinking market (covering cities below the third line, counties and towns and rural areas, the population size is nearly 1 billion), which contains huge consumption demand and potential. More and more rural families who have been lifted out of poverty and become rich are increasing their demand and consumption ability for home building materials. With the continuous growth of residents' income in villages and towns and the increasing leading role of urban consumption, the consumption potential of the sinking market will be gradually activated. In the action plan, enterprises are encouraged to develop personalized, customized and healthy attribute intelligent green household appliances for the rural market, and carry out activities such as promotion, profit transfer, trade-in, and replacement, promote rural consumers to upgrade consumption.
In 2022, the Ministry of Industry and Information Technology, the Ministry of Housing and construction and other six departments of the State Council jointly carried out green building materials downstream activities, China Building Materials Circulation Association, as the deputy leader unit of the green building materials promotion Working Group, actively participate in and promote green building materials to the countryside; Recently, the association will also release "on implementing the General Office of the CPC Central Committee in the National Building Materials and home furnishing industry, notice of the action plan of the general office of the state council <opinions on promoting urbanization construction with county towns as important carriers>, through the positive actions of all relevant subjects in the national building materials and home furnishing industry, strive to reach 2025, A group of county-level industrial clusters and professional markets with the advantages of building materials and home furnishing characteristics have achieved remarkable results. The county-level infrastructure construction is basically complete, and the circulation and supporting service capabilities of county-level building materials and home furnishing products have been comprehensively improved, green building materials and household products are widely used in county areas, and the quality of life of county residents has been significantly improved.
V. Give full play to the collaborative governance role of industry associations and promote the implementation of the action plan
the action plan clearly establishes the industrial development goals for the next four years. By 2025, the innovation ability of the home furnishing industry has been significantly enhanced, and the supply of high-quality products has increased significantly, initially forming a higher level virtuous circle of supply creating demand and demand pulling supply. The specific goal is to cultivate innovation platforms such as manufacturing innovation centers and digital transformation promotion centers in industries such as household appliances and lighting appliances, with the integration level of two key industries reaching 65%, cultivate a batch of 5G fully connected factories, intelligent manufacturing demonstration factories and excellent application scenarios. The proportion of personalized customization such as reverse customization, whole-house customization and scene-based integrated customization has steadily increased, the supply of green, intelligent and healthy products has significantly increased, and new formats such as smart home have accelerated development. Cultivate about 50 well-known brands and 10 home ecological brands in the home furnishing industry, promote a batch of excellent products, establish 500 smart home experience centers, and cultivate 15 high-level characteristic industrial clusters, promote the quality consumption of home brands with high quality supply.
As a trade association, we are willing to adopt the mode of government guidance and association operation, give full play to the optimal allocation of market resources, and deeply implement the consolidation of industrial Foundation proposed in the action plan, accelerate the digital green transformation, promote the cultivation and strengthening, expand quality supply, plus-sized application promotion and other five tasks. At the same time, we call on eligible provinces (districts, cities) or counties, cities and enterprises to actively participate. We are willing to provide more services and help to promote the home furnishing industry to a new level of high-quality development, meet people's growing new demands for a better life.
