Housing rental market may accelerate the development of shared furniture
column:Company news Published on:2022-09-08
Shared bicycles, shared cars, shared power packs... The concept of sharing involves more and more industries, including the home furnishing industry. The most influential one is furniture sharing. With the implementation of the policy of "you can‘t buy a house, you can only rent a house" in xiong‘an new area and the vigorous development of rental housing construction in the country, the prosperity of furniture rental market driven by rental housing will bring a huge development space for shared furniture.

Shared bicycles, shared cars, shared power packs... The concept of sharing involves more and more industries, including the home furnishing industry. The most influential one is furniture sharing. With the implementation of the policy of "you can't buy a house, you can only rent a house" in xiong'an new area and the vigorous development of rental housing construction in the country, the prosperity of furniture rental market driven by rental housing will bring a huge development space for shared furniture.

Birth of new concepts

The annual report on the development of China's sharing economy (2018) released by the National Information Center shows that the transaction volume of China's sharing economy market in 2017 was about 4920.5 billion yuan, an increase of 47.2% over 2016. In the past, shared bicycles and rechargeable batteries opened the way. Now, a number of new concepts such as "shared home" and "shared furniture" have also been born. Sharing furniture is promoting an environmental protection concept of resource utilization and low-carbon home building.

What is shared furniture? According to industry experts, "Internet+rental furniture" means shared furniture. The housing rental market will promote the furniture rental market to usher in great development, and will also promote shared furniture to become the next wind outlet of the Internet sharing economy. Because the future shared furniture is a real market demand, not a speculation concept or a gimmick.

Policy dividend brings new opportunities

In 2017, shared furniture became a new trend. Many shared furniture brands were not only established rapidly, but also gained the favor of capital. However, compared with the "light" characteristics of most shared products, furniture has low replacement frequency, large size, high transportation costs, many classifications, and the whole product is undoubtedly more "heavy".

The Ministry of Housing and Urban Rural Development and other departments jointly issued the Notice on Accelerating the Development of the Housing Rental Market in Large and Medium Cities with Net Inflow of Population (hereinafter referred to as the Notice). The circular proposes to continue to deepen the reform of the urban housing system and establish a housing system that combines rent and purchase. The change from re purchase to re lease of houses reflects the urgency of developing the rental market, which seems to bring new development opportunities to the shared furniture industry. Some experts said that 2018 is a key year for the development of shared furniture. In 2017, 12 cities including Guangzhou, Shenzhen, Nanjing, Hangzhou, Xiamen, Wuhan, Chengdu, Shenyang, Hefei, Zhengzhou, Foshan and Zhaoqing were among the first to carry out housing lease pilot projects. In other words, vigorously promoting rental housing in first tier and second tier cities is likely to be the mainstream way of the future real estate market.

Changes in the real estate market will inevitably lead to changes in the downstream furniture market. The housing rental market is an important part of the real estate market and an important channel to solve the housing problem. Solving the housing problem of urban residents requires the coordinated development of the real estate market and the rental market. It can be predicted that the furniture rental market will further expand in the future. Interested dealers can learn more about the current second-hand furniture market, share the current situation of furniture (in essence, it should be the combination of leased furniture and the Internet), and make early plans for future furniture sales growth.

Market status analysis

At present, the home platform model based on Internet technology has been proven not to fundamentally solve the pain points and problems of home decoration. For example, when buying furniture, you will encounter dazzling SKUs, complex processes, poor experience, and long-term high price pits. In the face of all kinds of pain points in the household industry, but also to solve the problems encountered by consumers, the shared furniture platform came into being, taking advantage of the situation.

The shared furniture platform realizes product modeling, soft decoration scheme and 3D scene through AR and VR technologies; It greatly reduces the time for consumers to purchase furniture products, improves the consumption experience, meets customers' needs to a greater extent, and quickly realizes "what you want is what you see, what you see is what you get". Through VR experience, the average customer stay time increased by 70%, the order rate of the store increased by 30%, and the customer unit price increased by 70%.

We will vigorously develop the rental housing market

According to the rental housing policy of xiong'an new area and the supporting policies on improving and developing the housing rental market proposed by the central economic work conference. In other words, represented by xiong'an new area, the rental housing market will be vigorously developed nationwide in the future. Industry experts believe that the development of the housing rental market will promote the development of related supporting businesses. Among them, furniture is a very large piece.

Furniture leasing will usher in new development opportunities with the development of Housing leasing. The development of furniture rental market is the development of shared furniture. According to relevant data, the housing rental market climbed in 2018, and the supporting service market also showed an upward trend, among which the furniture rental service changed faster. In addition, the demand for leasing and recycling of second-hand furniture increased.

Xiong'an new area further promotes the development of shared furniture

A staff member of a furniture rental company said that the people who rent furniture are generally young white-collar workers and young people who first set foot on the job, most of whom are post-90s and post-00s. Because these people's houses are generally rental houses, not their own houses, and they move frequently, they choose to rent furniture. However, it turns out that there are not many such rental furniture businesses, because the owners of rental houses will prepare some necessary furniture in their own houses. When young people rent such houses, their demand for furniture leasing will not be too high. This is also the reason why the furniture rental market and even the second-hand furniture market have been sluggish in recent years.

Now, with the development of public rental housing and rental housing nationwide, the demand for rental furniture will also expand, which is a huge opportunity for furniture leasing.

In fact, cities like Xiong'an New Area are important starting points for the development of shared furniture. Xiong'an New District in the future is a city of young people, most of whom live in rented houses. There will be a demand for rental of supporting furniture when renting houses, which is a real development opportunity for sharing furniture enterprises.

Bottleneck of furniture leasing bidding

In the government procurement furniture market, there is no shared furniture project, but there is a furniture rental project. The reporter of the Government Procurement Information Daily found that although most public rental housing companies and suppliers said that they had not actually contacted the public rental furniture leasing project, they would try it in the future.

When it comes to the public rental housing furniture project, I have to mention the public rental housing furniture procurement project of Guangdong Dongguan ecological park. Dongguan Zhaosheng Furniture Industry Co., Ltd. (hereinafter referred to as "Zhaosheng") became the first candidate for winning the bid with an offer of 9.48964 million yuan. Luo Xiao, general manager of Zhaosheng, told reporters that environmental protection and quality should be put first in public rental furniture. Tenants are old and young, and safety should be fully considered in product design. In addition, there are two major issues to be considered in the rental of public rental furniture. On the one hand, ensure a reasonable profit margin, and do not bid at a lower price; On the other hand, it is capital, which helps enterprises to ease financing difficulties.

The daily management of leased furniture products is prone to mistakes, which greatly reduces the service life of furniture. Another person in charge of a furniture enterprise said that it was difficult to make relevant judgments because he did not know the specific details of the furniture leasing project, such as what the leasing products included, how the rent level was and how to pay the rent.