China is a dynamic market for home decor and furniture consumption. The rising demand for home decor in China is propelled by urbanization, income growth, and cocooning trends. Today, China is making new billionaires faster than the US. And the local population is actively looking for Western high-quality, creative, customized, and niche brands to turn their interior design into a tastefully decorated apartment.
Key Takeaways:
- The home decor market will reach $20.23 billion USD in revenue in 2024
- The new consumer is driven by quiet luxury, sustainability, and niche discovery
- Collaborations with local showrooms, distributors, and architects can propel your brand faster
- Xiaohongshu is a key medium for your brand awareness, including influencer campaigns
- Product placements with Chinese celebrities are the fastest growth ingredient
Let’s dive in.
Overview of the Home Decor Market in China
The home decor market is the only one that didn’t slow down during the Covid-19 pandemic in China. Thus, its constant growth turned it into one of the most appealing markets for brands. To give you a clear vision, we’ll make a quick review of the current home decor market in China.
Forecasted Revenue of $20.23 billion USD in 2024
China is the second most profitable market for home decor after the USA. Despite the Covid pandemic, the annual revenue kept increasing. In 2023, the Chinese home decor market achieved an annual revenue of $19.37 billion USD. It is forecasted to reach $20.23 billion USD in 2024. The annual growth rate from 2023 to 2027 is estimated at 9.26% YoY.
With the pandemic, Chinese people spent more time at home and invested in making their home space more comfortable. From decorations to carpets and candles, Chinese consumers spent more per capita than in previous years. This consumption trend is estimated to keep growing in the next years.
With sustainable growth, the Chinese market is a key market for Chinese and Western brands.
Key Players Benchmark for Home Decor in China
In China, Western home decor brands have a strong success among local consumers. Indeed, they often seduce consumers who want to feel different with their unique European style and high-end material.
- IKEA Group: The brand dedicated to provide home furnishing inspirations “for all wallet sizes and home sizes” made its market entry in 1998 when it opened its first store in Shanghai.
- Devialet: Known for its high-end audio system, it became a must-have for Chinese consumers who wanted to invest in a good audio and sound system in their homes.
- Artemide: With exclusive and niche designs for lamps, it seduced Chinese consumer for its price-quality ratio and its overall embellishment while remaining practical.
- Glas Italia: The iconic glass table was endorsed by the Chinese celebrity Angelababy in a print magazine which propelled the notoriety and appeal of the brand in China.
- Baccarat: The crystal brand multiplied collaborations and events in China, it is now praised by younger consumers for its tableware, lamps, and crystal vases.
The current key players give strong insights into what Chinese consumers are looking for today.
New Consumer Insights Driven by Quiet Luxury
The development of the home decor market in China is driven by Millennials and Gen Z. Millions of post-90s consumers are about to purchase their first home. Hence, they are investing massively in home decor brands from around the world. They favor sustainability, safety, and quiet luxury.
According to the latest survey of Statista, “Millennials tend to prioritize functionality, sustainability, and affordability when making purchasing decisions, which means that retailers who can offer innovative, eco-friendly, and cost-effective products are likely to succeed in this segment of the market“.
Another driver is the quiet luxury trend. Even if it initially came from the apparel industry, this trend has a direct impact on the home decor market. In fact, Chinese consumers are favoring brands that are “less known” with discreet logos. The objective is to reinforce the sense of belonging among luxury home consumers.
Let’s go into these trends in detail.
Trends in the Home Decor Market in China
The home decor market is experiencing a shift towards customized and premium home decoration. This new consumption model, driven by Millennials and Gen Z, is having a direct impact on their sales in China.
A Rising Demand for Customized Furniture
The rising disposable income brought a shift in consumer demand. Indeed, Chinese consumers are investing more and more in customized furniture and decoration to make their homes unique. They often work with home designers and architects to think of their apartment as a whole.
From the lamp to the curtain, everything is thought out. Even more, it’s common for Chinese consumers to change completely the design of their homes every 10 years. They will appoint a new home design to re-think their home universe and display to give a fresh makeover.
Emergence of Niche and Creative Brands
The rise of social media created a revolution among Chinese consumers, especially the younger generations. They spend more time on WeChat, Douyin, and Xiaohongshu and receive more daily content about influencers showcasing their interior design advice. In addition, they receive daily inspiration based on their algorithm and targeted ads.
This shift in daily consumption created more space for niche and creative brands to rise. Chinese consumers are now looking for creative tables, colorful carpets, and disruptive decorations as a statement. They share who they are through the way they decorate their apartment.
A Strong Appeal for Premium Western Brands
Finally, they appreciate premium Western brands that propose a unique design inspired by their heritage. The pricing is not an obstacle when the brand has a long history, like it was the case with Baccarat and Lalique. But it’s also the reason why they turn towards luxury brands. The home has become a social status proof they can share on social media.
It explains the success of Dior Home, Hermès Home, Fendi Casa, and more. It is a mix of luxury and Western heritage that Chinese consumers give a strong value and recognition to. Local retailers are constantly in quest of new premium Western brands and don’t hesitate to fly to Europe to discover new brands to sell in China.
With this knowledge about the current home decor market in China, you’re ready to make your entry.
We’ll share with you the best strategies to market your home decor brand in China.
Let’s dive in.
How to Market a Home Decor Brand in China?
This is the perfect guide if you want to enter or expand in China. Each step can be used at a different stage and combined for a stronger impact. You need to work with local showrooms and distributors, create a seamless O2O experience, promote your brand on Xiaohongshu, and find a local partner. I’ll explain everything!
Partner with Local Showrooms and Distributors
When you plan your market entry, your first step is to make your brand available in China. By available, we mean that they can find your brand offline to see and touch your products. For this, the best way is to partner with local showrooms that can display your products for importers, distributors, and retailers. Then, you need to collaborate with distributors to sell your brand offline in a dedicated network of sales channels and stores.
First, you need to have a Chinese brochure. It is a document that will summarize your hero products, collaboration requirements, customization model, and history. Since only 1% of the Chinese population speaks English, you’ll need to have this document written in Chinese. Then, you can approach distributors and showrooms or work with a Local Agent.
Contact us for an optimized Chinese brochure and send it to our distribution network.
Collaborate with Chinese Home Designers and Architects
This step is a bonus if you are already in China. Why? Because it can take your brand a step further with large customizations and creative projects. You can partner with architects in their next project. For a home or an apartment, they can ask you to customize a lamp, a vase, a table, or a gigantic sculpture to go with the creative atmosphere.
For this, you need to have a Guanxi (关系). If you are familiar with the business world in China, you already know this. If you’re not, “关系” means the set of personal and trustworthy relationships you have with one another. You will always solve issues and challenges with your network. And when you need to work with home designers and architects, you need to have a strong Guanxi. We recommend working with a Local Agent who has this (like us!).
Create a Seamless Online and Offline Experience
A seamless offline-to-online (O2O) experience is key to your success in China. It is recommended for all industries but it is a must in the home decor market. Because Chinese consumers will often discover your brand offline and may want to learn more online or purchase online later. On the other hand, they may also discover your brand in their feed and would like to test your products in the nearest store.
You need to have a strong ecosystem in place. First, you can start a WeChat account and create a menu with sub-menus. You can create a WeChat Mini-Program that can summarize all the stores near them. You can also create a Loyalty Program they can scan in-store to find all their past purchases, coupons, promo codes, and VIP benefits. Finally, you can open a WeChat store to get sales if they want to order online and be delivered at home.
Promote your Brand on Xiaohongshu with Influencers
Xiaohogshu (also called Little Red Book), is the star of social media for home decoration. Indeed, Chinese consumers always browse Xiaohongshu for inspiration and ideas for their homes. In our latest consumer interview, a woman aged 35 confirmed “I always search on Little Red Book first. If I see a product that I like recommended by an influencer or another user, I will search for the store near me to see it. And if I like it, I’ll purchase it directly“.
To promote your home decor brand on Xiaohongshu, we recommend working with influencers. A good KOC or KOL, with a strong follower base, can make your brand out of stock in a couple of hours. First, you need to identify your campaign objectives. Then, you need to work with an Influencer Agency to select the profiles with higher views and conversion rates. We recommend 1 KOL or 3-5 KOCs per campaign.
Discover our influencer agency for China.
Participate in Trade Shows, Exhibitions, and Design Events
Your participation in trade shows and events is crucial for your success.
The majority of Western home decor brands just prospect from Europe but never fly to China to attend these events. If you do, you will find yourself in a blue ocean. It is a key moment to exhibit your products, meet potential buyers, and gather business cards. The majority of brands that attend multiply by 8 their doors opening in the same year.
For instance, you can attend the Design Event. Every year, you have the Design Shanghai and the Design Shenzhen. You can apply for a booth, showcase your latest collections, and meet potential buyers and stores.
Contact us if you want to attend the Shanghai Design Week.
Leverage Product Seeding with Chinese Celebrities
Chinese celebrities are a great accelerator for your brand. You can benefit from the exposure and notoriety of Top Tier Celebrities in China including singers, actors, music groups, models, and more. For home decor brands, such endorsement is often combined with a PR campaign.
You product will be displayed in the home of the celebrity. It will be featured on a magazine cover or in a magazine interview for maximum impact. During our consumer interviews, we saw Chinese consumers who purchased a certain table or vase just because they saw it in the home of a Chinese celebrity.
Even if you are already in China, this campaign could take your brand a step higher.
Find a Local Partner with a Strong Network
Finally, you need to find a local partner to make your market entry and development easier.
When you search for a local partner, you will find importers who will ask you to become your General Agent. Don’t accept. Otherwise, you will be stuck with a limited number of stores which will limit your growth. Favor a local agency with a strong network, that can connect you with all local distributors, retailers, and showrooms, and manage your brand image. This is what we do for several home decor brands in China.
I created AB ADVISORY to make your development smoother, faster, and easier. We understand, love, and support Western home decor and furniture brands in their marketing and sales development in China. Because we know this sector has its own specificities. Hope we’ll work together!
Our Services:
Social Media Management: We work on official account setup, content strategy and creation, community management, and advertising on WeChat, Weibo, Little Red Book, Douyin, Bilibili, and Zhihu to get noticed by 1.4 Billion Consumers
Influencer Marketing: We have 250+ Chinese influencers (from mega KOL to minor KOC) in the industry of fashion, luxury, and lifestyle in Chinese Tier 1 to 3 cities to increase your brand exposure in China
Celebrities Seeding: We collaborate with Top Tier celebrities (Amber Liu, Lexie Liu, Angelababy, etc.) to get your brand endorsed in TV series, movies, interviews, press articles, events, street photography, with rights to use content
Distribution: We connect your brand with department stores, distributors, importers, retailers, showrooms, and architects to expand your offline and online sales in one of the largest countries in the world
Market Study: We handle customized market studies for brands and companies including consumer interviews, trends consulting, strategy building, and platform recommendations to bring you the best data-driven insights in China based on your brand objectives
Strategy: We analyze your brand and company to match it with the current market data to come up with a customized strategy including products, pricing, marketing, online reputation, sales, and action plan
The home decor in China is a competitive market with strong opportunities for brands and companies that understand the local rules. Partner with us to save you time and energy, and implement the best practices right away!