For a long time, compared with European and American countries, China’s consumption has been short-circuited in the “troika†that promotes economic development. However, since 2014, China's economic growth structure has undergone a historic transformation, and consumption has become the most important force in national economic growth. In 2016, the total retail sales of consumer goods continued to maintain double-digit growth, and the final contribution of consumption to economic growth was as high as 64.6%.
In the last decade, people’s lifestyles and living habits have changed a lot without knowing it. The changes in the home market are a good example. From these changes, we can observe and feel the consumption upgrade in China. The specific performance is as follows:
Designers become standard equipment for home decoration
In large cities, designers are the master planner for home improvement projects, providing professional advice to owners. The designer will communicate with the owner in depth, according to the owner's occupation and identity, to design a matching home style, material quality, spatial planning, lighting layout, color matching, placement and reasonable proportion. The design of a good designer not only gives a refreshing feeling, but also reflects the owner's cultural taste and life attitude.
With the broadening of the horizon, people are increasingly demanding the quality of life and are willing to integrate art into life through design. The design is based on the needs of consumers, facing the public, and making people feel the beauty of life. Many excellent design products integrate the pioneering trend and fashion elements, effectively transmit information and stimulate consumers' desire for consumption. Smart, environmentally friendly, fashionable and simple design are easy to be loved by people. Many people are precious in time, and with the division of labor becoming more and more detailed, people generally recognize and accept professional people to do professional things, which is the most efficient and effective, and is willing to pay for it. Generally speaking, the design fee is charged according to the size of the home improvement, and the designer of the brand home improvement company is more likely to be favored by the customer and the price is higher.
The shift from consumer goods to goods and services in consumer goods is an important feature of this round of consumption upgrades. In the city, consumption is upgrading from physical products to spiritual products. The consumption upgrade and quality revolution have gradually started, involving leisure, entertainment, culture, tourism, communications, education, medical care, health care, housing and other areas of happiness industry. In recent years, service consumption has grown to be a base, net worth, and information speed has been faster than commodity consumption. For example, in 2016, Beijing's service consumption accounted for about 45% of total consumption, and the growth rate was 3.5 percentage points higher than commodity consumption.
Whole house home customization is deeply rooted in people's hearts
Consumption upgrades are characterized by the desire for specialized, customized, and differentiated products and services. At the same time, the Chinese consumer market began to differentiate, the overcapacity of general commodities, and personalized consumption continued to grow. For suppliers, on the one hand, consumption upgrades face market segments, and sales are fixed, which contains huge development opportunities and space. Specialization, differentiation and high added value are accompanied; on the other hand, facing diversification Demand, manufacturers' economies of scale will be reduced, costs will increase, and design quality and production upgrades will face challenges.
In recent years, the significant changes in the home market have been from the wardrobe, bookcases, kitchen cabinet industry to doors and windows, curtains, ceilings, lighting, etc., changing the traditional model of customers to purchase products from suppliers, many brands comply with consumption levels and requirements. The improvement has turned to the overall customization of the home, and the production according to the individualized order requirements.
The communication between suppliers and consumers fully reflects the consumer's life philosophy and aesthetic needs. As the soul of customization, the supplier will measure the data to the customer's home, and make the 3D stereoscopic house decoration effect diagram to the customer to confirm, and customize the exclusive and differentiated household products for the consumer to maximize the design and space. The combination of utilization, internal functions, and environmental protection intelligence achieves the aesthetic and practical coordination.
Home configuration focus on brand
With the rise in housing prices and the improvement of the quality of household products, consumers, especially the middle class, in the purchase of household products and services, whether it is the decoration company, floor tiles, or the choice of electrical furniture, curtain lighting, pay attention to quality is higher than the price, quality becomes the most Key factor. Due to the rapid upgrading and professionalism of household products, in general, a family will not be renovated frequently every year, and there is no time to understand the details and functions of many upgraded materials. In this case, the brand becomes product quality and Service guarantees, relying on branded products and services can reduce purchase time and energy costs. In the market, the value of well-known brands is recognized by customers, and prices and sales are clearly dominant.
The middle class will become the main force of consumption upgrading. They attach importance to the quality of life and brand awareness, and have high requirements for consumption experience and quality. In the price comparison, people will pay more attention to the brand value that represents a certain value or spiritual claim. Consumer demand is shifting from satisfying daily needs to pursuing quality. High-quality, versatile and intelligent brand products are increasingly sought after.
Spiritual consumption becomes a necessity for home soft environment
In a fast-paced metropolis, people are generally highly educated. In the face of huge work and life pressures, people are eager for the exclusive life of quiet life and slow life. They hope to return to leisure, relaxation and peace by changing their status and track. And the family is precisely the harbor and habitat that separates life from work.
We have seen that spiritual consumption elements such as art, design and fashion are increasingly coming into the family. Everyone has a romantic and beautiful heart, and art and design are often the medium that triggers this emotion. Modern families are paying more and more attention to life. In the home environment, painting or placing small sculptures, porcelain or plant flowers can soften the hardness of reinforced concrete and increase the mood and romance. In recent years, home plant and flower customization services have appeared in many cities. The customer is registered as a member of the plant and flower supplier, and the plant and flower supplier gives the customer a flower every week, while guiding the family to design and raise green plants and flowers. Art or design in the home is no longer a luxury, and many families have artistic consumption that suits their aesthetic and temperament.
With the increase of income and the popularization of aesthetic education, spiritual consumption such as art will become the living habits and lifestyles of more and more Chinese consumers.
(The author is a professor at the School of Economics of Renmin University of China and deputy director of the Institute of Art Finance of Renmin University of China)
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