China is an eager emerging market. This is the truth everyone knows, but not everyone can get something. The high-end furniture that is also a luxury product shows us the other side of the Chinese market. The problems they face in China can be clearly stated in one sentence: they cannot catch the "express" of conspicuous consumption, nor can they convey their true value to consumers in a short time.

Ms. Hu Rushan, one of the founders of "Design Republic", a high-end design furniture retail store, compares the consumer psychology of high-end furniture to "buying underwear", but in fact this is still a more optimistic view of this "lost" market. After nearly four years and representing a large number of international high-quality furniture industry brands, she still feels that "many foreign furniture brands have a strong interest in the Chinese market, but they are helpless in the face of differences in consumption concepts."

For a few hundred thousand yuan chair, you can pay a down payment for a house if there is less, and you can buy a small square meter house for more, but how can you let the Chinese people buy a chair for hundreds of thousands of yuan?

Compared with Europe and the United States, there are more kinds of answers in China for "why would you buy hundreds of thousands of chairs"?

Explore conspicuous consumption

If you do n’t know much about design and you do n’t know brand stories, then why would you pay for a hundreds of thousands of chairs? Brand, face or quality of life? This question has more answers than Europe and the United States in the Chinese market. Hu Rushan told us in an interview that less than 20% of the design republic consumers really understand design, and this is already a proud number compared to other high-end furniture stores in China.

Simon Lichtenberg, CEO of Nordic Style China, pointed out a cruel reality: "History has proven that design taste is always linked to education level. In developing countries, high-end consumer groups are initially upstarts." The 2% high-end consumer market in the nation's furniture industry highlights the weak perception of China's lifestyle of new money consumption. "Chinese consumers are still willing to spend money in visible places, such as fashion, watches, cars, etc. The things at home are placed very behind. China's high-end furniture market is only about one tenth of the United States."

Yin Zhixian, editor-in-chief of "Fashionable Home", an industry insider who has witnessed the development of China's home furnishing industry for more than ten years, also believes: "The history of Chinese wealthiness is relatively short, and the cultivation of taste requires a process. For the use of certain furniture, even Let ’s start with teaching how to use it. In the same industry abroad, designers and clients have a tacit understanding of a certain concept and design, from production to purchase. There is a ready tacit understanding. And this tacit understanding may require tens or hundreds of years of history. This is why it takes a long time to develop luxury furniture in China. "

The lack of taste and the conspicuous consumption of consumption are not unique to the Chinese market. Russia and the Middle East also have the same problems. "And in the field of luxury goods, furniture is slower than fashion." Hu Rushan, who has lived abroad for many years, told us, "If you go to Fifth Avenue in New York or Aoyama in Tokyo, you will find that furniture brands are not in the most The core location is to open a store, and concentrate on the branch road that crosses it. "On the other hand, furniture does not need to buy new products on a seasonal basis like fashion, even the wealthy consumers want a million yuan sofa to be used up. It may be a long time.

These reasons have caused the international first-line furniture brands to enter China at a rate that is not the same as that of fashion brands. The furniture brands that have come in are confused and lost because of the inability to understand the situation. But not all high-end furniture stores are reluctantly operating, such as Design Republic and Da Vinci. These two furniture stores with quite different marketing models have developed steadily in China. As can be seen from their examples The problem of Chinese luxury furniture comes.

Look at the right time education, education, education

The design republic was opened four years ago. The first store was located at No. 5 on the Bund in Shanghai. This high-profile site selection surprised many people at the time. But then people found out that designing the Republic was not a reckless act, but a product of market demand. "At the beginning, we were very frustrated. When we needed furniture for a project, we always extended the cycle due to shipping issues. In this market, we need a store that can provide excellent classic and modern furniture series." Next A few years proved that it was the right time for them to open, "If you look back at the development of high-end furniture in China in the past ten years, you will find that the growth in the past four years is significantly higher than that in the previous six years." She told us: "Although China's furniture industry has not experienced explosive growth, but the growth in the past four to five years is relatively stable." Yin Zhixian feels that this relatively stable growth has a lot to do with the continuous improvement of people's tastes in life.

In addition to the timing of opening a store, the design mode of the Republic of Design is also worth discussing. The furniture in the store always uses design as the core selection criterion, and constantly invites design big names such as TomDixon, RossLovegrove to communicate and publicize in the store. The fundamental improvement affects consumers, not just the growth of sales. Facts have proved that this is an extremely feasible development direction: in this relatively lacking passion market, Design Republic has once set a Moooi brand lamp sales world record. Foreign media commented on them: "If you want to succeed, you need to have the enthusiasm to do business like designing a republic. In China, where millionaires are endless, they will definitely go further."

As Simon Lichtenberg of the Nordic style said: "Education, education or education, we must constantly tell consumers how important a good lifestyle is."

China is an eager emerging market, which everyone knows, but not everyone can get something.

Another model

If the success of the design republic is more or less a testament to the improvement of the Chinese people's living standards, then the Da Vinci Group's sales reflect another value of Chinese consumers: more emphasis on luxury, brand and even price. This kind of value has Chinese characteristics, but it is also generally accepted by top luxury brands such as Armani / Casa, VerasceHome, FENDICASA, CerrutiBaleri. The above-mentioned brands are all represented by the Da Vinci Group in China. Since its establishment in 1978, Da Vinci has become the largest retail agent of household and interior decoration products in Asia. Database marketing is their main marketing method. Accumulate a list of rich people and contact information, and spread their own brand through event promotion and word-of-mouth introduction. And the brands they represent will not carry out large-scale advertising as they did in foreign markets. Instead, they will focus on the reception and designer salons. "The market size of high-end furniture in China is very small, most of them are bought by elites and rich people." Yin Zhixian said, "Luxury homes rarely use mass media for large-scale advertising. The general people can't afford to read the advertisement."

Compared with design republic, Da Vinci's marketing method looks more like taking a "shortcut". This method of catering to rather than affecting the taste of the current market has also made some people in the industry see hidden dangers. Yin Zhixian believes that although brands such as FENDICASA are luxurious, they lack new ideas in design and even "look too old". Development, "new customers will not like such an old-fashioned brand."

However, after all, the development of China's luxury furniture market is still relatively slow, and the values ​​of the new money consumer group will not change quickly. Da Vinci is also well aware of this, and we can see some clues from their store footprint: In addition to the first store opened in Singapore, Da Vinci's retail stores are mostly opened in Indonesia, Brunei, Malaysia and Mainland China and other places, and Japan and South Korea, which are more mature in design taste, are not on the commercial map of Da Vinci.

The sales of the two models of designing Republic and Da Vinci are optimistic, which allows us to see some hope in the taste improvement and purchasing ability of the Chinese new money market. Many international brands that have opened stores in China believe that new money consumption will Once there was a leap from showing off to quality of life, perhaps the furniture industry was just about to get rid of the loss.

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