In recent years, an increasing number of companies in the home building materials sector—originally focused on flooring and stairs—have started to venture into whole wood home decoration. At the Shanghai Flooring Exhibition in March this year, the "Whole Wood Home Pavilion" received widespread recognition from industry professionals. According to experts, the whole wood home model could help address the current low-profit challenges faced by the flooring industry.
The integration of the overall home industry chain is gaining momentum. Whole wood homes have been around in China for a few years and are becoming more popular. According to market research, only 6.8% of urban households in China currently own a whole wood home, far below the 72% average seen in developed countries. This highlights a massive market potential that remains largely untapped. Companies that can seize this opportunity stand to gain a significant share of the market. However, success requires a deep understanding of the overall home concept, market dynamics, and sufficient financial resources. For smaller floor companies with limited capabilities, collaboration with other firms to jointly produce various household products may be a more viable path.
During this period of industry transformation, flooring companies are increasingly looking to partner with upstream and downstream businesses to strengthen control over the supply chain and reduce costs. Collaborations between furniture manufacturers, flooring companies, timber suppliers, and design firms are already emerging as a growing trend. As competition intensifies, channel expansion and industrial chain integration have become effective strategies for companies to enhance competitiveness and mitigate market risks.
Driven by the promise of high profit margins, both top-tier brands and mid-to-lower-tier brands are undergoing transformations, aiming to capitalize on the whole wood home improvement model to capture more market share. With the maturation of the home building materials industry, competition has become fiercer. The term “wooden home improvement†has now become a key focus for many wood product companies seeking to upgrade and transform. However, at this stage, whole wood home decoration still occupies a premium segment in the market, and operators need to work hard to gain a competitive edge. Despite this, with increased corporate investment and market development, the dawn of the whole wood home improvement market may soon arrive in 2014.
While the factory operating systems of most whole wood home producers remain imperfect, they often hold a dominant position in terms of timber resources. Many factories lack properly integrated workshops and departments. For example, some have flooring production lines but no wardrobe manufacturing facilities, or vice versa. In some cases, wardrobe factories primarily produce panel-based wardrobes and do not even manufacture logs, yet they still promote themselves as "wooden home" specialists. To meet the demands of full-scale whole wood home production, major flooring companies must invest in comprehensive factory infrastructure and advanced hardware.
The concept of a "wooden home" requires high-quality wood, which comes with significant costs. A project worth 3 million might require up to 1.5 million just for storing the wood. The nature of wood demands proper drying, dehumidification, and carbonization, processes that take about six months to complete. Setting up a drying and carbonization kiln alone can cost around eight million. Unfortunately, some companies overlook these post-order wood-related expenses.
Under the influence of the broader economic environment and the real estate market, the home furnishing industry has slowed down. As a result, companies that once specialized in flooring, stairs, and wardrobes are now shifting their focus to the overall home. This has turned into a big opportunity, and it's natural for many to jump on board. However, blindly following trends without a clear understanding of one’s own capabilities can lead to failure. The whole wood home improvement market is still in its early stages, and while the potential is huge, it will take collective effort and positive energy to shape its future.
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