In recent years, an increasing number of companies in the home building materials sector—originally focused on flooring and stairs—have started to expand into full-wood home decoration. This trend was notably highlighted at the Shanghai Flooring Exhibition in March this year, where the "Full-Wood Home Pavilion" received widespread industry acclaim. Industry experts suggest that the full-wood home model could help alleviate the current low-profit challenges faced by the flooring industry.
The integration of the overall home industry chain is gaining momentum. Full-wood homes have been around for several years in China and are becoming more popular. According to market research, the current ownership rate of full-wood homes among urban households in China is only 6.8%, significantly lower than the 72% average in developed countries. This indicates a massive untapped market potential in China. Companies that can seize this opportunity stand to gain a significant market share. However, success requires a deep understanding of the core principles of full-wood home design and the dynamics of the market, as well as strong financial backing. For smaller flooring companies with limited resources, collaboration with other firms to jointly produce various household products may be a more viable strategy.
During this period of industry restructuring, many flooring companies are looking to strengthen their positions by partnering with upstream and downstream businesses, aiming to gain better control over the supply chain and reduce costs. This includes collaborations between furniture manufacturers, flooring companies, timber suppliers, and design firms—trends that are already emerging. In a competitive environment, channel expansion and industrial chain integration are effective strategies for improving competitiveness and mitigating market risks.
Driven by the high profit margins associated with full-wood home improvement, both top-tier and mid-to-lower-tier brands are undergoing transformation, hoping to capitalize on this growing market. As the home building materials industry matures, competition is intensifying. The concept of "full-wood home improvement" has become a key focus for many wood product companies seeking to upgrade and transform. However, currently, full-wood home decoration remains in a niche segment of the market, and operators still need to work hard to gain a competitive edge. With increased corporate investment and market maturity, the full-wood home improvement market may begin to show real signs of growth in 2014.
Despite the growing interest, many floor manufacturing companies lack a complete operational system, though they often control key timber resources. Most factories producing full-wood homes do not have the necessary workshops or departments. For example, some have flooring production lines but no wardrobe manufacturing capabilities, while others have wardrobes but no flooring lines. Even more absurdly, some wardrobe manufacturers specialize in panel-based wardrobes but still market themselves as "wooden home" providers. To meet the demands of full-wood home production, major flooring companies must invest in comprehensive factory infrastructure and advanced hardware.
The requirements for wood in a full-wood home are quite stringent. A project worth 3 million might require 1.5 million just for storing the wood. The nature of the material means it must go through processes like drying, natural seasoning, dehumidification, and carbonization—each taking months to complete. Setting up facilities such as drying kilns and carbonization ovens can cost up to eight million. Unfortunately, some companies overlook the long-term costs of wood after placing orders.
Under the influence of broader economic conditions and the real estate market, the home furnishings industry has seen slower growth. As a result, companies that previously specialized in floors, stairs, and wardrobes are now shifting toward full-wood home solutions. This has created a big opportunity, and many are eager to participate. However, blindly following trends without a realistic assessment of one’s own capabilities can lead to failure. The full-wood home improvement market is still in its early stages, and this "cake" requires collective effort and positive contributions to shape its future.
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