The recently held Central Economic Work Conference put forward a number of important policies related to the development of the home industry: implement the structural tax reduction and fee reduction policy, focusing on supporting the development of scientific and technological innovation and manufacturing industry; Actively cultivate new consumption growth points such as smart home and domestic "fashionable goods"; Promote large-scale equipment replacement and consumer goods trade-in; We will promote the steady and healthy development of the real estate market, and accelerate the construction of low-income housing, the construction of dual-use public infrastructure, and the renovation of urban villages. Each of these policies and measures will have an important impact on the home industry, and also make the home industry, which has been under greater pressure and challenges in recent years, more confident about the development of 2024.

The Central Economic Work Conference released major positive news

In the global complex and changing macroeconomic environment, the Central Economic Work Conference proposed a series of important policies for the manufacturing industry, which injected confidence and pointed out the direction for the future development of the hardware industry.

First of all, the meeting emphasized the importance of structural tax reduction and fee reduction policies, which are particularly important for home furnishing enterprises. By reducing the burden of corporate taxes and fees, it will release a huge market vitality, so that enterprises have more resources to invest in research and development and product innovation, and the implementation of this policy will save operating costs for enterprises, and effectively improve the profitability of enterprises.

In addition, the meeting focused on support for scientific and technological innovation and manufacturing development. Home furnishing is an important part of the manufacturing industry, and it is also an important industry to actively develop scientific and technological innovation to promote industrial upgrading. The meeting proposed to increase support for manufacturing research and development, encourage enterprises to introduce advanced production technology and equipment, improve product quality and added value, which will help home furnishment enterprises to enhance core competitiveness, to achieve the transformation from traditional manufacturing to high-end manufacturing.

The meeting also proposed to actively cultivate new consumption growth points, among which smart home and domestic "fashion goods" became the focus of attention. Smart home is an important sector of the home industry, is also the fastest growing category in recent years, to promote smart home consumption, will also strongly stimulate the recovery of the entire home market, home enterprises should seize this opportunity, strengthen research and development innovation, develop more in line with consumer demand for smart home products. At the same time, through innovative design and brand building, enhance brand awareness and reputation, to meet consumers' pursuit of quality life.

In terms of the real estate market, the meeting proposed to promote the steady and healthy development of the real estate market. Home is closely related to the real estate industry, the stable and development of the real estate market will also drive the stable and development of the home industry. At present, China's real estate market is in a period of deep adjustment, and the policy measures proposed at the meeting will help stabilize market expectations and boost market confidence. Home furnishing enterprises should pay close attention to the dynamics of the real estate market, strengthen cooperation with real estate enterprises, and provide high-quality products and services. At the same time, it can also actively participate in the construction of affordable housing and urban village renovation and other engineering projects to expand market share.

The industry is facing greater pressure and challenges

The holding of the Central Economic work meeting has an important confidence boost for the home industry, which is currently facing greater pressure and challenges.

In recent years, due to the impact of the epidemic, international trade frictions, exchange rate fluctuations, raw material price fluctuations, fierce market competition, changes in consumer demand, environmental protection and production safety requirements and other factors, home foreign trade and consumption continue to be depressed, bringing greater pressure on the survival and development of enterprises.

The main reasons for the downturn in foreign trade are international conflicts, trade frictions and exchange rate fluctuations, the Russia-Ukraine conflict and the changes in the Sino-US trade environment, which bring risks such as trade frictions and exchange rate fluctuations to enterprises. Especially for enterprises with frequent trade exchanges in the international market, exchange rate fluctuations will have a direct impact on the export and import of enterprises, thus affecting the profitability and market competitiveness of enterprises.

In the domestic market, domestic demand represented by kitchen appliances and furniture is also recovering slowly. Enterprises generally reflect that both the export market and the domestic market are facing severe challenges. In the domestic market, in recent years, the market competition is fierce, and the competitive means such as price war and promotion war between enterprises emerge endlessly. This not only leads to a decline in market prices, but also makes enterprises face huge marketing pressure. Consumers have higher and higher requirements for quality, function and design, and the marketing pressure of enterprises is also increasing.

It can be seen that in recent years, the home industry in domestic sales, foreign trade both under greater pressure, in urgent need of relevant policy support, and the convening of the central economic work, the current hardware industry, is to bring such support and development confidence.

Looking forward to 2024, the industry has broad prospects for development

Despite many challenges and pressures, the development prospects of the home furnishing industry remain promising. With the improvement of the foreign trade situation and the continuous expansion and upgrading of the domestic consumer market, it will provide more business opportunities and development space for home furnishing enterprises.

Industry experts believe that the New Year home furnishing industry has good development prospects in the following aspects:

Customization and individual needs. Custom home is the most rapid development of a category in recent years, the future with the continuous increase in consumer demand for personalized home market demand will continue to grow at a high speed.

Intelligent and digital trends. With the continuous development of artificial intelligence, Internet of Things, big data and other technologies, the home industry will gradually realize intelligent and digital transformation. The popularity of smart homes will improve people's quality of life, while the application of digital technology will improve production efficiency and product quality.

Green environmental protection and sustainable development. With the continuous improvement of global environmental awareness, the home furnishing industry will pay more attention to green environmental protection and sustainable development. The company will actively adopt environmentally friendly materials and technologies to reduce energy consumption and emissions, improve resource utilization efficiency, and promote the sustainable development of the industry.

Industrial chain integration and vertical integration. Home furnishing enterprises need to further strengthen the integration of the industrial chain and vertical integration to improve their core competitiveness and market position. By integrating upstream and downstream industry chain resources, enterprises can better control product quality and cost, and enhance market competitiveness.

International market expansion. Home furnishing enterprises need to actively expand the international market and participate in international competition. By strengthening brand building and marketing, improve product quality and service level, and gradually expand its share in the international market.

In short, the current home industry is facing many challenges and pressures, but it also has broad prospects for development. Looking to the future, the Central Economic Work Conference has injected a strong impetus into the development of the industry. With the gradual implementation of various favorable policies and the continuous expansion of market demand, the home industry will usher in better development prospects in the New Year.