With the improvement of the standard of living in China, consumers have started to look at Western and European influences and increasingly willing to invest in home decoration. Consumers’ increasing purchasing power has driven the furniture market to develop beyond expectations. Urbanisation has driven furniture market growth.
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Data from the National Bureau of Statistics shows that the urbanisation rate in China reached 58.5% in 2017, up 1.2 percentage points over the end of 2016. With urbanisation, wage and salary earners, as well as previously disadvantaged families who have migrated to towns and cities, have become major furniture consumer groups. It is estimated that by 2020 about 54 million houses will have been renovated under the country’s shantytown reconstruction project, and these renovated houses will also generate demand for furniture. How can your company be a part of this market and become a recognised brand in China?
Read the Top Article of the Year about Furniture Strategies in China
Lets take a closer look at the market
The market is huge and with the millions of people living in urban areas, there are millions of tastes, needs and wants to be addressed. There are 2 points to consider:
A) Mainland furniture consumers can be divided into 3 groups:
These consumers are rich. They favour expensive western styles, classical Chinese style or avant-garde furniture.
Luxury/branded goods consumers
These consumers want furniture to reflect their personalities, paying attention to aesthetics, cultural elements, trends and origin.
Average wage-earning consumers
This is the majority of consumers. They are willing to shop around for the best price and value their comfort.
B) Furniture buyers also have different requirements that need to be taken into account:
This all furniture used in the homes of urban residents, including cabinets and kitchen furniture.
Parents are adopting new living concepts and becoming increasingly able to afford furniture especially designed for their childens’ development and safety.
The elements need to be considered in a country like China. Furniture needs to withstand the heat and the cold.
Hotel and guesthouse furniture
This industry is huge and should not be overlooked.
To make money, businesses must spend money, and some of that money will go to furniture.
Public institution furniture
Public-sector facilities, such as medical, sports, cultural and educational institutions all need furniture to function and last. Duration is key in this sector.
How can our agency help your brand?
It doesn’t matter how good a product is. If no one knows about it in China, it simply will not sell. Chinese spread hours browsing the internet, interacting with stores, asking questions on social media and looking for good comments about products and services they are interested in. Let us help you be the first brand they recognise in your industry.
Western platforms have no place in China. Chinese have their own social media platforms that they trust, such as Wechat, Weibo etc. Why are these the more efficient ways of promoting your brand? Take a look at the example below.
The snap above is from the WeChat application. It is convernient, because of all the information available on a page. By clicking on the preferred furniture brand, the user gets access to the official brand account on Wechat. The marker just beside the post, lists it as an ad. The external link to your website makes it easy for the WeChat user to see more of your products. Below everything are the comments which give you the opportunity to get closer to your target audience by interacting directly with them.
In this case, Key Opinion Leader won’t be the case of a world famous superstar taking a picture of himself using one of your products. A KOL can be anyone or anything that has a following that takes their word, when they recommend a product or service. A key opinion leader that is just as successful buut more cosst effective than a celebrity in this area: the furniture and design magazines and magazines about interior design. Besides magazines, having a cooperation with high-end real estate developers can be really interesting, as most the clients of the property are also the most potential clients of high-end furniture.
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Case study: Ethnicraft
Let’s talk about Ethnicraft, founded and managed by Belgian group entrepreneurs that has succeed to get a solid strategy digital marketing strategy to lead the society to these results:
“European furniture brands” got ranked 5th at the first page
“Where to buy furniture in Shanghai” got ranked 1st at the first page
“Shanghai furniture exhibition 2015”got ranked 1st at the second page
Here some key secrets of Ethnicraft’success: the first one is being present on Baidu News. To be well ranked on a search engine page, you need to have PPC (pay per click) ranking and natural one with SEO (Search engine optimisation).
Ethnicraft chose to combine online website with physical ones. Consumers could go online, select their products and place an order. For more information, they coould go to the showroom.
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