In today's dynamic landscape of consumer demand, the home furnishing industry is undergoing a profound transformationThis evolution is not merely about aesthetic preferences but extends to how businesses interact with their clientele and adapt their models to meet these changing expectationsAs the industry adapts, manufacturers and distributors alike are tasked with figuring out how to build new business models that can elevate productivity and lead to greater profitability.

A significant event underscoring these trends took place in Wuxi on November 19-20, 2024, where the KUKA Home National Shopping Center Dealer Conference and Wealth Investment Conference was heldTitled “New Models, New Futures, Let’s ‘Buy’ Together,” the event brought together leaders in the home furnishings sector to discuss current industry trends, innovative business models, and evolving consumer behaviors, all aimed at unlocking new pathways for growth in the market.

One major focus of the conference was the shift in consumer demographics, with the post-1990 generation emerging as the predominant customer base for home products

Coherent insights shared during the conference highlighted the importance of offering aesthetically pleasing high-quality products along with seamless, one-stop shopping experiencesZhang Wen, the General Manager of KUKA Home’s Shopping Center Operations, pointed out that traditional storefronts are no longer sufficient; modern commercial complexes are transitioning towards diversified scenarios and formatsTo capitalize on this trend, it is vital for home furnishing brands to shift their approach from a “people search for products” model to a “products search for people” model, thus unlocking potential growth opportunities.

Zhang offered an analytical perspective on how the shopping center avenue presents significant advantages for KUKA HomeThis channel is specially designed to cater to the new demands of the industry, characterized by a diverse range of products that emphasize aesthetics, multi-functionality, and value for money

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By focusing on younger consumers seeking variety, KUKA Home's shopping centers are fashioned to deliver a pleasant, self-indulgent, and comfortable lifestyle experience through carefully curated spaces, products, and services.

Different formats have been launched under KUKA Home's umbrella—these include full-home customization shops, upholstery scenario displays, hybrid stores, large integrated stores, and flagship outlets, designed to meet the varying needs of dealersFor instance, the newly opened KUKA Home store in Wuxi’s MixC prominently featured vibrant colors and dynamic layouts, making the shopping environment both inviting and engaging, enhancing customer experience significantly.

To provide quantifiable examples of success within this shopping center framework, Zhang highlighted several thriving dealersThe Taizhou Baolong City store launched a collaborative event that incorporated both electrical appliances and member activities, achieving retail sales surpassing one million within just fifteen days of opening

The Shaoxing Longhu Tiandi store harnessed the power of livestreaming, successfully attracting over 150 customers through five online sessions and converting them into retail sales exceeding 200,000. These stories exemplify the potential advantages that the shopping center model offers and showcase the creative strategies that can drive significant sales growth.

During the event, four distinguished dealers shared their operational wisdom, aiming to enlighten fellow partners on effective methods to attract customers in today's competitive environmentFor instance, Sun Jun, a dealer from Yancheng, detailed his successful monetization strategies through a popular Douyin (TikTok) account, where he channels his creativity into content that merges home goods with entertainmentBy innovating beyond the rigid confines of traditional home furnishing marketing, he has succeeded in turning his platform into a profit-generating venture.

Similarly, Lin Yu, operating from Shaoxing, emphasized the unique strengths of smaller home goods, leveraging high quality and cost-effectiveness to create a supermarket-like atmosphere reminiscent of "mini-IKEA." His store adopted a four-step strategy that effectively integrates new shopping concepts, ensuring flexibility and variety for consumers, further reinforcing the competitive edge in the evolving market.

Liu Jiaqi from Hefei provided an analytical framework including store specifics, advantages of shopping centers, performance indicators, core strategies, and future plans

He articulated the benefits of high traffic, low competition, and optimal customer engagements, asserting confidence in the shopping center model as the best path forward.

The meeting also introduced KUKA Home’s "Pilot Program," aimed explicitly at strengthening dealer engagement within shopping centersThis initiative seeks to streamline adaptation to market changes while bolstering the brand's positioning and broader market shareBy providing comprehensive support to dealers, the program aspires to ignite creative energy and foster push towards enhanced performance within this channel, inviting collaborative exploration of innovative operational strategies.

In contrast to traditional outlets, KUKA Home's shopping center model is poised to roll out a series of new initiatives to catalyze significant growth in businessWith evolving customer segmentation and the need for diversified offerings, KUKA Home has committed to embracing transformation, optimizing operational efficacy, and leading digital advancements