After entering 2026, the general home construction and decoration market has not picked up. On the contrary, the chill has become stronger. Some merchants have reported that stores are deserted, customer flow has declined, customer orders have tightened, and operations are under greater pressure.
In 2025, this phenomenon will become more common, and the uneasy market sentiment will be strong.
Financial report data of listed companies undoubtedly provide convincing empirical support.
According to observations, as of May 2026, nearly a hundred listed companies in the pan-home furnishing industry have released performance reports, including 2025 reports and 2026 first quarter reports. After sorting out, it was found that about 70% of listed companies are facing a decline in performance.
The situation of some companies is even worse, with revenue falling by even 20% or 30%, and net profits being cut in half or even turning from profit to loss.
A certain proportion of these companies have been hit for three or four consecutive years, and their revenue has been cut in half or even further than the peak period; or they have been losing money for two or three consecutive years, and their cash flow is not optimistic.
Even some leading companies with a scale ranging from billions to tens of billions, including those well-known multinational companies, have not been able to survive alone and have also fallen into a situation of continuous decline in performance.
However, companies with strong foreign trade business have maintained a certain growth in revenue or net profit, such as Henglin Home Furnishing, Yongyi Shares, Jiangxin Home Furnishing, etc.
Some companies that focus on both domestic and foreign trade have also achieved growth in their foreign trade business, such as Gujia Home Furnishing, Golden Mantis, Hongya CNC, etc.
The total industry volume is also not optimistic. According to data from the National Bureau of Statistics, in 2025, the operating revenue of the wood processing and wood, bamboo, rattan, palm, and grass products industry will be 768.33 billion yuan, a year-on-year decrease of 14.6%; the operating cost will be 694.61 billion yuan, a year-on-year decrease of 13.9%; the total profit will be 21.51 billion yuan, a year-on-year decrease of 38.3%.
The operating income of the furniture manufacturing industry was 612.51 billion yuan, a year-on-year decrease of 10.7%; the operating cost was 504.29 billion yuan, a year-on-year decrease of 10.9%; the total profit was 32.81 billion yuan, a year-on-year decrease of 12.1%.
By the first quarter of 2026, the situation continued to be unfavorable, with operating revenue of the furniture manufacturing industry reaching 126.76 billion yuan, a year-on-year decrease of 9.6%.
The total profit was 2.06 billion yuan, a sharp decrease of 44.9% year-on-year.
Profits have reached a fairly low level.
If the full-year decline in 2025 is taken into account, it means that demand from tens of billions to tens of billions has disappeared.
Allocated to the enterprise, performance will naturally be affected.
Corresponding to domestic demand, total export volume is still releasing potential. In the first quarter of 2026, the export volume of furniture and its parts reached US$16.404 billion, a year-on-year increase of 3%. This is consistent with the overseas performance data of many listed companies.
The question is, how will the pan-home construction and decoration market change in the future?
Is there any possibility of recovery?
As micro individuals, the significance of paying attention to the macro market environment is that it helps us judge whether we should continue to stick to the current track?
Will investment be maintained?
These decisions must not only be based on accurate judgments of market trends, but also take into account one’s own resources and capabilities, all of which are inseparable from clear cognition.
After the new home dividend subsides, renovation of existing homes, partial renovation of old homes, and trade-in of old homes have become mainstream and have become a very important engine of growth. However, there are two variables: First, the existing demand is like waves, sometimes large and sometimes small, sudden and slow, and volatile.
It is difficult to draw a clear conclusion as to whether it can make up for the gap in demand for home decoration after the tide of new homes recedes.
Second, affected by various factors such as economy, consumption, preferences, etc., the seemingly huge stock demand is actually quite tortuous in the path of converting it into orders.
In some cities, the quantity and quality of orders from the stock market are not enough to support the normal operations of merchants.
So, is it possible for new homes to regain their former prosperity?
This possibility is very small.
Based on this, it can be seen that the total market volume is expected to be difficult to restore to its past glory, and it is even unlikely to recover in the short term.
Over a longer period of time, we will find that the huge stock market, coupled with the continuous release of demand for life improvement, determines that orders will not dry up and will continue to be generated.
It’s just that the rhythm may not be uniform, with rapid growth in certain periods and sluggishness in certain months or years.
No matter what, the opportunity will always be there.
Some of these opportunities deserve attention, such as one-stop, high-efficiency renovation of local spaces; aging-friendly renovation and aging-friendly furniture for the elderly; smart homes are becoming popular and are expected to activate the demand for replacement and bring about growth, including AI mattresses, smart beds, smart bathrooms, smart chairs, smart sofas, etc.
In addition, products with health properties such as antibacterial and low formaldehyde; and solutions such as light high-end and high-end customization, have the potential to activate the demand for quality upgrades.
In such a market environment, do manufacturers have better coping strategies?
The demand in the existing market places more emphasis on word-of-mouth and service, and requires adapted products. It also requires companies and practitioners to take the initiative and build close relationships with customers. Perhaps the following strategies are worth thinking about.
Deeply dig into the stock and establish an adapted capability system: the focus shifts from new houses to second-hand house renovation, partial renovation, trade-in, smart, elderly-friendly, co-living with pets, hobby living, apartments and other markets, and provides adapted product solutions and delivery services.
For example, 7-day kitchen renewal, aging-friendly bathroom renovation, wall renovation, balcony encapsulation, etc., standardized packages, lightweight and prefabricated construction, aging-friendly and intelligent, meet the needs of owners for quick change and move-in, and lower the decision-making threshold.
Acquire customers from all over the world and actively look for customers: existing customers are scattered in various communities and are difficult to acquire in batches. They must be actively approached, such as community service stations, community model rooms, community promotions, micro-renovation teams, etc.
It is very important to use short videos, live broadcasts, graphics and other content forms, and rely on major traffic platforms to achieve online traffic; offline channels such as designers and foremen are deeply cultivated, and referrals from old customers are activated to make up for the dilution of natural customer flow with the help of global touch points.
Building IP: Create a clear personality around the persons in charge of brand factories, dealers, stores, etc., as well as designers, sales individuals, etc., cultivate personal IP, and then achieve customer recognition.
Relying on platforms such as Douyin, video accounts, Xiaohongshu, and public accounts, we maintain high-frequency content output and complete hundreds of sets of short videos or graphics and texts in a year, attracting millions of views and converting customer resources; some accounts have successfully gained tens of thousands to millions of fans, building a private domain traffic pool.
This method can be regarded as the shaping of personal IP, mutually empowering the brand and business.
Upgrade experience and value: shift from shelf-style sales to scenario-based experience, sell lifestyle and value resonance instead of just product solutions; strengthen differentiated values such as health, design, service, intelligence, and age-appropriateness, and build reputation with design capabilities and delivery services.
Improve efficiency, reduce costs, and protect cash flow: streamline redundant SKUs to create high-turnover hot products; promote digital tools, such as digital design tools, to improve order negotiation and operational efficiency; strictly control inventory and accounts to ensure cash flow safety, and ensure survival first before seeking development.
Leveraging policies and ecology: Actively connect old-for-new, green building materials, aging-friendly renovation, renovation of old communities and other policy dividends; build a cooperative ecosystem with decoration companies, property developers, designers, and experts to jointly leverage the existing market.
Of course, even if we think of many ways and take a series of measures, there is no guarantee that the business will definitely improve. It only increases the probability of success and strives for more opportunities.
