In late May 2026, the home building materials industry once again ushered in “earthquake-level” drastic changes.
Osso and other brands offer ultra-low prices, and the number one custom home furnishing brand has become a “price butcher”.
Europe* was the first to throw out a blockbuster, with a wardrobe package priced at 699 yuan per square meter, using ENF-grade solid wood multi-layer boards. Its brand Europe* Fiskar shocked the market with a price of 499 yuan/㎡. Then, Sony’s Milanna quickly followed up with a whole-home package of 19,800 yuan (including 20㎡ customized cabinets, 7-meter cabinets and 3 wooden doors), and the price was astonishingly low.
This directly broke the price bottom line of major brands in the custom home furnishing industry in the past 10 years.
At the same time, Tmall and JD.com’s 618 United Nations discounted home decoration categories to “as low as 50% off”.
The 2026 618 Mid-Year Sale lasts from May 12 to June 20, spanning nearly 40 days.
The biggest variable in this round is the in-depth integration of the second batch of 62.5 billion national trade-in subsidies and the big promotion for the first time.
Tmall will start preemptive shopping from May 21, with official discounts starting from 15%. After adding 15% state subsidies and large coupons, comprehensive discounts on home appliances, home decoration and other categories are as low as 50% off.
JD.com followed closely behind, using almost the same formula to increase subsidies.
What is even more fatal is that the new national standard for artificial panels (GB 18580-2025) will be enforced from June 1.
It has been less than 3 days since the implementation of the new mandatory national standard for the formaldehyde emission limit of artificial panels on June 1.
For the first time, the new national standard incorporates E0 level into the national mandatory standard, which is directly used in indoor artificial board products. The formaldehyde emission limit is increased from 0.124mg/m³ of E1 level to the E0 level limit value ≤0.050mg/m³.
Fu Yuejin, director of the National Quality Inspection and Testing Center for Artificial Panels and Wood and Bamboo Products, clearly stated: “The new national standards must be implemented from June 1, the old mandatory standards will be abolished, and there will be no production date exemption. Products that do not meet the standards will not be used for interior decoration, and continued production and sales are illegal.”
The collision of these three major events sent a signal to all home building materials practitioners that cannot be ignored: “deintermediation” has entered the deep water zone. Under the superposition of triple pressure, the industry knockout has begun. There is no middle ground, and there are only two outcomes: survival and elimination.
Ou and Suobu are no longer curled up, they are “clearing out”.
In Europe’s first quarter of 2026, the revenue fell by 23%, the net profit was cut by 50%, and the European Union turned from profit to loss in the first quarter, with a loss of 38 million, a year-on-year decline of 417%. Their true intention is to maintain market share in exchange for price and volume, and use their scale advantages to directly squeeze small factories and small brands out of the market.
The cost of bulk purchase of panels by large factories is lower than that of small factories. Thousands of stores dilute the logistics and installation costs. They can break even if they sell for 699, but small factories will lose money if they sell for 699.
JD.com and Tmall’s “state subsidy + platform subsidy” combination has hollowed out the survival foundation of traditional dealers.
618’s subsidies are unprecedented. A large part of the prices consumers see as low as 50% off come from state subsidies and platform subsidies.
This combination punch directly penetrates the bottom line of the traditional dealer’s price system. Consumers can get the lowest price at home with just a few clicks of their fingers. Who would go to a physical store to bargain with the boss?
When the price advantage no longer exists, the customer flow of traditional physical stores will naturally dry up.
The new national standard is an “ultimatum”, not a “warm reminder”.
As soon as June 1 arrives, the E1 grade plates in the inventory become a “ticking time bomb.”
The difference between this new national standard and previous years is that it is a mandatory standard, not a recommended standard – it is illegal to continue to produce, sell, and use substandard products. The Ecological and Environmental Code further clarifies that downstream companies must also bear legal responsibility.
Those small and medium-sized sheet metal factories that rely on low-priced and inferior glue and have not upgraded their formaldehyde-free production lines will either immediately invest heavily in renovations or permanently withdraw from the market.
There is no third way.
Faced with triple critical blows, big names in the home building materials industry gave three highly practical pieces of advice during a recent closed-door review:
Suggestion 1: In the last three days, clear out E1-level inventory immediately, and don’t take any chances.
Stop daydreaming about “there is so much inventory, let’s digest it slowly”.
The new national standard is a mandatory standard, and it will be illegal to continue to sell substandard plates from June 1.
The unanimous advice from the big guys: Even if there is a discount or a liquidation at a loss, all products that do not meet E0 standards must be cleared before June 1st.
The cost of getting a fine and being held criminally responsible is far 10,000 times higher than the cost of clearing the warehouse at a loss.
At the same time, we immediately check the product testing reports of upstream suppliers to ensure that all newly purchased products comply with the new national standards.
Suggestion 2: Don’t start a price war with Oso, you don’t have the capital.
The reason why Ou and Suo dare to charge prices of 499 and 599 depends on their annual procurement scale of billions and intelligent production lines to keep costs to the extreme.
Ordinary panel manufacturers and small and medium-sized customization factories have neither scale cost advantages nor brand premium capabilities. A head-on price war with giants is tantamount to suicide.
Know your own boundaries and don’t die on someone else’s battlefield.
We should focus on personalized services and special scene needs that giants cannot provide or do in detail.
Suggestion 3: Immediately catch the “last mile” business offered by JD.com and Tmall.
Europe* closed 339 stores in the first quarter alone.
On the other hand, during the 618 war, online orders from Tmall and JD.com surged, and the installation and door-to-door measurement business was simply too busy.
JD.com already has more than 5,200 direct industrial workers, and Tmall designers are also expanding their offline experience stores and installation service networks in Hangzhou, Ningbo and other places.
Now take the initiative to apply to become an offline partner of the platform, turning your team into their measurement, installation, and after-sales “capillaries”. Using your local experience and manpower, you can get a share of the giant’s territory.
