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In 2012, the tightening of real estate policies exceeded expectations. This year, furniture stores faced significant challenges in the crisis, with rising rents and increasing pressure on store operations. The industry experienced a period of transformation and adjustment. However, looking back at 2012, there were still traditional furniture stores that managed to achieve breakthrough growth and thrive even in difficult times.
In the first half of 2012, the situation for furniture stores was particularly tough. The central government repeatedly emphasized that real estate regulation should not be relaxed, aiming to suppress speculative and investment demand. This had a major impact on traditional furniture stores, as declining home purchase demand led to poor sales performance. Additionally, external factors such as the European and American economic crisis and RMB exchange rate fluctuations worsened export conditions, further complicating the operating environment for home building material stores.
On March 31, 2012, Beijing Bafanglong Lighting City, which had been in operation for 12 years, announced its closure. It later transformed into a specialized market for aquariums, calligraphy, and painting—a rare shift in the industry. This was just the beginning of a wave of store closures.
The closure of Blue Oriental Lishuiqiao, the strategic closure of Jimei Home Wanjia City, and the failure of new stores in Hangzhou shocked the industry. In September 2012, Home Depot completely closed its seven remaining stores in China, marking a significant moment in the sector's downturn. A wave of bankruptcies and exits followed.
Despite these challenges, many furniture stores remained determined to adapt and find new paths forward. According to industry data, sales of large-scale enterprises in the building materials sector nationwide reached 2.5 trillion yuan in the first half of the year, showing a 16% year-on-year increase, but this growth dropped by 25.2 percentage points compared to previous years. Sales of furniture and building materials stores above the national scale declined by 7.66%, marking the first decline in five years.
In the second half of 2012, many traditional furniture stores began exploring new markets. They expanded into second- and third-tier cities, launched promotional activities, and some even ventured into e-commerce. These explorations became key strategies for their development.
Facing high rental costs, some furniture stores turned to online platforms. However, the initial transition to furniture e-commerce was challenging, with issues in sales, delivery, installation, and after-sales service. Despite this, companies like Melaleuca took a dual approach, combining online and offline experiences. By the end of 2012, they had established experience centers across major cities, creating a more robust sales system.
Sales data from the Golden Week holiday showed a significant increase compared to the previous year, and during the "Double 11" period, online furniture sales reached a higher level. E-commerce provided new hope for traditional stores. Surveys indicated that young consumers, especially those born in the 1980s, were driving the trend of online furniture shopping, valuing convenience and user experience.
Consumer Ms. Han from Nanjing shared her positive experience, noting that while furniture is a high-value item, she felt more confident purchasing it online due to the variety available, the presence of offline experience halls, and improved logistics and after-sales services.
As first-tier cities faced property market regulations, second- and third-tier cities saw more stable demand and growing purchasing power for furniture products. Many well-known brands began expanding into these regions, seeking new opportunities. Government support also helped boost domestic demand, making the market environment more favorable.
While traditional furniture stores will continue to face constraints, the future may bring more rational consumer behavior and operational changes. Ultimately, finding a sustainable path tailored to each store’s needs remains crucial for long-term success.
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