In the spring season, while the weather remains chilly, the Chengdu home market has shown a noticeable rebound, bringing a sense of warmth and optimism. Recent data from the National Building Materials Index (BHI), released by the Department of Circulation Development of the Ministry of Commerce and the China Building Materials Circulation Association, indicates that the BHI for February reached 87.84, an increase of 0.92 points from the previous month and a year-on-year rise of 9.94 points. Sales of building materials in the first quarter of 2014 hit 63.9 billion yuan, showing a 19.83% year-on-year growth. Although March’s figures are not yet available, the early signs suggest a clear warming trend in the market.
After the Spring Festival, Chengdu's home market experienced a mini-spring, with several major stores launching promotional campaigns to attract customers. Red Star Macalline, for instance, saw a surge in sales at its Chengdu Jialing and Shuangnan branches. According to Zhou Mao, Assistant General Manager of Red Star Meikailong, sales in these two locations increased by about 30% compared to the same period last year, signaling a strong recovery in the market.
Fu Simei Home also kicked off its “Home of Ten Thousand People’s Fair†in early February, which helped boost sales across its three major stores. The promotion campaign, running from late February through “3·15†Consumer Rights Day, became one of the busiest periods of the year for the company. This year, Fu Simei focused on both product offers and customer service, including initiatives like honest services and orphan cabinet assistance, further enhancing its appeal.
Since March, the Chengdu home industry has seen a significant rise in sales. Diversified marketing strategies and promotional events have played a key role in stimulating consumer demand. According to reports, sales in the first quarter of 2014 rose nearly 40% year-on-year. Li Weidong, General Manager of Sichuan Home Company, noted that their cash collection data showed a 50% growth in March alone.
The number of vehicles entering and exiting traditional furniture markets such as the Eight Benefits Furniture City and Taipingyuan Furniture Plaza has also increased, indicating a rising level of activity. The “dollars you buy, I cash back†campaign at the Eight Benefits Furniture City saw a 50% increase in both foot traffic and prize claims compared to the same period last year.
The home improvement market has also shown clear signs of recovery. Companies like Shangshe Decoration reported that many homeowners began planning renovations ahead of the new year, leading to a surge in construction activity after the Spring Festival. Weekly calls from potential clients have risen significantly, with over 80% of those who reach out placing orders after careful consideration.
Model decoration projects also experienced a boom, with companies reporting a 40% increase in weekly orders compared to the previous year. Strong word-of-mouth and on-site promotions have contributed to impressive signing volumes. Meanwhile, high-end home decoration packages have become increasingly popular among homeowners seeking quality living experiences.
Haoting Decoration launched a new "Lok Habitat, Big House, Love" package tailored to different customer needs, and the first quarter saw a strong market response. Jiuding Risheng, a Sichuan-based decoration brand, opened its renovation service platform in February, attracting more visitors each week. With the introduction of a one-stop worry-free decoration model, the company expects a busy year ahead.
New players are also entering the Chengdu home improvement market, eager to capture a share of the growing demand. Industry experts note that the early start of the year, combined with aggressive promotional activities and a larger supply of housing, has contributed to the market's rapid recovery.
From the beginning of the year, the home furnishing market has been lively, with major events like the “Millions of Home Fairs†on February 22 and the “3·15†promotional wave driving sales. Many in the industry believe that March is not just a holiday period but also a critical time for home improvement, and businesses are seizing every opportunity to promote their products.
Red Star Macalline’s stores have reported a significant increase in daily sales outside of holiday periods, with consumers becoming more rational in their purchasing decisions. While building materials continue to outperform furniture in terms of sales, this aligns with the current home improvement season.
Overall, the Chengdu home market is showing a clear upward trend, driven by strong consumer demand, effective marketing, and favorable economic conditions. As the market continues to warm, it is expected to remain active throughout the year.
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