According to statistics, in 2020, the market size of China's home decoration industry reached 2.61 trillion yuan. After years of rapid development, the market environment of China's home decoration industry has changed. Among them, as a real "Internet aboriginal", Generation Z gradually began to dominate home decoration consumption, accounting for 49.5% of the age distribution of Q1 home decoration users in 2021, promoting the continuous strengthening of the online trend of home decoration consumption.

On the other hand, the epidemic has become an online accelerant for consumption habits and marketing methods, and the consumption scene of "home economy" has increased abruptly, and users are used to using nails to complete clocking in, buying fresh food online, and so on. Online has also become a long-term new consumption habit of consumers. This trend also continues in the Internet home decoration industry.

According to the announcement data of Qiyi Technology (01739) (operator: Qijia net), the first unit of domestic home decoration vertical platform, the company introduced 415 new paying merchants in Q1 in 2021, an increase of 42% over the same period in 2020. In the 12 months ended March 31, 2021, the number of active paying merchants was 5090, an increase of about 40 per cent year-on-year.

According to the company's unaudited management accounts, revenue from SaaS and extended services (including SaaS, marketing services and supply chain services) was about 135 million yuan in the first quarter, an increase of about 75 per cent over the same period in 2020.

The trend of industrial digitization is irreversible.

In the epidemic, the speed of response to black swans varies from industry to industry. But whether it is the home industry or home decoration industry, one of the most unified consensus is: go online. In the face of the epidemic, the whole home and home decoration industry is once again aware of the importance of digitization. Today, even though the epidemic has been brought under control at home, the trend of accelerated digital transformation has long been irreversible.

According to the Fastdata extreme "2020 China Internet Home Decoration Industry report", the market scale of China's home decoration industry reached 2.61 trillion yuan in 2020. After years of rapid development, the market environment of China's home decoration industry has changed, the home decoration market has entered the stock game stage, the industry competition is white-hot Matthew effect is obvious, small and medium-sized "white-brand" decoration enterprises are facing the risk of being eliminated.

In addition, the real "Internet aborigines" Z generation began to dominate home decoration consumption, and the trend of home decoration consumption online has been continuously strengthened. Hugging online has become an important way for small and medium-sized home decoration enterprises to enhance competitiveness and improve efficiency. The digital transformation of traditional home decoration enterprises is imminent.

According to the data released by Fastdata Poles, the overall home improvement market size of 261 trillion in 2020 has declined compared with 2.74 trillion in 2019, the first decline in nearly five years, and is expected to achieve compensatory growth in 2021. In contrast, small and medium-sized home decoration enterprises have completed the digital transformation through the flow support of home improvement platform, brand empowerment, operation empowerment, supply chain empowerment, financial empowerment, etc., but also contributed to the growth of the scale of the Internet home decoration market.

According to the Blue Book of China Internet Home Decoration Industry released by CIC, the overall market size of Internet home decoration in China will exceed 55 billion yuan in 2020 and is expected to exceed 140 billion yuan in 2025.

Zhitong Financial APP learned that at present, the stock of urban housing in China will reach 346 million units in 2020, and the demand for improved decoration will be released quickly. On the other hand, generation Z Q1 accounts for 49.5% of the age distribution of home decoration users in 2021. With the improvement of the leading role of the Internet aboriginal generation in home decoration consumption, the trend of home decoration consumption online will continue to be strengthened.

Give a boost to overall income growth

When it comes to Internet home decoration, home decoration industrialization is undoubtedly an important direction. In the second half of home improvement, Internet integration through industry resources, digital transformation of the design, construction, building materials and other process links within the home decoration industry has become one of the important goals.

Zhitong Finance and Economics APP learned that due to the traditional management methods, low organizational capacity and low degree of standardization, home decoration enterprises often have pain points such as difficult to obtain customers, high costs, difficult to guarantee construction quality, and low operational efficiency. As one of the main players of Internet home decoration, Qijia Network provides full-process solutions based on SaaS, including marketing services, supply chain services, financial and credit innovation services, improving the service efficiency of installation enterprises, etc., which aims to help installation enterprises reduce costs, improve quality and improve service efficiency from contact with users, customer relationship management, raw materials and capital flow.

According to Deng Huajin, chairman and CEO of Qijia net, 2020 is a critical period for the company to continue to expand its enterprise service business, and the company is mainly divided into two parts in terms of business layout: 1. SaaS-based home improvement enterprise service platform, in addition to SaaS subscription, but also includes marketing services, supply chain services and a series of innovative services; and 2. Leading the operation of a number of interior design and decoration brands.

At present, the two major business sectors of the company carry out business through direct marketing and joining, and go deep into the specific process of the industry, which is conducive to deepening the application of digitization and standardization in the production and service process, and making a deep adjustment to the industry standards. thus forcing the equipment enterprises to transform and upgrade, and form a deeper transformation of the industry.

As early as 2020, which was affected by the epidemic, the company's SaaS subscription and marketing service revenue achieved steady growth, of which SaaS subscription fee revenue increased by 39.9% year-on-year to 29.8 million yuan in 2020, marketing service revenue increased by 6.4% over the same period last year, business revenue reached 450 million, and the number of active paying merchants increased by 33% over the same period last year.

This time, the revenue of SaaS and extended services has increased significantly by 75% compared with the same period last year, the number of new paying merchants has increased by 42% compared with the same period last year, and the number of active paying merchants has increased by about 40%. This is a further continuation of the market demand growth won by the company to solve the pain points of the industry for customers under the irreversible trend of industrial digitization.

According to the statistics of Fastdata poles, as of March 2021, the number of monthly active users at the C-end of Qijia Network has reached 4.6 million, and the coverage rate for the B-end users has reached 43.5%. At present, it maintains a leading position in the industry, and has a large gap compared with the second in the industry.

Looking forward to the whole year of 2021, with reference to the company's SaaS and extended services business data released this time, accounting for 58.58% in 2020, it is believed that the company's substantial growth in the first quarter will give a big boost to the company's overall revenue growth.

According to the company, Qijia will continue its overall SaaS enabling solution strategy and launch Wechat marketing solutions to help interior design and construction service providers easily create and operate their own Qijia stores through the use of social marketing tools (including red packets, flash buying, group buying, etc.). In the home improvement consumption online trend and the industry out of the haze of the epidemic environment, the company's annual performance in 2021 is expected to achieve good results again.