Labor Day Golden Week, the peak consumption season of the household market

Since the beginning of this spring, the role of consumption as the first engine to boost the economy has been fully unleashed. From the recovery of the real estate market and the recovery of the car market to the early spring of home decoration in March, the consumer side has continuously transmitted a positive trend, which has greatly encouraged the market. At present, the Golden Week has not yet begun. The upsurge of household consumption has reached the terminals of major household stores in advance, and there are strong sales signals of year-on-year and month on month growth.

According to statistical data, from April 7th to April 22nd, the six core indicators of shopping mall traffic flow, number of consumers, number of orders, sales amount, total customer price, and unit customer price in China achieved year-on-year growth. Among them, traffic flow, number of consumers, number of orders, and sales amount achieved double-digit growth compared to the previous year. More noteworthy is that the data for this stage (two weeks before the Labor Day promotion) showed growth compared to the six core indicators in the first two weeks of the 315 promotion this year. Among them, the sales amount increased by as much as 27% month on month, the number of consumers increased by 13% month on month, and the unit price of customers increased by 17% month on month.

In contrast, last year's Labor Day in key cities was greatly affected, with a year-on-year growth expected. However, the month on month data growth of 315 fully indicates that the demand for home decoration consumption is continuously releasing and gradually strengthening, further warming up on the basis of the early spring in March. Considering that the interior decoration cycle lasts for 5-8 months, the increasing number of consumers will bring about a long tail effect in the second half of the year.

This is also in line with the overall industry trend. According to data from the Bureau of Statistics, the BHI (National Building Materials and Home Furnishing Prosperity Index) also showed a double growth phenomenon in March, with a month on month increase of 8.91 points and a year-on-year increase of 13.54 points. The sales of building materials and home furnishings stores above the national scale increased by 14.37% month on month and 20.39% year-on-year in March.

Major home furnishing enterprises are more actively seizing the dividends brought by this peak season of consumption release, testing new marketing strategies, creating explosive products, and releasing new products to jointly promote the arrival of the May Day consumption peak. Multiple home furnishing brands are working together online and offline, and during the Labor Day promotion period, 180 events will be held in multiple shopping malls across the country.

Shopping malls across the country have also carried out marketing innovation, actively planning and carrying out music festivals, home decoration parties, Tiktok shopping season, dinners, kitchen god competitions, decoration classes and other series of activities to create traffic inlets and achieve win-win volume sales. In addition, during the Labor Day promotion period, there will also be the largest "new store opening trend" of this year. Only for high-end electrical appliances, 34 brand new stores have opened in 20 shopping malls, welcoming the largest consumption peak since the beginning of the year.

And various online and offline sales activities are also in full swing, with 100% coverage of all digital shopping malls, a 118% increase in group opening and a 45% increase in group buying and customer retention. At the same time, the nationwide participation in the gold medal shopping guide thousand person live streaming activity continued to ferment, with a 58% month on month increase in opening accounts and a 40% month on month increase in average viewing.

Labor Day, as the traditional peak season for interior decoration, presents some new characteristics while continuing the consumption characteristics of 315 interior decoration. At the urban level, first and second tier cities, represented by Shanghai, Guangzhou, and Suzhou, have become the leaders of this rise, with sales in first tier cities increasing by as much as 37% year-on-year, becoming a super growth pole that has boosted the hot sales on Labor Day. The category leading the rise on Labor Day is consistent with 315, with the three major consumer upgrade categories of imports, electrical appliances, and system doors and windows far leading the growth track, and the import category growing by up to 42% year-on-year. It can be seen that more and more consumers are willing to pay for consumption upgrades and quality experiences.

With the upcoming Labor Day Golden Week and the implementation of consumption promotion measures and the active marketing innovation of household enterprises, it is predicted from many aspects that the consumption of interior decoration will continue to rise and continue as a rigid demand. Huatai Securities released a research report stating that it continues to be optimistic about the performance of future interior decoration terminal demand. The increase in passenger flow driven by the recovery of terminal consumption scenarios has not fully transformed into Q1 demand and is expected to continue to be transformed in Q2.