Home improvement firms keen to cash in on e-commerce boom
Japanese firm Lixil looks to tap growing demand for high-end Japanese interior products in China
The rapid growth of e-commerce has had a huge impact on the shopping habits of mainlanders with online sales of food, clothing and other daily necessities rising in tandem with increasing internet connectivity.
Big players in the home improvement sector such as Lixil Group, a leading building materials maker from Japan, are banking on the internet to get a toehold in the world’s most populated market — China.
Lixil’s optimism stems from brand-crazy mainland shoppers who are willing to fork out thousands of yuan on furniture and kitchen utensils in self-indulgent displays of social status.
The company believes that consumers who purchase high-quality imported products always rely on the brand equity.
“People are going for more designs,” said Francois-Xavier Lienhart, chief executive of Lixil Kitchen Technology. “You are successful in life and want to buy a piece of furniture that your neighbour does not have. It is something that you want to be proud of.”
China’s home improvement market is estimated at 4 trillion yuan (HK$4.73 trillion), propelled largely by the millions of home owners looking for premium building materials, furniture and kitchen utensils to decorate their multi-million-yuan apartments.
Japanese products such as kitchenware and sinks are among the most actively sought after products for their unique design and excellent performance.