Core Insights - The home furnishing industry is undergoing a significant transformation, shifting from a growth phase driven by real estate to a competitive era focused on smart upgrades and consumer demand for quality, price, and service [1][4] - JD.com is leveraging its supply chain and service advantages to streamline the purchasing process for consumers, significantly reducing the complexity involved in buying and using smart home products [1][5] Industry Trends - The Chinese smart home market is projected to exceed 1.2 trillion yuan by 2025, with a compound annual growth rate of 18.7% over the past three years, yet the penetration rate remains low at around 15% in 2023 [4] - There is a notable disconnect between high growth and low penetration in the smart home sector, indicating potential for future expansion [4] Consumer Behavior - Consumers face challenges in understanding the pricing of smart home products, leading to a lack of confidence and potential exploitation by sellers [2][3] - A significant portion of consumers (over 72%) are deterred from purchasing smart toilets due to the hassle of old product removal and installation [9] JD.com's Strategy - JD.com has implemented a "big order machine" strategy to reduce costs through large-scale procurement, benefiting both consumers and brands [6][7] - The company has enhanced its self-operated supply chain capabilities, allowing for better control over product quality and pricing [7][12] - JD.com is focusing on providing integrated delivery and installation services to improve customer experience and address the complexities of smart product installation [10][11] Product Development - JD.com collaborates with brands to create tailored smart home products that meet consumer needs, enhancing product quality while optimizing costs [8][12] - The company has seen significant sales success with products like the Haisibao S3 eye-protecting lamp, which quickly gained popularity due to its innovative design and competitive pricing [8] Market Performance - During the recent home improvement festival, smart home products saw substantial increases in search volume, indicating growing consumer interest [11] - The festival served as a platform for mutual benefits among consumers, brands, and JD.com, fostering a cycle of growth and innovation within the industry [11]

Core Viewpoint - The home improvement industry is undergoing a significant transformation, shifting from a growth phase driven by real estate to a stock competition era focused on smart upgrades, where consumers prioritize price, quality, and service [1][3]. Group 1: Market Dynamics - The demand for smart home products is increasing, with a notable rise in sales growth for smart appliances during the recent home improvement festival [1][4]. - The current supply model in the home improvement industry involves multiple layers of distributors, leading to inflated prices and inefficiencies, with some products marked up significantly from their original prices [3][4]. - The Chinese smart home market is projected to exceed 1.2 trillion yuan by 2025, with a compound annual growth rate of 18.7%, yet the penetration rate remains low at around 15% in 2023 [4]. Group 2: Consumer Challenges - Consumers often lack awareness of the pricing of home improvement products, making them vulnerable in the market, which is compounded by a lack of strict price and quality regulation [3][4]. - A significant portion of consumers (over 72%) are deterred from purchasing smart toilets due to the hassle of replacing old products, highlighting a critical barrier to market penetration [11]. Group 3: Company Strategies - JD.com has implemented a "big single machine" strategy to reduce costs through large-scale procurement, benefiting both consumers and brands by lowering prices and ensuring product availability [7][8]. - The company has enhanced its self-operated supply chain capabilities, allowing for better control over product quality and pricing, which is crucial for building consumer trust [8][12]. - JD.com offers integrated delivery and installation services for smart products, addressing consumer pain points and enhancing the overall shopping experience [11][12]. Group 4: Future Outlook - The collaboration between JD.com and various brands aims to optimize supply chain efficiency and product offerings, ensuring that high-quality smart home products are accessible at competitive prices [13]. - The ongoing development of smart home products is expected to continue, with a focus on improving consumer experience and expanding market reach [5][13].