Core Viewpoint - The domestic home renovation industry is facing significant pressure since 2025, with numerous companies experiencing financial difficulties, leading to rumors of owners absconding with funds. The crisis has been exacerbated by the collapse of previously successful companies like Zhu Fan Er, which has raised concerns about consumer refunds and project completions [1][2]. Group 1: Company Crisis - Zhu Fan Er, once a leading company in the home renovation sector, faced a sudden crisis in April, leading to widespread consumer complaints about refund difficulties and project halts [2][3]. - The company has implemented a "refund queue plan," but the daily refund limit of 100,000 yuan has left many consumers waiting, with some reporting queue positions near 30,000 [2]. - As of May 31, 2023, there have been 500 bankruptcy cases in the decoration sector, with nearly 36% involving home renovation companies, matching the total for the entire year of 2024 [4]. Group 2: Market Impact - The financial troubles of Zhu Fan Er have led to over 800 construction sites in Beijing and Shanghai being suspended, highlighting the ripple effect of its cash flow issues [2]. - Other notable companies, such as Dongyi Risheng, have also faced severe financial challenges, with reports of multiple store closures and significant losses impacting their market value [4]. - The traditional "pay first, work later" model in the renovation industry has contributed to these issues, with over 70% of consumers expressing concerns about the safety of their funds [6]. Group 3: Payment Model Reform - The industry is witnessing a shift towards a "work first, pay later" model, which aims to enhance consumer trust and ensure funds are safeguarded [6]. - Companies like Tuba Tuba have pioneered this payment reform, allowing consumers to deposit funds in a third-party account, releasing payments only upon satisfactory completion of renovation milestones [6]. - Since 2020, the proportion of users utilizing the "work first, pay later" model on Tuba Tuba has increased from 85.3% to 92.7%, indicating a growing acceptance of this approach across various cities [6].