Core Viewpoint - The home decoration market in China is facing significant challenges in 2025, marked by the recent shutdown of Liang Jia Ju and the financial troubles of other companies like Zhu Fan Er and Dong Yi Ri Sheng, indicating a shift from rapid growth to a more rational and competitive landscape in the industry [1][3]. Group 1: Company Challenges - Liang Jia Ju announced its closure due to long-term losses, increasing debt, and insolvency, highlighting the severe financial difficulties faced by the company [1]. - The official website of Liang Jia Ju is currently inaccessible, and its founding companies are in a state of operational irregularity, accumulating over 50 risk alerts [3]. - The lack of a risk warning mechanism has been identified as a critical factor in the rapid decline of previously successful companies in the home decoration sector [3]. Group 2: Industry Insights - The two main concerns for consumers in the home decoration industry are "funding safety" and "construction quality," with over 70% of users prioritizing these aspects in their decision-making [3][5]. - A report from Tu Ba Tu indicates a 120% increase in demand for paid quality inspection services, reflecting consumers' heightened focus on construction quality [5]. - Tu Ba Tu has introduced services such as "pay after renovation" and third-party quality inspections to enhance funding security and ensure construction quality throughout the renovation process [5].

Core Insights - The report from Tubaotu indicates a significant shift in the home renovation market, with a notable increase in demand for budget-friendly and quality-focused services, reflecting changing consumer behavior and preferences [1][12]. Group 1: Budget Trends - There is a marked decrease in the renovation budget among users, with the largest budget range of 50,000 to 120,000 yuan dropping from 70.38% to 61.3%, indicating a reduction of about 10% in this demographic [3]. - Conversely, the proportion of users with a budget below 50,000 yuan has increased by nearly 50%, rising from 11.73% to 16.48%, suggesting a significant influx of users opting for lower-budget renovations [3]. - The demand for minor renovations and micro-renovations has surged, with a 27% increase in demand for minor renovation projects and a 29% increase for micro-renovation projects compared to the second half of 2024 [8]. Group 2: Design Preferences - The "modern minimalist" style dominates the renovation preferences, accounting for 66.89% of user choices, while "Japanese wood" style is gaining popularity [5]. - Other styles such as light luxury, new Chinese, Nordic minimalist, and American retro continue to maintain high popularity among consumers [5]. Group 3: Professional Services - The penetration rate of fund escrow services on the Tubaotu platform has reached 99%, indicating a strong consumer preference for financial security in renovations [10][12]. - The demand for paid quality inspection services has increased by 120%, reflecting a growing emphasis on quality assurance among users [12]. - Tubaotu's fund escrow service has been crucial in protecting users' financial interests, having saved users from significant losses in cases of contractor defaults [14]. Group 4: Consumer Behavior - Users are becoming more rational in their renovation decisions, with a decrease in those making quick decisions within a month, down by 7%, while more users are extending their decision-making period to 30-90 days [16]. - Over 70% of users prefer to use platforms for research and comparison, utilizing social media and professional platforms to learn about renovation options and companies [20]. - The gender dynamics in decision-making are shifting, with male decision-makers increasing from 57.45% in 2024 to 59.5% in 2025, indicating a trend where men are more involved in basic renovation decisions [20].