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Top Ten Trends of Building Decoration Industry in

2015-08-23

  

     2015 is the lastyear of the 12th Five Year Plan, when China unleashes new growth vatility fornew normal economy. Loose from the “Speed Complex”, the architecturaldecoration industry will also step into an age of specialization with thestrategy of competing and expanding on the basis of fine quality, allocatingresources in a more mature, rational way in fields of smart homes,industrialization, green decoration, etc.. Whether for enhancement of their ownadvantages, full implementation of the established strategy, or to buildtechnical barriers hard to break through by means of scientific and technologicalinnovation, a series of significant and profound changes will certainly takeplace this year in building decoration enterprises, which as an importantmember of the national economic system will furthermore lead the industrytowards a more advanced stage

Specialization

 

Writing A New Chapter

 

     In 2015, a brilliant new chapter will beginin building decortion industry, where there will be clearer division on bais ofspecilization and more obvious features of development with low initialvelocity and high acceleration,.

 

    At the 30th anniversary of Chinese architecturaldecoration industry, 120 leading enterprises following a specialized route werecommended .As Z&F Culture Construction should be for theatre, WenyeDecoration for HSR station projects, Terart Decoration for international fivestar hotels, professional strength means victory in fierce competitions andleading position for enterprises.

    With the accelerating shuffling and segmentation,a number of specialized enterprises sprung up to recreate a new pattern ofdiversified development featuring specialization, segmentation and longlifespan, by breaking out of the old pattern of homogeneous competition. Notcan an enterprise gain the foundation for its diversified, comprehensivedevelopment and keep its feet in the accelerated changing market before itaccumulates absolute advantages in one or a few professional fields, based onwhich it will finally grows into a large-scale professional flagship enterpriseby gradually expanding as a mature business model.

 

Quality


To Continuously Carry Forward Specific Projects

 

     In 2015, the new urbanization construction comesinto further expansion and the 2-year Project Quality Management Action is tofurther deepen. In face of a broader market and more fierce competitions, enterprisesare forced to win by fine quality, which will become a new normal state in architecturaldecoration industry.

 

    In 2014, China unprecedentedly increasedits attention to project quality. The Ministry of Housing and Urban-ruralDevelopment sounded the horn of the 2-year Project Quality Management Action,to which the building decoration industry gave an active response. Nearly 3000projects has obtained the National Construction Decoration Award since it wasset up.

 

    Building decoration is an important part ofhousing construction, the quality of which directly affects the using functionand external plastering of the building. Excellent enterprises in architecturaldecoration industry are the ones who prioritize the quality, aiming at qualityprojects. China’s Building Decoration Association has begun the fullimplementation of Lifelong Responsibility System specific to the person incharge of a project. In addition, a self -inspection reporting process has beenincluded into the inspection work for National Construction Decoration Award.

 

Green Decoration

Green Decoration Is to Cover the Whole IndustryChain

 

     In 2015, building decoration industry will welcomea larger space for green development, from the initial green design to greenconstruction, or eventually,  to thewhole industry chain.

Many a enterprises are advancing steady onthe green decoration road and have had some achievements. For example, GoldMantis’s application for Green Decoration Engineering Technology Research Centerhas been accepted; and Grandland Decoration has created a decorative industrialpark with National Three-star Green Building standard.

 

      From January 1 this year, the new versionof the "Green Building Evaluation Criterion" was put into formalimplementation. Green decoration is achieved by advocating green concept, adheringto green design, using green materials, and conducting green construction. Itsimportance to green building is what green building to green economy. While greenconstruction is being pressed forward in China and green concept is graduallyturning into a social consensus, decoration enterprises are exposed an overwhelminggreen wave, with the impetus of which, green decoration is bound to be the trendof future development.

 

Embrace the Internet
To Create A New Blue Ocean

 

      The year of 2015 in building decorationindustry will be a year to embrace the Internet, to put into use the Internet thinkingboth online and offline.

 

       In 2014, decorations companies including Goldmantis Decoration, Yasha Decoration, Hongtao Decoration, with the help ofInternet, while consolidating their original market for public decoration, successfullydeveloped the household decoration market worthy of 1.35 trillion Chinese yuan aswell as the small public decoration market about 800 billion yuan.

 

      The supply chain and services is the keypoint of operating efficiency in architectural decoration industry. Marchinginto home decoration market and expanding procurement channels for buildingmaterials are the two major focuses to open online business. Some architecturaldecoration enterprises still remain in the stage of Internet operating and donot comprehend the real internet thinking, a way of thinking to take a new lookat the users, the products, the market, the value chain or the entire business form,which will become in this era a powerful weapon to fight.

 

Listing

Listing Process Speeds Up.

 

       In 2015, building decoration sector in capitalmarket will be extended in depth. Enterprise market value is also expected to goup to a new peak and keep high growth rate.

 

       Many decoration companies got listed in2014. Dong Yi Ri Sheng Decoration was the first to be listed in home decorationindustry., followed by the three decoration companies listed by reverseacquisition,Bauing Construction, Honggao Architecture Decoration & Designand Sino Great Wall, and another three successfully added to the national NewThird Board, Dongya Decoration, Guangjian share, and Beijing Intolo Decoration.Gyours Holdings is the one that got listed in Shanghai Stock Exchange Center. Besides,there are 9 companies suspended under review in 2014, which will also continue itsefforts to be listed.

 

     The building decoration sector of A-share stockmarket has come into shape, and becomes more and more remarkable in its blue-chippotential. The consiousness of building decoration enterprises are graduallyawakened to make surpassing development by employing capital market. The wholedecoration industry is moving towards maturity, which makes the development ofenterprises more standard, more rational, and provides conditions for companylisting. With the effects of micro policies such as the IPO reform, thebackdoor listing in reference to IPO, Shanghai-Hongkong stock connect, preferredstock and other policies emerging in succession, ways of listing will becomemore diversified.

 

Internationalization

 

To have a greater say

 

      This is a more market-oriented, more open,more interdependent world. In 2015, Chinese building decoration enterpriseswill walk more gracefully on the international stage.

 

      From APEC China 2014 to G20 Submit inHangzhou, China has gained a greater say in global economic governance. Since cooperationbetween countries doubtlessly is to be realized by enterprises eventually, architecturaldecoration industry, as a subdivided industry with annual output value of 3trillion yuan, is playing an increasingly important role in the internationalcooperation.

 

      In the past, state-owned enterprises wereoften given priority in the "going out" strategy executions ofChinese enterprises, while now it turns out to be private companies keeping pacewith the former. From the perspective of stock investment scale and developmentspeed, private capital will become the main force of China's investmentoverseas in the years to come. For the architectural decoration industry, as adominant one in private enterprises, "going out" has become a commonpractice. Many creative enterprises like Gold Mantis, Yasha Shares, Guangtian Shares,Hongtao Shares, Shanghai Xinli, Sino Great Wall etc., are regarding "goingout" as an important part of development strategies and programs.

 

Smart Home System

 

Further Extending the Space for Industrial Development  

 

      In 2015, smart homes will make a splash inconstruction decoration industry and become a new drive of profit growth.

 

      In fact, we could see a tide of smart homeswith tremendous force in 2014, from the events that Yasha took over  Wanan intelligence,Guangtian Shares set up the first smart home experience pavilion in constructiondecoration industry, and Haier Household became the only domestic enterprisedeemed finalist to serve as the smart home cooperative system platform forApple Inc.

 

     Smart home should not be merely house andhome, but be more of architecture. Although its influence to architecturaldecoration industry is not obvious, but it is still necessary for decorationenterprises to bring in smart home. Data from the Ministry of Housing andUrban-rural Development showed that China's existing building area is over 40billion sqm, with an annual increase of 2 billion sqm, and in these newbuildings the intelligent buildings account for 70% in the United States and 60%in Japan, while in China, the proportion is less than thirty percent (shown by 2012data), which means there is still huge space for future development.

 

Industrialization

 

More Mature Development Path

 

     In 2015, when the industrializationdevelopment of architectural decoration industry will be more mature, therewill be successive production release in enterprises’ existing industrial parks.It will be easier to keep consistent high standard in construction quality.

 

    So far in building decoration industry, morethan 1000 patents have been obtained in terms of finished product technology.60% of the semi-finished products and finished parts, which are made throughfactory processing, have been put into use. Gold Mantis Shares, Yasha Shares, ShenzhenBuilding Decoration Group and many other decoration enterprises, have builttheir own industrial park.

 

     By virtue of industrilization development,it will not difficult to realize the vision of building a house just likepiling up building blocks and doing the decoration as easy as making a car. Decorationindustrilization means using prefabricated standardized modules to improve theefficiency of decoration construction, to reduce on site pollution and decreasethe cost. In spite of the considerable progress in its industrialization, thereis still a long way to go, due to insufficient knowledge and experience indesign, technique, manufacture, management as well as some other aspectsrelevant to industrialization.

 

Design

 

More Prominent Leading Role

 

      In 2015, when leading enterprises inarchitectural decoration industry keep calling for listing and growing strongerand larger, professional designers will play an increasingly important role andexpenses on design works will also become the focus of enterprises.

 

     Over the past year, the positive effects ofGold mantis’ taking over HBA, a top international hotel design company, continuedto be released. As a new standard on design expenses was finally introduced,more and more decoration enterprises have set up or are planning for designinstitute. It gives the insiders a deeper cognition that design is the lead ofdecoration industry progress.

 

     A project starts from preliminary inception,and then design, followed by production and construction, and ends with its useand management. Not only does architecture imply a functional house, but alsoit reflects from different perspectives the cultural forms. That is why smartdevelopers are willing to spend heavily on hiring foreign designers. Good designersare always in demand, whether at the micro level for transforming economicgrowth pattern and speeding up enterprise development in decoration industry,or even at the macro level for cultural development & prosperity and socialprogress.

 

Technological Innovation

 

Better Mechanism


     In 2015, the technological innovationmechanism established in decoration industry, with enterprises as the core,will be further improved, and the achievements will indeed generate comprehensiveeconomic benefits.


     Over the last year, either the applicationof BIM technology or the introduction of 3D printing technology for buildings,shows the awakened awareness of technological innovation in building decorationenterprises, which are committed to the practice of "Science andtechnology is the primary productive force".


    When China is in the critical period of economic transitionfrom the early low value-added labor-intensive phase toward the highvalue-added knowledge-intensive and technology-intensive phase, we must be fullyaware of the importance of technological innovation. The increasingly popularizationof the Internet, cloud computing and Internet of things, will inevitably enrichthe services in decoration industry and have an impact on the existing businessmodels. Under this background, enterprises should pay much attention to the integrationof design, processing and construction, and the development of  products by adopting technologies such as modulization,standardization and industrialization, so as to constantly improve its creativityand services.

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