A 500% increase in monthly sales in the first quarter?! Furniture supplies became the Amazon fairy category this year
Overview of overseas markets in the household goods category
Online sales of US home decoration and furniture in 2020 are estimated to be nearly 76.8 billion US dollars, accounting for 25.5% of the total retail sales of this category in the US. The share of online sales continues to increase. It is estimated that by 2024, online sales will exceed 126 billion US dollars, accounting for 37.4% of total retail sales.
In Europe, take Germany as an example. In 2019, online sales of household goods were nearly 5 billion euros, up 15.3% year on year; online sales of furniture and decoration products exceeded 4.7 billion euros, up 11.4% year on year.
Online sales of home and decoration products in Japan reached 1608.3 billion yen in 2018, an increase of 8.6% over the previous year.
Consumer portraits and 2020 consumer trends in the household goods category
Consumer groups:
► Mainly housewives, wage earners, and white-collar workers. They have a certain level of spending power and pursue quality of life, so they care about the cost performance ratio of products, and also pursue quality and personalization
Consumption frequency:
► European and American consumers buy household items more frequently and often change them every quarter, especially bedding, curtains, home decor, etc. These “durable goods” in the eyes of Chinese consumers are a kind of “consumer goods” in Europe and America. Higher consumption frequency has also brought more market space to Chinese sellers
► Household appliances will be consumed relatively less frequently. In addition, since charged products have a higher customer unit price and longer service life compared to uncharged products, consumers will also take longer to consider replacing new products
Consumer demands:
In terms of kitchen supplies, generally speaking, consumers generally focus on cost performance, many product choices, stable and guaranteed quality, convenient and fast delivery, etc., but the demands of consumers on each site are also slightly different:
► American consumers view household items not only as necessities of life, but also as an attitude to life and a way of expressing themselves. However, when it comes to brand, design, and material preferences, due to the many sub-categories and subcategories of home furnishings, it is impossible to generalize:
• For health-related products, consumers have higher requirements for materials and brands, such as pillows and mattresses
Taste-related products that express individuality. Consumers have higher requirements for design and materials, such as candles, lockers, and curtains
• When replacing products frequently, consumers are more concerned about cost performance, that is, they can buy high-quality products such as paints, brushes, and tools on a cheaper basis
► Compared to Americans, European consumers have higher requirements for product comfort and pay more attention to product details. For example, in the material of bedding and curtains, Europeans generally prefer cotton products
► Japanese consumers, on the other hand, prefer fresh, simple products. Brand loyalty and online repurchase rates are very high. Since purchasing decisions are carefully considered, the return rate is also relatively low. In addition, Japanese consumers also generally have the following demands:
• Because the room is relatively small and the ceiling is low, it is important that the product is easy to store
• Attention to details, including packaging, labels, shopping vouchers
• Environmentally friendly and efficient, that is, the product page is simple and easy to understand, easy to place orders, and fast delivery
2020 fashion trends
► Household storage products continue to receive attention:
• Affected by the epidemic, Japanese people who already love storage have more demand for household items that can make their home life more comfortable and work from home more efficient. In the long run, demand for food storage, kitchen storage, clothing storage, and bulky storage will continue to be strong
Reference suggestions for sellers
Household items:
Adding small functions to existing products: Sellers can improve existing products in response to minor problems in consumers' daily lives, so that even the most common household items can be dazzled by consumers
► In terms of material selection, if recyclable materials can be used, they will be more favored by consumers
► Consider the direction of personalization: Since most household products have various attributes, such as material, color (color and pattern), style, and size, sellers are advised to consider personalization more and offer competitive prices based on cost control, so they may have a place in their own sub-category
► Consider the direction of customization: Consumers in the five European countries also have slightly different preferences for the same products, such as mattresses. Germans prefer firmer textures, while French people prefer softer mattresses, so it is recommended that sellers can design customized products according to the preferences of customers in different regions
► It is recommended that Chinese sellers work hard on originality and quality, so that even if many local American brands have an upstream advantage, they can gain more living space and flexibility
► Look for segmented categories and pay more attention to small categories that have grown rapidly in recent years. You can consider whether to enter from dimensions such as market capacity, growth rate, and product difficulty factor. For example, recently, categories such as fabric (Fabric) and flower cloth in the Home Arts and Crafts category (Home — Arts, Crafts & Sewing) have performed well
► Immediately adjust internal and external promotion according to changes in the situation. For example, since people are staying home more recently and spend more time on entertainment and leisure, video media sites/apps have increased dramatically, such as YouTube, Tiktok, Instagram, and Facebook. Sellers can consider whether to bind their choices to these traffic trends based on actual product conditions , promote sales
► Household and daily necessities are also suitable for gifts to family and friends during the holidays. You can also consider adding relevant content to product descriptions and packaging
Smart home is also a major trend in the future. Interested sellers can consider connecting to smart home Alexa
Household goods category hot selling sub-categories and operation tips
Non-electric household items
DIY art category:
• Popular products: raw materials and auxiliary products such as beads, needlework, woodwork, scrapbooks, etc.
• Consumer concerns:
- American consumers love to make their own artistic and creative DIY, including beads, needlework, woodwork, and scrapbooks. In addition to raw materials, there are also many auxiliary products that can be expanded, and there is a lot of room for Chinese sellers to operate
- This category can be expanded in terms of material, color, style and other attributes
• Hot selling sites: US
• Best selling months: All year round, Christmas is the peak season
• Industrial belts: Hebei, Anhui, Shandong, Jiangxi
• Price range: $20-400
Painting category:
• Popular products: drawing boards, brushes (watercolor brushes, oil brushes/brushes, paint brushes, etc.), various paints, painting sets, etc.
• Consumer concerns:
- The vast majority of products are still mainly functional, and there is no strong brand recognition. Consumers will buy cost-effective painting products such as paints, which account for a large proportion
- A small number of consumers have higher requirements for the quality and individuality of products. They will buy painting products and auxiliary products with slightly higher unit prices and higher quality
- In addition to valuing cost performance, some professional art tools are also popular among European customers, such as professional brushes. At the same time, customer purchases will also combine the local country's favorite art faction and artistic atmosphere. For example, German color palette scraping is more popular, British paintbrushes sell better, etc.
• Advice for sellers: The supply of paint in China is very good, so Chinese sellers have an advantage in doing this piece, and there is a lot of market space
• Hot sales sites: US, Europe
• Hot sales months: All year round, high season for school and Christmas
• Industrial belts: Hebei, Anhui, Shandong, Jiangxi
• Price range: $30-300 (US), €10-50 (Europe)
Home Decor:
• Hot products: artificial flowers, preserved flowers, wall stickers, mirrors, decorations and ornaments
• Consumer concerns: reasonable price, easy to carry, easy to store, pleasant smell, bright color, suitable as a gift for family and friends, matching the actual product with the photo
• Suggestions for sellers:
- The gift box should be strong and secure to prevent damage during transportation
- Message card included
- Avoid listing infringing products (such as cartoon-shaped ornaments)
- Clearly indicate the dimensions of the product on the page, preferably with references
• Hot sales site: Japan
• Industrial belts: Lishui, Yiwu, Quanzhou
• Price range: 1000-5000 yen
Interior decoration:
• Hot products: decorative flowers, kitchen cabinets, wallpaper, photo frames, wall shelves
• Consumer concerns:
- In choosing many products, American consumers pay great attention to brands, but they still leave more room for Chinese sellers to make cost-effective products
- The seller is concerned about whether the price of the product is attractive when the quality is guaranteed
- Since it is a home improvement product, if you can work hard on the design and originality of the product, it will also be greatly loved by consumers
• Hot selling sites: US
• Hot sales month: Throughout the year, especially during the holidays (August-December)
• Industrial belts: Yiwu, Ningbo, Taizhou
• Price range: $10-100
Household goods:
• Hot products: shower heads, bath towels, slippers, basic hangers, drying racks, floor mops/floor wipers, trash cans with lids, soap boxes, shampoo dispensers, travel goods/travel accessories
• Consumer concerns: Lightweight (moderate weight), easy to use, cost-effective, novel functionality, creative, comfortable, improved efficiency (such as towels absorb water well and dry quickly), and durable
• Suggestions for sellers: Household goods generally do not have a high threshold, and the selection is very rich. Products that are easy to assemble, ingenious in design, and quality can often be highly praised by consumers, winning a high repurchase rate
• Hot sales site: Japan
• Industrial belts: Jiangmen, Jinhua, and Nanchang
• Price range: 1000-5000 yen
Home decoration fabric:
• Hot products: curtains, sleeping blankets, sofa covers, pillows
• Consumer concerns:
- Consumers do not have a strong brand tendency to choose these products, and since these products are consumer goods and are replaced relatively frequently, consumers tend to choose good and inexpensive products
- On this basis, personalization is also their requirement
• Suggestions for sellers: Not only is this type of product a large market, but it is still growing rapidly, so it has great potential; at the same time, Chinese sellers have many advantages in the supply chain, so there are still many fields where Chinese sellers can enter these markets; moreover, the products listed above do not have very strict brand and quality requirements, and the cost-effective products provided by Chinese sellers are still loved by consumers; finally, there are many attributes that can be adjusted by sellers.
These attributes avoid homogenization and malicious competition
• Hot selling sites: US
• Best selling months: All year
• Industrial belts: Zhejiang, Jiangsu
• Price range: $20-50
Home storage:
• Hot products: low-end TV stands, metal shelves, hanger sets, open shelves, bookshelves, kitchen vans, and storage carts
• Consumer concerns: Does not take up space, easy to move with casters, sturdy and durable, large capacity, adjustable height, movable shelves, easy assembly, beautiful design, and improved housework efficiency
• Suggestions for sellers: Provide detailed installation instructions, provide complete assembly accessories, and provide a variety of metal frame parts for consumers to buy together
• Hot sales site: Japan
• Industrial belts: Yiwu, Yongkang, Dongguan
• Price range: 1000-15,000 yen
Bed textiles:
• Hot products: quilts, blankets, pillows, pillowcases
• Consumer concerns: Affected by the epidemic, people spend more time at home, demand for bedding such as quilts, blankets, pillows, pillowcases, etc. is increasing, and customers are very concerned about comfort and product functionality
- European consumers: They pursue cotton texture more in terms of materials, prefer solid colors, etc., and silk pillowcases are also very popular among European and American customers
- American consumers: Compared to products with very high brand and quality requirements, such as mattresses and pillows, although products such as duvets and blankets are bedding, consumers have relatively low requirements for their quality and brand; at the same time, since this category has a large enough market share, it is malleable in terms of material, color, function, etc., giving Chinese sellers enough room to expand
• Hot sales sites: US, Europe
• Best selling months: September to March of the following year
• Industrial belts: Zhejiang, Jiangsu
• Price range: $20-200
Mattress:
• Consumer concerns:
- Comfort requirements are high, and attention is paid to the functionality of the product, such as the hardness of the mattress, whether it is resistant to mites and insects
- Personalized designs can be made for consumers in different regions. For example, German customers will design slightly firmer mattresses, while French people design softer mattresses
- Customers value high cost performance, good quality and low price, so they don't pay much attention to the brand
• Hot sales sites: US, Europe
• Hot sales months: All year round, the second half of the year is peak season
• Price range: 100-200 Euros
Electric household items
Air purifiers:
• Consumer concerns: whether it is a high-efficiency filter (HEPA), how often the filter is replaced, the size of the room that can be treated, purification efficiency, and whether it supports smart homes
• Suggestions for sellers:
- The main drivers are the increase in the number of sensitive people and the worsening of wildfires during the dry season, so choosing an effective and long-lasting air purifier is particularly important
- Product design can focus on low noise, sleep mode, intelligent app control, etc.
- Large items need to solve problems such as logistics, installation and after-sales
• Hot sales sites: North America, Europe, Japan
• Best selling months: All year
• Industrial belts: Foshan, Shunde, Dongguan
• Price range: $70-200
Dehumidifier:
• Consumer concerns: dehumidification capacity, applicable area, easy operation, low noise, low energy consumption, evaporation and condensation, warranty time
• Suggestions for sellers:
- A dehumidifier is the most professional and effective household appliance for preventing moisture and mold. You can consider the product's easy mobility, competitive cost, efficient dehumidification with technical upgrades, freely adjustable humidity, dehumidification volume of 15-33L per day, suitable for use in American bathrooms or basements of less than 20 square meters, intelligent operation, etc.
- Large items need to solve logistics, installation and after-sales problems
• Hot sales sites: North America, Europe, Japan
• Best selling months: June-December
• Industrial belts: Foshan, Shunde, Dongguan
• Price range: $80-200
Fans, tower fans:
• Consumer concerns: compact and portable USB fan, adjustable inclination, energy saving, wind power, applicable area, quiet, vertical with remote control function, slim body, intelligent operation, LED control panel
• Suggestions for sellers: You can consider optimizing the exterior design, easy cleaning, etc.
• Hot sales sites: North America, Europe, Japan
• Best selling month: summer
• Industrial belts: Foshan, Shunde, Dongguan
• Price range: $15-150
Heaters:
• Consumer concerns: timing function, silence, energy saving, good heat dissipation, fast heating, non-toxic and environmentally friendly, surface temperature safety of electric oil stings, no need to refuel, anti-scalding material on the shell
• Suggestions for sellers:
- In extremely cold weather in Europe and America, heaters are very practical. Product design can consider portable, uniform temperature, intelligent temperature control, safety aspects such as automatic power off, etc.
- The consumer trend of household appliances in Japan favors products that are small in size and low in power, and can be selected for Japanese trends
• Hot sales sites: North America, Europe, Japan
• Best selling month: Winter
• Industrial belts: Guangdong, Zhejiang
• Price range: $15-150
Vacuum cleaner/electric mop:
• Consumer concerns: suction power, weight, ease of cleaning, battery life
• Suggestions for sellers:
- For large houses of European and American consumers, it is very important whether the vacuum cleaner is powerful enough, whether the battery life is long enough, and whether the garbage storage space is large enough, and the vacuum cleaner itself must not be too heavy. Otherwise, consumers say they are tired
- In addition, the ability to vacuum pet hair is also a very important selling point
- Vacuum cleaners need to be easy to clean. Vacuuming for ten minutes, and cleaning for half an hour is definitely not what consumers want
- At the same time, multi-use smart electric mops are also growing rapidly. Sellers can consider the direction of this product to broaden the category
• Hot sales sites: US, Europe, Japan
• Best selling months: All year
• Industrial belts: Zhejiang, Jiangsu, Guangdong
• Price range: $40-400
► Robotic vacuum cleaner:
• Consumer concerns: intelligent cleaning methods, whether it is easy to disassemble and clean, battery life, cleaning area, suction power, low noise, and whether to support smart homes
• Suggestions for sellers:
- Sweeping robots require a high technical threshold for products, such as autonomous navigation systems and memory systems without manual intervention
- The price range is very large
• Compliance requirements: It is necessary to meet US UL, European CE, Japanese PSE and other certifications. For specific requirements, please refer to the Amazon Seller Platform
• Hot sales sites: US, Europe, Japan
• Best selling months: All year
• Industrial belts: Zhejiang, Jiangsu, Guangdong
• Price range: $150-600
Household goods category compliance certification
[American Station]
You need to follow:
• FCC: For radio-related products, such as Wi-Fi, Bluetooth, microwave, etc.
• DOE: For small household appliances involving electrical appliances related products
• Energy labels and electric light source labels are required: TVs, refrigerators, freezers, washing machines, indoor air conditioners, ceiling fans, etc.
Europe Marketplace
It is necessary to comply with CE, RoHS, WEEE (applicable to electronic and electrical products), food contact materials (Regulation EC NO. 1935/2004)
• The CE mark is a self-certification mark applied by the manufacturer to the product. The CE mark indicates that the product complies with European Economic Area (EEA) health, safety and environmental protection standards. Not all products sold in the European Economic Area are required to have a CE mark. Examples of common products requiring CE marking include toys and games, TV/audio, personal protective equipment, machinery, construction goods, gas equipment, recreational and personal boats, pressure vessels, and measuring equipment. You can find a full list of products that require CE marking, as well as information on the steps manufacturers need to take to apply the CE mark at the following link:
- https://ec.europa.eu/growth/single-market/ce-marking/manufacturers_en
- https://europa.eu/youreurope/business/product-requirements/labels-markings/ce-marking/index_en.htm
• If you sell electrical or electronic equipment (EEE), you may be required to comply with the European Directive 2012/19/EU (Electrical and Electronic Equipment Waste Directive) on the collection and recycling of electrical and electronic equipment waste (WEEE), as well as country/regional laws implementing this Directive
• Restriction of Hazardous Substances (RoHS) Directive: Directive 2011/65/EU restricts the use of certain hazardous substances in electrical and electronic equipment (RoHS) and aims to promote the environmentally friendly recycling and disposal of electrical and electronic equipment waste (WEEE). To achieve this goal, the RoHS Directive restricts the use of certain hazardous substances in such devices
Japan Marketplace
It is necessary to comply with the “Electrical Equipment and Material Safety Act” (PSE) and the Radio Wave Act (applicable to radio wave products). At the same time, Japan's Food Sanitation Law requires that products must not contain toxic and harmful substances that cause harm to humans, and sets corresponding inspection standards. Products can only be exported and sold within Japan if they have passed the inspection and inspection, and Japan's Ministry of Health, Labor, and Welfare will also control them according to the corresponding standards. For specific requirements, please refer to [Seller Central].
For more compliance information, please consult a professional organization or refer to each site's compliance instructions (restricted products, product safety, Amazon Logistics dangerous goods, etc.). Please refer to the website:
https://gs.amazon.cn/policy/product-safety.html
Sharing the experience of successful sellers in the household goods category
Seller: Nanxiang
Category: Home cloth
Highlights:
Earned 6 million US dollars in 2019, and monthly sales in 2020 still surged 500% compared to the previous year
Business experience:
► Making 100 kinds of basic models is also a way to win
As far as home fabric products are concerned, we found that the main consumers are mostly men aged 20-40. Consumers on all sites have in common that they prefer basic products, but even basic ones have different needs. For example, in terms of color, the US site favors solid colors, especially dark products, while the European site favors slightly lighter colored products; in terms of size, European products are sometimes larger. This is very different from the preferences of domestic consumers. Domestic consumers will also prefer more colors and take longer to use. However, overseas, they are significantly more frequently replaced, so they also pay more attention to the cost performance ratio of products and need to be more affordable.
20% basic upgrade, supporting half of profits
In terms of basic models, we will be more segmented. For example, the basic model of the basic model is mainly used for running volume, and the upgraded version of the basic model is mainly used for profit. In terms of quantity, running volume and profit payments may be open in 82 or 73, but in terms of profit, they may have changed to 5 or 5. In other words, 20-30% of profit can support half of our profit. We will make more improvements to profit margins and then set different goals for different products.
For example, when it comes to colors, they are no longer vegan, but look for prints. They don't have to be particularly complicated, but they need to suit consumer preferences. Many times they buy printed products to match their home style. You can go to the market to find a pattern, or you can design your own one that isn't available on the market. If the print is selected well, the product may become a hit; for example, we will also look for some subcategories, and the product audience and functions are more clear. Although it is more niche, the advantage is that customers may not care much about the price, or maintenance after later stabilization is more worry-free. However, these all require time and careful research. If you choose one, one will explode; if you test 10 models, you will probably only come out with 1 model, so be patient.
Good products, stable supply chain, competitive prices, cannot be overemphasized ten thousand times
The price must have an advantage. If you already have similar products, consider whether they can be of better quality and lower price than the products on sale. For factory transformation and cross-border e-commerce, you can consider using or modifying existing production lines, or even opening a single production line. The benefits of in-house production lines are that they can guarantee product quality, cost price, and delivery time. In addition, we must do a good job of research and continuously optimize products based on market feedback, such as studying the characteristics of products currently sold by Amazon to find innovative points; browsing foreign home furnishing websites to explore the latest trends; deepening the fabric market, putting more test models into the market, and selecting and eliminating based on market feedback.
You must have a good mentality. You must also be patient in the early stages, don't rush to achieve results, and don't seek help from black technology before you can do business for a long time.