If you are reading this article, please turn off all distractions and take 5 minutes to read it independently. What follows is not a “market perspective” or “motivational logic,” but the current reality of the industry, the forces that are forcing its way out, and the choices that are eliminating you. For over a decade, China’s home decoration and building materials industry was hailed as the “last blue ocean of essential needs.” More and more houses were being built, leading to a surge in demand for home decoration; decoration models were upgrading, products were diversifying, and profit margins were widening; the supply chain was globalizing, resulting in a clear price advantage. However, starting in 2023, the entire industry structure began to break down, and the market shifted from incremental competition to a phase of zero-sum game. Traditional low-cost, OEM models became ineffective, Southeast Asian manufacturers snatched orders with even lower costs, and domestic consumer demand faced a “ceiling.” Orders on both the engineering and retail ends shrank, price wars intensified, channels weakened, internal market friction became severe, and homogeneous competition entered a “blank-skin” phase, forcing many home decoration and building materials companies into a predicament.
The domestic market is undergoing a process of order concentration, price competition at the bottom, and profits concentrating in the hands of capital players. Many business owners have orders on paper but no profits, inventory in warehouses but no turnover, a sharp decline in customers, and strained cash flow, forcing them to rely on loans to survive. These are typical signs of a market shakeout.
In stark contrast to the bleak domestic situation, some companies’ overseas businesses are experiencing a surge against the trend.
In the first half of 2025, Mousse Group’s overall revenue decreased by 5.76%, while its overseas revenue surged by 73.97%; Kinlong Hardware’s overall revenue declined by 14.18%, while its overseas revenue increased by 30.75%; Sophia’s overall revenue decreased by 7.68%, while its export revenue surged by 39.49%; and Zhibang Home Furnishings’ overseas revenue reached 148 million yuan in the first half of 2025, a year-on-year increase of 70.69%. The overseas market, especially Russia, is an undervalued blue ocean suitable for ordinary small and medium-sized building materials and home decoration companies to expand overseas. Domestic ordinary glass prices are severely competitive, but can be sold at high prices in Russia; low-priced domestic cement and older-style tiles are in short supply in Russia. Those building material business owners who established a presence in the Russian market early on have already secured orders worth tens of millions. The Russian market presents enormous opportunities: unprecedented policy trust, a large market gap, strong demand for infrastructure and building materials, low per capita living space, and explosive demand for new and renovated homes. In 2024, the Russian home furnishing and building materials market reached $187 billion, with the whole-house customization sector growing at an annual rate of 19.2%. There are misconceptions about going global. Many business owners believe that doing foreign trade from a computer is cheaper and simpler, but this is not true global expansion. Successful companies have achieved deep adaptation from “general-purpose goods” to “localized cores,” achieving ultimate localization. For example, Jiangshan Oppein provides different products for different regional needs, and Gree develops air conditioners suitable for different countries. A truly successful overseas expansion model includes in-depth research into local market demands and preferences, policies and regulations, identifying potential competitors and channel structures; establishing local nodes; and establishing stable supply relationships. Going global is actually safer in Russia. Russia’s domestic supply chain suffers from structural problems such as reliance on imported raw materials, lengthy delivery cycles, and gaps in design capabilities. For those new to overseas markets, Russia is the first choice; speed is key, similar to the market environment in China during the early stages of reform and opening up in the 1980s. Many companies have already achieved success in the Russian market. A small LED screen vendor, a woman making smart clothes drying racks, a major home appliance brand from Zhejiang, and a small door and window factory from Jiangxi have all gained substantial profits and orders in Russia. Registration is now open for a deep-dive business trip to Russia for private enterprises in November 2025, primarily targeting companies in the construction materials, decoration, and home furnishing sectors. In-depth visits can help companies clarify their overseas direction and seize opportunities. If you’re still hesitant, not going global now will lead to higher costs in the future; companies that understand the importance of globalization have a greater chance of success.
