In 2026, the building materials industry is undergoing a transformation. While the decline in new home sales is widely known, the volume of renovations for existing homes has bucked the trend, increasing by 41%. With the increase in fully furnished apartments, the demand for “partial renovations” has surged. Leaky bathrooms, aging kitchens, and balcony renovations have become essential for older homes, and the industry is shifting from “building new houses” to “renovating old houses.”
This new trend presents numerous opportunities. “Micro-renovation” of old homes has become a highly profitable sector. One bathroom brand launched a “24-hour kitchen renovation package,” completing demolition and installation in one day, with an average order value of 10,000-20,000 yuan, over 20 orders per month, high repurchase rates, and stable cash flow.
</ … Online "light knowledge" marketing has yielded astonishingly high conversion rates. On Douyin (TikTok), tile shop owners specialize in creating short videos like "The Difference Between a 30 Yuan Floor Drain and a 300 Yuan Floor Drain," attracting customers with precise renovation needs and achieving a conversion rate exceeding 25%. Policies are also driving the industry towards "greening." Starting in 2026, companies failing to meet environmental standards will lose their eligibility to bid for government projects, and national subsidies will be tilted towards green building materials and smart homes. Action-oriented businesses can implement this by following these steps: First, focus on precise sales based on the "customer lifecycle." Promote whole-house customization for new home buyers and "easily damaged parts packages" for older home buyers; different customers have different purchase stages, which needs to be clearly understood. Second, learn to "partner in business." Tile shops can collaborate with curtain shops and housekeeping companies, sharing customers and revenue sharing to reduce customer acquisition costs. Finally, either integrate into an ecosystem, such as SMEs connecting to platforms like Huawei and Mijia as "service node providers," or build your own ecosystem, like Midea's integration of furniture, building materials, and home appliances.
The future of the building materials industry is promising. The golden age of “opening a store and people will come” is over, but new paths have emerged. Companies thriving today are not doing so by luck, but by changing course early. Some have shifted from “passive sales” to “active sales,” some have turned small shops into “community revitalization stations,” and some have become “influencer consultants.” The harsh winter has reshuffled old models, creating a new ecosystem. The building materials and home furnishing industry needs to change its approach, from waiting for customers to come to it to proactively providing solutions, from going it alone to binding with an ecosystem.
After understanding the trends, practitioners who don’t know where to start can focus on the following entry points.
“Tile Repair and Beautification Agent” and kitchen/bathroom renovation services utilize specialized tile paint or nano-coating technology to transform old kitchens and bathrooms in 8 hours, with an average order value of 3,000-8,000 yuan and a profit margin exceeding 50%. This service can be offered in partnership with local housekeeping and property management companies. “Customized Cabinet Accessories” and storage upgrade solutions focus on providing upgrade accessories to address cabinetry pain points. A single renovation project costs 2,000-5,000 yuan, with a high repurchase rate. Lead generation can be achieved through short videos. “Micro-Smart” renovation packages, including the “Old House Security and Lighting Package,” priced at 999-1999 yuan, are a powerful tool for attracting customers and penetrating the community. Partnerships with community group-buying leaders for showroom experience group purchases are possible.
