In 2025, Chinas whole house customization industry will be deeply mired in a dual cycle of real estate adjustment and structural reshaping. Data outlines a harsh reality: the industry scale will reach 2.4 trillion yuan by 2025, with over 280000 stores. Behind the apparent growth is the decline in revenue of 8 A-share listed customization companies, a 31 fold profit differentiation between the top and bottom, and an industry average net profit margin of 11.2%. Cash flow pressure and profit narrowing have become common challenges for the entire industry.

In 2026, the reduction in delivery of new houses will continue the industrys shrinking trend, but the proportion of demand for renovation of existing houses has exceeded 45%, and the proportion of renovation in core and first tier cities has exceeded 60%. The regional differentiation of second, third, and fourth tier new houses coexisting with existing houses reserves opportunities for intensive cultivators. As professional managers who have been deeply involved in the industry for many years, we firmly believe that in 2026, it is not about who is larger in scale, but about who has a more stable foundation. Using 2025 data as a mirror, we anchor the five core areas of cash flow, marketing, channels, products, and talent for deep cultivation, in order to possibly cross the cycle.

1、 Cash flow: Take data as a warning and guard the lifeline of survival.

Industry data in 2025 sounds the alarm: Zhibang Homes net operating cash flow is -130 million yuan, and Wo Le Homes is -0.1 billion yuan. Cash flow has become an important key indicator for the efficient operation of enterprises. In 2026, we will make cash flow security the core of our decision-making: establish a data-driven payment collection system, refer to the industry average payment cycle, implement the "advance payment+installment collection" model, manage customers according to credit ratings, and strictly control the bad debt rate below the industry average; Adhering to the principle of "no blind expansion ≠ no expansion", actions such as regional expansion and capacity improvement must meet clear indicators such as "demand recovery, sustained positive growth of stores, and regional profitability", with small steps of trial and error and gradual progress.

2、 Marketing: Say goodbye to extensive methods and accurately match the trend of transformation.

In 2025, data reveals that transformation is inevitable: whole house customization accounts for 58%, but only 35% of consumers can identify brand differences, and extensive marketing has become ineffective. In 2026, marketing will focus on "integrating quality and efficiency": exhibitions will shift from "quantity based" to "value based", selecting vertical exhibitions and designer exhibitions to showcase integrated door and wall cabinets, customized+finished product integration solutions; Outdoor advertising abandons nationwide casting of nets and focuses on core and first - and second tier old renovation core areas, as well as third - and fourth tier delivery concentration areas, to achieve precise penetration of commercial districts, shopping malls, and community points and surfaces; On line, take reasonable input-output ratio as the hard indicator, lock high conversion platforms such as Tiktok and Xiaohongshu, and monitor the review in real time to ensure that the budget is converted into effective customer leads.

3、 Channel: Take advantage of shuffling to optimize the gradient structure.

Behind the 280000 stores and 42% chain rate by 2025 is a reshuffle trend of small and medium-sized distributors leaving and high-quality resources concentrating on stable enterprises. In 2026, investment promotion will continue, with the core of building a pyramid dealer system of "billion level head+tens of millions level waist+millions level potential+100000 level incubation" to avoid single level risks. Accurate implementation of differentiated support policies: large businesses empower transformation, medium businesses strengthen profitability, and small businesses provide standardized store building support; Through standardized design and modular construction, the delivery cycle is compressed to within 1.5 months (target), achieving fast delivery and low cost. Create a combination of "flagship store+experience store+community store+mini store" at the city level, establish an image of the core and first tier cities, and sink into the second, third, and fourth tier cities to build channel resilience.

4、 Product and store: Data oriented, dual upgrade.

By 2025, the direction of data is clear: the customization rates for kitchens, bedrooms, and living rooms will reach 82%, 65%, and 53% respectively, with ENF level environmental protection as the basic threshold. In 2026, a four-dimensional mechanism of "innovation, iteration, elimination, and introduction" will be established on the product side: focusing on 60%+old renovation needs, innovating products that are suitable for aging and partially renovated; Iterative popular products incorporate intelligent functions, eliminate unsold and non compliant products, and introduce mainstream processes such as PET veneer and PUR edge sealing. Establish a professional product manager team, with consumer data and sales data as the core to achieve full lifecycle management, shifting from "selling cabinets" to "selling solutions for life scenarios". Abandoning the concept of super large stores in the freight yard, flagship stores are set up in core cities, experience stores are laid out in second - and third tier cities, and experience stores+mini stores are built in cities below the fourth tier, focusing on old renovation to enhance conversion through "fast delivery, low cost, and strong experience".

5、 Talent: Build a gradient talent team and activate organizational capabilities.

By 2025, the industry will undergo digital and scenario based transformation, and traditional talent capability models will no longer be able to meet the development needs of the industry. The differences in organizational capabilities of enterprises have become the core key to profit differentiation in the industry. In 2026, talent development will focus on two core actions: first, building a four level talent gradient system of "high-level strategic planning+transformation and implementation of middle and high-level personnel+strong execution of middle level personnel+specialized grassroots personnel", connecting the entire chain from strategy formulation to implementation, and consolidating the core foundation of organizational capabilities; At the same time, focusing on the matching ability requirements of core functions at all levels, high-level management should follow the trend, middle-level management should focus on implementation, and grassroots should have strong skills. Targeted training should be carried out to develop core abilities such as AI design and digital operation that are in line with industry transformation, achieving a two-way adaptation of rights, responsibilities, and abilities. The second is to establish a data-driven incentive mechanism, break away from egalitarianism, and establish special rewards such as performance achievement awards, innovation awards, cost reduction and efficiency improvement awards. At the same time, core talents will be bound through equity incentives, so that personal income is strongly linked to the development benefits of the enterprise and the industry average, fully activating the initiative of the team.

In 2026, the market size of 2.4 trillion yuan, 60% of the demand for old renovation, and 42% of the chain rate with room for improvement demonstrate that industry opportunities still exist. Enterprises can only stand firm in the reshuffle by abandoning impatience, relying on data as the basis, focusing on precision farming as the path, and grasping the five core elements. Seeking breakthroughs in the cold winter and seeking development through intensive cultivation.

In the cold winter of the industry, it is never about eliminating enterprises, but about eliminating outdated models, extensive operations, and a mentality of luck. Whoever can achieve the ultimate in cash flow, marketing, channels, products, and talent will become the true winner of the cross cycle in 2026.