Starting from the furniture factory
Weiyou Home was founded in 1999, and its unique approach set it apart from traditional furniture companies. With a founder who had a background in industrial design, the company focused on providing high-end home furnishings tailored to the needs of Shanghai's middle and upper-middle-class consumers. This early emphasis on design and customization helped establish a strong brand identity.
"While most home improvement companies were still offering basic installation services, we were already introducing the concept of 'hard-packed + soft-packed' design," said Wang Wei, Executive Director of Weiyou.com. This innovative model allowed the company to gain valuable experience in home design and enjoy higher profit margins from the beginning. As the business grew, they identified another significant market need.
At that time, Weiyou Home primarily served the Gubei District, where many wealthy individuals and multinational executives lived. Through research and customer feedback, the company discovered that these executives often rented rather than bought furniture due to short-term stays in China. They desired more variety in furniture styles, lower costs, and reliable maintenance services. This insight led to the development of their furniture rental service model.
The furniture industry has long been associated with environmental concerns. In countries like Japan, where natural resources are limited, recycling is a key part of the process. Similarly, in the UK and US, furniture rental markets have matured over time. However, in China, this concept is still in its infancy. "Our raw material sourcing path starts from China, then moves to Southeast Asia, South America, and eventually Africa. The annual consumption of wood in China is equivalent to the size of Hong Kong, which causes significant environmental damage," Wang Wei noted, highlighting the ecological impact of the industry.
He also pointed out that while the Chinese home furnishing market is worth around 740 billion yuan, the rental segment remains almost nonexistent. "In the US, the home leasing market is valued at $44 billion, but in China, it’s just starting to take shape." Wang believes that as consumer awareness of environmental protection and aesthetics increases, the furniture rental model will see rapid growth. Currently, their main clients are multinational companies, and they are working to expand their reach into broader markets.
To identify potential customers, Weiyou Home has established partnerships with foreign executive service agencies and real estate agents across the country, leveraging B2B strategies to grow their business. While the company initially focused on office and exhibition furniture, they now aim to enter the mid-to-high-end home rental market.
"Star-rated hotels typically replace furniture every 5-7 years, while budget hotels may do so in just 3 years," Wang explained. For hotels, purchasing furniture upfront is costly and complicated. Renting allows them to avoid depreciation and hassle. Weiyou Home has signed long-term contracts with Marriott and Wanda Group, and is involved in public housing projects, offering both furniture and small appliance rentals. They also collaborate with theatrical productions for temporary setups.
After a 45-day production cycle, the company delivers customized furniture and provides ongoing maintenance. Customers can choose to continue renting, purchase the furniture, or return it after the contract expires. "The reuse potential of these items is very high," Wang said. Unlike car rentals, wooden furniture can be restored and reused, extending its lifespan significantly.
Looking ahead, Weiyou Home plans to target individual consumers by offering 10–15 year rental contracts. During this period, customers can change furniture as needed, and at the end of the contract, they can return, buy, or keep the items. This model not only offers flexibility but also aligns with sustainable practices.
Despite the challenges, Wang Wei sees value in the heavy asset model. "Although the pressure on assets is high, we bring great value to our customers and contribute to environmental protection," he said. The company continues to seek investor support and aims to leverage financial tools to manage and optimize its assets effectively.
While the industry is still developing, the future of home rental looks promising. As consumer habits evolve and sustainability becomes more important, models like Weiyou Home could play a significant role in shaping the future of the furniture industry.
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