Furniture installment payment, a new form of consumption, first emerged in the sales of high-end products such as mahogany and imported furniture. Recently, some furniture companies and home stores have started to introduce a "mortgage" model for furniture purchases. What are the benefits of this approach? Is it truly appealing to consumers? Could it spark a sales boom in the furniture market?
Dongcheng launched its “buy mahogany, pay in installments†service. Not long ago, Bank of China Zhongshan Branch and Dongcheng Hongmu Furniture Co., Ltd. held a summit titled “Buy Mahogany, Pay in Installments – Redwood Investment and Wealth Management.†At the event, the two parties officially introduced the installment payment service for mahogany furniture, offering loan amounts up to 2 million yuan with repayment options of 3, 6, 12, or 24 months.
Zhang Xifu, chairman of Dongcheng Furniture, explained that the company had done extensive research and investment before launching the service. He noted that more young white-collar workers are showing interest in mahogany furniture, but its high price often deters them. With rising redwood prices, many consumers find it difficult to afford the furniture even after saving. To address this, Dongcheng partnered with the bank to offer credit solutions tailored to these customers, making it easier for them to own the furniture they desire.
Other brands, like Blues Furniture, have also adopted similar models. During Chengdu’s brand furniture direct sales week, Blues launched a “mortgage†purchase campaign in collaboration with Chengdu Construction Bank. The program allows zero down payment and zero interest rate, attracting a large number of buyers. According to Li Bing, general manager of Blues Furniture, the initiative targets custom furniture brand Benos, with the bank and decoration companies working together to streamline the process.
A representative from Chengdu Construction Bank mentioned that furniture installment loans are a new trend in home improvement financing. Expanding from electronics and building materials to furniture, this strategy offers more flexible payment options for consumers. For example, a consumer with a 10,000 yuan credit limit could potentially access four times that amount through a furniture purchase deal.
Many home stores have also started offering mortgage-style furniture purchases. While this model has been around for years, it is now gaining traction as a new consumer trend.
Currently, “spending tomorrow’s money to buy today’s things†is becoming increasingly common. From house and car installments to shopping, furniture installment payments may soon follow suit, potentially boosting furniture sales.
At the Dongcheng Redwood Investment Summit, financial experts suggested that lowering the entry barrier for mahogany furniture through installment plans can reduce costs and risks, encouraging more people to invest in quality pieces. This new model can attract potential buyers, boost purchasing desire, and bring fresh energy to the market.
Industry insiders say that “furniture mortgages†mainly target high-end furniture and young consumers. These individuals, though not yet able to afford luxury items, are drawn to the quality and design of premium furniture. As their income grows, they are likely to become future high-end furniture buyers, making installment plans an attractive option.
Consumers across China can already take advantage of furniture installment services. In cities like Zhengzhou, Changsha, Ningbo, Wenzhou, and Nanjing, many furniture stores offer this option. As a new consumption trend, “furniture mortgage†is gaining attention and acceptance.
The specific process usually involves providing proof of stable income, residence, and identification. Loan amounts range from 2,000 to 50,000 yuan, with monthly repayments and interest rates between 5.58% and 5.76%. Some stores, like Meikejia, even eliminate the need for a down payment, with the merchant covering the interest.
This model has proven effective. Since Sichuan furniture merchants introduced it, customer inquiries and purchases have increased significantly, with Sichuan ranking second nationally in furniture mortgage transactions.
Experts believe that while loan-based shopping is common, furniture installment purchases are still emerging. Though they bring new opportunities, they also require careful management. Consumers should enjoy the convenience without falling into excessive debt.
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