Welcome to furniture retailing with Chinese features.

On-Line furniture startup Zaozuo Zaohua Zworks Ltd. started the factory outlet in an upscale mall after reaching opposition from customers cautious of purchasing bulky things without so much as a feel of the material, let alone a bit of shutey

Perhaps the shop is too little, Ms. Liu said. However , I believe a mattress is something you actually should put on before you decide to purchase.Zaozuo's customers vote for the layouts they had like to purchase. ENLARGE Zaozuo's customers vote for the layouts they had like to purchase. PICTURE: ZAOZUO, DON ARBOUR/THE WALL STREET JOURNAL The strategy has its skeptics. It targets a few wealthy individuals in cities like Beijing or Shanghai, said business sales manager Li Songzhi. Conventional furniture companies like ours have actual shops throughout China.

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With almost 700 million online users, Chinese consumers are driving explosive growth in the ecommerce sector, undercutting conventional retailers and leaving new on-line enterprises fighting for an advantage. Zaozuo cofounders, Stanford business school grads Shu Wei and Guan Zishan, say Chinas fighting manufacturing sector needs a wakeup call as it fight growing debt and extra capacity.

The old system isn't working very well, said Ms. Shu. That has been the starting point of our business model. In China, everything is somewhat catchy, and tons of folks make an effort to game the system, Mr. Wu said. That could see designers lean results toward their own models, as an example, or permit opponents to direct Zaozuo into making cash-losing things, he said.

Perfection is the key

Another concern: with Zao Zao starting a showroom, it risks driving up prices and undercutting its edge over conventional furniture makers. Mr. Guan says users must be enrolled before voting, the firm observes carefully for uncommon on-line action and the new shop isn't a leading investment. .

On any given weekend, whole families can be found snoozing on beds in Ikea's huge showrooms, luxuriating in the air conditioning and appreciating the low-cost food. Internet furniture companies simply control a miniature piece of the marketplace but are growing fast. Privately held Zaozuo said sales are growing by 40% per annum although it's yet to break even. MZGF Furniture Studio Co., another on-line company, said sales have been growing by as much as 200% year on year in some months.

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