The word 家居 is formed by combining the character 家, meaning "home" or "family", with the character 居, meaning "to reside" or "dwelling". Together, they create a compound word where 家 specifies the domain of the home and 居 emphasizes the act of living or the physical space, resulting in the modern meaning of "home furnishings" or "household goods", directly relating to items and settings associated with domestic residence.