In 2021, the performance of the household industry can be described as “mixed”. On the one hand, the real estate policy has been tightened, and the household industry has gradually shifted from the blue ocean to the red ocean, which has impacted most small and medium-sized household enterprises; On the other hand, some head home brands successively launched the “whole home customization” strategy at the end of the year, and other major home brands also followed suit. The overall development of the industry has entered a “glue” period.
According to the data, as of February 9, 2022, taking the household (CITIC) component as the statistical caliber, 20 of the 45 household related enterprises have issued performance forecasts, including 4 pre increases, 2 slight increases, 6 pre decreases, 7 initial losses and 1 turnaround.
Wang Jianguo, the general initiator of China design Dean base, said in an interview with the reporter of Securities Daily: “Looking forward to the future, with the heads of the household industry and listed enterprises taking the initiative to adjust prices, refine and sink channels, and actively explore online sales, it will be more difficult for small and medium-sized enterprises to choose survival and development strategies. The number of enterprises taking the initiative to integrate together is expected to increase rapidly, and the cooperation speed of channels other than dealers such as short video platforms, online private domain traffic and designer circles will also increase Step up. “
software enterprises have achieved remarkable results in “going to sea”
It is worth noting that among the four pre added home furnishing enterprises, two companies ( Xlinmen Furniture Co.Ltd(603008) , Jason Furniture (Hangzhou) Co.Ltd(603816) ) are leading enterprises in China’s software home furnishing industry, and Jason Furniture (Hangzhou) Co.Ltd(603816) has won the “profit king”. The company expects to realize the net profit attributable to the parent company from 1.65 billion yuan to 1.73 billion yuan in 2021, with a year-on-year increase of 95% to 105%; It is expected to realize the non net profit attributable to the parent deduction of 1.42 billion yuan to 1.5 billion yuan, with a year-on-year increase of 140% to 154%.
Jason Furniture (Hangzhou) Co.Ltd(603816) said that in 2021, the company actively grasped the development opportunities of the industry, gave full play to the economies of scale and channel advantages, increased brand and R & D investment, and achieved steady growth in sales and profits.
Wang Jianguo, the general initiator of China design Dean base, analyzed: “compared with other vertical categories of home furnishings, several ‘software home furnishings’ have better performance, which is related to the consumption habits of foreign home furnishing products and the traditional advantageous channels of this enterprise. For example, Xlinmen Furniture Co.Ltd(603008) is IKEA manufacturer, Healthcare Co.Ltd(603313) In the early stage of Europe and the United States, great efforts were made to cultivate channels and brands, and Gu family acquired foreign high-end home brands, which are their comparative advantages in the later stage of the epidemic and the stable period of fluctuations in the international market. “
Pan Helin, member of the information and communication economy expert committee of the Ministry of industry and information technology, believes that the current industry concentration of software home has increased, the reputation of head brands among consumers has strengthened, consumers begin to pay more attention to brands, and the competitiveness of long tail software home will gradually weaken.
In addition, in 2021, software home furnishing enterprises have also increased their efforts to explore foreign markets. In September Xlinmen Furniture Co.Ltd(603008) , it was proposed at the 10 billion journey launch meeting of IBC international business center that the total international business revenue will exceed 10 billion yuan in 2025; In October Healthcare Co.Ltd(603313) , it was announced that it planned to raise about 1.286 billion yuan from the non-public offering of shares, of which part of the funds will be used for the expansion of the production base in Arizona; December Jason Furniture (Hangzhou) Co.Ltd(603816) announced that it plans to invest 1.037 billion yuan in the construction of Mexico’s self built base project to increase the overseas production capacity layout.
Li Yingtao, research director of Analysys brand & retail industry center, told the reporter of Securities Daily: “There are two main reasons for the acceleration of software home brands going to sea. One is that the growth rate of home consumption in the Chinese market is slowing down, while the growth rate of exports in the international market under the epidemic continues to increase. The other is that Gu Jia and other brands going to sea have a history of overseas OEM and sales for many years. Coupled with the advantages of global production capacity layout and supply chain, they can further expand their business in the whole country with strong competitive advantages Market share of the ball. “
Tianfeng Securities Co.Ltd(601162) researchers also believe that in the past few years, Chinese software enterprises have significantly improved their product power by means of acquiring overseas brands and cooperating with overseas designers, superimposed with the consumption trend of “the rise of national tide”, and consumers’ acceptance of domestic home brands is increasing.
customized home performance differentiation
Lai Yang, member of the expert committee of the China Federation of Commerce, said in an interview with Securities Daily: “The overall development and performance of the home furnishing industry are closely related to the scale and frequency of real estate transactions. In the past two years, with the continuous tightening of real estate policies, the home furnishing industry has been affected to a certain extent, and the competition among enterprises in the industry has intensified, gradually turning from the blue ocean to the red ocean, and it is easier for leading enterprises with more product power to obtain competitive advantages.”
According to the data, in addition to Oppein Home Group Inc(603833) , Suofeiya Home Collection Co.Ltd(002572) , four of the six customized home furnishing enterprises that predicted their performance suffered losses, of which one leading enterprise still suffered the first loss.
According to the announcement, Oppein Home Group Inc(603833) it is estimated that the annual operating revenue in 2021 will increase by 35% to 45% over the same period of the previous year, the net profit attributable to shareholders of listed companies will increase by 28% to 38% year-on-year, and the net profit attributable to shareholders of listed companies after deducting non recurring profits and losses will increase by 28% to 38% year-on-year.
Li Yingtao believes that in the past few years, customized home is one of the few segments in China’s home market that is still growing rapidly. The key to success lies in fast and fashionable scheme design + large-scale channels + stable and rapid supply system. It is a typical strong market. At present, Suofeiya Home Collection Co.Ltd(002572) , europay, Guangzhou Shangpin Home Collection Co.Ltd(300616) and others have basically completed the coverage of all market levels in the country, and have taken a significant lead in the market scale. When the market growth slows down, once some second tier brands are mismanaged, they are easy to be occupied by first-line brands through price war and brand war, resulting in losses.
According to the reporter’s incomplete statistics, at least three customized home furnishing enterprises with pre reduced performance have made provision for impairment due to the overdue payment of some commercial acceptance bills held by them and the uncollectible receivables. A company said in the announcement that if the impact of impairment provision is not considered, the net profit attributable to shareholders of Listed Companies in 2021 is expected to increase by 25.00% to 35.00% year-on-year.
