Finished furniture and customized home furnishing enterprises "Sailing" prefer to use the Internet!

In the case of mature business development in the domestic market, more and more home furnishing enterprises are looking overseas, and the head enterprises have laid out early, opening up a global business idea.

The overseas business of some finished furniture enterprises has become one of the main sources of income increase, and customized home furnishing enterprises are also actively exploring overseas markets.

According to the industry analysis, home furnishing enterprises have become more rational in overseas M&A, which has gradually changed from the early heavy asset M&A model to the cross-border e-commerce model with lower costs.

As early as 2018, Qumei Home acquired the Norwegian furniture brand Ekornes at a price of up to 4 billion yuan. After the acquisition of Ekornes, Qumei's overseas market has grown rapidly. The acquisition of Ekornes has provided Qumei with a shortcut to expand its overseas market, and has also brought "real" business income.

Judging from the contribution to the revenue in the first half of this year, the overseas revenue has exceeded the revenue of the domestic market. According to its published data, Qumei's product revenue in the first half of this year was about 618 million yuan, and Ekornes' Stressless's product revenue was 1.425 billion yuan.

Zhao Ruihai, founder of Qumei, said in an interview with the media that the acquisition of Ekornes had solved the problem of Qumei's home export. If it was established by itself, it would be difficult to complete it in 10 years.

The overseas business of Meike Home Appliances also performed well. In the first three quarters, it achieved an operating income of 1.51 billion yuan, a year-on-year increase of 23.81%, close to the annual level in 2021. The growth of overseas performance can not be separated from the market strategy layout and the accumulation of years of deep cultivation in the international market.

It is reported that the new products launched by four overseas subsidiaries of Merck Home Appliances, Caracole, A.R.T., ROWE and JCD, at the High Point Furniture Exhibition in April increased international orders by 14%; The sofa category company ROWE, which it acquired, has shown outstanding performance this year, occupying a leading position in the middle end market of the United States, and its sales revenue in the first half of the year increased by 35% year on year.

Compared with finished furniture brands, the pace of overseas business expansion of customized furniture is slightly slow, but it is also in the stage of actively exploring the market.

Gold kitchen cabinets adopt a differentiated layout for different markets. It is reported that they adopt the business model of RTA distributors in the North American market, and vigorously promote the development of engineering and e-commerce by setting up a service center to provide product customization and supplementary repair; The non North American market adopts a replicable platform company business model. The platform company develops the local market, solves the problem of rapid supply, realizes local production, accelerates the localization of the supply chain, and provides guarantee for the sustainable development of the overseas market by setting up satellite factories and warehouses. According to the data released by Gold Cupboard, the overseas business in the first three quarters of this year increased by 31.36% year on year.

According to the official website data of Europa Home, it has more than 7000 stores worldwide, covering about 188 countries on 6 continents. At present, Europa is attracting investment from at least 40 overseas countries, including the United States, Israel, India, Mexico, etc., and is gradually penetrating its brands into the global market.

It is understood that Shangpin Homestead is located in the overseas market, mainly in the mode of exporting the whole house furniture customization industry. At present, it has been successfully exported to Thailand, Poland, India, Indonesia, Singapore and other countries.

At the same time, Shangpin Home Furnishing has made use of its strong supply chain management ability to export raw materials and equipment required for customized furniture production to overseas cooperative customers, and provide various supporting supplies for Pan Home Furnishing.

In addition, Zhibang Home has completed investment attraction in Thailand, Cambodia, the Philippines, Maldives, Myanmar, Malaysia, Indonesia and other countries this year, and laid out the C-end. Last year, it also successively won projects such as the Grand Hotel in Qatar and Ritz Carlton in Australia.

It is understood that at present, domestic home furnishing enterprises can be divided into four modes in their overseas market layout: overseas brand mergers and acquisitions, joining overseas e-commerce platforms, self built independent stations, and DTC mode (the business mode of reducing intermediate links and directly facing consumers). The mode of going to sea chosen by an enterprise is often closely related to its size and financial strength. Generally speaking, most enterprises with large scale and early sailing have chosen the overseas M&A mode, and most of them are finished furniture brands.

Through the acquisition of overseas brands, the overall brand image of the company can be improved more quickly. While expanding the domestic market, it can also quickly occupy the overseas market share of the acquired company. In addition, it can also share the design resources and production experience of the acquired enterprise to optimize and improve its own supply chain and production chain.

In recent years, home furnishing enterprises have become more rational in overseas M&A, which has gradually changed from the early heavy asset M&A model to the cross-border e-commerce model with lower costs. They are more willing to use the power of the Internet, such as joining overseas e-commerce platforms, building independent stations or DTC model. Especially for small and medium-sized household enterprises, DTC can help them to "go to sea" at a lower cost.

However, it also brings new challenges.

According to the analysis of insiders, it is difficult for cross-border e-commerce to bypass advertising costs. As long as online channels are used for sales, it is difficult for enterprises to avoid cooperation with social platforms such as TikTok and Facebook, and expand brand voice through competitive ranking, brand online activities, live broadcast e-commerce and other ways; On the other hand, going to sea makes the supply chain of enterprises more complex.

After the enterprise goes to sea, in addition to product quality, consumers also attach great importance to the brand's supply capacity, delivery cycle and other services, which need to test the enterprise's ability to integrate the supply chain.