According to the "2024 China Home Furnishing Market Consumption Insight", thanks to the release of the demand for stock housing and the innovation of smart home category, pan-home shows strong market growth elasticity; Omni-channel sales are expected to exceed 5.3 trillion yuan by 2027.

But for most home furnishing enterprises, perhaps "the future is bright, the road is tortuous". According to the latest performance forecast of the first half of 2024 released by a number of home furnishings enterprises, under the influence of various factors such as continuous adjustment of real estate, weak consumption and uncertain risk of going abroad, home furnishings companies have suffered general losses or net profit declines.

When the market expansion is limited, the volume becomes more intense. Shanghai International Home Expo experts said that following the price war and in the design, intelligent and other aspects of the open "roll", channel competition is in full swing. "Whoever gets the channel gets the world". Home furnishing industry has entered a period of great change to accelerate the reshuffle, and channel change is also opening the curtain.

First half performance a bit 'miserable'

According to WIND data, as of 15:00 on July 24, 17 listed home companies have released performance forecasts for the first half of 2024, among which 7 are in the red and 9 have negative growth compared with the first half of 2023.

Meike home, Qumei home loss is the largest. In the first half of this year, Make Home expects a loss of 170 million yuan to 250 million yuan, while Qumei Home expects a loss of 110 million yuan to 150 million yuan. However, different from the increase in the year-on-year loss of Meike Home, Qumei Home lost 6.529 million yuan to 46.529 million yuan compared with the same period in 2023, an increase of 4.17% to 29.73% year-on-year.

Among the 9 companies whose net profit fell year on year, Delfuture and Mack Home furnish suffered the largest decline in home furnish enterprises. The main business of Del Future is the research and development, production and sales of great housing products such as wood flooring, customized furniture and density board, with a profit of 2.97 million yuan in the first half of 2023, and an estimated loss of 16 million yuan to 24 million yuan in the first half of this year, with a year-on-year decrease of 638.72% to 908.08% in net profit.

In the first half of this year, Zhongyuan Home is expected to return to the parent net profit of 2.412,000 yuan to 3.5058 million yuan, a year-on-year decrease of 80.20% to 86.38%. One reason for the loss of Mexican factories is the high price of local raw materials and imperfect supply chain in Mexico, and the other is the low efficiency of factory operation caused by capacity adjustment and the significant increase of fixed costs.

But on the other hand, although in recent years, home furnishing has faced many challenges such as anti-dumping investigation, additional tariffs and logistics costs, "cross-border sea" is still one of the hot words in the home furnishing industry, and many enterprises have accelerated their overseas layout by opening stores overseas and building production bases. In January this year, gold home announced plans to invest no more than 700 million yuan to build Thailand (Rayong province) production base, Gujia home Mexico Nuevo Leon state factory expansion project completed, a total investment of 150 million dollars; Unexpectedly opened a store in Phnom Penh, Cambodia's capital, in March.

Exports of furniture and its parts surged 18.3 percent year on year to 251.33 billion yuan in the first half of this year, much faster than those of lamps, lighting devices and ceramics, according to the General Administration of Customs. Therefore, going to sea is still one of the directions that many household enterprises strive for. Wrigley Home said in the earnings forecast that in the second half of the year, it will accelerate channel sinking and overseas exports, and continue to improve the omni-channel layout. Markor home furnishing said, will use the existing international advantages to increase efforts to go abroad, continue to expand the international market.

Channel change accelerates

Competition is fierce and capturing end markets is more important than ever. In recent years, the whole assembly mode has accelerated. Furniture, cabinets, kitchen electricity and even doors and Windows, paint enterprises have crossed the boundary, extending their tentacles to the whole house, striving to expand their cake share and development boundary, and further deepening the sinking market, reducing the joining threshold.

According to the relevant person in charge of Milana, this year's investment policy is the biggest support since the brand was listed: first, the subsidy amount is high, single store subsidy up to 550,000, and all subsidies 100% return; Second, the investment cost is small, "this year, the minimum store area in some markets has been reduced to 120 square meters, store subsidies in the first half of the year up to 600 yuan/square meters, so the investment of about 200,000 yuan can be done."

The threshold of opening a store is decreasing, and the area of a single store is also getting smaller. With the change of consumption habits and the rise of online channels, traditional home stores are no longer important traffic entrances. Clothing enterprises, designers, e-commerce, bag carrying, engineering and other channels have become diversified traffic entrances for home enterprises. "Small store mode" has gradually risen, and channels have sunk to streets and communities.

After experiencing rapid economic growth, the boom of the real estate market and other era dividends, home furnishing enterprises are facing a new market environment, the logic of channel competition is different from the past, and a channel reform is unfolding rapidly. From increment to stock, the customized home furnishing industry has entered a new development cycle, the market has been further segmented and sunk, and the industry has become more diversified and integrated. For household enterprises, this is a protracted battle for internal strength and strength.

If you want to know more about the Home furnish industry, please visit the Shanghai International Home Expo website for more information.

Source: New Weekly

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