Rich! The big seller borrowed tens of millions to buy houses for employees

In the past two years, cross-border e-commerce has gradually cooled down from its wild growth, especially last year when the market was negative. Many sellers could not withstand the cold and left the market one after another, and some sellers reduced their teams. In addition, the reduction in industry salaries has led to an increase in talent loss in the cross-border circle, and many practitioners have left the market out of frustration.

In order to retain core talents and stimulate the inflow of talents, many big sellers with considerable revenue have begun to increase salaries, provide equity incentives, and provide interest-free loans for house purchases. Recently, Lechuang, which is thriving in the market, has added benefits to its employees!

Lege is generous by lending 10 million to employees to buy houses!

Recently, the home furnishing brand Lego has made a lavish investment and spent millions to provide benefits for its employees.

In June last year , Lechuang announced that it would provide 3 million yuan of housing loan assistance to its employees. But at the beginning of this year, it announced that it would increase this amount to 10 million yuan.

In mid-January, Lechuang released an announcement regarding adjustments to the amount of financial assistance the company provides to employees for home purchases . The announcement mentioned that in order to reduce the burden of home purchases for employees, motivate work enthusiasm, and better retain talent, the company plans to adjust the amount of the interest-free loan pool for employees to purchase homes from 3 million yuan to 10 million yuan .

Of course, this funding is conditional. Employees who apply for this funding must have served the company continuously for 1 year or more. Most importantly, their performance evaluation must reach an excellent level within the team, and they must be assessed as special talents who have made significant contributions to the company .

In addition, the loan term and interest on funds shall not exceed 5 years, starting from the date of financial payment, and the loan interest rate is as follows:

1. If an employee resigns within one year from the date of the loan , the loan interest rate shall be calculated at an annual interest rate of 8%;

2. If an employee leaves the company within 1 to 3 years from the date of the loan , the loan interest rate shall be calculated at an annual interest rate of 6%;

3. If an employee leaves the company three years after the date of the loan , the loan interest will be waived.

Regarding repayment, the borrowing employee must repay the entire principal within the loan period. If the repayment obligation is not fulfilled as agreed, Lechuang will exercise its legal rights in accordance with the provisions of the Loan Agreement.

If an employee resigns during the repayment period, he or she must repay the remaining principal and interest of the loan in one lump sum within 5 days after receiving the repayment notice and before the company issues the "Certificate of Termination of Labor Contract" and related documents. If repayment is delayed, Leckey will charge late payment fees as agreed.

In addition to providing interest-free loans for home purchases, in December last year, Lechuang Chairman Xiang Lehong also posted on his WeChat Moments: Lechuang uses an annual nominal expenditure of 60 million yuan to provide employees with healthy meals and afternoon tea .

In order to attract and retain talents, Lejiahaoqi provides benefits one after another, but the reason behind the huge benefits is that its revenue and profits are very considerable!

With improved profitability, Lechuang expects revenue to exceed 3.2 billion yuan in 2022

Recently, a number of big sellers have successively released their 2022 performance forecasts. Although Lechuang has not yet disclosed it, it can be seen from its financial reports for the first three quarters that Lechuang's revenue performance in the first nine months of 2022 was very positive.

As of the first three quarters of 2022, Lechuang's revenue exceeded 2.312 billion yuan, an increase of 10.10% over the same period in 2021, and its net profit attributable to shareholders of listed companies exceeded 158 million yuan, an increase of 28.12% over the same period in 2021. In the third quarter alone, Lechuang's net profit attributable to shareholders after deducting non-recurring items increased by 82.94% over the same period in 2021.

Against the backdrop of declining consumer purchasing power in Europe and the United States, Lechuang's net profit still reached nearly 160 million yuan, and it withstood the market's cold weather and delivered a high-scoring report card.

All along, Leckey's products have performed very well in multiple domestic and overseas markets.

In overseas markets, Leckey's own brand "Flexispot" height-adjustable tables are very popular, ranking first in sales of height-adjustable tables on e-commerce platforms such as Amazon, Home Depot, Walmart, Rakuten, and Yahoo .

Last July, FlexiSpot was selected for the first time in the "Kantar BrandZ China Top 50 Global Brands" ranking released by Kantar and Google, and also won the special award for emerging global brands.

In China, the "LECHUANG" brand height-adjustable tables continue to maintain the first place in market share on Tmall and JD platforms. It is a leading brand in the domestic linear drive industry. Two out of every three smart height-adjustable tables are of the LECHUANG brand.

In the first half of last year, the sales volume of Loctek's core product , the linear drive lifting system, reached 686,000 sets, with sales reaching 920 million yuan, a year-on-year increase of 16.36%.

In addition to products, Legg's overseas warehouse business is in the early stages of an explosive growth, with outstanding performance.

It is reported that in the first half of last year, Leckey's public overseas warehouse service achieved a total revenue of 258 million yuan , of which 181 million yuan was revenue from providing services to third parties .

In terms of gross profit margin, due to the decline in shipping prices and the appreciation of the US dollar exchange rate, Legg's gross profit margin increased in the first three quarters of last year. In the third quarter alone, its gross profit margin reached 40.5%, and its profitability margin was greatly optimized.

The revenue growth of core products is steady, and the overseas warehouse business is expected to maintain a high growth trend. Based on this, Lechuang has predicted that the company's revenue in 2022 will reach 3.22 billion yuan, a year-on-year increase of 12.1%; the net profit attributable to the parent company will reach 220 million yuan, a year-on-year increase of 18.5% .

The continued release of dividends in the home furnishing market has driven the hot sales of Leckey products. In the first half of last year, its revenue reached 155 million yuan, and the revenue from its own brand products alone accounted for 68.29%. It can be seen that there are huge dividends behind the entire home furnishing category.

Home furnishings are among the top five highest-income categories in the U.S. e-commerce market , and sales are booming

It's not just Levo. Last year, many cross-border home furnishing brands also had good development momentum .

Last year, Zhiou Home Furnishing , a big-selling company specializing in furniture, home furnishings, garden and pet series products, rushed to go public. Its prospectus disclosed that its revenue in 2021 reached 5.967 billion yuan and its net profit was 240 million yuan.

Zhejiang home furnishing giant Zhengte Co., Ltd., which was successfully listed in September last year , achieved revenue of 1.109 billion yuan in the first three quarters . In its prospectus , Zhengte Co., Ltd.'s revenue from 2019 to the first half of 2021 reached 675 million yuan, 910 million yuan and 673 million yuan respectively.

With the continuous listing, many home furnishing sellers focusing on the overseas e-commerce market also received continuous financing last year.

Zhiling received 50 million yuan in Pre-A round of financing , Jika Technology received tens of millions of dollars in A round of financing , Moorebot Xiaomo Intelligence received tens of millions of yuan in financing , and Cozyla received 40 million yuan in the first round of financing...

The rapid progress of home furnishing giants means that this sector continues to be popular, and market data also reveals this information.

Not long ago, Comscore announced the five categories with the highest revenue and fastest growth in the US e-commerce market in 2022.

In the U.S. e-commerce market in 2022, the five categories with the highest sales revenue are: Grocery /Baby/Pets ( $219 billion ), Apparel and Accessories ( $175 billion ), Computers and Related Equipment ( $117 billion ), Consumer Electronics ( $85 billion ), and Furniture and Appliances ( $76 billion ) .

In addition, home and gardening became the fifth fastest growing category in the US e-commerce market last year with a growth rate of 25% .

On Amazon, home furnishing products have always been the top sellers and are a frequent visitor to the platform's high sales rankings. Although the current overseas consumer market is sluggish, the market demand for this category is still very strong, and there is still a lot of room for future growth.

Paying a lot of money to retain employees

Big Sell