Two big sellers are betting on this high-potential category, which has the potential to generate huge sales

The office furniture category is worth exploring in depth.

For a long time, the main sales channels for large furniture products have mostly been offline stores, but now some big sellers are rewriting this situation. For example, the listed big seller Lechuang shares and Zhiou Technology, which recently successfully passed the review, are both betting on the office furniture track.

The big sellers have certainly seen the market potential behind this category. According to data, the office furniture market will grow by $18.92 billion in the next four years. As the market develops rapidly, some new product opportunities are constantly emerging. For example, in the context of the wave of working from home, "double-sided" furniture has emerged.

Office furniture is favored by two major sellers, with annual sales of one million pieces

Recently, Zhiou Technology's successful listing has attracted a lot of attention in the industry. In the past, when people mentioned Zhiou Technology, many people often paid more attention to its home furnishing products.

However, Yien.com found from its latest prospectus that from 2018 to 2020, among the 10 product categories included in its four major product series (furniture series, home series, garden series, and pet series), the average sales unit price of office furniture products has always ranked among the top three. In 2020, it even ranked first with 469.29 yuan per piece, and the average price was nearly 80 yuan higher than that of another product category in the furniture series, living furniture.

In 2020, Zhiou Furniture's sales revenue was 630 million yuan, with sales of 1.333 million pieces. Its sales revenue ranked third among the 10 product categories, second only to living furniture products and home storage products. Its sales volume ranked fourth among the 10 product categories, far higher than home decoration, garden sports and other products.

When it comes to office furniture, we have to mention the popular Lechuang Shares. Lift tables, lift platforms, and various new office equipment have always been the main products of Lechuang Shares. The most famous of them is the ergonomic lift table. In the first half of 2021, it won the sales champion of the Amazon lift table category. In addition, the lift table was also the one that appeared on Weibo hot searches and major video platforms last year with "Mr. He".

It is said that all the actions of enterprises are based on the signals given by the market. According to the report "Global Office Furniture Market 2022-2026" recently released by Reportlinker.com, the global office furniture market is expected to grow by US$18.92 billion during 2022-2026, accelerating at a compound annual growth rate of 4.66% during the forecast period . The office furniture market is worth digging deeper into by sellers.

In addition, as the market grows rapidly, new product opportunities are constantly emerging, such as the following three directions:

1. With the rise of new e-sports consumer groups, related products that combine technology, comfort and personalized design features are rapidly gaining popularity, such as e-sports chairs.

2. With the widespread use of home office mode, furniture that can quickly switch between office and home modes is popular in the market.

3. The high demand for medical and nursing spaces, learning spaces, and entertainment spaces provides fertile soil for the development of adjustable furniture.

The penetration rate of foreign markets is not high, and sellers still have opportunities to enter the market

As we all know, due to the impact of the COVID-19 pandemic, a large number of employees in foreign companies "worked from home" in 2020, which led to a huge explosion in the online office furniture category, but the rapid growth rate caused the market to be overdrawn in advance. Zhiou's data truly reflects this situation.

A relevant person in charge of Zhiou Technology told Yien.com that their office furniture has a large market share on Amazon's European sites , but in 2021 and 2022, the sales growth of this category was not very obvious.

However, he also made it clear that in the long run, Zhiou Technology is still optimistic about the office furniture market. "Compared with clothing and consumer electronics, the penetration rate of office furniture in foreign markets is not high, which proves that there is still room for growth. In addition, the epidemic has also made consumers more accustomed to online shopping."

However, he also made it clear that factory-type sellers on third-party platforms will have more obvious opportunities and advantages in the future .

He believes that sellers entering the office furniture market in the future should have at least the above two advantages in terms of supply chain resources, product differentiation and localized brand marketing and promotion capabilities .

"At least two of the three advantages must be possessed, and factory-type sellers have both supply chain and differentiation, and they also have certain price advantages. " The person in charge said that entering this market is not something that can be solved simply by relying on financial strength, and in the future, wholesale sellers will become less and less popular with the market and platforms.

It is not difficult to see from the above statement that the base of the future office furniture market is in place. The key for new sellers to enter the market is to have something different from others. They cannot continue to use the original way of distribution and sell whatever sells well. This model will have great risks once the scale is expanded.

Market size is 50 billion US dollars, home office furniture becomes a dark horse

Home office furniture is a dark horse in the office furniture market. According to the latest report "Home Office Furniture Market 2022 - Opportunities and Strategies - Global Forecast to 2031" released by The Business Research Company, the global home office furniture market is expected to grow from US$23.7231 billion in 2021 to US$37.6624 billion in 2026, with a growth rate of 7.4% (the global office furniture market has a compound annual growth rate of 4.66%). From 2026, the global home office furniture market is expected to grow at a compound annual growth rate of 6.5% and reach US$51.5073 billion in 2031.

Furthermore, the report identifies several opportunities that exist in the home office furniture market:

By product, the largest opportunity will appear in the seating segment, which will achieve global annual sales of US$7,414.2 million by 2026. In addition, the seating market is expected to become the fastest growing segment in the office furniture market by product, with a compound annual growth rate of 10.1% during 2021-2026.

By material, the largest opportunity will be in the wood segment, which will receive global annual sales of $4,874.6 million by 2026. However, the plastic market is expected to be the fastest growing segment in the home office furniture market by material , with a CAGR of 9.8% during 2021-2026.

By price segment, the largest opportunity will be in the mid-range segment , which will receive global annual sales of $5.084 billion by 2026. However, the high-end market is expected to be the fastest growing segment in the home office furniture market segment by price, with a CAGR of 9.5% during 2021-2026.

By distribution channel, the specialty store market is the largest segment, with global annual sales of US$ 7,270.6 million by 2026. However, the online market is expected to be the fastest growing segment in the home office furniture market segment by distribution channel , with a CAGR of 10.2% during 2021-2026.

By geography, North America is the largest region in the global home office furniture market, followed by Western Europe. However, the fastest growing regions in the global home office furniture market will be Africa and Asia Pacific , with CAGRs of 11.2% and 10.5%, respectively. It will be followed by South America and North America , which are expected to grow at CAGRs of 8.0% and 7.0%, respectively.

Large-scale exhibitions have always been an important channel for sellers to select products and understand market trends. It is reported that the 49th China International Furniture Fair (Guangzhou) Office Environment and Commercial Space Exhibition will be held at the Guangzhou Canton Fair Complex from July 26 to 29. The exhibition will focus on system office, office seating, and steel products to form a full-theme and full-industry chain display of office furniture. The International Brand Pavilion and Design Trend Pavilion will bring global first-line new products and original design products. Public commercial spaces will present the most cutting-edge commercial furniture trends. Medical and elderly furniture and smart office spaces will interpret the development direction of the industry.

Interested sellers can scan/identify the QR code in the poster below to sign up .