Lending 3 million to employees to buy houses, home furnishings are selling like hot cakes, what a rich man!

Recently, Lechuang released an announcement about the company providing financial assistance to employees for purchasing houses. The announcement mentioned that through relevant proposals, it plans to set aside RMB 3 million for employee housing loans. After the amount is used, the loans returned by the employees and the unused amount will be used in a recycling manner for subsequent company employee housing loan applications.

Last month, the big seller Anker also confirmed that it would take out 40 million yuan for employees to buy houses and medical expenses. The big sellers' actions of paying out of their own pockets have aroused speculation. Some netizens said that the policy appears to be good for employees, but in fact there are many restrictions on buying houses in certain areas and the number of years of employment .

However, the fact that the industry's big sellers provide housing funds for their employees also proves that they have ample cash and relatively considerable revenue and profits. In 2021, Lechuang's operating income was approximately 2.871 billion yuan, and the net profit attributable to shareholders of listed companies was approximately 185 million yuan. The company's cross-border e-commerce sales revenue increased by 38.76% year-on-year, of which independent station sales increased by 89.19% year-on-year.

Behind the stable performance development, Lechuang has reaped the dividends of the healthy office concept, and the penetration rate of its linear drive products has continued to rise. As the dividends of the ergonomic healthy home blue ocean market continue to be released, Lechuang achieved revenue of 2.391 billion yuan in 2021, a year-on-year increase of 44.05%, accounting for 83.29% of total revenue. It can be seen that there are huge dividends behind the entire home category.

In addition to Lechuang, the development momentum of other sellers specializing in home furnishings also continues to improve.

Zhiou Home Furnishing is a well-known home furnishings seller, mainly engaged in home furnishing products such as its own brand furniture, home furnishings, garden and pet series. In 2021, its revenue was 5.967 billion yuan, and the net profit attributable to the parent company's shareholders was 240 million yuan. In 2022, Zhiou Home Furnishing won the title of "Winning with Persistence" Seller of the Year in 2021 awarded by Amazon Global Selling, and was selected in the Top 100 Chinese Cross-border E-commerce List evaluated by Netease for two consecutive years.

Aosen E-commerce is a well-known home furnishing company in East China . It mainly sells outdoor leisure, household goods, office supplies and other products . The epidemic has boosted the demand for home furnishing products. Aosen's sales soared from 1.26 billion yuan in 2018 to 3.45 billion yuan in 2020, a year-on-year increase of 109%. The company's outdoor series and home series account for the largest share of revenue, with revenue of about 1.2 billion yuan.

In addition to the above sellers, in recent years, many small and medium-sized sellers specializing in home furnishing categories have developed well, with revenue and profits increasing significantly. The epidemic has boosted the outbreak of the home furnishing category , and many sellers in the industry have taken advantage of this opportunity.

The home furnishing category is hot, and many products are selling like hotcakes

As the epidemic restrictions were relaxed, the temperature in Europe and the United States rose in the second quarter, and some outdoor courtyard furniture sets such as outdoor hammocks, tables and chairs were sold well overseas. In April this year, many Amazon sellers in related categories reported that some products were sold out overnight.

In the past, consumers were used to buying single items, such as a table, and the specific consumption scenarios were often offline hypermarkets and retail stores. With the continuous enrichment of the supply side, consumers have more choices, and some sets of garden furniture have become hot-selling.

When consumer demand becomes unfocused, demand itself is also changing. Sellers can iterate and innovate products based on changes. Zhiou is a pioneer in product iteration. It has made structural innovations in the sun visors of leisure reclining chairs on the market, meeting consumers' demand for stepless adjustment of sun visors when lying down for leisure, thereby increasing the customer praise rate of this category by 40%.

According to the latest overseas consumption trends, consumer shopping is greatly influenced by social platforms. In the era of live streaming, European and American people have a surge in demand for furniture, home decoration and other equipment for live streaming. At the same time, in the current pursuit of personalization, some customized pillows and blankets also have a certain market.

In addition, curtains, sleeping blankets, sofa covers, pillows and other home furnishing fabric products are also hot-selling items on Amazon. For these products with relatively high replacement frequency, consumers are more concerned about quality and low price. At the same time, home storage such as low-profile TV cabinets, metal storage racks, hanger combinations, open shelves, bookshelves, kitchen trucks and storage carts are also popular. For these products, consumers are more concerned about details such as whether they take up space, whether they are easy to move, capacity, height, assembly, etc.

It is worth noting that Europeans and Americans have the habit of keeping pets. With the improvement of the status of pets, some pet furniture and household items are becoming more and more popular in the market.

Currently, many home furnishing and furniture products are hot-selling on Amazon.com. According to the official recommendations of the platform, sellers on the UK site can focus on rocking chairs and outdoor garden rocking chairs; sellers on the German site can focus on office stools, loft beds, reclining chairs, outdoor curtains, complete sets of furniture and other products.

Statista data shows that the revenue of the European furniture and supplies e-commerce channel reached US$37.234 billion in 2020, and is expected to reach US$51.964 billion in 2025; the revenue of the US furniture and supplies e-commerce channel will also reach US$61.212 billion in 2025.

To share the home furnishing category cake, sellers need to do their homework

Such a huge market size and so many hot-selling products will inevitably attract more and more sellers to enter the market.

However, sellers who want to enter the home furnishing category need to do their homework in advance, such as understanding popular trends in Europe and the United States, keywords that online consumers often search for when purchasing related products, and paying attention to integrating product functions based on consumer habits.

For some household products that carry electrical appliances, sellers must also obtain relevant certifications in the country of sale and operate in compliance with the requirements of various e-commerce platforms.

Sellers who want to share the home furnishing category cake can also pay attention to the China (Guangzhou) International Furniture Fair (hereinafter referred to as "China Furniture Fair") and the Home Furnishing Cross-border Summit Forum. The Home Furnishing Fair will be held on July 18 in Conference Room 8, Zone B, Guangzhou Canton Fair Complex. At that time, industry leaders will help share leading views and discuss the marketing opportunities of home furnishing brands overseas.

The China International Furniture Fair is the world's largest, most influential and high-quality home furnishing expo. It is the only home furnishing expo in the world that features a full range of themes and the entire industry chain, covering home furniture, accessories and home textiles, outdoor furniture, office and commercial furniture, hotel furniture, furniture production equipment and accessories, etc. Driven by the China Foreign Trade Center, the China International Furniture Fair has reshaped its positioning to "lead design, internal and external circulation, and full-chain coordination" as its action program and development direction for the next period of time.

This year's Home Expo also opened up cross-border e-commerce channels and set up a cross-border e-commerce zone, attracting platforms including Amazon, eBay, and Shopee to set up exhibitions and hold official special forums. At the invitation of the Home Expo, Enen.com organized a special summit for home furnishings going overseas to deeply discuss the secrets to success in home furnishings going overseas.

For cross-border e-commerce sellers who hope to make money in home furnishings, furniture and related fields, this will be a grand event that cannot be missed! Click the entrance to register for the conference and win more opportunities for explosive sales of home furnishing products.

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