Orders are scheduled until the second half of the year! Anker has already laid out its strategy for this market

The global spread of the COVID-19 pandemic has objectively created an industry: cross-border home furnishing e-commerce. Products that were previously mostly purchased offline, such as furniture, garden outdoor, and home office, have become hot spots for online consumption, and sellers' sales have skyrocketed rapidly, and were once sold out.

In fact, the global household products market has developed rapidly in recent years and its scale is very large. Statistics show that it will reach more than 80 million US dollars in 2025. It can be said that it is a market with great development potential in the future.

As we all know, after Amazon banned accounts, investors have become more cautious about investing in the cross-border e-commerce industry. However, under such circumstances, home furnishing sellers are still favored. Recently, it was reported that a home furnishing seller in Shenzhen received 100 million yuan in financing.

Shenzhen Damai received 100 million yuan in financing. Home furnishing e-commerce is too crazy

2020 and 2021 are the two years when cross-border e-commerce sellers are concentrated in listing. Among these sellers that are rushing for IPO, it can be seen that home furnishing sellers account for a considerable proportion. For example, Zhiou Technology, which is rushing for A-share IPO, Eskimo, which held an IPO launch meeting, and Aosen E-commerce, which switched from the New Third Board to the A-share market.

In terms of listing, Lechuang has successfully explored the way ahead. Since its successful listing in 2017, Lechuang has developed rapidly. By the third quarter of 2021, its revenue had reached 2.1 billion yuan and its net profit was 123 million yuan.

Other home furnishing giants that are on the way to IPO are also performing well. For example, Zhiou Technology, which cannot be avoided when talking about home furnishing giants, had revenue of 3.20 billion yuan and a net profit of 140 million yuan in the first half of 2021. There is also Eskimo, which stood out in 2020. In the first half of 2020, Eskimo once ranked fifth in the home textile category on Amazon.

If we say that these big sellers have made rapid progress in their performance and embarked on the road to IPO, partly because of the epidemic, then after the epidemic has become normalized, especially after Amazon’s account ban, will investors continue to be optimistic about this track? The answer is yes.

In early November last year , POVISON, a home furnishing cross-border e-commerce platform mainly targeting the North American market , completed a nearly 10 million USD Series A financing . The platform’s parent company is Muse Technology (Guangzhou) Co., Ltd. It took less than 8 months from its establishment at the end of March to receiving Series A financing.

In addition, in January this year , Zhengniao Chuhai also announced that it had received a strategic equity investment of RMB 100 million from Insai Group . Zhengniao Chuhai is a cross-border e-commerce company in Shenzhen, which mainly sells home lighting, home textiles , pet supplies , etc. to countries and regions such as the United Kingdom, Germany, Italy, France, Spain, and the United States . The company currently operates multiple Amazon, eBay and other stores in North America, Europe and Japan , and has dozens of independent brands.

Although the cross-border home furnishing market is a tough nut to crack for sellers, it is easy to break through as long as the logistics problem is solved, the categories are well segmented, and technical barriers are established. What's more, this category has market potential that cannot be ignored.

The market size is expanding rapidly and will reach US$800 billion in 2025

The rapid development of the big seller is based on the potential of this market. Relevant data show that from 2017 to 2020, the compound annual growth rate of the global household goods market size is 1.12%. In the future, the global consumer demand for household goods is expected to maintain steady growth and reach US$851.984 billion in 2025.

In the global home furnishings market, Europe and the United States occupy an important position. According to data from the China Business Industry Research Institute, Europe is the region with the largest home furnishings market in the world, with a market size of US$212.765 billion in 2020; the United States ranks second, with a home furnishings market size of US$180.054 billion in 2020.

As household products are typical large items, the logistics chain is a common pain point faced by overseas sellers. In recent years, thanks to the development of the logistics industry and the upgrading of Internet technology, more consumers have developed the habit of online shopping for household products. According to data from the China Business Industry Research Institute, the sales share of e-commerce channels in the global household products market has increased from 1.7% in 2005 to 17.7% in 2020. Coupled with the promotion of the epidemic, the penetration rate of e-commerce in overseas markets has risen rapidly. For example, in the United States, the popularity of household products in 2020 has led to a penetration rate of 35% in its household e-commerce industry.

In the rapid development of the household goods market, the following characteristics are also present:

1. The mattress and bedding market has a clear upward trend. Sleep disorders are a common problem among modern people. Comfortable mattresses and bedding can help people sleep better. Based on this, the market size of mattresses and bedding has increased rapidly. According to the Statista research department, the global home bedding market is worth about US$81 billion in 2021. It is expected that by 2028, the market value will reach about US$147 billion.

2. Home furnishings are developing towards smart technology. The recently concluded Winter Olympics not only made Bing Dwen Dwen popular, but also made a smart bed a hot seller. Recently, the customs manager of a smart home company in Jiangsu said that after the smart beds in the Winter Olympic Village became popular, their export orders for similar smart beds also exploded, and the orders have been scheduled until the second half of the year.

In fact, in recent years, the increase in Internet users and the popularity of smart phones have made more users pay more attention to smart home products. As the market with the highest penetration of smart homes in the world, the penetration rate of smart homes in the United States is as high as 58%.

In this category, Anker, which many cross-border e-commerce sellers can hardly match, has also made a layout. In 2021, Anker acquired 1.257317% of the equity of Zhiyan Technology for 40 million yuan. Zhiyan Technology is a high-tech enterprise specializing in the research and development of smart home products.

The industry is in a state of internal competition. Come to the Home Expo to find new opportunities.

Amazon is an unavoidable topic for cross-border e-commerce sellers to expand overseas. However, many categories of Amazon have become very involuted. Recently, some sellers complained that the categories are not large, but they have become very involuted. In the face of increasingly serious involution, continuous development of new products may be one of the ways for sellers to avoid being thrown out of the competition. At the same time, the development of new products is also an important guarantee for maintaining the survival and long-term development of sellers.

As one of the "Four Heavenly Kings" of traditional consumption, the home furnishing industry has great room for upgrading. If you are worried about developing new products, you might as well come to the China International Furniture Fair (hereinafter referred to as "China Furniture Fair") to look for new product inspiration.

It is reported that the China International Furniture Fair (Guangzhou /Shanghai) was founded in 1998 and is hosted by China Foreign Trade Center Group Co., Ltd. and organized by China Foreign Trade Guangzhou Exhibition Co., Ltd. It is held in Guangzhou and Shanghai in March and September each year respectively.

It is reported that the China International Furniture Fair (Guangzhou) is currently the only large-scale home furnishing expo in the world with the distinctive characteristics of full themes and full industrial chain, covering civilian furniture, accessories and home textiles, outdoor home furnishings, office environments and commercial spaces, furniture production equipment and accessories and auxiliary materials, etc.

The 49th China International Furniture Fair (Guangzhou) will be held in Guangzhou Canton Fair Complex/Poly World Trade Expo Center in March this year. The Civil Furniture Fair will be held from March 18 to 21, 2022, and the Office Environment and Commercial Space Fair and Equipment and Ingredients Fair will be held from March 28 to 31, 2022.

It is worth noting that the China International Furniture Fair (Guangzhou) also has a summit forum, which will be held on March 19. At that time, many cross-border e-commerce industry leaders will output their latest views and opinions, analyze industry trends, and share new opportunities in product categories.

If you are interested in the exhibition, or want to brainstorm with experts at the forum, please scan the QR code below to sign up.

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Home Furnishing Cross-border E-commerce

Home Furnishings