Another cross-border blockbuster is launched!

More and more brands are emerging in the home furnishing market .

The capital's favor for the home furnishing track is evident. Henglin Home Furnishing, Lechuang Holdings, and Zhiou Technology have successfully listed, and then Aosen Home Furnishing, Jesia, and Euro Creative have entered the listing guidance stage. Now, Zhejiang cross-border seller Sanao Technology has also begun to impact IPO.

Sanon Technology to go public

On July 1, Shengao Technology Co., Ltd. (hereinafter referred to as "Senao Technology") completed the registration for tutoring with the Zhejiang Securities Regulatory Bureau, intending to issue shares for the first time and go public. The responsible tutoring broker is Guotai Junan Securities Co., Ltd.

When it comes to Sanon Technology, many people may not be familiar with it.

But if we talk about the Zhejiang Damai who started from scratch in a peasant house, many people in the industry can guess who it is. As early as 1991, Ni Liangzheng, the legal representative of Shengao Technology, rented a peasant house in Hangzhou with 2,700 yuan to start his business, which is very similar to Bezos before.

To date, Sunon Technology has become a big seller with products exported to 128 countries around the world. Its products cover desks, office chairs, filing cabinets, sofas, conference tables, medical furniture, educational furniture and other product lines. They are mainly sold through Amazon, independent websites, Wayfair and offline exhibition halls. They cooperate with Fortune 500 companies including Huawei, Alibaba, Tencent, Google, etc.

The company's most outstanding brand is the home and office furniture brand Farini, which has a high reputation on Amazon and is favored by overseas consumers. Industry insiders revealed that when Sanao Technology just established a cross-border e-commerce team in 2019, the company's sales were only more than 8 million yuan, but by 2022 it had exceeded 200 million yuan, and the annual compound growth rate of overseas business reached 25%.

It is said that the company has also set a goal of breaking through 1 billion yuan in 2026 , which shows its optimism about the overseas market. And Sanao Technology's achievements are inseparable from the support of the supply chain.

In the first half of the year, Sunon Technology will settle its headquarters in the Zhongshan Industrial Cluster. Prior to this, the company had already established overseas branches in the United States, Russia and other places, and also established its own production bases in Hangzhou, Hebei, Mexico, North America and other places, and introduced advanced European automated production lines.

At the same time, Sunon Technology has also put a lot of thought into research and development. Adhering to the "1+N" global research and development model, it has established research and development centers in Germany, the United States and other places to ensure the company's innovation capabilities. By the end of 2023, Sunon Technology has accumulated 1,610 global patents and won 36 European and American product design awards.

In fact, with the rapid growth of the home furnishing category today, it is not only Sanao Technology that has caught the express train, but also a number of big sellers including Zhiou Technology.

The prospects are bright, and many home furnishings are selling well.

As a popular gold-digging category in overseas markets, home furnishings have always occupied a considerable market share. Data shows that in 2022, the global home decoration market size is 856.26 billion US dollars, and it is expected to break a new high by 2031, reaching 1522.02 billion US dollars. On Amazon's US site, the home furnishing category accounts for 9% of the market share, ranking third.

With the home furnishing category booming, many big sellers have made considerable profits.

Henglin Home Furnishing mainly manufactures office chairs, sofas, massage chairs, etc. In 2023, with a year-on-year revenue growth of 25.78% and a total revenue of over 8 billion, it successfully became the top revenue company. Last year, the company also expanded its staff by 14%. Among them, sales growth in channels such as Amazon and Tik Tok was relatively high.

Lechuang Holdings, which mainly produces products such as height-adjustable tables and ergonomic chairs, will have revenue of 9.302 billion yuan and a net profit of 634 million yuan in 2023, with both revenue and net profit increasing by 189.72% year-on-year. Ergonomic products are still the company's main source of revenue.

Zhiou Technology, whose business covers home furnishing, garden, pet and other categories, was successfully listed last year. In 2023, Zhiou Technology's revenue was 6.074 billion yuan and its net profit was 413 million yuan, with both revenue and profit growing. The home furnishing series maintained steady growth in Europe.

In addition to the big-selling products that have already been listed, many big-selling products that benefited from the popularity of the home furnishing category have also entered the list of overseas brands or knocked on the door to listing.

In the 2023 Kantar BrandZ China Top 50 Global Brands Ranking, Aosun Home Furnishing, founded in 2013, is on the list. It mainly sells indoor home furnishings, outdoor rattan and other series of products, and has created a record of 2.4 billion in revenue and a 1288% increase in profits in three quarters. Also on the list is Costway, a subsidiary of the TAG Heuer Group, which has grown into a garden home furnishing giant with sales of US$1 billion.

In addition, the home furnishing giant JESIA, which mainly sells furniture fabrics and home bedding, has entered the listing guidance stage. It broke out of the seating market and owns several self-owned brands including Hulala, Tranquility Life, and JESIA. Its products are sold well on several leading e-commerce platforms including Amazon. The European Creative, which mainly sells outdoor tables, chairs, tents, umbrellas, and rattan leisure products, is also in the listing guidance stage.

A fire broke out in the factory, and the furniture sales may lose 45 million yuan

However, for big sellers, some unexpected events always catch them off guard. Zhejiang Amazon big seller Zhongyuan Home Furnishing recently issued an announcement that a fire accident occurred in some of the company's rented factories (Anji County), and the estimated asset loss involved was 45 million yuan. However, it will not have a substantial impact on the company's own manufacturing business.

As a listed home furnishing seller, Zhongyuan Home Furnishing is located in Anji County, Zhejiang Province, the "Hometown of Bamboo in China". Initially, it mainly produced bamboo rulers and other bamboo products through OEM/ODM and sold them to overseas markets such as Japan. Now, Zhongyuan Home Furnishing is transforming to an OBM model, focusing on building its own brand CANMOV. Its products have also expanded to functional products such as manual functional sofas, electric functional sofas, and panel furniture.

With the advantage of being the hometown of chair industry, Zhongyuan home furnishing products run through the complete industrial chain of local raw materials, semi-finished product processing, finished product production and sales, which is a core advantage that other home furnishing brands do not have. On Amazon, CANMOV is one of the best-selling brands in the sofa category.

Last year, some home furnishing companies encountered bottlenecks in performance, but Zhongyuan Home Furnishing's performance improved compared with the previous year. Data shows that in 2023, Zhongyuan Home Furnishing achieved operating income of 1.101 billion yuan, an increase of 52.52% over the same period last year, and net profit attributable to the parent company's owners was 21.36 million yuan, successfully turning losses into profits.

In the future, as the home furnishing market continues to grow, more possibilities and opportunities will emerge, especially in the United States, which has the largest market size. However, more and more consumers prefer to buy smart, environmentally friendly, and energy-saving home furnishing products, and relevant sellers can also focus on them.

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