Awesome! Another big seller launched

Cross-border markets are constantly changing, but the home furnishing market has great potential. As the second largest category after clothing, the home furnishing market has maintained a compound annual growth rate of 6.4% and has long been ranked among the most popular product categories on Amazon. The market size in 2022 has reached $1.42 trillion.

With the advantages of large scale and high growth rate, the home furnishing track has received good news frequently, and many benchmark companies have been listed. There are pioneers such as Zhiou, Jiexia, and Meixin Technology, and then there are leaders in sub-categories such as Hualai Technology. Now Meijin Co., Ltd. is also going to go public.

The revenue of a single product line is nearly 200 million, and it is making a lot of money in the sub-categories

Yien.com learned that Shenzhen Meijin Youshi Co., Ltd. (hereinafter referred to as " Meijin Co., Ltd. ") has started IPO guidance and recently filed for guidance with the China Securities Regulatory Commission. The guidance institution is Jinyuan Tongyi Securities and it will be listed on the Beijing Stock Exchange soon.

According to the data, Meijin Co., Ltd. was established in 2011. It owns overseas brands such as Pauwer, HEBE, SHACOS, U'Artlines, and Lokhom, which correspond to bathroom mats, kitchen mats, placemats, artificial flowers, lamps and other series of products to meet customers' consumption needs in multiple scenarios. After years of accumulation, the company's brand has become one of the most popular home furnishing brands in the European and American online consumer markets.

Like most sellers, Meijin Co., Ltd. is highly dependent on Amazon. This channel has contributed more than 95% of the company's revenue for many consecutive years. In 2022, Amazon channel sales reached 277 million yuan, followed by mainstream e-commerce platforms such as Wayfair, Shopify, SHEIN, etc., which have a relatively low share. A bath mat from Pauwer was even sold out on SHEIN.

On Amazon, Meijin Co., Ltd. has a variety of brands, from placemats to lamps, and each brand has multiple products that rank at the top of Amazon's BSR, making it a veritable home furnishing top seller. Take a kitchen rug from the HEBE brand as an example, which is priced at $29.99, has 5018 ratings, and has sold over 1K units in the past month.

The prospectus data shows that relying on the overseas business, Meijin shares will have a revenue of 369 million yuan and a net profit of 39.8329 million yuan in 2023, both of which are in a state of growth. Specifically speaking, floor mats are the main source of revenue for Meijin shares, with revenue of nearly 200 million yuan in 2022, followed by a series of products such as artificial flowers, placemats and lamps.

With many brands and rich products, Mei Jin Co., Ltd. has specially set up a number of companies to support the company's operations. The division of labor is quite clear. The parent company Mei Jin Co., Ltd. is mainly responsible for operational support; the subsidiary Jiang Zhiyuan is the purchasing and export entity; overseas subsidiaries such as Hong Kong Mei Ming are mainly responsible for sales and collection on third-party e-commerce platforms; Mei Zhi Yu and Ming Zhi Yang are merely registered entities of stores.

Dominating the sub-categories, home furnishings are rushing to IPO and selling well

The global home furnishing industry has a vast market, the penetration rate of overseas e-commerce has increased significantly, the number of home furnishing companies exporting overseas is increasing, and the industry's capital market is also very active. In the past two years, there have been many big sellers that have rushed to go public.

Zhiou Technology: A benchmark for home furnishing overseas markets

It was successfully listed in June 2023 and has received heavy support from Jiayu Capital and others. It owns three major self-owned brands including SONGMICS (home furnishings), VASAGLE (furniture), and FEANDREA (pets). It has a wide range of products and mainly relies on Amazon, ManoMano, Cdiscount and brand independent website sales.

With its advantages of extremely high cost-effectiveness, full home scenarios, and fashionable style design, Zhiou Technology has successfully ranked first in the home furnishing category on Amazon platforms in Europe and the United States, and third in the United States. Although the performance in 2023 has not yet been announced, it has been announced that Zhiou Technology's net profit in 2023 is expected to be 400 million yuan to 420 million yuan, a year-on-year increase of 59.93% to 67.92%.

Jessia: Top student in home textile category

Last November, Jesse Home Technology Co., Ltd. registered with the China Securities Regulatory Commission for guidance. Founded in 2005, Jesse initially entered the U.S. market through a large number of sitting furniture series in the U.S. furniture market, and its sales increased tenfold in less than two years.

Currently, the company has several self-owned brands including "Jessica" and "Tranquil Life". Its products cover multiple series including furniture fabrics, home bedding, accessories and pet supplies. Its products cover multiple platforms including Wayfair and Amazon. It is one of the top 3 sellers on the Wayfair platform.

Mexin Technology: Well-known outdoor flooring brand

In March this year , Meixin Technology was officially listed on the Growth Enterprise Market. With 20 years of entrepreneurial experience, Meixin Technology mainly deals in emerging environmentally friendly plastic wood profiles such as outdoor flooring products, wall panels, and modular flooring. The company's products are exported for more than 90%, mainly sold through home building materials supermarkets, Home Depot, Lowes, and Amazon.

On Amazon, Mesin Technology sells a variety of wall panels and flooring products under the NewTechWood brand. In 2023, Mesin Technology's operating income was 792 million yuan, and the net profit attributable to the parent company's shareholders was 75.97 million yuan, of which outdoor flooring was the company's largest source of revenue.

Hualai Technology: Smart Home Overseas Brand

In early January this year , Hualai Technology was listed on the New Third Board. Founded in 2015, Hualai Technology focuses on three major business areas: intelligent vision, intelligent lighting, and intelligent perception and control. Its products mainly include intelligent cameras, intelligent lamps, and intelligent sensors.

As the main supplier of many cross-border smart hardware sellers, its customers include Amazon and TikTok sellers Wyze, Xiaomi, Petcube, etc. So far, Hualai Technology has completed 4 rounds of financing, with investors including Shunwei Capital, Xiaomi Technology, etc.

The market is booming, and there are new opportunities in the home furnishing track

The continuous success of home furnishing products has a lot to do with the prospects of the overseas home furnishing market.

Relevant data shows that the sales share of e-commerce channels in the global home furnishings market has increased from 1.70% in 2005 to 17.70% in 2020, and has continued to grow since then.

In terms of market size, it is expected that by 2025, the US home furnishing market will rise to US$210.068 billion, and Europe will rise to US$255.244 billion. The fastest growing categories are furniture, smart home products, etc. Taking smart home as an example, the market size is expected to increase to US$155 billion in 2023, among which height-adjustable tables are the most popular.

In terms of furniture, Wayfair is also proving the prospects of the category. On Black Friday and Cyber ​​Monday in 2023, Wayfair sold more than 2 million furniture products on the platform, with multiple product categories growing by more than 50% year-on-year, and net revenue for the entire third quarter reached US$2.9 billion, with a gross profit margin of around 31.1%.

At the same time, as one of the world's home furniture producers, China accounts for 36% of the global production, and its cross-border home furnishing market is also in a state of growth. In 2022, the scale of China's cross-border home furnishing market reached 440 billion yuan, and it is expected to exceed 700 billion yuan in 2025.

Relying on China's industrial clusters, many cross-border home furnishing companies have emerged. In Shenzhen alone, there are more than 1,000 cross-border home furnishing e-commerce companies, including leading companies such as Anker Innovations, Aoki Technology, and Lechuang Holdings. And after them, which big sellers will break out?

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