The single product has over 6,000 reviews! It has been a huge hit in the market segment.

But for those industry giants with more resources, many have made achievements in this field, and the listed company Henglin Co., Ltd. is one of them.

Its products have over 6,000 reviews, and its revenue in one quarter exceeded 2 billion yuan

It is understood that Henglin Home Furnishing Co., Ltd. was established in 1998 and listed on the A-share main board in 2017. It was not until 2019 that Henglin Co., Ltd. began to get involved in cross-border e-commerce business, mainly selling its own brand products on platforms such as Amazon, and at the same time established overseas warehousing and logistics bases and cross-border e-commerce warehouses in the east and west of the United States.

According to the latest third quarter 2023 financial report released by Henglin Co., Ltd. , in this quarter, Henglin Co., Ltd. achieved operating income of more than 2.132 billion yuan, a year-on-year increase of 27.09% , and achieved a net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses of more than 96 million, a year-on-year decrease of 9.99%.

In terms of products, Henglin Home Furnishing mainly develops healthy seating and civilian furniture products such as office chairs, sofas, and massage chairs. After more than 20 years of independent research and development and technological accumulation, Henglin Home Furnishing has a series of core technologies for product design and production processes, including self-loading chassis, ergonomics, polymer material applications, massage movements, etc., and has won the title of National High-tech Enterprise.

In terms of channels, Henglin Home Furnishing started as an OEM and gradually established an online and offline integrated channel system. At present, Henglin Home Furnishing's sales model is a parallel model of OEM/ODM and self-operated brands, and has laid out multiple e-commerce platforms including Amazon.

On Amazon, NOUHAUS, a brand under Henglin Home Furnishing, has created a hot-selling product with over 6,000 reviews. This product is an ergonomic chair, priced at US$369.99, and its sales volume has reached 300+ in the past month.

In addition to this hot-selling item, NOUHAUS has many other products with over a thousand reviews, monthly sales of around 200+, and prices ranging from US$199 to US$319.

Entering the official store of NOUHAUS on Amazon, it can be seen that it has put a lot of thought into the store decoration. Different from those sellers who place a static product picture on the store homepage, the homepage of NOUHAUS's store is an exquisite video showing the products. There is also a model with a Western face in the video. It can be said that most users who enter the store will be attracted by it at first sight.

Below the video, NOUHAUS showcased several categories of its products, including ergonomic chairs, massage sofas, and long sofas for home use. It also mentioned the brand's slogan: Beyond Function, Beyond Design, Beyond Originality.

In addition to Amazon, independent websites are also an important sales channel for NOUHAUS. According to Google Trends data, the search popularity of the keyword NOUHAUS on Google remained at a high level in the middle and end of last year, indicating that its brand effect has been established overseas, and many consumers find products by directly searching for brand words. For cross-border sellers, the impact of natural traffic on a brand is self-evident.

As a traditional home furnishing company, Henglin Co., Ltd. chose to switch from domestic sales to exports early on. Currently, its export share has exceeded 70%, making it a typical "Zhejiang-based" export home furnishing company. It was its choice at that time that created the leading home furnishing company with a market value of more than 6 billion today.

However, as the times change, companies also need to continue to innovate and keep up with changes in consumer demand so that they can withstand the impact of the tide of the times.

There are opportunities in the crisis. The home furnishing market, which has become a "bloody sea", still has growth potential

In recent years, Amazon's industry dividends have gradually been exhausted, and many of the industry's former big sellers have left the market in disgrace. Many of the remaining sellers have also been severely affected, and Henglin Co., Ltd. is no exception.

In order to get out of the quagmire, Henglin Co., Ltd. has taken a series of measures. Since 2023, Henglin Co., Ltd. has begun to expand its product line and developed new categories such as lifting tables and cabinets. In addition, Henglin has also begun to actively deploy multiple new channels such as TikTok, and its cross-border e-commerce business has gradually recovered.

After searching for the official account of NOUHAUS on TikTok, it was found that although the account currently has few followers, the content has been constantly updated. The earliest video was from 2020.

Industry insiders speculate that the low number of fans on the official account and the low number of video views may be related to the product category. As we all know, TikTok is an entertainment and social platform, and only interesting and fun content can touch users. Household products may be difficult to attract general TikTok users because they are bulky or lack creative ideas.

However, as a platform with huge traffic, even if you can't achieve explosive sales on TikTok, it is still a good choice to increase brand exposure. At present, many home furnishings stores have entered TikTok. Zhengzhou home furnishings store Zhiou has already laid out emerging platforms such as TikTok and SHEIN, and has achieved good results.

Of course, different brands have their own development paths, and not every brand has to seize the latest traffic high ground. As long as you find your own path and keep going, there is still a bright future in the home furniture track.

According to CSILI statistics, the global furniture production in 2022 will be approximately US$500 billion, of which China is the main furniture producer, accounting for about 37% of the global furniture production.

In recent years, the global home furnishing industry has experienced rapid development. It is estimated that by 2025, the size of the US home furnishing market will rise to US$210.068 billion, and the size of the European home furnishing market will rise to US$255.244 billion.

In addition, the online penetration rate of home consumption is also increasing. According to Statista data, the revenue of furniture products in e-commerce channels in the United States is expected to reach US$61.212 billion by 2025. At the same time, the revenue of furniture products in e-commerce channels in Europe will also reach US$51.964 billion in 2025.

In the segmentation era, office furniture, including office chairs, desks, system furniture and other products, may usher in a huge growth period. With the recovery of global office furniture market consumption, the market space and order volume are expected to continue to increase. As the largest office furniture production and exporter, China's volume is much higher than other developing countries.

As an overseas brand focusing on office chairs, Henglin Home Furnishing may be able to take advantage of this favorable situation and reach a higher level in terms of revenue and profits.

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