With revenue increasing 40 times in 3 years, it has become a top BSR seller!

In the past two years, office furniture consumption has declined. The industry's view is that the dividend has passed, the market is not good, and the profits have been diluted. However, looking at the world, the demand for office furniture production seems to be declining, but in fact it has been accelerated.

Relevant data show that in the next four years , the office furniture market will grow at a compound annual growth rate of 5.01% and will reach US$58.6 billion by 2026. The visible growth in market demand has also enabled the big sellers that have entered the market to achieve a qualitative leap.

Xihao, a seller who went overseas with a mid-to-high-end positioning in 2018 and spent three years to expand its business to sites around the world, stood out from a group of old sellers and became the sales leader in the chair category on Amazon.

On Amazon, Xihao's annual sales increased from 8 million yuan in 2018 to 360 million yuan in 2021, with the annual sales growth rate showing a linear increase. It is no exaggeration to say that Amazon is Xihao's "Bo Le".

Becoming a top BSR seller in 3 years, Amazon has become Xihao’s “mentor”

Instead of fighting tooth and nail in the classic styles of office supplies, it is better to move into the niche market and take over the big players in the small market share.

Founded in 2011, Xihao Furniture (Shenzhen) Co., Ltd. (hereinafter referred to as "Xihao") is deeply engaged in ergonomic office chairs, ergonomic children's tables and chairs, and ergonomic peripheral products. The initial audience focused on the domestic middle class. In China, Xihao has achieved remarkable results and has created a national-level hit product with sales of two million pieces, creating a single product sales myth in the ergonomic furniture industry.

However, all this changed quietly after 2018.

At that time, Xihao chose Europe as its first overseas destination, and ranked first in sales in the UK and Germany. Later, Xihao gradually expanded to multiple sites such as the United States, Canada, and Mexico. After three years of polishing, Xihao defeated a number of sellers and became the top BSR seller in the chair category, with multiple BSR products.

Take the M18 model of Xihao's office chair for example. The keywords in the listing are ergonomic office chair, suitable for tall people, and adjustable pillow. Currently, this product has 13,853 ratings, a score of 4.4, and is priced between $159.99 and $175.99. The sales volume in the past month was 4k.

On Amazon, Xihao's sales have gradually increased from 8 million yuan in 2018 to 45 million yuan in 2019, and then to 150 million yuan in 2020, and then to 360 million yuan in 2021. In three years, sales have increased more than 40 times.

During the Black Friday in 2022, Xihao was like a dark horse that broke through the siege. Its ergonomic chair M57 attracted a large number of overseas consumers to buy it with its advantages such as multiple functional adjustments and pioneering two-way adjustable patented lumbar support. Thousands of units were sold, which also broke the previous perception of most people that Chinese ergonomic chairs were imitation, plagiarism, and price wars. In recent years, the cumulative sales of M57 at home and abroad have reached 200,000.

So far, Xihao has made a name for itself overseas, with its brand sales ranking among the top ten in the United States and being the industry leader in many European sites. Even in Germany, which has high requirements for brands and craftsmanship, Xihao has won multiple BSRs and its sales have been far ahead. In 2019, Xihao also won the Amazon Seller with the Most Global Vision Award.

It can be said that with the help of Amazon, its "mentor", Xihao has successfully achieved multi-channel development while taking several steps forward.

Rather than compete with low-priced products, Xihao invested a year's profit in research and development

As we all know, the best-selling office chairs on Amazon are priced very affordable, mostly under $100 or even $60. However, Xihao did not choose to compete with Amazon's low-priced products, but focused on the mid-range price range of $200, which is relatively blank on Amazon.

In Google Trends, the search volume for words such as price below $200, comfortable, long-term sitting, and not tiring has increased significantly, which also represents the current consumer demand in the US market. In addition to positioning its product prices within the needs of American consumers, Xihao has also put a lot of effort into details such as lumbar support, back support, and neck pillow. Its products have been repeatedly praised by sellers for their comfort.

High sales volume and good seller experience are inseparable from Xihao’s focus on research and development.

The editor learned that Xihao spent 1 million yuan of its annual profit in 2014 to create a comfortable ergonomic chair. In 2015, once this chair was launched on the market, it became a hit on the Internet, with cumulative sales exceeding 3 million.

As a "youngster" entering overseas markets for the first time , Xihao's entry into overseas markets was equivalent to starting from scratch. However, with large-scale advertising, good word-of-mouth experience, and strong products, Xihao has made a name for itself overseas.

Xihao, which has performed brilliantly overseas, has also set two small goals for 2022: annual sales of high-end products will exceed 2 million, and sales will reach 10 billion yuan in five years.

The fact that Xihao can set such a high goal is enough to show that it recognizes the prospects of office chair products.

Office furniture also has great business opportunities in the billion-level market

On Amazon, office furniture firmly occupies the best-selling subcategory of Amazon office supplies. In the 2022 Amazon US TOP200 best-selling list, many office furniture products including office chairs and computer desks are included. It can be seen that the demand of overseas consumers is still hot, and the office furniture market is still worth digging deep into by sellers.

As the world's largest exporter of office furniture, China's export value is about 7 billion US dollars, and office chairs alone account for 65% of the world's total office chair exports. This year, overseas consumers' demand for office chairs is also increasing.

"Since the second half of 2023, the demand for orders from old overseas customers has increased significantly," said a manufacturer in Anji County, the hometown of China's chair industry. In sharp contrast to the situation in the same period of 2022 when many companies closed early, the current busyness of manufacturers in Anji County is enough to show that the demand of overseas consumers has recovered.

As early as 2022, the global market size of ergonomic chairs reached 56.69 billion yuan. Among Amazon's office chair products, almost all keywords include ergonomics, while armless and work chairs only account for a few sporadic SKUs. The majority of sellers have also grasped the traffic code.

"I have been mainly engaged in ergonomic office chairs in Europe for more than two years, and my monthly sales of four products exceed 400,000 euros," said a seller who is optimistic about the prospects of office furniture products. In the future, with the economic recovery in the United States and other regions, it is expected that the demand for office chairs in overseas markets will continue to grow, which is still a potential for many sellers.

Office Supplies

Xihao

Amazon