Economic Guide Reporter Jiang Wang reported in Dongguan
As the real estate market is gradually recovering, the dawn of recovery of the home furnishing industry, affected by the impact of the epidemic and the overall downward trend of the real estate market, has begun to emerge, and home furnishing consumption has rebounded.
Industry insiders said that the central and local governments have a strong determination to "stabilize real estate" and have made the software furniture industry recover brightly. The furniture industry is in a reshuffle period. The leading companies may expand "counter-trend". Coupled with the arrival of the peak consumption season and the decline in raw material prices, the performance growth expectations of leading companies are strong.
The "counter-cyclical" advantages of leading enterprises are emerging
As a member of the post-cyclical industrial chain of real estate, the software furniture industry has frequently appeared recently.
Changjiang Securities Senior analyst of the light industry Cai Fangyi said that under the principle of "housing for living, not for speculation", the central and local governments continue to issue policies for real estate relaxation and real estate companies to alleviate difficulties. The determination to "stabilize real estate" is strong, which makes the software furniture industry's recovery prospects bright.
It can be seen that the continuous distribution of policy "gift packages" is continuing to benefit the Q4 real estate and home furnishing market. According to the orders for home furnishing companies tracked by Zhejiang Securities , the orders of leading brands in September improved slightly compared with August, and with the gradual results of guaranteed delivery, to B-type enterprises and some customized enterprises have seen a recovery.
At the same time, the epidemic disturbances combined with the weak cycle of real estate have also created an excellent opportunity for the "counter-cyclical" development of leading enterprises. Cai Fangyize, an analyst at the light industry of Changjiang Securities, said that with the frequent integration of leading companies in the industry, capital entry accelerates industry differentiation, the original order begins to collapse, and a new industry pattern begins to emerge.
Economic Guide reporter noticed that in the context of the industry's reshuffle, leading companies rely on their accumulated brand and technical strength to exert their business capabilities across cycles. By continuously integrating relevant resources, the industry's competitive landscape has become increasingly clear.
Cai Fangyi said that in recent years, the leader of the home furnishing industry has gradually changed from multi-category operations to whole-house solution providers, further raising the industry's competition threshold. The domestic retail market of home furnishing leaders has maintained a growth rate higher than the overall furniture retail sales. As the growth rate of furniture retail sales has turned negative again since this year, the leaders still showed an excess growth of 15-30pcts. As the leader of the software furniture industry, we continue to be optimistic about the performance growth space of Mousse .
Li Xiaofeng, vice president of Musi Co., Ltd., said that Musi Co., Ltd., as the largest company in the mattress industry, has been deeply engaged in the field of sleep health for many years. In the future, Mulce will continue to play the leading role of leading enterprises, and continue to implement the vision and mission of "making people sleep better" through strategic measures such as continuous research and development of advanced smart healthy sleep technologies, comprehensively integrating world's top sleep resources, and empowering the transformation and upgrading of traditional home manufacturing through digitalization.
Technology hard power helps the brand develop
"Mulsi Co., Ltd.'s 'hard power' is reflected in its deep technical accumulation and strong digital capabilities." Li Xiaofeng said.
A reporter from the Economic Herald visited its 320-acre Moos Healthy Sleep Industry Base, and visited the flexible production line, automated finished product library, and CNAS laboratory.
The Economic Herald reporter noticed that Musi Co., Ltd. has built the first software furniture industry 4.0 intelligent manufacturing system. Through cooperation with world-class companies such as Siemens , Shule, ABB, IBM, and Lienpai Group, we have introduced world-class advanced automatic and intelligent equipment and industrial processes, realizing transparent management and control on production sites, supply chain collaborative management , and traceability of the entire production process. It is one of the most advanced software furniture manufacturing companies in China, and has been awarded the "2021 Digital Transformation Award-Basket Factory".
Music CNAS Laboratory is a laboratory with this certificate and independent testing qualifications in the soft bed industry. The total investment in hardware and software is more than 80 million yuan, and the test projects have reached more than 600.
"High-standard laboratories not only achieve strict quality control, but also contribute to the standardization of the industry. As a member of the National Fitting Standards Committee and a member of the National Textile Standards Committee, Mousse Laboratory has participated in the formulation of more than 30 standards, including the national mattress softness and hardness grading and the formulation of standards for mattress fit evaluation methods." Wang Liping, the head of the laboratory, introduced to the Economic Guide reporter.
According to statistics, in the past three years, Mousse's main product production capacity has increased by 30%-60%, and the labor cost of single products has decreased by 9%-59%. In 2021, the product quality pass rate exceeded the established strategic standards, reaching 99.56%. Mousse has achieved the upgrade from manufacturing to "intelligent manufacturing", and has continued to increase its brand awareness , the world's top "smart healthy sleep solution provider".
Gross profit margin continues to increase
The second half of the year is the peak consumption season for the software and home furnishing industry. Financial data shows that Musi Co., Ltd. accounts for about 60% of its revenue in the second half of the year, and about 35% of its revenue in Q4.
The Economic Herald reporter learned that Musi Co., Ltd. has made full preparations for the traditional peak consumption season through comprehensive layout of online and online channels.
In terms of channels, Musi Co., Ltd. has built a diversified and omni-channel sales network system covering the country with "mainly distribution, direct sales, direct supply, e-commerce and other channels coexisting". In terms of revenue share, dealers account for about 69%, direct sales account for about 7%, direct supply account for about 10%, and e-commerce account for about 14%.
Analysis from data, Mulse Co., Ltd.'s e-commerce channel has developed rapidly in recent years. The sales of Musi Co., Ltd.'s e-commerce channel are mainly based on the official flagship stores of Tmall and JD . Kaiyuan Securities data shows that from 2019 to 2021, the company's e-commerce channel compound growth rate reached 41.3%. Among them, in 2021, Musi Co., Ltd.'s e-commerce channel revenue was 870 million yuan, and increased by 243.6% year-on-year, and its revenue share increased to 13.7%.
In a recent survey, Musi Co., Ltd. also stated that the company attaches great importance to the development of e-commerce channels and the transformation of online traffic and offline. In the next 3-5 years, the company will continue to develop traditional e-commerce platforms such as Tmall and JD.com and emerging social e-commerce such as Douyin , and strive to achieve 20%-30% online sales in the next 3-5 years.
Offline, Mooss shares have a steady expansion. In the first half of 2022, Musi Co., Ltd. added more than 400 offline stores. At present, the company has formed nearly 2,000 dealers and company direct sales channels to develop an offline terminal sales network of more than 5,300 offline stores. The number of offline stores was 5,300, an increase of 8.16% year-on-year.
The Economic Herald reporter noticed that Musi Co., Ltd. recently publicly disclosed that it will maintain a steady and high-quality store opening rhythm and is confident of completing the opening plan of 800-1,000 stores this year.
In addition to the main products, Musi Co., Ltd. is also actively exploring new categories and broadening business boundaries. Musi Co., Ltd. stated that the V6 brand will start to deploy its home furnishing business in 2021. In the first half of this year, the company has clarified the new strategic direction of the V6 home furnishing brand and moved from V6 home furnishing to the direction of home furnishing.
Not only does there are expectations of growth in revenue, but the profit level of Musi Co., Ltd. in the second half of the year is also expected to increase year-on-year. In the first half of 2022, Musi Co., Ltd.'s gross profit margin improved month-on-month, with gross profit margin in the second quarter being 46.9%, an increase of 1.9% from the first quarter. Musi Co., Ltd. said that this is mainly due to the decline of major raw materials and the company's slight price increase in mattresses and mattress products. Some analysts believe that the prices of Mussi Co., Ltd.'s main raw materials, fabrics, sponges, leathers, steel wires, latex and 3D cotton are expected to further decline in the second half of the year, causing the gross profit margin to continue to increase.
