Recently, panel furniture leader Huisen Furniture has reached a strategic cooperation with Xiaomi, and the two parties will collaborate in the development of smart home business in multiple fields, including office, hotel, apartment, elderly care, education, pan-indoor, etc.

It is reported that this cooperation mainly revolves around products and markets. In terms of product cooperation, Huisen smart furniture is combined with Xiaomi smart products and connected to the Xiaomi IoT platform; in terms of market cooperation, the two parties will cooperate in the commercial projects of smart front and smart hardcover in the aforementioned multiple scenarios. Huisen smart furniture will also will gradually enter the Xiaomi Smart Life Experience Hall.

For Huisen Furniture, this cooperation once again shows that the company has high hopes for the smart home business. According to the interim results announcement, Huisen Furniture said that the company will strive to gain insight into market trends and adjust business strategies in a timely manner to expand business coverage and R&D investment in smart home products to further accelerate growth.

It can be seen from this that Huisen and Xiaomi are also creating new revenue drivers for Huisen. As one of the most recognized national brands by consumers, Xiaomi already has a strong first-mover advantage in the field of smart home. As of June 30, 2021, the number of smart devices connected to the Xiaomi IoT platform reached 375 million, a year-on-year increase of 34% In June, the number of monthly active users of Xiao Ai broke 100 million for the first time, reaching 102 million. The number of monthly active users of Mijia App increased by 38.6% year-on-year to 56.5 million, making it the world' s largest consumer-grade IoT intelligent interconnection platform.

Guotai Junan Research Report pointed out that from the perspective of medium and long-term trends, smart home is another intelligent scene after smart cars. The current smart home penetration rate is about 10%. It is at the node of the introduction period to the growth period. It is expected to soon usher in an outbreak period. The total market size will exceed 1.3 trillion.

In addition, the smart home concept includes a variety of highly differentiated products (services), and all parties in the industry have advantages that are difficult to subvert. In the end, they may be based on "smart single product + operating system and ecology + personalized solutions." The model exists, that is, in the whole-house intelligence stage, smart manufacturing companies will be smart single products, technology/Internet companies will be operating systems, and overall solution providers will develop personalized solutions.

According to this model, combined with the analysis of the content of the cooperation between the two parties, Huisen Furniture will focus on smart items and personalized solutions. It is reported that Huisen Furniture intends to set up a research and development center in Dongguan. The center will develop independent research, design, testing center and home product exhibition hall, including the development of functional and smart home products, and cooperate with Jiangxi University of Science and Technology, Jiangxi Institute of Environmental Engineering and other higher education Colleges and universities carry out in-depth cooperation to realize the expansion and integration of production, education and research innovation mechanisms.

Huisen Home Furnishing is China’ s largest exporter of panel furniture, and one of the long-term major suppliers of Wal-Mart, Home Depot and other well-known Fortune 500 retail chain groups. Its core advantage lies in the vertical integration of the entire manufacturing business chain, product design and development capabilities, diversified sales channels, product quality, market-competitive prices, and an experienced management team with deep industry knowledge. At the same time, Huisen practices the ESG management philosophy, and its developed zero-formaldehyde and negative oxygen ion products meet strict international standards.

The analysis pointed out that panel furniture is increasingly favored by the new generation of consumers due to its easy assembly, easy disassembly, rich style, small footprint, and high cost-effectiveness. This is in line with the lifestyle of Xiaomi' s product gene that is extremely cost-effective. The two parties build a new scenario of whole house intelligence, which is bound to further open up the market' s imagination for the future development of Huisen Furniture.