A few days ago, the business scope of Qumei Home was changed, and services such as knitting textiles and bedding were added. Prior to this, Qumei completed the acquisition of the remaining 9.5% equity of Ekornes AS.

With soft furniture such as sofas and mattresses from subsidiaries, the company has formed a whole-house product system of "customization + finished products + soft decoration". In the hundreds of billions market, Qumei Home' s products and channel advantages are becoming increasingly prominent.

The outlook for the home furnishing industry is bright, and industry growth is expected to return to the right track

According to data from gyii.cn, the scale of our country' s custom home furnishing market in 2019 was 136.6 billion yuan, a year-on-year increase of 7.5%; according to CSIL data, the size of our country' s software home furnishing market reached 21.1 billion U.S. dollars in 2019, and the converted renminbi also exceeded 100 billion. In 2020, due to the impact of the COVID-19 epidemic, the growth of the home furnishing industry will be affected in the short term. With the restoration of the epidemic in 2021, the industry' s growth is expected to return to the right track.

From the perspective of industry development trends, a new generation of consumer groups has risen, and large home furnishings have become the general trend of the industry. Post-80s and post-90s are gradually becoming the main consumer groups for home furnishings, favoring houses with a unified overall design style, and their demands for one-stop home furnishing solutions are becoming stronger.

According to the White Paper on China' s Home Furnishing Design Trends in 2018, 49.67% of respondents said they would be attracted by the overall design style of the room, of which 51.49% of post-80s consumers and 59.06% of post-90s consumers said they would choose to have The overall design style solution for home improvement. In terms of decoration methods, only 20.81% of consumers choose to do the decoration for themselves, 43.57% of post-80s consumers and 38.93% of post-90s consumers are willing to choose a one-stop home solution for accommodation with bags.

Product advantages, the integration of all categories is unique, and the transformation of fashionable home furnishings is gradually showing results

According to data, Qumei Home was formerly known as Qumei Furniture and was established in April 1993. After years of steady development, the company has formed a whole-house product system of "customization + finished products + soft decoration".

As of 2020, the Qumei brand covers eight major product brands including "You + Big Home Living Hall", "Home + Big Home Living Hahole Holl", and "B8 Wuse Customization", which can provide consumers with one-stop home customization services. In addition, the company also acquired Ekornes in 2018, adding world-renowned brands such as comfortable chairs, sofas, and mattresses.

As the post-80s and post-90s have become the main consumer groups in the market, products with characteristics such as trendy, high-value, cost-effective, and environmentally friendly are more popular. In order to cater to the new generation of consumer needs, Qumei Home announced in 2019 that it will focus on the fashion home track, fully transform the "Fashion Home" brand, and focus on providing fashionable, environmentally friendly and cost-effective home products for the post-80s and post-90s.

Qumei Home' s 2020 annual report shows that by the end of 2020, the sales of fashion home furnishings accounted for nearly 40% of the sales of finished furniture, and the transformation has achieved remarkable results. In addition, the company' s products have a strong "environmental protection" gene. Since 2014, the company has taken the lead in launching the "oil-to-water" upgrade in the industry. It is the first furniture brand in the country that uses water-based paint for its full range of products, meeting the consumers' demands.

Channel advantages, multi-channel efforts, bulk and home improvement usher in new opportunities

Comprehensive transformation of fashionable home furnishings and simultaneous upgrading of retail channels.

On the one hand, starting from Q3 2019, Qumei will gradually promote the renewal of existing stores and upgrade the image of terminal stores; in 2020, through scene layout, mandatory moving line design and the upgrade of the VI image in the store, the use efficiency of store area will be improved; in 2021, the store will be promoted. Digital upgrades and smart stores enhance consumer experience and drive order conversion.

On the other hand, Qumei followed the trend of consumption upgrading, deepened its efforts in first-, second- and third-tier cities + the sinking of channels, and its number of stores increased steadily. As of 2020, Qumei brand distribution stores have increased by 18 to 1067 year-on-year, and directly-operated stores have increased by 1 to 19 year-on-year.

On the distribution side, the “three new” transformations were intensified. "Three new" means "new marketing, new model, new retail". "New Marketing" is based on expanding the source of dealer traffic, and increasing the customer conversion rate of stores through multiple channels; "New Model" is based on expanding the value of dealers' customer orders, taking advantage of the core advantages of all categories of furniture, and using a variety of activities to increase customers single value and dealer profitability; "New Retail" is based on the integration of Internet resources, with the help of online marketing activities to help dealers improve their ability to acquire customers.

Directly operating, shaping the "Chinese version of IKEA". Since its establishment, Qumei has continuously promoted innovation in the construction of terminal retail channels. In 1997, it took the lead in opening the independent experience store model in the industry; in 2018, it joined hands with JD.com to create a new model of 12,000 square meters of home retail stores to satisfy consumers' "preparation + customization" +finished products + soft decoration + life" full-process consumer demand; since 2020, we will continue to upgrade and build directly-operated large stores, optimize store operation efficiency, and successfully create "IKEA-style" scene-oriented stores.

From e-commerce to O2O to live broadcasting, new retail sets sail. In 2009, Qumei Furniture’ s official online store was officially launched, becoming the industry’ s first "touch-to-net" player; in 2012, the company officially launched the 3D customization-themed smart home e-commerce platform "Biba", testing the waters of O2O; since 2019, new retail models such as live broadcast and short video delivery are developing rapidly. Under the COVID-19 epidemic in 2020, Qumei vigorously launched online marketing activities mainly in the form of short video and live broadcast, and achieved fruitful results.

Channels such as B2B engineering and home improvement are expected to usher in rapid development. New channels such as bulk and home improvement welcome the opportunity to increase the volume. Qumei Home Furnishing has established a professional engineering channel team and distributors to develop large-scale business with clients of state-owned enterprise background real estate enterprises; at the same time, it is actively deploying and refurbishing, accelerating channel development, seizing the home flow entrance, and promoting business growth through multiple channels.

Qumei is one of the few home furnishing companies in the industry that has strong customization + finished product production capabilities. In addition, it continues to drive retail innovation in the home furnishing industry, and multi-channel joint efforts, so it has products in the large-scale home furnishing market + the dual advantages of channels are becoming increasingly significant. Industry insiders commented that Qumei brand business is ushering in new growth opportunities, and performance is expected to continue to improve.