Recently, eight customized home brands, including Europa Home, Sophia Shangpin Home Matching, Zhibang Stock, Hollywood, Gold Medal Kitchen Cabinet, Piano, and My Lok Home, issued their financial results for the first half of the year in 2018. From the data point of view, the overall customization industry revenue remains stable growth, business revenue and profit growth is relatively gratifying, but the growth rate has slowed to a certain extent. After sorting out, the reporter of China Business Daily finds that under the circumstances of fierce competition in the current market environment, all enterprises are actively seeking the starting point, carrying out strategic layout, in order to seek greater development.
Overall stable growth
In terms of the revenue of the customized home enterprises, the share of the leading enterprises has been improved.
On the whole, customized home enterprises are developing at a relatively steady speed, showing an upward trend. Specifically, Euro Home's operating income this year is 4.845 billion yuan, far more than the other seven customized household enterprises in the first place; Sofia and Shangpin Home Matching Revenue is close to, are more than 2.8 billion yuan. From the growth trend, Piana's revenue grew fastest, at 40.84%. Compared with profitability, the 87.46% of home products and home ownership have become the most customized enterprises with the largest net profit growth.
According to the China Merchants Securities Research Report, on the revenue side of customized household enterprises, the share of leading enterprises has increased. Li Hongpeng, chief analyst of China Merchants Securities, and his team believe that although the high growth of customized enterprises has slowed down this year due to the promotion of hardcover houses and changes in the competitive environment of the industry, the development of the industry can no longer continue the linear thinking, which also has a process of continuous optimization. Although the furniture manufacturing industry's revenue growth rate dropped to 7% in the first quarter of this year and its profits decreased by 6.1% year-on-year, the leading enterprises still achieved stable growth far superior to the industry as a whole, which shows that their revenue capacity has not declined. In addition, the profitability of customized home enterprises has been slightly optimized in its own strategy.
Fierce competition in the market
Industry analysts said that fierce competition is expected to accelerate market share to head brand concentration.
The increase of Listed Companies in the customized sector has undoubtedly intensified the fierce competition in the current market, and the slowdown in the growth rate of the whole industry has become an indisputable fact. According to the financial data released this year's semi-annual report, revenue grew by an average of 23%, compared with 34%, 38%, 35%, 30% and 33% growth from the first quarter of 2017 to the first quarter of this year. Li Hongpeng and his team said that according to the market terminal research feedback, the first and second tier city custom brand retail sales growth is weak, mainly due to the impact of hardbound housing, while the third and fourth tier cities are affected by the weak new housing transactions.
Of course, Li Hongpeng and his team admitted that the slowdown in current business needs not be too pessimistic. Compared with the average profit margin of 6% in the second quarter of furniture manufacturing enterprises, the average net interest rate of customized household enterprises is still at a good level of 14%. The intense competition is expected to accelerate the concentration of market share to the head brand.
In fact, since the second quarter of this year, the share price of the customized sector has dropped significantly. According to statistics, as of August 17th this year, the total market capitalization of eight customized listed companies reached 33%. But Li Hongpeng and his team believe that from the financial data analysis of the semi-annual report, the margin of profit correction of listed companies is far less than the stock price rebound, which also reflects the strong control of cost under the pressure of the environment. Scale advantage can bring powerful cost control power, through internal efficiency, cost optimization and other ways, the profits of the enterprise itself can be controlled. At the same time, with the gradual progress of enterprise information construction, the front-end and back-end after the breakthrough is still expected to bring secondary optimization to the profitability of manufacturers and distributors.
Enterprises seek power points
Optimizing channels, expanding categories and whole house customization are part of the strategic layout of customized home enterprises.
After sorting out the development ideas of the eight above-mentioned customized household enterprises, the reporter of China Business Daily finds that optimizing channels, expanding categories and whole-house customization business are strategic plates for enterprises to exert their strength.
Sales channel optimization is one of the most direct ways to effectively improve the volume of customers and orders, which is an important strategy that enterprises can not ignore. According to statistics, the number of all kinds of Euro-home stores in the first half of the net increase of 400, e-commerce receipt performance increased by more than 80% year-on-year. In terms of the whole channel, it will continue to cooperate with the major real estate hardcover enterprises to develop large businesses. But the goods and houses are accelerating their new retail exploration in stores. In the first half of this year alone, the number of Shangpin Homestead franchise stores increased by 198, and the total number of franchise stores reached 1755; the number of direct-operated stores increased by 8, and the total number of direct-operated stores reached 93. Piano's dealers and stores have more than 1,000, in the cabinet + wardrobe two major markets in the number of first-line brand network competition can occupy a leading position. Piana has made a huge plan to achieve 2000 outlets in five years while broadening the sales of e-commerce.
实际上，品类扩张亦是为了完善产品结构。太平洋证券首席分析师陈天蛟认为，当前志邦股份业绩的提升离不开其产品品类的不断开拓。目前，志邦橱柜、法兰菲全屋定制、志邦木门三大品类矩阵已经成型，其中，志邦厨柜产品分为美厨、名仕等六大系列 37 个品类、184 个色系，而上半年，志邦股份亦在积极布局 IK 新品牌及木门新品类。与此同时，金牌厨柜同时运营“金牌”+“桔家”双品牌，在产品方面，发展衣柜多元化产品线，
In fact, category expansion is also aimed at improving the product mix. Chen Tianjiao, chief analyst of Pacific Securities, believes that Zhibang's stock performance can not be improved without the continuous development of its product categories. At present, Zhibang kitchen cabinet, the whole house of France customization, Zhibang wooden door three categories of matrix has been formed, which Zhibang kitchen cabinet products are divided into six series of 37 categories, 184 color series, such as beauty kitchen, famous official. In the first half of the year, Zhibang shares are actively layout IK brand and new wooden door category. At the same time, the gold medal kitchen cabinet also operates the "gold medal" + "orange house" dual brands, in terms of products, the development of wardrobe diversified product lines.