The furniture industry is not satisfied with the vertical extension of the industrial chain. Horizontal cooperation and complementary advantages between enterprises will become the next development trend.
Yesterday, Xilinmen Furniture Co., Ltd. (603008.SH, hereinafter referred to as "Xi Lin Men") announced that it has been associated with Yihua Wood Industry Co., Ltd. (600978.SH, hereinafter referred to as "Yihua"), Huari Furniture (hereinafter referred to as “Hua Ri†signed a tripartite strategic cooperation framework agreement, which aims to integrate multi-party resources and complement each other's advantages, and enhance the brand awareness of the three parties and the market share of the products.
According to public information, Yihua is a large-scale furniture enterprise specializing in the production and sale of solid wood furniture, solid wood flooring and other wood products; Xilinmen is mainly engaged in mattress and soft bed related business; Huari's main products are children's series furniture.
According to the agreement, Xilinmen will produce mattresses and hotel furniture for Yihua and Huari, and respectively branded “Yihua†and “HuaRiâ€. Yihua will produce solid wood furniture, solid wood flooring, solid wood doors and windows and other products. With the names of the other two brands, Huari also produces children's furniture, overall wardrobes and other products in the same way.
Liu Weihong, deputy general manager and secretary of the board of directors of Yihua, told the reporter that the cooperation is mainly to “trust two other OEM products and sell them in our own channelsâ€, so as to use the superior products of the three furniture brands to cooperate and complement each other. For Yihua, it is mainly to make up the shortcomings in soft home decoration and children's furniture.
An industry insider who did not want to be named analyzed the reporters. The main purpose of the cooperation between Yihua and Xilinmen and Huari is to enter the children's furniture industry.
Minsheng Securities analysts Chen Bairu and Zhang Xiangguang said that the current youth children's furniture segment has a market capacity of around 50 billion, but the industry's largest annual sales are less than 1% of the market capacity. The industry's concentration is extremely low. The "blue ocean" of the industry.
On the 16th of this month, Xilinmen signed a brand licensing agreement with Walt Disney Company, signed a transaction memorandum with Ai Ying (Shanghai) Trading Co., Ltd., obtained the relevant authorization for Disney and Doraemon brand and used it for production and production. Sales.
Liu Weihong also admits that the future of children's furniture is a new growth point for the whole industry. However, Yihua has invested less in research and development and production in this area. This cooperation with Huari will greatly benefit the richness of Yihua's product line.
In recent years, in order to expand the industrial chain and reduce the operational risks brought by the single category, many home furnishing companies have extended vertically in the upstream and downstream business areas. Recently, Sophia Home Furnishings Co., Ltd. (002572.SZ) invested 1.5 billion yuan to add custom home products. Belongs to this column.
The cooperation between the three furniture brands such as Yihua is to strengthen the horizontal cooperation of the industry in the form of “strategic allianceâ€.
An example of an executive from Yihua said that there are many orders for hotel projects in Xilinmen. Yihua can supply floor products for it, and Yihua has laid out bedroom furniture products in the store. “You can entrust Xilinmen to produce mattresses, soft beds and other products. ".
Liu Weihong believes that the next development trend of the home industry is horizontal cooperation, and there will even be a phenomenon of mergers and acquisitions. "The future trend is a strong alliance, and there is no possibility that there will be more integration actions."
However, an executive from Xilinmen told reporters that this cooperation is not a production of own brand products for the three brands, and it is not appropriate to draw conclusions about its effects.
Qin Zhanxue, executive vice president of China Building Materials Circulation Association, also told reporters that the three furniture brands have their own advantages and strong alliances is an innovation of the industrial model, but there are still some problems behind it.
"This kind of cooperation only exerts the advantages of technology and production. The channel is still controlled by each brand. It is equivalent to selling the same product with three brands. The cooperation method is still rough. Such innovation is worth encouraging, but later development. Maintenance is also very important, especially in the construction of the unified market. The best ending is that the three companies have joined forces to develop into a trust group, and then each of them uses a brand to uniformly sell a certain category of products." Qin Zhanxue bluntly.
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