The data reveals a remarkable trajectory for Henglin Holdings’ cross-border e-commerce from 2018 to 2022, where its scale surged from 0.02 billion yuan to an impressive 10.04 billion yuan. This surge owes primarily to the group’s strategic empowerment of teams, robust incentivization schemes binding talents (wherein subsidiary management teams hold shared stakes and benefits), and the astute leveraging of a comprehensive industry chain layout, enabling it to seize market shares with high-value products. Cross-border e-commerce emerged as Henglin Holdings’ secondary growth engine. As per the third-quarter report of 2023, the company’s quarterly revenue soared to 21.32 billion yuan, marking a 27% year-on-year surge, with net profits reaching an impressive 96 million yuan and the market value breaking the 6-billion-yuan threshold.
Established in 1998, Henglin Holdings had a notable milestone of selling over 10 million office chairs and sofas in a year, cementing its position as a leading domestic developer of seating solutions and one of China’s largest manufacturers and exporters. It successfully debuted on the Shanghai Stock Exchange in 2017.
The rise of cross-border e-commerce has presented new market expansion avenues for numerous enterprises. Henglin Holdings keenly seized this trend, venturing into cross-border e-commerce operations in 2019 while establishing overseas warehouses and logistics bases in the US East and West Coasts. Leveraging platforms like Amazon and proprietary websites, it propelled its products into the international market.
Regarding product portfolio, Henglin Home focuses primarily on ergonomic seating solutions, including office chairs, sofas, and massage chairs, alongside a range of household furniture products.
In its sales model, Henglin Home epitomizes diversification and comprehensiveness. Starting from OEM/ODM operations, it now operates not only via the traditional OEM/ODM model but also through collaborations with several internationally renowned home retail platforms, engaging in self-owned brand operations. In the realm of ODM operations, partners include IKEA, NITORI, Source ByNet, Office Depot, Staples, and other prominent brands. This not only broadens their sales channels but also enhances brand visibility and influence. This integration of online and offline channels, along with a blend of B2B and B2C strategies, enables Henglin Home to better cater to diverse consumer needs, fueling rapid business growth.
Its subsidiary brand, NOUHAUS, achieved an impressive revenue of 355 million yuan in 2022, boasting a gross profit margin of 13.33%. On Amazon, one of NOUHAUS’ ergonomic chair products garnered over 6,000 reviews, with monthly sales exceeding 300 units, priced at $369.99. Besides this top-selling item, several other NOUHAUS products have garnered significant reviews and sales figures. To mitigate over-reliance on a single channel, NOUHAUS has emphasized the development of its independent website. Google Trends data indicates a gradual rise in brand searches, signalling the emergence of brand recognition in overseas markets. It’s worth noting that NOUHAUS’ independent site only gained traction from 2021 onwards. Initially, enhancing website exposure and visibility posed operational challenges for most independent site sellers. By employing paid keyword strategies through Google Trends, NOUHAUS effectively boosted its brand search popularity. Currently, NOUHAUS attracts approximately 20,000 to 40,000 monthly visitors, with over 80% originating from the United States. Natural traffic accounts for over 90%, with keywords like “nouhaus chair,” “nouhaus massage chair,” and “nouhaus ergo3d” being among the most searched terms by users. This precise user sourcing demonstrates a direct interest in NOUHAUS products. However, its independent site still grapples with a single-channel traffic issue.
Expanding into other marketing channels, besides employing paid keyword strategies, NOUHAUS could explore avenues such as email marketing, SEO optimization, and affiliate marketing to enhance website exposure and visibility.
Regarding store design, NOUHAUS’ independent site adopts Shopify’s customized themes, prioritizing personalized, branded, and functional designs. The homepage features videos showcasing product demonstrations by foreign models, quickly captivating consumer attention. Below the videos, the site highlights the best-selling products, ranging from $300 to $2,500. Interestingly, the site’s top-selling product mirrors the best-selling product on Amazon, the NOUHAUS ERGO3D ergonomic office chair, boasting 450 reviews. Through a combination of text, images, videos, and blogs, the website vividly showcases product features and advantages, enhancing its appeal and persuasiveness. Additionally, featuring an Instagram section on the homepage with one-click purchasing functionality is a smart move, not only attracting consumer attention but also significantly improving purchasing convenience, thereby enhancing conversion rates and sales.
This integration of social media and e-commerce not only aligns with modern consumer shopping habits but also underscores NOUHAUS’ keen insight and practical capabilities in e-commerce innovation.
To broaden the traffic channels for its independent site, Henglin Holdings, apart from Google and other platforms, strategically leverages social media platforms to divert traffic to its independent store.
With a relatively modest following of 1,676 on Facebook, NOUHAUS maintains a high frequency of posting, updating content at least 2-3 times daily, demonstrating a strong commitment to fan interaction and communication. In terms of content, NOUHAUS predominantly shares product feature introductions, providing detailed descriptions and image displays to help followers better understand product characteristics and usage methods. Additionally, they roll out special promotions and campaigns during peak holiday seasons to attract more potential customers’ attention.
With 15,000 followers on Instagram, NOUHAUS primarily utilizes short videos to showcase product details, unboxing videos, and other engaging content formats. This approach enables them to effectively present product features, usage methods, and user experiences to their audience. On Instagram, NOUHAUS fosters user engagement and loyalty through regular interaction and response to user queries and feedback, maintaining close ties with followers and cultivating a positive brand image and reputation.
Despite a modest follower count of 1,211 on TikTok, NOUHAUS remains committed to consistent updates on the platform. They regularly post short videos related to product features, and usage scenarios, and engage with followers to maintain interaction. This consistent updating strategy contributes to enhancing the brand’s visibility and exposure in the target market, while also building brand trust and loyalty. By consistently delivering valuable content on TikTok, Nouhaus can attract more potential customers and expand its brand influence. Although the follower count may be relatively low, the interaction and communication with followers allow NOUHAUS to better understand user needs and market dynamics, providing robust support for subsequent product development and marketing strategies.
Competitors in the Global Home Furnishing Arena
Undoubtedly, the home furnishing market has witnessed the rise of several notable contenders. Apart from Henglin Holdings, enterprises like Lege, Zhiou Technology, and Reolian have made significant strides in specialized niches within the home furnishing sector, achieving commendable success.
Lege, akin to Henglin Holdings, has excelled in producing a plethora of exceptional products in the realm of smart home solutions and ergonomic office furnishings. Its flagship brand, FlexiSpot, boasts best-selling standing desks across platforms like Amazon, Walmart, and Lotte, dominating the standing desk category. Moreover, its independent platform, flexispot.com, ranks among the top echelons globally in the vertical independent e-commerce space for linear actuator-driven applications.
Zhiou Technology made its successful market debut in 2023, boasting a portfolio that includes three major proprietary brands: SONGMICS, VASAGLE, and FEANDREA. While SONGMICS caters to household essentials, VASAGLE specializes in furniture, and FEANDREA focuses on pet home products.
Financial reports indicate that in the first three quarters of 2023, Zhiou achieved revenues of 4.136 billion yuan, representing a year-on-year growth of 0.42%, with net profits attributable to shareholders reaching 286 million yuan, marking a notable increase of 67.14% compared to the previous period.
Reolian Technology has emerged as a dark horse in recent years, specializing in a niche segment within the home furnishing domain: smart security solutions. It successfully went public in 2022, with half-year revenues reaching an impressive 884 million yuan. Under the Reolink brand, it predominantly markets wireless security cameras and other surveillance products, many of which maintain a prominent presence in Amazon’s best-selling camera categories, with monthly sales figures consistently surpassing the ten-thousand mark.
Objectively, the success of these major players in the global market is closely intertwined with the development trajectory of the worldwide home furnishing sector.
According to data spanning from 2017 to 2021, the household furniture market witnessed substantial growth, with forecasts predicting a market value of 830.49 billion US dollars by 2029, boasting a compound annual growth rate of 5.29%. As one of the world’s pivotal producers of household furniture, China enjoys inherent advantages.
Blessed with abundant furniture resources and a mature manufacturing ecosystem, China adeptly caters to the diverse needs of consumers worldwide. Concurrently, Chinese furniture enterprises continually bolster technological innovation and brand development to enhance product quality and value, aligning themselves with the evolving demands of the global market.
With market demands evolving and technological advancements unfolding, the furniture industry will continue to encounter fresh opportunities and challenges. For Chinese furniture enterprises, seizing market opportunities and fortifying technological innovation and brand construction stand as pivotal imperatives.
