V-shaped Rebound In The Second Quarter

- Sep 15, 2020-


Everything seems to be expected. In the first half of this year, due to the severe impact of the new crown epidemic, the revenue and net profit of the three listed customized home furnishings dropped, just a little different. In the second quarter, due to the gradual disappearance of the epidemic situation, the performance of the three giants showed a V-shaped rebound.

Revenue and net profit decreased in the first half of the year

V-shaped rebound in the second quarter

 these negative growth data point to the point that the unprecedented new epidemic situation in a century has a severe impact on the whole house customized home furnishing industry.

 the sudden attack of virus epidemic is just a sudden challenge for the development of the whole house customized home furnishing industry. As shown in the figure above, since 2017, the average growth rate of this industry has been declining, from 31.20% in 2017 to 18.08% in 2018 to 16.62% in last year, until the negative 1.08% caused by the impact of Xinguan epidemic in the first half of this year.

the fundamental reasons for this downward trend are: first, overcapacity and oversupply; second, real estate regulation and closure of hardbound housing; third, fierce competition and scarcity of traffic.

 in the second half of the year, what do you spell?

The answer has already been given.

However, it seems that everything is not expected. The second half of the year of customized home furnishing is actually starting from the battle of "no formaldehyde addition".

In essence, this war of formaldehyde free addition is a war of environmental protection, price and elimination.

    under the special background of the impact of this year's new crown epidemic, this war of formaldehyde free addition will accelerate the reshuffle and the survival of the fittest in the whole house customized home furnishing industry.

   I estimate that by the end of this year at the latest and the first half of next year at the latest, some customized home furnishing enterprises that are not prepared or inadequately prepared for the fight against formaldehyde free additives will be very passive and even have a great possibility of being forced out.

   these enterprises are first of all cross-border customized home enterprises. It is not an easy thing to cross-border customized home furnishings. In the smoke of no formaldehyde addition war, these cross-border enterprises are most likely to lose their direction and be at a loss.

   the second is the customized home furnishing enterprises which are still hesitating whether to join the flood of formaldehyde free addition. If not, it will go against the trend. This trend is the trend of environmental protection of consumption and the trend of environmental protection upgrading of customized home furnishing industry.

   who is the biggest winner in the battle of no formaldehyde addition?

the first is consumers. With the destruction of formaldehyde free additives, consumers can enjoy more environmentally friendly customized home products and services at a lower price.

he second is the head customized home furnishing enterprises. With the advantages of capital, brand, channel and scale, opal, Sofia and Shangpin home furnishings reap the market share cruelly through the fight of no aldehyde addition.

Thirdly, there are fully prepared and characteristic non head customized home furnishing enterprises, such as Paterson, guante and Yadan.

   the fourth is the board enterprises with early layout in the field of non formaldehyde addition, such as Wanhua, etc.

   this year is very special, because of the new crown, and also because of the no formaldehyde addition war, this year's particularity will surely lead to the whole house customized home furnishing industry's big wave scouring sand, the survival of the fittest, cruel reshuffle.