Looking back on 2018, from the slowdown of corporate growth to layoffs, to the closure of several Furniture companies, and even a number of home improvement companies "running the road", the home industry can be described as a storm.

In the past, we can know the future. Sina Home has sorted out the "great defeat" of home-based enterprises that have been exposed in bankruptcy, liquidation, bankruptcy, and bankruptcy in 2018. These well-known companies that have been so popular, their defeat may be a mirror for the development of home furnishing companies in 2019.

Closed down: merchants are also difficult to have rice bran

Capital chain break


The most unbelievable of this "downturn tide" is the 20-year-old brand Rising Sun decoration.

On December 17, 2018, the decoration of the Rising Sun was "closed" and broke the salary of the employees, the cost of materials and materials, and the inability to complete the renovation work. Afterwards, many insiders confirmed that the rumors were non-virtual, and the fuse was funded. Chain breakage. Sun Youfu, the chairman of the board of directors, also mentioned in the "Sunrise Letter of Apology" that the Rising Sun Company brought about a group incident caused by the arrears of labor costs in the decoration workshop due to its own investment strategy mistakes, and the resulting self-media Internet media was fast. The negative fermentation spread inevitably brought about the dumping of the Rising Sun Building.

As a well-known home improvement platform, No. 1 Home Network and Youju are already well-known in the industry. In particular, the No. 1 home network, 14 years of self-operated overall home improvement service brand, has the largest domestic home appliance industry chain e-commerce ecology, with the most influential home O2O platform qualification of mobile Internet. In April 2018, the capital chain of the No. 1 home network headquarters broke, and overnight, the store closed the wave. In the same situation, there is also a good guest. On November 26, 2018, Youke.com said that due to poor management of the company, the financial situation has deteriorated severely. The shareholders of the company will vote on the resolution and proceed to the dissolution and liquidation procedure from now on. Business etc.

"Running the road": the wind rises, wrinkles a pool of spring water

"Apple" home improvement business runs one after another


Since the investigation of the alleged contract fraud case of Wuhan Apple Decoration in March 2018, since April, Apple Decoration Store and its subsidiaries have successively sent news of shutting down or running.

It is reported that Apple Decoration has at least 19 related home improvement brands, about 81 affiliated companies, and its holding or wholly-owned subsidiaries are spread over more than 20 cities across the country. Mud commune, sugar decoration, Milan mansion, lemon tree decoration, home decoration, etc., these different names of "running road" decoration companies seem to have no connection, in fact, all from the national packaging group - "Hunan Apple Decoration Group" .

Due to the "Butterfly Effect" caused by the investigation of the Wuhan branch, the branch companies across the country have been in crisis, and the capital chain of the head office has broken.

Li Qi, chairman of Apple Decoration Group, said that the "running road" incident was caused by the contraction of Wuhan apple decoration into the contract fraud case, which triggered a nationwide run and capital chain break. In the crisis of trust, it eventually caused hundreds of sub-brands of Apple Decoration Group. The storefront stopped operating. The deep-seated reasons are related to the company's blind expansion, the compensation system with the output value, and the management model of the group's federal system.

In addition to the “Apple” home improvement business “running the road”, many home improvement companies such as Julian Decoration, World Artisan Decoration, and Beautiful Decoration have also appeared “running the road”. It is reported that in 2018, the home improvement company "running the road" implicated hundreds of companies, the core reason is mostly due to the tight capital of the parent company, causing the cash flow of its subsidiaries to be anxious.

Bankruptcy: waving yourself, Xiao Xiao Ban Ma Ming

Farewell to peers, stop loss


In August 2018, when Jin Jiuyin was on the verge of tenth, the furniture industry was the first to bear the brunt of the “bankruptcy”. Chengfeng Furniture, one of the largest Office Furniture companies in China, went bankrupt; Chongqing’s first OTC listed company was listed as a custom-made furniture entrepreneur, and the company’s kitchen cabinet representative, one of China’s top ten cabinet brands, also officially entered Bankruptcy liquidation stage...

There are also two "big brothers" in the wooden door industry, Boliang wooden doors with 41 years of operating history and Tianhe Wood, which has a 25-year operating history, are also in a "selling" dilemma. Boliang wooden door shut down 24 stores and all the joining channels to adjust the contraction; Tianhe Wood was forced to resell the factory due to the break of the corporate capital chain and sold part of the equity.

The domestic household industry is in a difficult life, and the foreign household industry is also facing challenges. Mattress Firm, founded in 1986 as the largest mattress retailer in the United States, is considering bankruptcy protection according to Reuters news; home improvement retailer Lloyd will close 20 US and 31 Canadian underperforming stores.

Industry "big defeat"

Declining revenue growth, expanding losses

Behind the bankruptcy of the enterprise, in addition to the reasons for its own operation, it is also inevitable for the external environment. In the home industry in 2018, the overall environment is indeed not satisfactory.

According to the data provided by the China Business Intelligence Network, the number of furniture manufacturing enterprises in the first half of 2018 increased to 6217, including 958 losses, with a loss of 15.4% and a total loss of 2.06 billion yuan. Compared with the whole year of 2017, there were 608 loss-making enterprises with a loss of 10.13% and a total loss of 2.25 billion yuan. The loss figures increased significantly.


(Source: China Merchants Research Institute)

It is understood that in recent years, the number of loss-making enterprises in China's furniture manufacturing industry has continuously increased, and the amount of losses has reached a new high. In 2017, the annual loss was 2.25 billion yuan, an increase of 320 million yuan over the same period of 2016. By 2018, the loss in the first half of the year was 2.06 billion. By the end of 2018, the loss will be further expanded.

In addition, in terms of revenue growth and profit growth, according to the National Bureau of Statistics data, China's furniture manufacturing industry revenue and total profit maintained a steady rise, but revenue and profit growth has declined year by year.



In the first half of 2018, the enterprises above designated size in China achieved operating income of 395.88 billion yuan, a year-on-year increase of 7.1%, and a total profit of 22.3 billion yuan, down 6.1% year-on-year. Compared with January-June 2017, the accumulated main business income was 441.39 billion yuan, a year-on-year increase of 13.9%. The accumulated total profit was 28.34 billion yuan, a year-on-year increase of 17.50%. The furniture manufacturing revenue growth rate and total profit growth rate both declined. .

The "success" of the industry is also reflected in the listed home enterprises.


Comparison of revenue growth of 15 listed home furnishing companies in 2017 and the third quarter of 2018


Comparison of net profit growth of 15 listed home furnishing companies in 2017 and the third quarter of 2018

(Data source: The third quarter earnings report of each company)

According to the third-quarter earnings report of 15 listed home furnishing companies in Sina Home, compared with 2017, in the main business, overall revenue and net profit achieved double growth in 2018, but the growth rate generally slowed down significantly. No matter the finished product or the custom home, the form is not optimistic. Customized home business listed dividends disappeared, overall growth slowed down, Ou Pai home, Zhibang shares, I Le home, gold kitchen cabinets and other growth rates fell below 20%; finished furniture companies, such as Yihua life, revenue growth rate from 2017 47.09% of the year plummeted to 1.59%, and net profit increased from 15.23% to -24.73%.

The industry is in cold, and opportunities and crises coexist. Companies without strength will face out, leaving competitive companies to move on. Hundreds of crickets compete for thousands of sails, and the big waves are squandered by the people. After the torrent, the only thing left is the real gold.

(Text / Sina Home Xu Wei)


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