release time：2018-12-31 promulgator：easyhomeviews：
Beijing EasyHome Furniture New Retails Chain Group Co., Ltd. (hereinafter referred to as EasyHome) captured great media attention in 2018 by having more than 300 shops in China. It spent 15 years growing to 100 shops, three years expanding to 200 shops and only one year to 300 shops. On December 30, 2018, EasyHome Ocalone Beilonghu Shop was opened, kicking off the era in which Zhengzhou city has nine EasyHome shops. It is also the 300th shop of EasyHome in China, which witnesses the speed and position of the brand in the industry. Behind the rapid growth of shops is the strategic choice of EasyHome making presence in the fourth and even fifth-tier cities. Since early 2018 when it introduced 13 billion CNY strategic investments from Alibaba and Taikang, etc., EasyHome has been working hard to push forward online and offline integration. The Great Furniture is meeting with Great Consumption and the fusion between upstream and downstream industries.
Nine EasyHome shops in Zhengzhou in the center of China
EasyHome Ocalone Beilonghu Shop is the 22nd shop of EasyHome in Henan Province, and its 9th shop in Zhengzhou. It means EasyHome shops have made presence in all directions of the city. Zhengzhou also exceeds Beijing to become a city with largest number of EasyHome shops. The Beilonghu Shop has about 200,000 m2 built area, including Hall A, Hall B and Premium Hall that contain hundreds of furniture brands in the world. It is one of the largest and highest-end furniture malls in Central China.
In October 2017, EasyHome announced strategic partnership with Ocalone and declared the two partners would work together to develop Henan market. Henan, home to more than 100 million Chinese people, has the largest population among all provinces in China. By the end of 2017, Henan invested 709.025 billion RMB in real estate development, rising by 14.7% YOY. It invested 533.080 billion RMB in residences, rising by 17.0% YOY. Triggered by the real estate industry, there is robust demand and huge space in furniture market. As a result, Henan Province witnesses fierce competition in furniture malls. As the capital city, Zhengzhou has strategic significance.
EasyHome has more than 300 shops
Thanks to its continuous efforts, EasyHome now has more than 300 shops in China with more than 520 contracted shops. Till today, EasyHome has opened 80 new shops in 2018, covering 30 provinces, municipalities and autonomous regions in the country. More importantly, we should see the following fact. It spent 15 years growing to 100 shops, three years expanding to 200 shops and only one year to 300 shops. If it expands at this speed, EasyHome will have 600 shops within three-five years and 1,000 shops within eight-ten years.
The expansion cannot be realized without robust capital support. In February 2018, EasyHome announced in Beijing that it received 13 billion RMB strategic investments from 19 institutions, e.g., Alibaba, Taikang, BHG Group, YF Capital, Harvest Capital and Sequoia Capital, etc. Thanks to the capital support, EasyHome shops are opened not only in the first-tier and second-tier cities, but also in fourth-tier and even fifth-tier cities. On May 1, 2018, EasyHome opened its 229th shop in Zunhua of Hebei Province, which is its first shop in the county-level market. After that, EasyHome opened its shops in Zhuanghe of Liaoning Province, Bazhou of Hebei Province and Haicheng of Liaoning Province.
Mr. Wang Linpeng, Chairman of Beijing EasyHome Investment Holdings Group Co., Ltd., believes that, compared with first-tier cities and provincial capital cities, prefectures or counties have weak commercial infrastructures, thus needing quality commercial brands to lead the upgrading. EasyHome will help in this regard while meeting the local consumers' demands for one-stop shopping.
Push forward three-fusion strategy
Previous success has become the history and future development is anticipated. By quickly opening new shops, EasyHome is targeting at the future. It has proposed the Three-fusion Strategy, namely, online & offline integration, Great Furniture & Great Consumption fusion, and downstream & upstream fusion.
Wang Ning, President of EasyHome, said that EasyHome has experienced fundamental changes in the past two years in both depth and extension when it is confronted with the opportunity of new-retail reforms and consumption upgrading in the Internet trend. In terms of extension, EasyHome is making cross-border integration and working hard to upgrade and transform from the Small Furniture to Great Furniture, Great Consumption and furniture life, thus shifting from low-frequency shopping to high-frequency shopping. In terms of depth, by entering strategic partnership with Alibaba, EasyHome has realized great online & offline integration. By making digital reform of “people, goods and hypermarkets”, EasyHome empowers the producers and works with them to upgrade and transform the furniture industry towards big data-driven development, thus becoming the new benchmark of New Retail. It is hoped that producers and factories can follow steps of EasyHome and share the bonus brought by its rapid expansion.
In the eyes of furniture experts, EasyHome follows closely the trend in the era, makes pioneering and innovation efforts by concentrating on the Great Furniture, the Great Consumption, furniture New Retail and furniture eco-chain, etc. Thanks to the golden era in the real-estate market in the past ten years, furniture hypermarkets could make huge profits by renting stands alone. However, as China restructures its economy and controls the real estate market, and as e-commerce platforms rise, offline furniture hypermarkets are facing huge challenges. The business model of relying on property leasing is having great pressure. Data reveal that since 2011, the total sales in furniture & construction materials hypermarkets above the designated size have presented the slight downsizing trend. In 2017, the sales amounted to 917.4 billion RMB, falling by 22.6% YOY. The prosperity index of furniture & construction materials industry is not quite high, demanding great urgency for transformation.
In recent years, EasyHome has been working harder on New Retail, non-furniture business, intelligent logistics, international expos and exhibitions, and industrial-chain finance, etc. By doing so, it aims to shift from the single-profit model relying on traditional furniture hypermarket to profits from various channels and fields. It also hopes to gain favor from investors when EasyHome initiates its IPO.
Wang Linpeng said the success of EasyHome made in the past 19 years has become history. In the next five-ten years, it will become the business benchmark in the new era.