The scale of global e-commerce channel transactions continues to expand, and the furniture & household goods market is growing steadily. The online retail market continues to expand, and the e-commerce penetration rate continues to rise. Global e-commerce channel retail sales reached 428 billion US dollars in 2020, and the compound annual growth rate is expected to reach 10% in 2020-2024; the proportion of e-commerce retail sales in total global retail sales increased from 7.4% in 2015 to 18.0% in 2020, and is expected to reach 21.8% in 2024. In terms of the furniture market, since 2016, the global furniture output value has gradually picked up along with the recovery of the global economy. As of 2019, it has rebounded to 490 billion US dollars, entered a stage of steady growth, and the share of online sales has increased year by year. In terms of the household goods market, the compound annual growth rate of the global household goods market from 2017 to 2020 was 1.12%, and the market size in 2020 was 677.278 billion US dollars, and is expected to reach 851,984 billion US dollars in 2025. Among them, e-commerce channel sales account for 6.2 billion US dollars from 2014 % increased to 17.7% in 2020, and is expected to maintain a relatively rapid growth rate in the future.
Zhi Ou Technology is mainly engaged in R&D, design and sales of its own brand household products. The company was founded in 2010 and is a world-renowned Internet home furnishing brand. Its products have successively entered markets in more than 50 countries and regions, including Western Europe, North America, and Japan. Overall, customer reviews rank among the top sales channels. By 2018, the company had become one of the most popular Internet home furnishing brands in the European and American markets. In 2021, the company achieved operating income of 5.97 billion yuan, YoY +50.3%; realized net profit of 240 million yuan, YoY -36.9%.
The company has a rich product matrix to meet the consumption needs of customers in multiple scenarios. The company is committed to the R&D, design and sales of household products. The products mainly include furniture series, home series, patio series, pet series, etc., covering different scenarios such as living room, bedroom, kitchen, foyer, patio, outdoor, etc., to meet the consumer needs of customers in multiple scenarios and achieve one-stop procurement for consumers. In terms of product sales, the company's products are mainly furniture series products, followed by household products, accounting for 51.8% and 31.5% of revenue in 2021, respectively; it owns three private brands: SONGMICS, VASAGLE, and FEANDREA.
Relying on the cross-border warehousing and logistics system, the sales scope covers the world, online sales channels are the main, and Amazon is the main sales platform. In terms of business model, the company focuses on product R&D, design, operation and sales, etc., relying on the domestic supply chain manufacturing system and furniture and home furnishing industry clusters, adopting a product supply model of independent R&D or cooperative development and external production. Through the cross-border warehousing and logistics system of “domestic and foreign self-operated warehouses+platform warehouses+third-party cooperative warehouses”, the company provides customers with household products. The sales scope covers Europe, North America, Japan and other countries or regions. On the market side, Europe is the main sales location, followed by North America, which accounted for 60.0% and 39.2% of revenue in 2021, respectively; in terms of sales channels, the company mainly focused on online B2C, accounting for 80.8% of revenue in 2021, which was the company's main source of revenue; in terms of sales platforms, the company's B2C business was Amazon, and the company's sales revenue on the Amazon B2C platform accounted for 84.0% of total online B2C sales revenue in 2021.
Risk warning: international trade friction intensifies; shipping prices continue to rise; market demand fluctuates.