The suspension of offline trading has forced international trade to migrate online, and both domestic and foreign online transactions have witnessed explosive growth. In this process, cross-border e-commerce, live viewing production line and live selling mode have also become popular in international furniture trade.
Accelerating digital transformation
The company was mainly engaged in the research, production and marketing of furniture, wood flooring and other household products. Its performance in the third quarter was brilliant, and the adverse effects of the epidemic situation were basically eliminated. The net profit attributable to the mother was 138 million yuan, with a year-on-year increase of 2.47% and a month on month increase of 42.21%. Among them, the non net profit of the main business furniture sector was 138 million yuan, with a year-on-year increase of 28.96% and a month on month increase of 57.37%.
In novel coronavirus pneumonia, the company said in its three quarterly report that the company actively responded to the market impact of the new crown pneumonia epidemic, and made efforts to create antibacterial and anti mite star products, launch smart mattress Smart1, push forward online and offline channel reform, and actively embrace the live and goods marketing mode. At present, the companys orders are basically saturated, and the fourth quarter revenue is expected to maintain rapid growth.
As one of the leading export companies in Chinas office chair industry for many years, Henglin has vigorously promoted cross-border e-commerce business since last year, invested in the establishment of cross-border e-commerce overseas operating companies, and built its own overseas warehousing and logistics base and cross-border e-commerce warehouse. In the first half of this year, the global epidemic is still spreading, and the companys cross-border e-commerce business has been put into use: in the first half of this year, the operating revenue of the company reached 1.787 billion yuan, with a year-on-year increase of 51.1%. Among them, the sales revenue of cross-border E-commerce from April to June accounted for 9% of the business income in the first half of the year.
As a domestic comprehensive third-party B2B e-commerce platform operator, Li Lei, vice president of focus technology and President of China manufacturing network, also told reporters that cross-border e-commerce enterprises were limited by the epidemic, and even ushered in a wave of development peak. From the platform data of made in China, the platform traffic and inquiry volume from January to August this year increased by 38% and 43% compared with the same period last year. Li Lei believes that the rise of new formats such as live broadcast and cloud show shows that the epidemic has changed the traditional foreign trade mode and thinking, and the traditional foreign trade field is accelerating the digital transformation.
The sustained recovery of the industry remains to be seen
Zhou Maohua, a macro analyst at the financial market department of Everbright Bank, told reporters that the overseas epidemic situation is still recurring, and the longer the time, the more obvious the impact on peoples life, work and social contact. From a macro point of view, as the worlds largest trading country, China will inevitably be affected because of the global economic recession, shrinking demand and impact on the global industrial chain and supply chain. However, the epidemic also changes peoples lifestyle, such as the birth of the housing economy, which has a structural impact on Chinas foreign trade.
So, housing economy demand caused by the recovery of furniture industry, how long can it last?
A senior analyst in the home building materials industry has a wait-and-see attitude. He believes that the furniture industry is greatly affected by the real estate market, and since the Sino US trade friction has been upgraded, the tariff on furniture export has increased, and the price advantage of Chinese furniture manufacturing has declined. After the epidemic, the market situation of furniture industry remains to be observed.
In August this year, Tu Qi, Secretary General of the world furniture Federation, said at the 2020 global furniture industry trend conference that the global furniture industry has entered a new stage, and the furniture industry is facing common challenges: in the post epidemic era, the global economic growth momentum is insufficient, which is difficult to support the sustained and stable growth of the world economy; the unbalanced development of international industry makes it difficult to meet peoples demand for a better life The weak international economic situation hinders the transformation of new and old driving forces of furniture industry.
In fact, the export growth of global furniture industry slowed down before the epidemic. Tu Qi pointed out that from 2013 to 2019, the cumulative growth of global exports was about 13%. In 2019, it will reach 160 billion US dollars, accounting for one third of the total output value of furniture, which is the same as that of the same period last year. It is worth noting that the export growth trend since 2017 has been interrupted in 2019, which is due to the simultaneous slowdown of export growth in Asia Pacific and Europe in 2019. In terms of Chinas furniture export, the export volume in 2019 was US $56.093 billion, with a year-on-year increase of 0.96%, and the growth rate was 7.71% lower than that in the same period in 2018, which is inseparable from the international economic and trade friction faced by China.
Not only that, but also several furniture foreign trade enterprises reported to reporters that the recent rapid appreciation of the RMB exchange rate also eroded the profits of export orders to a certain extent. Industry insiders told reporters: exchange rate appreciation will indeed dilute and evaporate foreign trade profits. Our companys response is to lock in the exchange rate with major customers. Once it is lower than the warning line, it will be higher or lower. We can also lock the exchange rate with customers.
Some enterprises are moving to the domestic market
In an interview with a reporter from the securities times u00b7 e company, the person in charge of a furniture enterprise that originally had most of its business from foreign trade said: in recent two months, we have seen a slight recovery in furniture foreign trade orders. According to the usual practice, October to the end of the year is the peak season, but the foreign trade orders are still lower than last year. However, the domestic market is booming, and more than half of our production capacity is used to process domestic orders. At present, domestic orders are booming, and we plan to recruit people to expand production.
This year, the company began to explore more opportunities in the domestic market. This epidemic has also given us a great opportunity to develop the domestic market, the official said. In the past, I always focused on several foreign markets, but now I find that the domestic market has great opportunities. We used to do foreign trade enterprises, product quality assurance, now some domestic big brand manufacturers also find us to do OEM
Reflecting to the level of listed companies, as a domestic leading enterprise engaged in the production of sanitary ware hardware products, seagull residential used to focus on overseas OEM business for a long time. However, in recent years, the company is constantly expanding the development of the domestic market, and this years epidemic situation has further accelerated this trend. In 2019, the proportion of overseas revenue of seagull residents will reach 62.50%, and by the first half of 2020, this proportion will drop to 58.41%. At present, the companys export and foreign trade orders are very good, but the company did not fully accept export orders, but focused on domestic sales, so the companys income growth rate of domestic sales was much higher than that of export. In the future, one will focus more on one belt, one road and one market, and export will maintain steady growth, while domestic sales will maintain a relatively fast growth. Chen Wei, director of the seagull resident, said.
Reflecting to the level of listed companies, as a domestic leading enterprise engaged in the production of sanitary ware hardware products, seagull residential used to focus on overseas OEM business for a long time. However, in recent years, the company is constantly expanding the development of the domestic market, and this years epidemic situation has further accelerated this trend. In 2019, the proportion of overseas revenue of seagull residents will reach 62.50%, and by the first half of 2020, this proportion will drop to 58.41%.