June 13Th Yunnan Home Textiles: An Overlooked Multi Billion Market Morning News

The home textile enterprises that use celebrity endorsements have developed rapidly, but no industry giants have yet appeared.

Compared with the high-profile home furnishing industry, home textiles have been hiding in the corner for years.

With the progress of society and the development of economy, the market capacity of Yunnan's home textiles has reached billions of dollars. More people in the industry have boldly predicted that the capacity of Yunnan's home textile market can reach 10 billion, which is comparable with the booming building materials industry in recent two years.

A multi billion dollar market is being quietly created by home textile shops scattered in urban commercial areas and communities.

The prospect market capacity is not billions of dreams.

Speaking of the home textile market, Ms. Zhang, who is responsible for the home textile market, counted out an account to reporters. According to the data of government departments, in 2009, there were more than 1`0 million couples in Yunnan, assuming that each pair of 2000 yuan to buy Bedding would bring a 200 million yuan market.

But in reality, the cost of a new pair of bedding items is almost 2000 yuan, especially for urban residents, many of which are thousands of yuan or even tens of thousands of yuan.

Another more realistic algorithm is to see how many commercial housing units are delivered each year.

If each household spends 2000 yuan to buy home textile products, it will bring a hundred million yuan market for Kunming.

"These are very conservative data. In fact, the turnover of several major brands in Yunnan every year is 100 million," Ms. Zhang said. Now there are thousands of home textile brands in the Yunnan market. Among them, several major national brands that do well are in Yunnan's annual turnover of over 100 million yuan.

And some unknown brands, because of price reasons, also occupy a very large market.

Ms. Zhang's acceptance of this statement has been approved by Mr. Xiong, who is a wholesale manufacturer of home textile products in the new snail Bay. He now acts as a proxy for several brands in Zhejiang. The price is relatively cheap, and the general retail price is between 100-500 yuan. Mr. Xiong disclosed that his turnover in 2009 was also tens of millions, and in that market there were dozens of businessmen like him.

This means that there are billions of dollars in home textiles from the new snail Bay to Kunming and the state market.

There are no giant giants yet.

Despite the fact that all the top three domestic textile companies have opened their own stores in Yunnan, although the listed companies, fuanna and Luo Lai home textiles in Yunnan, have been doing the same in Yunnan, up to now, there is still no big brand that can command the whole market.

Even in the industry's view, the number of brands that have already been more powerful can be sold to hundreds of millions of dollars annually. "But compared to the capacity of this big market, this is far from enough". Zhang, who has been engaged in the department store in the era of planned economy, said that Yunnan's entire home textile market was monopolized by Yunnan textile mill and Kunming textile mill.

Now, perhaps the result of competition, the whole industry has not yet seen a large enterprise or big brand that can occupy the absolute quota.

Wang Jian, a researcher at national securities, believes that the overall pattern of domestic textile industry is similar to that of the clothing industry, and that the majority of them are small and medium enterprises, and the market is more differentiated.

The domestic textile market share is close to 30% of the reasonable target level, and it is expected that its total growth will not be very high in the future.

There may be structural changes within the home textile industry. There is a polarization between enterprises. The consumption has shifted from the low end to the middle and high end, and backward production capacity has been eliminated.

It is estimated that in the next 3 to 5 years, the development of home textile industry will be faster than that of the garment industry, and the overall growth rate will be 10% to 15%.

Channel stores go out of unusual ways

Although home textiles are part of the household industry, many home furnishing stores have not seen much of the home textile industry, and even many large brands of home textile products do not enter home stores.

Belonging to an industry, but separated from the portal, is the home textile industry has long been the most special place.

"The exclusive store system is a better channel system, it has the characteristics of extensibility and shrinkage, and it guarantees the professionalism and expansibility of the brand." Miss Zhao of Fu Anna's home textile told reporters that home textiles are originally household products, which are essentially different from building materials. Because of this, they usually choose to enter the home store, and their location is sometimes different from that of clothing. Nowadays, the products and status of home textiles are integrated into more cultural connotations, so marketing must also integrate more cultural and aesthetic elements.

Choosing a franchised store can maximize the free display of product attributes, so this way is accepted by many brands of home textiles.

An industry insider who did not want to be named said that home textiles are different from ordinary building materials. Customers who buy building materials do not buy home textiles at the same time.

People who buy building materials are decorating their houses. They can even say that buying building materials is the first step of decoration, and buying home textiles is the last step of decoration. Therefore, whoever buys home textiles will not buy materials for building materials at the same time, which is the main reason why they sell separately.

In addition, the cost of choosing a franchised store is much lower than that of entering a store.

The biggest advantage of franchised stores is that they can directly display their products at will, and they can manage their brands according to their own ideas, and enter the stores. Sometimes, they need to take into account the needs of the entire store.

At the same time, enter the store, the rent and all kinds of management fees are relatively high, even higher than the downtown area shops rent.

Home textiles, however, do not belong to durable consumer goods. As with clothing, though they are not necessities of life, customers can repeat and repeat purchases as long as they can stimulate people's desire to buy. Therefore, many home textile stores have opened up in mature communities, with low cost and large numbers of loyal consumer groups.

"At present, most of the businessmen who make home textiles have chosen franchised stores, from high-end brands to on-site shops that are generally not brand names. They are franchised models," the source said.

Middle and high-end products often choose brand flagship stores, department store counters, exclusive stores, etc. as their own channel system.

The exclusive store system is a good channel system. It has the characteristics of extensibility and shrinkage, and guarantees the professionalism and expansibility of the brand. At the same time, it has the weakness of compromise and low flow of people.

Future high speed development is not a small profit.

From the era of planned economy to "sewing for three years" and now fashionable and fashion oriented, home textile products have long been "reborn".

Nowadays, young people who pursue a comfortable life will no longer be like the older generation. A quilt can be built for decades. When a mother gets married, she can get married with her daughter.

Reporter survey found that most of the people under 40 years of age now buy at least one to two home textile products every year. This replacement speed is far more than building materials and furniture.

It is precisely because of this demand that after several years of rapid development, the market has begun to subdivide, not only for young people, but for different groups of people to develop different home defense products.

"We find that every group has a lot of room for consumption, whether they are new born or new or old. It is these different levels and different stages of home textile consumption that will create a splendid home textile Pyramid."

At present, China's infant products market has entered a period of rapid development. Infant consumption has increased by 17% annually, far higher than that of the same period.

With the gradual development of products, the scale of the market will be further expanded. With such a large market space and few competitors, the infant market will become the largest and most profitable industry at present and even in the future.

No matter which market the enterprise starts to pay attention to, the high-speed growth of the entire home textile market is visible to everyone, and the high profit of the home textile industry is also the envy of many industries.

Although the market is declining recently, there are leading companies in the domestic textile industry.

From April 16th to June 2nd, when the Shanghai Composite Index fell 18.6%, fuanna increased 8.5%, and Rose Rose 8.6%.

Moreover, the stock prices of these two stocks are all very different from the historical high.

Under the background of the continuous improvement of the domestic textile industry, the performance of the leading companies in the industry has maintained a rapid growth, and has certain investment value, giving the investment rating of Luo Lai home textile and fuanna "overweight".

Judging from the information currently available, the business income of the home textile in 2010 was 359 million yuan, an increase of 40.81% over the same period last year, a significant increase of 72.17% and 43.23% compared to the same period last year, and the earnings per share were 0.36 yuan. The company's good performance exceeded many analysts' expectations.

Such a profit margin, such a good income, is enough to make the building materials enterprises in the capital market suffer a crushing defeat.