Luo Lai And Other 23 Enterprises Were Awarded The "Home Textile Brand Influence Award", Monopolized Over 80% Of The Market Share.

On the afternoon of March 14th, "new development, new retail and new intelligence" -- the Forum on China's home textile influence was held in Shanghai. Guided by the China Household Textile Industry Association, the event is co sponsored by China Textile Magazine, home textile age magazine and China Textile Industry Federation media center. In order to better cultivate local brands and enhance the discourse power of Chinese textile industry entrepreneurs, the aim is to promote the positive energy of "inheriting the ingenuity and precision manufacturing" in the home textile industry, and advocate the spirit of perseverance and innovation.

The forum announced the 2018 annual "China home textile home brand media influence Award". The award from the establishment, research, primary selection to final evaluation lasted for a year, in-depth market visit research, comprehensive survey of Chinese textile representative brand, and under the guidance of a set of scientific and rigorous index system, under the supervision of a professional jury composed of associations, experts and more than 50 industry media, fashion media and so on, from the brand publicity and social influence, consumption preferences and other indicators comprehensive scoring, finally selected 23 award-winning enterprises.

The companies that won the "China home textile home brand media influence Award" are: home textiles, Heng Yuanxiang home textiles, red bean home textiles, fuanna home textiles, Lan Siyu home textiles, violet home textiles, baoran home textiles, blue platinum home textiles, golden sun home textiles, Datang home textiles, north polar home textiles, dream LAN home textiles, silk, Muji, leading household textiles, Matt towel, Futian towel, Sanli towel, Yong Liang towel, jliya towel, Gaoyang commerce city.

The industry believes that, including Luo Lai life, fuanna, including high-end brands, one after another, with new technology, new channels, new models to improve consumer loyalty, home textile industry has gradually focused on high-end brands. The more standardized natural adjustment of home textiles also determines that the home textile industry is more likely to raise the industry concentration to a relatively high level than the brand clothing. However, the market share of CR5 in China's home textile market is only 7.6%.

The major brands of home textile industry are mostly old brands that have been ploughing for more than ten years in China. Each brand builds its own large offline channel network through accumulated industry experience. The long established dealer resources are important moat for the home textile industry. The so-called "distributors" get the world, and the stable offline dealer network is the bottom value of the home textile brand.

Yu Xuhui, an analyst with Changjiang Securities, said that since 2017, the performance of listed domestic textile enterprises such as Luo Lai life and fuanna has changed, causing the market to discuss the sustainability of the growth of home textile enterprises and the subsequent growth momentum of the home textile industry.

Yu Xuhui believes that, on the one hand, it is based on the improvement of channel inventory and channel adjustment, and on the other hand, the domestic retail environment has gradually become friendly to the brand enterprises with customer base, strong channel operation and efficient supply chain control capabilities, and the market share of leading enterprises has been accelerating.

Generally speaking, the consumption scenario of traditional home textiles mainly focuses on the needs of marriage, relocation, gift giving and daily replacement. Out of concern about the downtrend of real estate sales growth, the market has raised doubts about the growth of home textile consumption so that the home textile industry will grow further. Overall, with the improvement of residents' income level and the improvement of consumption habits, the consumption of home textile products has gradually changed to the demand of daily replacement, and the correlation with real estate has gradually weakened.

The first textile network data obtained by the National Bureau of statistics show that in 2017 1-10, China's above scale enterprises realized 126 billion 527 million yuan of main business revenue, an increase of 9.29% over the same period last year, and realized a total profit of 6 billion 994 million yuan, an increase of 6.46% over the same period last year. The total revenue and profit growth rate of the above scale enterprises increased by 4.55 percentage points and 1.22 percentage points respectively over the same period last year.

Observation shows that physical retail sales warming is the main driving force for the revival of the home textile industry. With the increase of the flow cost and logistics cost of the e-commerce platform and the reduction of the rent of the entity channel, the price advantage of online products is gradually weakened, and consumption begins to flow back to the line. Since 2016, the total retail sales of hundreds of large retail enterprises and 50 key large retail enterprises across the country have been significantly improved month by month. Due to the fact that most of the large retail enterprises in China are mainly retail entities, they generally reflect the consumer market warming.

According to Xu Hui, with the gradual fading of the Internet traffic dividends, online channels have gradually entered the new stage of brand competition. The broad customer base and brand influence constitute the core competitiveness of online brands. Statistics show that as of January 2018, the number of home textile brands in the whole network dropped from 8888 to 4570, of which the number of home textile brands in Taobao channel dropped from 7762 to 3498, and the ratio of brand elimination was over 50%.

From the point of view of brand concentration, the top 10 bedding brand share of the whole network has remained at about 15% since January 2017, of which CR10 reached 33.2% in November 2017. Considering the online promotion activities represented by "double eleven" in November, strong brands can focus on greater marketing resources and promotion efforts to gain share in this context, and also verify the stronger competitive power of quality online brands from the side.

Research shows that the competitive advantage of online brands is growing with the broad customer base and strong channel operation and efficient supply chain management and control capabilities. The statistics of the top ten brands of bedding products of Ali platform are compiled. The brands ranked second, third, sixth and seven in February 2018 are Mercury, LOVO (brand name of electric brand of Luo Lai), fuanna and Bo Yang. All of these brands are home textile brands with operational experience of offline entities. From the product positioning, the traditional brand power providers in addition to early considerations based on inventory, at this stage more to promote a broad consumer group of low-end home textiles products. According to the Home Textile Association survey, more than 60% of the consumers in the major and medium-sized cities spend more than 201~1000 yuan on bed products consumption, taking the brand LOVO of Luo Lai's electricity supplier as an example. Most of the products are priced at 399~699 yuan / set, which fits the mainstream consumer groups online.

Founder Securities researcher Ni Hua also pointed out that the growth of home textiles in the future will benefit from the promotion of online sales, and the home textile brand with active layout of online channels will be easier to break through. In 2017, the scale of China's online shopping market reached 6 trillion and 100 billion yuan, an increase of 29.6% over the same period last year, compared with the 23.9% growth rate in 2016. The number of Chinese online shoppers reached 500 million in 2016, and the penetration rate of online shopping increased by 64% in 2016. Online channels also became the battleground of major brands of home textiles. The major home textile brands are increasing the electricity supplier platform year by year. On the one hand, expand the platform cooperation, including Tmall, Jingdong, vip.com, etc., on the other hand, increase the input of marketing warfare. Every year, the "double eleven" Shopping Festival becomes the wrestling place of the major brands. The proportion of online sales to total sales is also increasing. In the first half of 2017, the online sales of fuanna and Luo Lai accounted for about 41%, 30% and 22% respectively.

The home textile industry has more obvious real estate post cycle attributes, with about 30% of home textile sales and real estate sales related. In recent years, the rise of China's three or four tier cities is still larger than that of the second tier cities whose population has been saturated. The three or four line cities still have larger net inflow of population. The future is expected to drive the three or four line of real estate sales, relocation and wedding. In the short term, the cyclical pull of domestic real estate sales is still effective.

But Ni Hua believes that the real estate sales for the growth of domestic textile sales pulling power is limited, in the long run, its main driving force is consumption upgrading.

First textile network reporter learned here that the data from industry research institutions predict that the sales volume of home textile industry will grow steadily to 215 billion 540 million yuan in 2017, and the growth rate will reach 5.6%. On the one hand, it has benefited from the continuous improvement of the purchasing power of our consumer groups, and on the other hand, the change in the consumption habits of our consumers.

Yang Donghui, a senior expert in the textile industry, said that the home textile industry is closely related to people's life. The new development of the textile industry is closely related to the new expectations of the people for a better life. In 2018, how the home textile industry constantly adapted to the changing market demand, and then adjusted the business ideas and realized steady development, is an important issue that the industry needs to study in depth.