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    2. Industry news

      Home textile industry is picking up overall

      Recently, the leading enterprises in the home textile industry, including Lailife, Fuanna, and Mercury Home Textile, have all released their 2017 performance report. Financial data shows that the overall development speed of these three companies has remained at a high level.

      The China Business Daily reporter compiled the revenue from the three companies from 2011 to 2017 and found that the three companies have adjusted their strategic layout since 2017, relying on online e-commerce efforts to accelerate channel sinking. With the upgrading of consumption, the overall home textile industry is picking up.

      In terms of channel structure analysis, the home textile industry is now dominated by offline channels, but with the upgrading of consumption, e-commerce channels have a stamina.

      Specifically, Royle Life currently has more than 2,700 stores, and most of the offline channels are dominated by franchise models. In 2017, the number of net opened stores was more than 200, and many of them were located in the second and third tier cities to accelerate the sinking of channels. According to Dongguan Securities estimates, the company will have a net increase of 200-300 stores this year.

      According to Fu Anna's third quarterly report in 2017, the company has opened more than 100 net stores in 2017, mainly in the third and fourth tier cities. This year, the company plans to distribute direct sales stores in the first and second tier cities. At the same time, the company launched its franchise activities in March this year, and selected 100 high-quality home textile franchise stores as its home textile store to expand its business.

      The most obvious comparison is undoubtedly Mercury Home Textiles, whose total number of stores decreased in 2016. As of September 30, 2017, the company had more than 100 net-opening stores. Mercury Home Textiles focused on third- and fourth-tier cities, deep-rooted low-tier cities, positioning the popular brand strategy for the company brought good news for the company.

      With regard to online business analysis, Rollei Life adopts differentiated channel positioning, positioning online low-end consumer groups and offline targeting middle-high consumers. According to financial data, the growth rate of online revenue for the company in 2017 was 40%, and the growth rate of offline revenue was 17%. According to Soochow Securities analysis, Fiona’s online growth is expected to be close to 40%, accounting for nearly 30% of its revenue, and a major boost to the company’s growth. Looking back at Mercury Home Textiles, we entered Taobao in 2008 and entered Tmall in 2012. We have a first-mover advantage in traditional home textile brands. The total amount of online orders for the company in 2017 was nearly 900 million yuan, accounting for about 40% of revenue, and the growth rate was maintained at more than 30%.

      In addition to the adjustment of enterprises through online and offline channels, with the upgrading of consumption, there is still much room for growth in the home textile market. According to the data from the China Home Textile Industry Association, China’s textile products accounted for 28.6% of total textile consumption, compared with 33% in Europe and the United States. Compared with developed countries, the proportion of China's textile products is still at a relatively low level. In addition, the peak period of marriageable people and the growth of children's home textiles brought about by the full opening of the second child have all contributed to the development of the industry.

      Tuqiang company custom-made for the Mercury home textile long-staple cotton towel series, and for the production of Rollei AB yarn towel series, loved by the majority of consumers.


                                                   Long Staple Cotton Series


                                                           AB Yarn Cotton Series

      CONTACT US

      Contact: Han Feng Wei

      Phone: 13582381513

      Tel: 0312-6615783

      Email: tuqiang@tqtowel.com

      Add: GAOYANG COUNTY TEXTILE INDUSTRY LONGISTICS PARK, BAODING CITY,HEBEI PROVINCE.CHINA

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