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Home textile industry expands online presence

Date:2014-01-06 Views:0 Source:Agencies

According to data released by China Home Textile Association, the online sales of home textile products from January to October amounted to 53 billion yuan, with Tmall accounting for nearly 50 percent with the sales volume of 26 billion. At such growth rate, the online sales of this year's home textile products will break 60 billion yuan.

Since this year, the overall situation of domestic home textile industry remains steady; its profit is further improved and its channel structure has gone through significant changes. On November 11 promotion campaign, the Chinese version of Cyber Monday, the home textile industry has realized eye-catching sales. Compared with the traditional sales market, the sudden rise of online sales channel has become a hot topic in industry and many brand companies start to adjust the previous arrangements and put emphasis on online sales.

China Home Textile Association reveals that in first three quarters, the industrial profit increased rapidly and over 1788 companies above designated size realized total profits of 9.91 billion yuan with a year-on-year increase of 11.5 percent, and 16 industrial clusters realized total profits of 12.79 billion yuan with a year-on-year increase of 14.9 percent. Meanwhile, data from January to October show that the sales value in domestic market continued growing, and the online sales realized the sales volume of 53 billion yuan. Moreover, the online sales of home textile products totaled 28 billion yuan throughout 2012.

Insiders think that the online sales of home textile products will be doubled consecutively within few years, and it won't be exaggerating to describe the online sales of home textile products by "advancement by leaps and bounds". It can be seen from current momentum that this year's online sales of home textile products will undergo another rapid development on the basis of last year's accelerated growth rate of 102 percent.

There are three factors contributing to the remarkable development of online sales of home textile products. Firstly, it's related to the nature of home textile products, because most of products including towels and bedding articles belong to standardized products, so they are suitable for online shopping. Secondly, as the online sales grows mature and imposes more pressure on offline sales, home textile enterprises pay more attention to the development and maintenance of online sales; thirdly, the powerful brand influence of world-famous brand enterprises has effectively driven up the online sales. Taobao data shows that in this year's "Double November" promotion, nine of top ten home textile brands are industrial leaders, for example, Fuanna and Lovo who have realized the sales value of over 0.1 billion yuan.

From the perspective of consumers, their attention to online shopping has diverted from price to product quality, so consumers' habits are changing quietly. Some home textile brands have noticed this phenomena and begin to attach more importance to the product layout of "same price and quality" online and offline. In this way, consumers won't choose to buy home textile for the sole purpose of "cheap price"; instead, they expect to get the same product experience as in exclusive stores. With more and more online customers, the online business of renowned home textile brands becomes more prosperous.

Therefore, it's easy to understand why home textile enterprises redouble efforts on online sales. Listed companies such as Lovo, Fuanna and Mendale have established O2O (Online To Offline) as the strategic direction of future development. Lovo Home Textile is actively improving supply chains, promoting the same price and quality online and offline, and planning to include franchisees to online business. Fuanna Home Textile shows that it'll implement O2O pattern comprehensively in future three years; another representative enterprise Beyond Home Textile expresses it will adopt the presales method and realize the simultaneous ordering and production, which not only reduces stocks but also increases profits. Up to now, the annual online sales and net profit margin of Beyond Home Textile have witnessed quicker development than offline sales

At present, only Tmall owns over 2000 home textile brands and more than 3000 shoppers. In addition, relevant data reveals that among all industries in Tmall, the sales of home textile products ranks top ten. It's expected that with the further enhancement of corporate innovation capacity, the online market will become a vast new blue ocean for home textile industry.