According to statistics, in the whole year of 2019, China's home decoration industry received 62 financing, with a total financing amount of about 12.39 billion yuan. Among the 62 financing events, there are not only financing events that continue the hot spots of venture capital in previous years, but also some emerging products and business models.
After analyzing these venture capital events and discussing with investors in the industry, it is believed that in 2020, the home decoration industry will face more severe challenges and need to rely on the power of innovation and service to continuously accumulate value.
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trend 1: Spillover of supply chain advantages and acceleration of globalization
among the enterprises that obtained financing in 2019, there were many cross-border enterprises, mainly including cross-border home brands, building materials supply chain overseas enterprises, smart home overseas enterprises, etc. Graffiti intelligence (strategic financing), aurebo (F round-before listing), green rice Lianchuang (B + round), sold to Africa Network (Pre-B round), N **ME(B round) and other enterprises have carried out their business overseas.
Graffiti intelligence was positioned as a global AIoT platform at the beginning of its establishment. Currently, graffiti intelligence accounts for more than 50% of the total number of customers serving the world in Europe, America and Africa. Smart home enterprises such as aurelibo and greenmi Lianchuang also have a considerable overseas user group. Sold to Africa through the model of self-built overseas warehouses and small exhibition halls, the home building materials products of various countries are exported to the African market. Nhomme home released its overseas expansion plan in 2018, and it is expected to open 1,000 overseas stores in 2020.
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from the historical financing situation of these enterprises, it can be seen that enterprises with the ability to go to sea are easier to obtain the recognition of capital. In many subdivision fields such as smart hardware, home building materials and groceries, the powerful supply chain system of home manufacturing industry is being exported to the world. In the future, the pace of globalization of China's home furnishing industry will further expand.
Trend 2: Smart home tide fades
in 2018, the smart home industry received 23 financing events in total; In 2019, the number of smart home financing dropped to 14. After the tide faded, the financing events of smart home angel round and round A were greatly reduced. Among the total financing events, the proportion of venture capital projects in the middle and late stages increased, the financing amount of a single project has also increased. Among them, smart home enterprises such as graffiti intelligence, aurebo, Broadlink, and green rice Lianchuang have all received multiple rounds of financing.
The construction of Internet of Things in 5G era has brought a good development environment for smart home, which has broad development prospects. While financing in the smart home venture capital field is getting colder, giant companies such as Alibaba, Baidu, Tencent, Jingdong, Huawei, Xiaomi, Haier and so on have entered one after another, and the smart home track has been brought to a higher competitive dimension.
From smart items to the interconnection of everything, the player threshold of this track is getting higher and higher, and the "burning money game" is far from over. However, the visible trend is that enterprises that can obtain the "money burning qualification" are increasingly concentrated in the head.
Trend 3: industrial capital enters strongly, and cross-border robbery will continue
in the financing event in 2019, many large-sum financing all showed industrial capital, including real estate groups and listed companies with strong capital strength, as well as Head Start-up companies that obtained multiple rounds of financing.
The total number of financing events of industrial capital as investors is 22, accounting for of the total number of financing events. For start-ups, industrial capital can not only bring capital, but also bring market resources and business linkage. For the industry side, if you want to enter another industry, you will often invest in the original enterprises in the industry by way of shareholding, acquisition and merger.
In 2019, the trend of cross-border robbery of giant companies became more and more obvious, which caused waves to the originally calm household industry and also caused anxiety among household industry practitioners. By 2020, only a small amount of strong industrial capital involved in the home decoration industry will continue to expand in depth by taking advantage of capital advantages. After anxiety, home furnishing enterprises need to keep firm pace and do better products and services.
Trend 4: New Brand financing scale will continue to expand
personalized, experiential and self-satisfying consumption is gradually becoming the mainstream. Generation Z, fan economy and beauty economy have become the new direction of venture capital in the consumer field...... Under the intergenerational replacement, the consumer market is constantly changing. In the process of changing consumer market, new brands emerge as the times require. In the home industry, the transformation of new brands is also under way.
In 2019, China's venture capital environment began to change, returning to value investment. More and more designer brands that adhere to originality and spread life aesthetics have attracted the attention of the capital market. A total of 11 new home brands received financing throughout the year, involving furniture, home groceries, sleep technology and other sub-sectors.
On the one hand, the younger generation of consumer groups have increased demand for small and personalized home design products; On the other hand, they have excellent educational background, the young generation of founders who have unique feelings for the home lifestyle entered the home industry, giving romantic color to the originally cold furniture.
After the exchange between yiou home and many investors in the new consumption field, investors who pay attention to the consumption field all recognize the broad development prospect of the new home brand, and are also looking for excellent targets in the new home brand field. At present, the main financing rounds of new home brands are concentrated before Round A and round A.
With the deepening of consumer education and rich product experience, new home brands will usher in a larger financing scale.
Trend 5 green environmental protection, survival of the fittest
in 2019, under the overlapping of multi-dimensional emerging variables such as new technologies, new policies and new groups, new species in the home decoration industry continued to evolve and upgrade. In the process of innovation, a basic logic was essential, that is, green and environmentally friendly. Green Environmental protection is always the bottom line of consumers. No matter how excellent products and services enterprises can provide, once they touch this bottom line, they will be permanently abandoned by consumers.
Since 2019, B＆Q has set a new position of healthy and environment-friendly, providing consumers with four environmental protection systems, including environmental protection measuring room, environmental protection design, environmental protection materials, environmental protection construction, and a number of environmental protection control measures. In July, 2019, Sikong new home decoration held a press conference. Sikong's new home decoration adheres to Wanhua's green gene, adheres to the development concept of green, circular, sustainable, formaldehyde-free, comfortable and beautiful, and introduces greening, industrialization and digitalization into home decoration. In addition, many Plate-type customized household enterprises such as Shangpin Home Collection, Sofia, and my music home have launched environmentally friendly and formaldehyde-free customized household products.
Green, healthy and formaldehyde-free are the most basic needs of consumers and the premise for consumers to pay for all products and services. For home furnishing enterprises, this is the most sustainable development trend.
In the past 2019, the household industry has experienced a decline in performance, bankruptcy, and resignation of senior executives. It has also experienced technological innovation, financing mergers and acquisitions, and overseas listing. In the cold winter of capital, the home decoration industry has still accumulated some innovative models that return to user value.
In 2020, during the transformation of the investment cycle, only by maintaining continuous innovation focusing on the consumer level can home decoration enterprises cross the cycle and find a longer development path.
(Article Source: China whole wood network, invasion and deletion)
