Nov 12, 2019 (China Knowledge) - China’s leading home textile company Shanghai Shuixing Home Textiles Co., Ltd. (603365) raked in RMB 266 mln (USD 38 mln) in gross merchandise value (GMV) on Singles’ Day online festive sales, 12% more than last year. Yesterday, the company ranked first in terms of sales of beddings on Tmall, and beat out competitors such as Fuanna Bedding and Furnishing (002327) and Luolai Lifestyle (002293).
Founded in 1987, Shanghai Shuixing is a key player in China’s modern home bedding and home furnishing. It has rapidly developed into a specialized, multi-brand enterprise integrating research and development, design, production and sales of home furnishing and textile items. The company was also a winner of Shanghai’s ‘Top 100 Outstanding Private Enterprises’ this year, and has been consistently placed as one of the top 3 companies within the home textile industry in the country.
Its main production base is located in the Shanghai Industrial Park, and occupies a 200,000 sqm complex, consisting of offices, R&D labs, manufacturing facilities, warehousing and distribution center.
Last year the company reported revenue of RMB 2.72 bln, up 10.44% YoY. From Jan- Sep this year its financial reporting shows an operating revenue of RMB 2.02 bln, up 11.9% YoY, and net profit of RMB 214.6 mln, up 18.8% YoY.
To reach out more lower-tier cities, the company is seeking to add more stores to its current 2,700 outlets. As pointed out by Zhou Zhong, the company’s vice president and board secretary, Shanghai Shuixing has yet to open outlets in the rest of untapped 40% Chinese cities. Zhou believes the market penetration is relatively low, and has enormous opportunities.
In addition, it will embark on aggressive push into e-commerce platforms like Tmall (BABA), JD.com (JD), Vipshop (VIPS), Pinduoduo (PDD) with strong presence, and is expected to further boost online sales in the next few years. For licensed distributors their outlets could benefit from online-to-offline (O2O) conversion effect.
For the new season promotion Shanghai Shuixing is shifting to younger celebrities to capture the millennial generation. To break out from its decade-long image associated with Hong Kong’s movie star Carina Lau, the company has endorsed young and up-and-coming actors like Yang Yang and Sun Li. This has resulted in a more balance distribution of customers from traditional mid-aged or older demographics.
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