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The four trillion-scale home decoration market is moving from "big and weak" to "big and strong", and the reshuffle is intensified.

The notable feature is that on the one hand, high-quality companies are competing to go public, while a large number of companies have closed down one after another.

According to incomplete statistics, in the first half of this year, seven companies in the industry have ringed the bell and went public, namely, True Love, Romance, Wangli Security, Tuya Smart, Nature Outdoors, Yuma Sunshade, and XGIMI Technology.

Another 31 pan-home furnishing companies have begun to line up for ticket checking, and are waiting for the "pass" for the Shanghai and Shenzhen A-share main board, ChiNext, Hong Kong stocks, U.S. stocks, and various stocks.

In other words, in the first half of the past year, there were 38 home furnishing companies listed and planned to be listed, almost reaching the level of last year.

Public information shows that there were 45 home furnishing companies that went public and planned to go public last year. Among them, 18 are listed companies and 27 are planned to be listed.

Among the listed and planned companies, smart home, Internet, and technology-based digital companies accounted for nearly 40%.

Lined up here to go public, but home furnishing companies closed down one after another. In the first half of this year, 47 well-known home furnishing companies declared bankruptcy, involving furniture, ceramics, home furnishing stores, etc., among which there are many influential companies.

According to statistics published by the People’s Court, as of June 30, in the first half of 2021, more than 30 well-known home furnishing companies across the country have declared bankruptcy, covering multiple sub-sectors such as home furnishing stores, wooden furniture, upholstered furniture, bedding, bamboo and wood products, etc. field.

Details are as follows:

Source: 77 degrees

The ceramic industry is not much better. As of 2021, 17 ceramic companies across the country have declared bankruptcy. Among them, Guangdong has the largest number. A total of 9 ceramic companies have declared bankruptcy. From April 20 to April 26, one week Then four ceramic enterprises "fallen down"; Jiangxi was the second one, and three ceramic enterprises went bankrupt in total, one each in Sichuan, Guangxi, Henan, and Hebei.

Furniture companies in Zhejiang and pottery companies in Guangdong have become "the hardest hit areas." According to data, four ceramic companies in Guangdong closed their doors in just one week from April 20th to 26th.

Last year, the People's Court announced that at least 222 pan-home furnishing companies filed for bankruptcy.

As we all know, the starting point of most home furnishing companies is not high. Those who work as contractors set up a decoration company; those who do carpentry work open a furniture factory; those who do small business or even three-wheeled delivery, open a shop and become a distributor...

The huge market and weak enterprises were once the permanent labels of the home decoration industry. As a trillion-level ultra-large-scale market, there is no such thing as a 100-billion or tens-billion-level enterprise.

With the market value of Oupai Home Furnishing breaking through the 100 billion mark, the revenue of Oupai Home Furnishing, Gujia Home Furnishing, Man Wah Holdings and other companies has exceeded 10 billion, and home furnishing companies have entered the "10 billion club" or even the "100 billion club". It is a dream.

But this is a minority after all. The vast majority of enterprises are still suffering in the transition and transformation in the upgrading-the home decoration industry, which has prevailed for 30 to 50 years, is undergoing unprecedented tremendous changes.

Why is it more and more difficult to do business? Why is it getting harder and harder to make money? Because the industry reshuffles, it is both intensifying and accelerating. The era of traditional home furnishing companies working hard and eating with craftsmanship is rapidly becoming history.

2021 is known as the first year of the digital transformation of the home furnishing industry. The digitization of management models, operating models, and even marketing models has become extremely urgent and vital after an epidemic last year.

It is foreseeable that in the next three to five years, more traditional and non-motivated enterprises will be eliminated in large numbers. Instead, there will be advanced manufacturing companies that combine technology and capital, and technology companies with R&D capabilities.

Those who land on the capital market or line up for listing will gradually become the new normal.