The capital chain was broken, the team was disbanded, and the Tmall store with annual sales of 1 billion collapsed
A well-known home furnishing brand thunderstorm
Another Tmall store with annual sales of 1 billion has an accident.
Recently, the well-known home furnishing brand Youfan Art announced in the Taobao store that after the company returned the principal of a large loan to the bank, the bank broke its promise and stopped renewing the loan, resulting in a sudden break in the company's capital chain, a concentrated run on creditors, and a rapid deterioration in operation, and the team has been disbanded.
In addition, the store has reported to Tmall that it is closed.
The company said it was no longer able to pay and was about to enter bankruptcy liquidation. If consumers have orders that have not yet been received, or unfinished after-sales service, they can contact Tmall's official customer service to seek a solution.
Source: Taobao
Upon learning of the news of the closure of the store, some consumers questioned its money and ran away. On platforms such as Xiaohongshu and Douyin, many consumers have reported the difficulty of refunding and protecting their rights.
At present, searching for Youfan Art on the Taobao platform, I can no longer find the entrance to the store. And its Tmall flagship store page does not have any products on sale.
When it comes to Youfan Art, it was founded in 2012, engaged in art communication in the early days, transformed into art furniture in 2013, and has become a benchmark brand for new retail practice in just a few years, and is also a strategic partner of Alibaba Group.
For the past few years, Youfan Art has been driving at high speed in the fast lane. At that time, some data mentioned that in 2016, the sales of Youfan Art increased by 400% year-on-year;
In 2017, Youfan Art participated in the Tmall 618 and Double 11 activities. The results show that in the 618 mid-year promotion, Tmall sales increased by 695% year-on-year, and the turnover on Double 11 increased by 260% year-on-year.
In 2018, Tmall Double 11, Youfan Art broke through the 100 million yuan mark in only 1 hour and 52 minutes, and its single-day sales reached 170 million yuan, ranking first in Tmall American furniture sales.
With this sales performance in three years, Youfan Art is undoubtedly a first-class master in the industry.
In 2019, Lin Shangkang (Jacky), the founder of Youfan Art, revealed that Youfan Art has a scale of hundreds of millions of yuan, 1 million members, a repurchase rate of 20%, and a customer unit price of about 7,000 yuan. The floor efficiency of offline stores reaches 20,000 yuan, the gross profit margin is 15%-20%, and the average return on cost of a single store is 18 months.
It is worth mentioning that Youfan Art has also received more than 100 million yuan in financing. At the beginning of 2019, Youfan Art announced that it had received a round of financing from well-known investment institutions Tiantu Investment, GF Xinde and Hanze Capital, with an amount of nearly 100 million yuan, which is planned to be used to focus on the development of new IT retail systems, expand new channels, build warehousing and logistics and invest in brand building.
According to a 2019 research report by China Merchants Securities, the total scale of online + offline sales of Youfan Art in 2018 was about 1 billion yuan, and the average annual compound growth rate of sales in the past five years reached 111%.
Its Tmall flagship store has 1.61 million fans, and its sales volume is also among the best in Tmall furniture all year round. Thirty years in Hedong, thirty years in Hexi, and now Youfan art has withdrawn from the scene, which is inevitably embarrassing.
The crisis of Youfan's art is revealed
Different from traditional home furnishing companies, the rise of Youfan Art is inseparable from the vigorous development of Internet e-commerce. At the beginning, it was with the help of Taobao, a huge online platform, that Youfan Art sold its products well and often ranked in the TOP10 in the Tmall home furnishing category.
In addition, Youfan Art has made a leap from scratch because it accurately grasps the personalized consumption habits of young people in first-tier cities and conforms to the aesthetic orientation of users. The word-of-mouth effect of the brand has become more and more significant, which has further promoted its rapid development in the e-commerce market.
Of course, the e-commerce platform of new home furnishing retail is also entering this track at the same time, bringing more development opportunities to Youfan Art. For example, as a strategic partner of Alibaba, Youfan Art's offline experience store relies on the empowerment of Alibaba's big data.
At the same time, Youfan Art has reached a cooperation with Alibaba's Cainiao to optimize its own supply chain system and improve logistics efficiency.
On the other hand, in 2018, Alibaba's Tmall platform took a stake in Easyhome, created the "Taobao Xinxuan" lifestyle brand and opened offline stores.
The entry of e-commerce platforms reflects that the track has been in a period of development dividends in the past period. However, the real estate thunderstorm will begin in 2022, and the home customization industry, which is a subsidiary industry of the downstream of real estate, will also be greatly dragged down.
From the perspective of Youfan Art, the bank suddenly broke its promise and stopped renewing the loan, perhaps because of concerns about its ability to repay.
Due to the lack of access to detailed financial data or bank policy documents, it was not possible to determine the specific cause. However, according to the news that Youfan Art has closed down due to the rupture of funds, it can be speculated that it may face problems in terms of repayment ability, credit status or collateral value, etc., causing the bank to stop renewing loans.
At present, the crisis of Youfan art is constantly revealed.
From the perspective of the entire home furnishing industry, the frequent lightning incidents in the home furnishing industry, the rupture of the capital chain, poor management, and even bankruptcy have undoubtedly greatly reduced consumers' confidence in the home furnishing industry.
Just recently, Opai Home Furnishing was caught in a storm of dealers running away. According to media sources, a number of consumers in Liaoning reported that after a dealer in Haicheng, Liaoning Province placed an order for "whole house customization", the dealer owner declared bankruptcy, and consumers said that a total of nearly 6 million yuan was involved in decoration.
Source: Phoenix.com Finance
Prior to this, an "authorized store" of Opai Home Furnishing in Daqing, Heilongjiang Province had been accused of "running away", which also involved millions of yuan in payments.
At the same time, in recent years, the home furnishing industry has experienced a drastic reshuffle, and the offline home furnishing market has continued to be sluggish
In recent years, the reshuffle of the home furnishing industry has intensified, and the offline home furnishing market has continued to be sluggish. Many chain home furnishing stores such as Home, Red Star Macalline, and IKEA have become more and more difficult to operate, so that the phenomenon of closure and withdrawal has frequently appeared. Take Red Star Macalline as an example, it will close a total of 23 furniture stores in 2023.
In the total retail sales data of consumer goods in March 2024 released by the National Bureau of Statistics, the total retail sales of furniture were 12.1 billion yuan, a year-on-year increase of 0.2%.
At present, although the total retail sales of furniture still maintain growth, the growth rate is relatively low, showing the weakness of the home furnishing market.
Home furnishing brands have found a way out on e-commerce platforms
Despite the difficulties faced by offline home furnishing stores, home furnishing giants have found a way out on online e-commerce platforms.
During last year's Double 11, the major household appliances categories performed well. Taking Taobao Tmall Double 11 as an example, Taobao data shows that as of November 10 last year, 7 brand stores including Genji Muyu, Lin's Home Furnishing, and Gujia Home Furnishing have exceeded 100 million yuan for the first time.
In the full-cycle list released by Tmall (October 31-November 11), brands such as Sophia, Lin's Home, and Jiumu have achieved good results.
At 8 p.m. on October 31, Tmall Double 11 officially opened the final payment, and within 4 hours of sales, the turnover of Lin's Wood and Genji Wood exceeded 1 billion yuan.
In terms of JD.com, on the day of Double 11, in the live broadcast room of JD.com's procurement and sales, the turnover of more than 100 home appliance brands increased by more than 10 times year-on-year within 10 minutes.
At the same time, the furniture and home improvement brands in the Douyin, Kuaishou and Pinduoduo platforms have also achieved good results. For example, during the Double 11 Good Things Festival in Douyin Mall, the overall GMV of the home appliance industry increased by more than 120% year-on-year.
It can be seen that by participating in the Double 11 event, home furnishing brands can significantly increase brand exposure and sales with the help of the platform's traffic advantages and marketing methods.
By making full use of online and offline channels, combined with diversified marketing methods, home furnishing brands can attract more potential consumers.
However, as consumers' demands for quality of life at home continue to increase, home furnishing brands need to keep up with market trends, constantly innovate and upgrade products, and improve service quality to achieve sustainable development.
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