Under the trend of diversification of consumption channels, home furnishing stores are undergoing profound changes, and demand switching and model upgrading have become the key to breaking the situation for home furnishing enterprises. As one of the leading enterprises in China's pan-home furnishing industry, Easyhome will actively seek innovation and change in 2023, showing strong development resilience in a complex and changeable market environment.
According to its annual report data released on the evening of April 25, in 2023, the company will achieve market sales (GMV) of 117.6 billion yuan, a year-on-year increase of 11.7%, operating income of 13.512 billion yuan, and net profit attributable to shareholders of listed companies of 1.3 billion yuan.
In the past year, following the policy guidelines and grasping the synergistic advantages of the industry, the home has explored the integration of "big home" and "big consumption", and regarded the shopping center format as the second growth curve of the company's development.
On the other hand, the company has expanded the store chain through direct sales and franchise models, and built a digital home furnishing industry service platform with "Dongwo" as the core, and carried out a three-dimensional layout around digital intelligence capabilities, which not only gradually transformed from a home furnishing retailer to a "big home" and "big consumption" platform, but also boosted the industry to build a benign ecology.
The business model has been polished and reshaped, and the second growth curve has been steadily expanded
It is one of the few large-scale and integrated home furnishing channels in the domestic market that has built a national offline retail network. In terms of business fundamentals, the home has carried out store chain expansion through direct sales and franchise models. As of December 31, 2023, the Company operated 414 home furnishing stores in 29 provinces, autonomous regions and municipalities in China, including 86 directly operated stores and 328 franchised stores.
While consolidating the main business of "big home", the home is also actively building the second growth curve and carrying out the shopping center business under the brand of "China Business World".
At the end of 2021, the company opened its first "China Business World" shopping mall in Changchun. After two years of development, Changchun "China Business World" will achieve sales of 633 million yuan in 2023, with an annual passenger flow of 10.9476 million, and an occupancy rate of 98.2% as of December 31, 2023, making it one of the most popular shopping malls in Changchun and concerned by brands.
Following Changchun's "China Business World", the company has successively opened shopping malls such as Wuhan Optics Valley Store, Hohhot Wanzheng Store and Wuhan Pinpinmao, all of which have achieved good results. Among them, Wuhan Pinpinmao opened in Wuchang District in August 2005 and reopened on January 29, 2024 after renovation and renovation.
Up to now, the company has successfully opened 4 shopping malls in China, and has formed unique competitiveness and business characteristics around "digitalization", "intelligence" and "content IP" in the operation of shopping centers. At the same time, the company operates 5 modern department stores and 173 supermarkets of various types in the core business districts of major cities such as Wuhan, Jingzhou, Huangshi, Huanggang, Xianning and Jingmen in Hubei Province. The company's modern department store and supermarket retail business has a high reputation in Hubei Province.
It is worth mentioning that in December last year, Wang Linpeng, chairman of the board of directors of the house, publicly stated for the first time that he would reshape himself and reshape the business model, the first of which is to reshape the value chain, from the "fixed rent" model to the "sales share" model, and form a community of destiny with factories and dealers. The change from the business model that has been based on property rent as the main income for many years to the sales sharing model that determines income based on sales performance is considered to be a huge change in the face of the new situation in home furnishing stores.
According to the annual report, in February 2023, the home has been piloted in Harbin Pioneer Store, and as of December 31, 2023, the investment rate of Pioneer Store has increased to 98%. From the investment conference held on June 12, 2023 to the official opening on December 16, 2023, the investment attraction rate reached 98%, and many domestic first-line brands were successfully introduced.
Grasp the trend of smart IoT, and the digital and intelligent transformation will bear fruit
In recent years, the house has been fully immersed in the big project of "digital" transformation, and now, digitalization has become one of the most significant symbols of the house. As the three major grasps of the digital and intelligent transformation of the company, Dongwo, the designer and the smart home have all achieved good development in 2023, and the company's digital and intelligent transformation has begun to bear fruit.
Among them, "Dongwo" provides a global solution from infrastructure to scene application for home furnishing stores, factories, dealers and shopping guides; "Actually Designer" is an AI home decoration design platform jointly created by the company and Alibaba;" "Actually Smart Home" is a smart life service platform created by the company to adapt to the advent of the era of the Internet of Everything.
As of December 31, 2023, the cumulative number of online stores in Dongwo has reached 934, a year-on-year increase of 173.1%. More than 100,000 merchants were settled, a year-on-year increase of 101.33%. The number of registered users exceeded 25 million, a year-on-year increase of 95.48%. The average monthly active users were 3,905,100, an increase of 316.67% year-on-year. The platform transaction (GMV) for the whole year reached 97.4 billion yuan, a year-on-year increase of 173%. In addition, in 2023, Dongwo will also open Macau and two overseas sub-stations in Singapore and Cambodia, creating a solid digital foundation for the company's international business development.
In 2023, the business of Actually Designer will focus on the cloud design tool business, 3D business and precision marketing business with the AI design platform as the core. As of December 31, 2023, the number of registered users worldwide exceeded 14.77 million, a year-on-year increase of 19%. The number of design cases exceeded 32.686 million, a year-on-year increase of 18.5%. The number of models exceeded 12.44 million, a year-on-year increase of 27.4%.
In 2023, Wisdom Home will open 57 new stores, with annual sales of more than 4.4 billion yuan, a year-on-year increase of 58.4%. As of December 31, 2023, there are more than 200 cooperative brands that have achieved interconnection with Actually Smart Home, more than 120,000 access devices, 117 stores have been opened in 15 provinces and cities across the country, and the number of registered APP users has exceeded 200,000.
In the annual report, the home mentioned that with the advent of the intelligent era of the Internet of Everything, smart home has become a new consumption hotspot. The company is keenly aware of market changes, explores the transformation and upgrading of home furnishing stores to smart home experience centers, and creates a new smart life scene of "people, vehicles, and homes".
In 2023, the company will actively expand cooperative brands, organize and hold an ecological conference on smart home appliances and high-end customized categories, tap smart home hot category resources, and add 518 new cooperative brands throughout the year. In August last year, the company's first smart home experience center landed in Tongzhou, Beijing, and at the same time accelerated the expansion of smart home brand cooperation to achieve more smart home interconnection. By the end of 2023, the number of smart home brands in the company's home furnishing stores has increased to 1,357, with an operating area of 1.357 million square meters and sales of more than 16.1 billion yuan.
In addition, in order to improve the operational efficiency of the home furnishing industry, reduce the logistics costs of factories and dealers, and improve the consumer experience, the company has created a digital and intelligent logistics service platform, and the first smart logistics project is located in Baodi District, Tianjin, which will be officially put into operation at the end of 2021.
In 2023, the company's Tianjin Smart Logistics Park will gradually mature in operation, with 206 brands entering the park, with a cumulative order volume of 157,000 orders throughout the year, a year-on-year increase of 151%, and a year-on-year increase of 74% in revenue. The closed-loop of home consumption of "physical store + logistics delivery" has gradually taken shape, providing a guarantee for the company to gain a stronger competitive advantage in the home furnishing industry.