In June 2023, SONGMICS HOME rang the bell for its listing on the Shenzhen Stock Exchange's ChiNext board, becoming a representative of Henan's cross-border e-commerce sector. Today, its business covers more than 70 countries and regions around the world, with an annual revenue exceeding 8 billion RMB, leading the wave of "Henan enterprises overseas expansion".
In the increasingly competitive cross-border home furnishing market, why can SONGMICS HOME maintain sustained growth?
SONGMICS HOME adopts a light asset model of "front-end R&D and design + back-end sales and operation". It entrusts the production link to manufacturers and focuses on high-value-added R&D and brand operation itself. This not only reduces the risk of heavy assets but also enables it to flexibly connect with China's abundant supply chain resources to achieve cost optimization.
Data drive is the engine of product iteration. Through the user review system of e-commerce platforms, SONGMICS HOME has established a real-time feedback mechanism. "Any complaints from consumers about color, installation, and structure will become the basis for our product improvements," Qin Yongji revealed. The enterprise launches more than 1,000 new products every year, with a product lifecycle of about 3 years, during which continuous innovation is carried out.
Global supply chain and warehousing layout are the guarantee of delivery efficiency. Facing Sino-US trade frictions, SONGMICS HOME strategically laid out overseas supply chains as early as 2024. At present, it has built dual supply centers in Southeast Asia and China, transferring 70% - 80% of its production capacity in the US market to Southeast Asian countries such as Vietnam and Thailand, effectively hedging tariff risks.
In terms of warehousing, SONGMICS HOME has built an overseas warehouse network of over 300,000 square meters, including a 220,000-square-meter warehouse in Germany that radiates the entire Europe. Through the combination of "self-owned warehouses + third-party warehouses + platform warehouses", the enterprise realizes fast delivery to core markets such as Europe, the US, and Japan.
Brand operation is a key tool for SONGMICS HOME to break through homogeneity. "For the same product, why do consumers choose you? Ultimately, it depends on the brand and cost-performance ratio," Qin Yongji said. SONGMICS HOME adheres to its own brand strategy, accumulating a large number of repeat customers through stable quality, competitive prices, and timely customer service. Its market share in the online furniture category in Europe has remained steadily at the forefront.
Currently, its products maintaina stable rating of 4.3 points (out of 5) on Amazon. The European market accounts for 60%, the US market 30%, and the Amazon channel contributes 70% of sales. Annual sales from its independent website have also surpassed 200 million RMB.
Amid the trend of cross-border e-commerce enterprises gathering in first-tier cities such as Beijing, Shanghai, Guangzhou, and Shenzhen, SONGMICS HOME has consistently kept its core operation team in Zhengzhou. Furthermore, Henan's location in central China, with its convenient transportation, facilitates connections with suppliers in the Yangtze River Delta and Pearl River Delta, providing geographical advantages for enterprise operations.
Facing the complex and ever-changing international environment, SONGMICS HOME has its own development rhythm.
In the short term, it will continue to deepen its presence in core markets like Europe and the US while expanding into emerging markets. In terms of product categories, on the basis of existing home furnishing, outdoor, and pet products, it will extend into areas like home textiles and mattresses, aiming to create afull-category home furnishing ecosystem. In the long run, overseas mergers and acquisitions to integrate resources are not ruled out, but at this stage, "strengthening its internal capabilities" remains the top priority. (Chinese source: Henan Daily Reporter: Yan Wenrui Translator: Hong Jianyuan)
