In the global market, China's furniture industry has always occupied an important position thanks to its well-developed supply chain and advanced industrial clusters. However, this has also led to the phenomenon ofsevere internal competition within the domestic furniture industry, forcing a large number of furniture brands to seek opportunities overseas.

According to data from the General Administration of Customs, in the first quarter of 2024,China's furniture export scale reached 168.55 billion yuan, a year-on-year increase of 20.4%, setting a new historical high.

Amidst this wave of furniture going overseas, there is a long-established company that has transformed from a traditional OEM factory to cross-border e-commerce, successfully incubating multiple furniture brands,with annual revenue of 8.2 billion yuan, achieving success both domestically and overseas, allowing the company, once trapped in the vortex of internal competition, to go even further.

This established company isHenglin Co., Ltd., and its overseas brand isNouhaus.

Part 01

From Traditional OEM to Cross-Border E-Commerce

Henglin Co., Ltd. was founded in 1998, initially starting with OEM/ODM business and gradually growing into an integrated home furnishing enterprise covering R&D, production, and sales. The company entered the foreign trade industry in 2002 and actively laid out cross-border e-commerce in 2019, opening a new chapter of development.

Milestone Events

· 2002:Entered the foreign trade industry, focusing on OEM/ODM business, and established partnerships with internationally renowned brands such as IKEA and NITORI.

· 2019:Ventured into cross-border e-commerce, accelerated overseas market expansion through acquisition of overseas brands and incubation of self-owned brands, and established production bases and warehousing logistics centers overseas.

Driven by cross-border e-commerce, Henglin Co., Ltd. has achieved significant performance growth. According to the company's latest financial report, in 2023 Henglin Co., Ltd. achieved operating revenue of 8.195 billion yuan, a year-on-year increase of 25.78%;cross-border e-commerce business achieved revenue of 1.621 billion yuan, a year-on-year surge of 60.50%.

Image source: Henglin Co., Ltd. financial report

Comprehensive Blossoming of Strategic Layout

1. Innovation in Business Model:Henglin Co., Ltd. adopts a dual-track online and offline sales model, combining complementary B2B and B2C strategies. Through OEM/ODM business cooperation with internationally renowned brands, the company enhances its international reputation. At the same time, through mergers and acquisitions and incubation of self-owned brands, it builds a multi-level brand matrix.

2. Expansion of Sales Channels:Henglin Co., Ltd. actively lays out multi-platform sales, covering major US online retail platforms such as Amazon, Wayfair, Walmart, as well as domestic cross-border e-commerce platforms like TikTok and TEMU. Meanwhile, it utilizes social media such as TikTok and Instagram to create a multi-dimensional online marketing network.

3. Enrichment of Product Lines:Henglin Co., Ltd. continuously optimizes and enriches its product matrix, with product lines covering office chairs, sofas, system office furniture, new material flooring, etc. Its brand Nouhaus achieved operating revenue of 355 million yuan in 2022, with a gross profit margin as high as 13.33%.

Part 02

Dual Drive of Social Media Traffic and Brand Building

Although OEM/ODM business is still the main source of income, Henglin Co., Ltd. is increasing investment in its own brands, especially in the field of cross-border e-commerce.Nouhaus, as the flagship brand, focuses on providing high-quality, stylish, and practical furniture products.

To expand the traffic channels for its independent site, Henglin Co., Ltd. channels traffic to its independent site through social media platform layouts. It has a presence onFacebook, Instagram, Twitter, YouTubeand other mainstream social platforms, and began advertising on TikTok in 2023, guiding traffic to its independent site stores through exposure on social platforms.

In addition, Nouhaus also performs well on social media. On Facebook, although the number of followers is relatively small, frequent content updates and interaction with fans enhance brand awareness and user stickiness. On Instagram, Nouhaus has 15,000 followers, mainly showcasing product features, detailed explanations, and unboxing videos in the form of short videos to enhance user experience.

Image source: Instagram

On TikTok, Nouhaus also maintains a strategy of continuous updates, attracting more potential customers by publishing short videos related to products, showcasing product features and usage scenarios. Although the number of TikTok followers is not high, through interaction and communication with fans, Nouhaus can better understand user needs and provide strong support for subsequent product development and marketing strategies.

Image source: TikTok

It is precisely through such diversified channel layouts, strong supply chain support, and efficient social media strategies that Henglin Co., Ltd. has successfully achieved comprehensive brand coverage and effect enhancement. Its brand Nouhaus not only performs well on cross-border e-commerce platforms such as Amazon, but also establishes a good brand image and user reputation through independent sites and social media.

Thisstrategy of combining online and offline, emphasizing both social media traffic and brand buildinghas enabled Henglin Co., Ltd. to stand out in the cross-border e-commerce track and become a leader in the industry.

In the future, with the continuous development of the global furniture market and technological progress, Henglin Co., Ltd. is expected to maintain strong growth momentum and shine in the international market.

Image source: Nouhaus independent site

Looking back at Henglin Co., Ltd.'s journey overseas, it is undeniable that it has been greatly influenced by overseas market environmental factors. It is precisely due to the characteristics of the overseas furniture track itself, combined with Henglin Co., Ltd.'s advantages and a series of initiatives, that it has successfullyreached the number one position in the furniture categoryin a short period of time.

In addition to Henglin Co., Ltd., there are also companies such as Loctek, Zhiou Technology, and Reolink Technology that have achieved remarkable results in the furniture overseas track. These companies have also emerged in the global market by virtue of their respective advantages and strategies.

For example, Loctek's performance in the smart home and healthy office fields is particularly outstanding, with its brand FlexiSpot's height-adjustable desks leading sales on platforms such as Amazon and Walmart.

Zhiou Technology's brands SONGMICS, VASAGLE, and FEANDREA perform excellently in the furniture, home, and pet home categories.

Reolink Technology has also achieved impressive results in the smart security field, with its brand Reolink's wireless cameras selling well on platforms such as Amazon.

Image source: Loctek

The success of these companies reflects the huge potential of the global home furnishing market and the strong competitiveness of Chinese enterprises. As market demand continues to change and technology advances, the furniture industry will continue to usher in new opportunities and challenges. For Chinese furniture companies, seizing market opportunities, strengthening technological innovation and brand building will be the key to future development.