The new paradigm of home furnishings believes that China only lacks high-end textile brands, but not high-end textile enterprises.

Before the reform and opening up, China’s textile industry was in a very backward state, and the primary problem to be solved was people’s clothing and usage. Later, Guangdong, Zhejiang, Shanghai, Jiangsu, Shandong and other places gradually formed industrial clusters mainly composed of curtains, fabrics, and bedding. However, the research and production technology of domestic textile enterprises was still relatively backward, and “replicas” became a typical symbol of the industry at that time.

After China’s accession to the WTO, its textile industry began to fully integrate with the international community. Driven by export trade, China’s textile industry also accelerated its pace of industrial upgrading, and the number of independent brands in the industry continued to increase. “China Textile” gradually transformed into “China Home Textile“.

It is not difficult to see that in the past 30 years of development, China, as the world’s largest textile country, has already formed a complete supply chain system for Chinese home textiles. It has the world’s largest textile industry cluster, experienced fabric developers, and a huge fabric demand testing ground. In addition, with years of experience in OEM manufacturing for world brands, “the world’s home textiles look at China” is not an empty phrase.

With the changes in consumer attitudes and lifestyles, consumers are no longer satisfied with the practicality of home textile products. They have put forward higher requirements for the design, fabric, and functionality of home textile products, which are also driving the “upward development” of Chinese home textile brands.

According to statistics from the China National Business Information Center, the average unit price of branded home textile bedding has been steadily increasing in the past few years, with CAGR of 2.16% and 7.84% for bed sets and various quilts from 2017 to 2021, respectively.

Mengjie Co., Ltd. has been undergoing a high-end strategic transformation since 2021, carrying out significant reforms in various aspects such as brand image, product research and development, and market channels. Including collaborating with Herm è s and Chanel designers to launch a high luxury series of bedding products; Take the lead in introducing the 7A raw material standard in the industry and strategically cooperate with six high-quality raw material production areas, including Yuepuhu County in Xinjiang and Ningnan in Sichuan; Launch a brand new visual system and refresh the image in channel display, brand promotion, and other aspects.

Funana, which has always been positioned as a high-end art home textile brand, has focused on the mid to high end field since its inception and was the first brand to introduce “artistic concepts” into the home textile industry. Funana’s unique flat screen printing and new national embroidery digital printing are representative original design techniques of the brand. Among them, the screen printing technique is also considered to turn consumer goods into works of art due to its difficulty in plate making, high artistic value, low output, and long time consumption.

In addition to these two brands that have fully transformed into high-end products, other home textile brands have also launched high-end product lines. For example, Mercury Home Textile officially launched Mercury STARZ HOME in 2022, which is a new upgraded version of Mercury Home Textile’s high-end product and channel layout.

Meanwhile, Roewe Life gradually achieved full coverage of the middle, high, and ordinary consumer markets through the acquisition of brands such as Lexington, Uchino, and Dinosaur.

From the performance of the major home textile listed companies in the third quarter of 2023, there are 7 listed companies in total, namely, Luolai Life, Fuanna, Mengjie Shares, Zhenai Meijia, Mercury Home Textile, Zhongwang Textile and the Taihu Lake Snow. The average year-on-year growth rate of their operating income is 11.34%, an increase of about 18 percentage points compared with -6.82% in the same period of last year, and the 7 companies have all made profits in the first three quarters.

It is not difficult to see that after three years of testing, the domestic home textile market is gradually recovering. Major home textile enterprises are helping to further enhance their profitability through measures such as increasing research and development investment, launching innovative products, and expanding marketing networks.