Keywords: ** war with the United States and then "add oil".
Event: The United States again proposed to impose anti-dumping and countervailing duties on mattresses in 14 countries
On July 28, 2023, the U.S. mattress industry and several industry associations jointly filed an anti-dumping duty complaint (AD) against mattresses from Mexico, the Philippines, Poland, Slovenia, Spain and Taiwan, as well as 13 countries and regions, including Bosnia, Herzegovina, Bulgaria, Myanmar, India, Italy, and Kosovo, as well as a countervailing duty complaint (CVD) against mattresses from Indonesia.
It is worth noting that the spearhead of this anti-dumping and countervailing duty is directed at some countries in Southeast Asia and Eastern Europe. Today's home furnishing has learned that the anti-dumping duty rate of mattresses is also very different, with the highest anti-dumping duty rates for Slovenia and Kosovo, reaching 1094% and 915% respectively, and the anti-dumping complaint tax rate for Taiwan, China has also reached 738%.
Extended reading: Up to 1094%! The United States has proposed to impose anti-dumping and countervailing duties on mattresses from 14 countries such as Mexico and the Philippines!
Impact:
In the context of "America First" and the "victim psychology" that the U.S. mattress industry considers unfair imports to be significantly harmed, more and more countries and companies are deeply affected by the anti-taxation of mattresses exported by the United States.
In this situation, the third-country entrepot model has become a more effective response, which mainly exports goods to the United States through a third country (a country not affected by US antidumping and countervailing duties) to avoid high tariffs and taxes.
In addition, some companies choose to abandon the U.S. market and explore other regional markets (Europe, Canada, South Korea, etc.) to improve their competitiveness with diversified market layout.
Keywords: M&A of global bedding giants
Event: Tempur-Sealy Group acquires Mattress Firm, the largest mattress retailer in the United States
In May 2023, it was reported that Tempur Sealy International, the global mattress leader, acquired Mattress Firm, the largest mattress retailer in the United States, for $4 billion in ** plus cash, and the transaction is expected to be completed in the second half of 2024.
Upon completion of the transaction, more than 2,300 stores and e-commerce** owned by Mattress Firm will be brought under its umbrella. Shareholders of Mattress Firm and Tempur-Sealy will each own approximately 166% and 834% of the shares (based on the outstanding shares of the company at the time of signing).
Scott Thompson, chairman and CEO of Tempur-Sealy, said the transaction advances four key long-term plans: developing the highest quality bedding, promoting the brand through unique marketing, optimizing a diversified omnichannel distribution platform, and driving earnings per share growth.
Extended reading: Heavy! Tempur-Sealy Group's $4 billion acquisition of Mattress Firm, the nation's largest mattress retailer!
Heavy! Tempur-Sealy International Group may acquire Mattress Firm?
Impact:
Through this acquisition, Mattress Firm fills the gap in Tempur Sealy's DTC channel, realizes a seamless omni-channel ecosystem, and helps Tempur Sealy enhance its strength in product and channel marketing. The combination of the two also means a re-division of market share, and under the Matthew effect, the U.S. mattress industry is moving towards more centralization.
At the same time, the acquisition has also attracted the attention of the Federal Commission. Given that both are giants in the software market, the Commission believes that the acquisition could create potential impacts such as industry monopolies. However, on November 20, 2023, Tempur Sealy announced that the company had submitted a second document and information in accordance with the ** requirements and obtained proof that the acquisition of Mattress Firm was in compliance with antitrust laws.
Keywords:U.S. home furnishing retail remains resilient
Event: In 2022, 11 large-scale furniture companies announced their sales in the United States, and more than half showed positive growth
In July 2023, Today Home Furnishing counted the sales of 11 large-scale furniture companies in the U.S. market in 2022, including Amurray, La-Z-Boy, Minhua Holdings (USA), Dorel Home, Sauder Woodworking, Shuncheng Holdings, Flexsteel Industries, Hooker Funnishings, Bassett, and Rock House Farm Family of Brands, and Ethan Allen.
Among them, 6 companies had positive year-on-year revenue growth, while the remaining 5 companies had negative growth. The largest double-digit growth was Minhua Holdings (USA) (22.).9%), as well as Shuncheng Holdings (23.).4%）。In addition, Rock House Farm Family of Brands, and FlexSteel also achieved 155% and 14% year-on-year growth.
Extended reading: Statistics of the top 11 players in the U.S. furniture market! 6 were positive and 5 were negative.
Impact:
The U.S. furniture industry will be tested in 2022, with declining consumer demand, rising inventory levels, ** chain problems, and weak real estate all hitting the U.S. furniture industry. In this context, more than half of the 11 companies showed positive growth, while 4 of the 5 companies with negative growth were slightly negative. To a certain extent, this shows that the comprehensive strength of relatively large-scale enterprises is still very strong, and only in the face of crises can they go against the wind. In addition, this also reflects that the United States, as one of the world's largest furniture consumption markets, still has considerable domestic furniture consumption potential.
Keywords: U.S. furniture imports** country ranking changes
Event: In 2022, the top ten importers of furniture in the United States will be released, and Vietnam will return to the first place
In May 2023, Today's Home Furnishing compiled the ranking and category distribution of the top ten importers of furniture in the United States in 2022. Data shows that in 2022, U.S. furniture imports increased slightly by 7% year-on-year to $31.1 billion. Despite the slowdown, growth is still better than in the past. In fact, U.S. furniture imports have been less than ideal over the past few years, with -8% and -1% in 2019 and 2020, respectively.
In addition, the top ten importers of furniture in the United States in 2022 are Vietnam, China, Mexico, Malaysia, Canada, Indonesia, Italy, India, Thailand, and Poland.
Specifically, Vietnam's furniture exports to the United States increased by 7% in 2022 to nearly $9.7 billion. U.S. furniture imports to China fell 7 percent to about $8.5 billion, and its market share fell to 28 percent.
In terms of categories, the import value of U.S. furniture, which increased by 7% in 2022, was mainly due to the increase in the export value of miscellaneous wood furniture, wooden bedroom furniture and wooden beds. At the same time, furniture accessories (wood-framed seats, wood-framed backrest chairs) declined.
Extended reading: The most complete statistics of U.S. furniture imports in 2022: Vietnam surpasses China with 9.7 billion US dollars, and Mexico ranks third!
Impact:
Judging from the data, in the context of China's slight negative year-on-year growth, Vietnam returned to the first place in the United States as a furniture importer and widened the gap. It can be seen that the continuous tariffs have a certain negative impact on China's furniture foreign trade, but it is generally controllable.
Secondly, from the perspective of the structure of the United States' importing countries, the United States has reduced its dependence on industrially developed countries and turned to developing countries, and the import concentration has declined, which is most prominently reflected in the leading share of Vietnam and the increase in Mexico's share. Perhaps with the gradual rise of the share of developing countries such as Mexico, for the importers of American furniture, more countries will transfer the furniture industry, and there will be a new round of industrial development trend of overseas layout.
Keywords: National Mattress Sellers 2022 "Report Card".
Event: The 2023 Top 25 Mattress Sellers in the United States was released, and Mattress Firm ranked first
In October 2023, Today's Home Furnishing counted the 2022 annual mattress retail ranking in the United States. According to statistics, the total sales of the top 25 physical and online mattress retailers in 2022 exceeded $17.9 billion. The Mattress Firm remains at the top of the list, followed by retail giant Amazon in second place, with total sales of about $2.1 billion.
At the same time, Sleep Number ranked third, and Tempur Sealy International ranked tenth. 3Z Brands broke through with a total sales of about 400 million yuan and became a member of the TOP25 list, ranking 16th on the list, becoming the dark horse of the year.
From the perspective of sales channels, the two most prominent sales channels are mattress specialty stores (BS channel) and direct-to-consumer (D2C channel), accounting for respectively. 2%, the first two with the third place with the traditional furniture store (12.).8%).
Extended reading: 2023 Top 25 Mattress Sellers in the United States, with a total amount of $17.9 billion, and the position of the Big Three is solid!
Impact:
Overall, among the mattress sellers in the United States, the position of the three giants of Mattress Firm, Amazon and Sleep Number is still solid. Looking at the list, direct-to-consumer (DTC channel) retailers such as Amazon, Sleep Number, Overstock, and 3Z Brands have become a force to be reckoned with, which is enough to show the rapid development of D2C channels in the United States in recent years.
This is due to the advantages of DTC in streamlining and controlling consumption channels, making full use of big data, cultivating consumer relationships in multiple dimensions, and building a high-level brand image. In the future, direct-to-consumer may become a key channel that will affect the mattress market pattern in the United States.
For traditional retail channels, the integration of online and offline will become one of the general trends, that is, on the basis of continuing to maintain the development of the offline market, the development of the online market will achieve a differentiated breakthrough.
Keywords: Top 25 home furnishing retailers in the United States
Event: The top 25 home furnishing retailers in the United States were released, and Amazon ranked first
According to the top 25 home furnishing retailers in the United States in 2022, the top three are Amazon, Wayfair, and Ashley, and the total sales of the top 25 increased by less than 1%, from $82.9 billion to $83.6 billion, of which Amazon's sales share reached about 15% of the total.
From the point of view of sales channels, direct-to-consumer to 293% occupies the first place. Lifestyle furniture stores including Williams-Sonoma, RH, IKEA and Crate and Barrel have added new additions to the top 25, with Arhaus, a new entrant to the top 25, coming in at No. 22. These five retailers hold more than 18% of the market share, replacing the 163% market share of traditional furniture stores.
However, if you add Ashley in third place and La-Boy in 19th place, traditional brick-and-mortar furniture retailers account for more than a quarter of sales in the top 25.
Extended reading: The TOP25 list of home furnishing retailers in the United States is released! The DTC channel accounts for 29%.
Impact:
In the 2021 rankings, Wayfair, as a direct-to-consumer company, surpassed the 11-year cicada champion Amurray Home, and the top two in 2022 are direct-to-consumer home furnishing retailers, namely Amazon and Wayfair.
At the same time, lifestyle furniture stores are gradually growing, moving from the third largest channel in 2020 to the second place, while traditional furniture stores have dropped from the second largest channel in 2020 to the third place.
Judging from the current trend, in addition to the growth momentum of online channels, the proportion of retailers who pay attention to the display of living space and store format upgrading will also gradually increase.
Keywords: consumer mental warfare
Event: The 2023 Readers' Selection List of Home Today was released
In December 2023, Furniture Today released the "Reader Rankings" readers' awards to recognize outstanding corporate companies in the home furnishing industry.
This poll not only covers home furnishing brands such as soft bed mattresses, wooden furniture, and lighting, but also home furnishing-related enterprises such as financial services, technology services, logistics and transportation, among which the award-winning companies include home furnishing companies such as Tempur and Slibidi, as well as technology service enterprises including Giga Cloud.
Extended reading: "Today's Home" annual readers' selection list is released! A number of Chinese brands were selected!
Impact:
In this selection, there are Chinese brands that have been nominated or awarded by virtue of their own strong strength, such as Gujia Home Furnishing was shortlisted for the best upholstered furniture brand, and Giga Cloud won the best e-commerce technology service company.
This shows that American consumers' awareness of Chinese home furnishing brands has increased, and it is also a manifestation of the growing strength of Chinese home furnishing brands. While feeling the power of Chinese brands on the international stage, perhaps Chinese home furnishing companies can dig deep into it and occupy the enlightenment of business ideas and strategies in the minds of consumers in overseas markets.
Keywords: Multiple U.S. furniture stocks**
Event: The largest decline in the U.S. furniture sector was twice as large as the market
Today's latest home news, on July 6, 2023 (Beijing time) in the United States, the United States has more than 300 points, and American furniture stocks have also been impacted. The three largest decliners in the market, including Williams-Sonoma, RH and Arhaus, all saw almost twice as many shares as the market.
On the other hand, Culp Inc., an American manufacturer of mattress and furniture fabricsand furniture manufacturer Flexsteel shares**, respectively 242%，0.79%。In the past volatile situations, it was common for furniture stocks to be swift as they stabilized.
In fact, in June, the United States has appeared, and the main reason for this is that the private sector in the United States has increased by 4970,000 jobs, more than double what Dow Jones expected. And this strong employment data has caused investors to worry that the Federal Reserve will raise interest rates further.
Extended reading: A number of listed furniture companies in the United States have been hit hard.
Impact:
In 2023, the U.S. furniture market will be volatile and unstable, coupled with the impact of the United States, consumers will have insufficient confidence in the investment environment, which will affect the listed furniture companies to a certain extent. Judging from past experience, the rise and fall of the U.S. stock index generally shows the characteristics of before the recession and before the economic recovery. This round is more in line with historical experience. As a furniture company, from the perspective of long-termism, it is necessary to weld the chassis, accumulate funds and strength when the market is hot, stabilize the fundamentals and respond calmly when the market is low.
Keywords: 2023 U.S. mattress shipments and prices both fell
Event: In 2023, the volume and price of mattress shipments in the United States will fall together, but it is expected to improve in 2024
According to ISPA's International Sleep Products ASSN**, total shipments in the mattress industry will decline by 6% year-on-year in 2023 compared to 2022, to about 40.6 million units, and the total value of shipments will decrease by 3% to 102$4.8 billion. The decline in shipment volume and price in 2023 is due to a variety of factors, such as inventory still to be digested, inflation problems, and low employment rates.
However, as mortgage rates are expected to slow in 2024 and the real estate sector begins to recover, ISPA expects total mattress shipments in 2024 to increase by 3% from 2023 to $41.8 million, respectively, and total shipment value to increase by 5% to 107$600 million.
U.S. Mattress Shipments (2019-2024)
Extended reading: In 2023, U.S. mattress shipments will "fall in volume and price"? The total amount is about $10.2 billion.
Impact:
Judging from the above data, the decline in the volume and price of mattress shipments in the United States shows that the mattress market is not developing well. With the rise of overseas mattress brands, as well as the slow recovery of the world economy due to the end of the new crown epidemic in 2023, the shift of consumer consumption from home to tourism consumption and other factors have further hit the shipment volume and shipment value of mattresses in the United States.
In this context, to a certain extent, the risk of the collapse of mattress companies has increased, and at the same time, many companies have readjusted their development strategies, such as reducing inventory reserves.
Keywords: Malaysian furniture industry is facing challenges
Event: Malaysian furniture demand plummeted, and the rating was downgraded from Overweight to Hold for Temporary
According to a report by Hong Leong Investment Bank Bhd, the demand for furniture in Malaysia is becoming less visible as the global economic downturn becomes more and more uncertain. As a result, Hong Leong Investment Bank Research has downgraded the furniture sector to neutral from overweight.
There are three reasons for the decline in furniture demand in Malaysia: the increased risk of an economic weakening in the US, the largest export market, the reduction in demand for furniture after the lifting of pandemic restrictions, and the shift in people's spending budgets to travel and leisure.
Extended reading: Investment Bank Report: Malaysian furniture industry will be hit by the global economic downturn!
Impact:
Investment agency HLIB Research said that even if the United States will cut interest rates three times in 2024, the housing problem will be difficult to improve, and the demand for furniture will continue to be weak. Against this backdrop, Malaysia's furniture industry will continue to be affected.
Against the backdrop of the continued impact on the US market, Malaysia's furniture industry is likely to restructure its business to diversify its exporters and reduce its dependence on the US. At the same time, overseas enterprises that have moved their industries to Malaysia will also make corresponding strategic adjustments, such as diversifying their operating bases and expanding from Malaysia to other Southeast Asian countries.
Conclusion:
The year 2023 has passed, and standing at a new historical starting point, a new chapter will be opened. I wish all of you to move forward bravely in 2024, gain opportunities in the crisis, grow in the challenges, find the same in the change, and find innovation in the same!