There are not many home furnishing companies that have been able to grow against the trend in the past three years, and Oupai Home Furnishing is one of them. On April 25, Oupai Home Furnishing released its 2022 annual report. According to the annual report data, in 2022, Oupai Home will achieve a total operating income of 22.48 billion yuan and a net profit of approximately 2.688 billion yuan.
From 2020 to 2022, Oupai Home Furnishing's annual revenue has successfully broken through from 14.74 billion to 22.48 billion. In particular, the business of wardrobes and accessories has grown rapidly, and its new brand, Oupaili, has successfully seized the young people's market. At present, Oupai Home Furnishing has more than 7,000 offline stores and has established a strong sales system.
It is no exaggeration to say that such a report card, whether it is placed in the home furnishing industry or the entire A-share market, is already very impressive. In the recent period, affected by market factors such as rising materials and shrinking demand for decoration, many home furnishing and home improvement companies have struggled to develop, but how did Oupai Home achieve growth against the trend? From the 2022 annual report of Oupai Home Furnishing, we may find some answers.
Revenue of 22.48 billion wardrobes and accessories become the main driving force for revenue growth
According to the 2022 annual report data of Oupai Home Furnishings, in 2022, the company achieved a total operating income of 22.48 billion yuan, a year-on-year increase of 9.97%, and a net profit attributable to shareholders of listed companies of 2.688 billion yuan, a year-on-year increase of 0.86%; Revenue was 6.211 billion yuan, a year-on-year increase of 2.83%; net profit attributable to the parent was 698 million yuan, a year-on-year increase of 26.41%.
From the perspective of annual revenue and net profit attributable to shareholders of listed companies, Oupai Home has maintained a growth trend in the past three years.
In terms of specific business income, the performance of Oupai home furnishing wardrobe and supporting products business is particularly outstanding. The annual income in 2022 will reach 12.139 billion yuan, a year-on-year increase of 19.34%, and the gross profit margin is 31.78%. The same period fell by 4.73% year-on-year, with a gross profit margin of 34.02%; the operating income of the wooden door business was 1.346 billion yuan, a year-on-year increase of 8.85%, and the gross profit margin was 16.38%; the operating income of the bathroom business was 1.035 billion yuan, a year-on-year increase of 4.63%, and the gross profit margin was 26.20%.
The income of multiple businesses has maintained a growth trend, and the annual revenue of multiple businesses has exceeded 1 billion. This also means that the strategy of Oupai Home furnishing large homes has achieved remarkable results in the market. , It is one step closer to the goal of the world excellent home furnishing group.
It is worth mentioning that Oupai Home Furnishing has also achieved good results in the field of channel construction. In 2022, Oupai's home kitchen marketing business will face up to difficulties, and the channel layout will be multi-pronged. There will be more than 440 newly opened stores in the retail channel, and more than 4,000 cooperative installation companies in the retail system. Compared with the number of more than 3,000 in 2022, the number will increase significantly. The integrated kitchen business model will open more than 170 new stores, and more than 100 cities will open super large home furnishing.
It is foreseeable that with the help of huge sales channels and with the advantages of the supply chain system, Oupai Home Furnishing will maintain the steady growth of the cabinet, bathroom, door industry, and wardrobe business, especially the wardrobe and supporting business in 2022. In terms of growth, the wardrobe and accessories business may continue to maintain a high growth rate.
So, to achieve such results, what did Oupai Home Furnishing do right?
The growth of Oupai Home against the trend in the past three years is inseparable from these three reasons
In the author's opinion, the operating results of a company are mainly related to the decisions made in the past. The achievement of Oupai Home Furnishing's growth against the trend in the past three years is inseparable from the following three reasons.
Reason 1: Pushing forward the development of multi-branding of enterprises, Ou Boli's revenue will reach 1.84 billion yuan in 2022
From the earliest kitchen cabinets to today's comprehensive home furnishing group, Oupai Home Furnishing Group's popularity is sufficient, which is of great help to its supply chain, sales channel construction, and large-scale cooperation.
On the consumer-oriented side, Oupai Home Furnishing's multi-brand development strategy is undoubtedly more in line with the current era. In a market with a sharp increase in the number of brands, subdivided brands with more precise positioning and more obvious labels are more likely to occupy the minds of users and establish a clear competitive advantage in the market.
At present, Oupai Home Furnishing already owns Oupai (medium-to-high-end brand), miform (high-end brand), Ou Boli (young fashion brand), Bonisi (full furnishing brand), Ou Boni (new brand), etc. brand. Among them, Ou Boli is positioned as a young and light luxury brand, which is specially born for the Me generation and has been recognized by many young users and partners.
In 2022, Ou Boli's revenue will reach 1.84 billion yuan, a year-on-year increase of 29.1%, and the number of stores will reach 1,054, breaking through the 1,000-store mark. At the same time, in order to better keep up with the development trend of the market, Opaline is also actively expanding channels in the fields of e-commerce and live broadcasting, and has become a brand with very obvious growth in the Oupai Home Furnishing Group.
The achievements of Oupaili prove the multi-brand strategic vision of Oupai Home Furnishing Group. When the successful operation experience of the Oupai brand is copied to more brands of the group by Oupai Home Furnishing, other brands will be able to embrace new market trends more quickly. The combination of precise and subdivided brand positioning and the expansion of emerging channels will also allow Oupai Home Furnishing to have enough confidence to create a brand matrix covering different consumer users and achieve the company's steady growth of multiple brands.
Reason 2: Over 7,000 offline stores, Oupai home furnishing sales channel system construction has achieved outstanding results
A good brand positioning can enable consumers to have a better understanding of the brands under Oupai Home Furnishings, and become an important factor for consumers to consider when making consumption decisions.
However, most people prefer to believe that "seeing is believing" when purchasing household products and services. How to promote the brand more widely? How to establish more points to recommend products and services for consumers? These are all issues that home furnishing brands need to think about, and in this case, channels have become an important starting point for home furnishing brands to expand their brand influence and increase revenue.
According to the annual report, in 2022, the revenue of Oupai directly-operated stores will be 706 million yuan, an increase of 20.12% year-on-year; the revenue of dealership stores will be 17.582 billion yuan, a year-on-year increase of 12.13%;
It can be seen that the core revenue of Oupai Home Furnishing comes from the Oupai dealer channel. The financial report data shows that during the reporting period, there were more than 7,000 offline stores of Oupai Home Furnishing, including 2,479 Oupai kitchen cabinet stores, 2,210 Oupai wardrobe stores, 816 Oupai bathroom stores, and 816 Oupai bathroom stores. There are 58 operating stores, 1,054 O'Brien stores, and 1,056 O'Brien stores.
What is certain is that such a huge offline dealer system is the main window for Oupai Home Furnishing to deliver high-quality products and services to consumers. Home furnishing enterprises, in addition to brands and products, are very tested in the channel sales system and channel sales points.
Judging from this scale, the offline stores of Oupai Home exist in almost all home furnishing markets in the country, and the number of dealers it owns is also competitive enough in the whole industry. The implementation of home customization strategy provides strong support.
In fact, with the further deepening of the Matthew Effect in the future, more and more home furnishing dealers will choose brands with greater strength, excellent products, and accurate brands for cooperation. If this development trend can continue, the channels of Oupai Home Furnishing The advantage will be even stronger.
At the same time, as Oupai Home Furnishing continues to make efforts in emerging channels such as live broadcasting and e-commerce, the huge offline dealer system has laid a solid foundation for the development of Oupai Home Furnishing. vitality.
Reason 3: Continuously increasing R&D investment has injected new strength into the multi-brand and multi-business development of Oupai Home Furnishing
Oupai Home Furnishing develops in parallel with multiple brands and multiple business lines, which actually makes it face greater challenges. How to discover more user needs and user pain points in subdivided products and business lines? How to closely follow the market trend and even lead the market trend? How to use the power of informatization to empower dealers?
Regardless of the external market environment, these problems require home furnishing companies to provide solutions. In this case, Oupai chose to break through the research and development.
From the data point of view, from 2020 to 2022, the research and development expenses of Oupai Home Furnishing will be 699 million, 908 million and 1.123 billion respectively, and the number of R&D personnel will be 2774, 2954 and 3024 respectively. Regardless of the number of R&D personnel or the investment in R&D funds, Oupai Home Furnishing has continued to increase.
It is precisely this concept that enables OPPEIN to maintain its competitiveness in the field of products and craftsmanship, and enables consumers and partners to continue to find the unique selling points of OPPEIN home brands and products.
In the increasingly competitive home furnishing market in the future, R&D and innovation capabilities, sales channel construction capabilities, brand positioning and operational capabilities will become the key to the competition of home furnishing companies. It is also based on these capabilities that Oupai Home Furnishing is also full of confidence when formulating its performance goals for 2023, and strives to achieve a year-on-year increase in operating income of 10%-15%, and a year-on-year increase in net profit of 10%-15%.
From the perspective of institutional dynamics, Oupai Home Furnishing has received 17 research reports from securities companies in the past month, and bought 15 of them. The average target price is 143 yuan, which is 30.29 yuan higher than the latest price of 112.71 yuan, and the target average price increase is 26.87 yuan. %.
It can be seen that the market's attitude towards the fundamentals and future market performance of Oupai Home is still very positive. In the future, by continuing to promote the big home furnishing and multi-brand strategy, Oupai Home Furnishing's revenue will also continue to maintain a steady growth.
Source: Songuo Finance