The Furniture e-commerce platform "Hommey" received nearly 10 million US dollars of A round of financing, this round was led by the ZHEN fund, and Crystal Stream. This round of financing will be used for brand promotion, urban expansion, and further improvement of the service/supply chain system.

Founded in 2016, Hommey is a converging platform for soft-packed products. It recommends high-quality, long-tailed and niche furniture and home products in the supply chain to young consumers borned after the 85s. In October 2016, the “Experience Home” model was opened at Hommey– the home of consumers on the platform was shown to give potential users a taste of the same style.

Why the model "experience home" could be borned in China?

According to the “Analysis of the Status Quo of Listed Companies in China's Home Furnishing Industry” released by the National Federation of Industry and Commerce, the sales of China's home furnishing and furniture industry in 2016 was nearly 4 trillion yuan, and the compound growth rate of the industry in 2006-2016 was 12.44%. The market is over tens of billions and the growth rate is stable.

Experience Home in e-commerce platform

In the context of industry development, in the past 10 years, new brands in China's home and furniture sector have emerged, including Ziinlife, Banmoo, Fnji, Zaozuo and Muee, and channel brands have also appeared in Netease's strict selection and Jiyoujia.com (with the background of Ali) .

However, there are still a large number of soft-packed products that cannot be effectively distributed. One of the important reasons is that the brand of soft-packed channels that focus on personalization and positioning young consumer groups is not suitable for traditional and costly aggregated stores. While soft goods with high-priced unit prices cannot ignore the offline experience.

At the same time, the preferences and purchase patterns of the main consumer groups have changed dramatically. Compared with traditional soft-pack consumers, young soft-pack consumers are more accustomed to finding their favorite home and furniture (soft) products online. After locking the products, they also have to go offline to complete the transaction. It will be the mainstream trend for the soft-pack furniture retail industry: online shopping, offline experience, and completion of purchases.

The “experience home” model just caters to the changes in the consumer decision, and solves the channel problems of emerging brands. Brands can use the “experience home” to open stores under zero-cost lines. For the owners of the open "experience home", in addition to the lowest discounts for the products given by the brand, they can also enjoy the subsequent sales commissions and generate revenue for themselves.

(Source: JJGLE.COM)