"At present, the company's online business accounts for about 10% of the domestic sales. The company attaches great importance to offline channel expansion and expands new channels through department stores, B&Q, Suning, and supermarkets." On May 25, Gu Jiangsheng, Chairman of Kuka Home, in 2020 it was stated at the performance briefing that the company is actively building a multi-category combination of large home fusion store models.

Gu Jiangsheng said that in terms of domestic trade business, the company will transform from a “channel operator” dominated by current categories to an “integrated home retail operator” with multiple brands, all categories and all channels. From the perspective of category revenue, revenues from sofas, beds, integrated products, customized furniture, and information technology services in 2020 will increase by 10%, 19.7%, 16.7%, 33%, and 54% respectively. The company has further refined its positioning of various products. In 2021, it will continue to focus on the three high-potential categories of functional sofas, mattresses, and customized furniture.

The reporter noticed that in 2020, the domestic sales of Kuka Home contributed to the core increase. The annual domestic sales revenue was 7.65 billion yuan, a year-on-year increase of 25.46%, and the main business accounted for 60.4%, contributing 97.2% of the main business revenue increase. Due to the higher gross profit margin of the domestic sales business, the increase in its proportion has also driven the increase in the gross profit margin of Kuka Home in 2020, an increase of 0.35% to 35.21% year-on-year.

At the performance meeting, Gu Jiangsheng once again emphasized the 1+N+X model established by the company (integration of large stores + series of single stores and comprehensive category stores + emerging channel formats). In terms of channel expansion, the company has a total of 6,691 stores as of the end of 2020. A net increase of 205 stores in the year, while more shifting to large-scale integrated stores, and filling the gaps in third- and fourth-tier cities.

In the first quarter of 2021, Kuka Home achieved revenue of 3.782 billion yuan, an increase of 65.32% year-on-year; net profit attributable to its parent was 385 million yuan, an increase of 25.58% year-on-year. It is understood that in March 2021, the company officially became the exclusive supplier of official mattresses for the Hangzhou Asian Games.