Shanghai, September 6, 2024 – YoLo Home, a leading Chinese home furnishing brand, faced a challenging first half of 2024 with a double-digit decline in its performance. However, the company is now looking to revitalize its business by focusing on whole-home customization.
In a recent earnings briefing, YoLo Home revealed that the whole-home customization market is experiencing rapid iteration and diversification. Factors such as the renovation of existing homes, consumer upgrades, and the increasing demand of young consumers are driving market growth. However, the intense market competition and brand differentiation are putting pressure on YoLo Home.
YoLo Home actively entered the light high-end market by launching three high-end wooden products to meet the needs of high-end customers. The company has also been actively investing in the research and development of soft furnishings and self-production, perfecting its product matrix that includes full-home customization, overall kitchen cabinets, high-end doors and walls, soft furnishings, and matching home products. The company aims to create a seamless integration of home decoration and furniture configuration, building a high-end home ecosystem that can meet diverse customer needs.
Despite these efforts, YoLo Home’s revenue and net profit did not see an increase. According to the financial report, the company’s revenue in the first half of 2024 was 657 million yuan, down 10.72% year-on-year, while its net profit attributable to shareholders was 45.43 million yuan, down 24.10%. The company attributed the decline to a decrease in sales orders, which resulted in a decrease in main business income.
In the first half of 2024, YoLo Home’s distribution channel revenue was approximately 4.36 billion yuan, direct sales revenue was about 1.11 billion yuan, bulk sales revenue was about 1 billion yuan, and other revenue was about 98.096 million yuan. In the first half of 2023, YoLo Home did not break down its operating revenue, but its distribution revenue reached 5.28 billion yuan, which was 0.92 billion yuan more than in 2024.
The decline in distribution orders has had a significant impact on YoLo Home. According to the financial report, the company’s main sales models include distributor sales, direct sales, and bulk business sales. In the first half of 2024, YoLo Home faced tensions with its distributors. In April, Huawei Home Furniture Chairman Jia Feng publicly criticized YoLo Home’s newly launched “one city, multiple stores” marketing strategy for harming distributor interests.
Despite the publicized tensions, YoLo Home emphasized during the earnings briefing that it will continue to focus on the mid-to-high-end brand differentiation positioning, closely adhering to the three strategic focuses of product leadership, brand upgrading, and channel expansion. The company aims to launch the whole-home customization brand “Jizhu Zhijia” and continuously enhance its core capabilities in whole-home customization, exploring and realizing the growth potential of blank cities, expanding product categories, and expanding store efficiency. At the same time, YoLo Home will continue to take effective measures to reduce costs and increase efficiency.
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