In light of the impact from the U.S. 'reciprocal tariffs', are some Chinese listed home furnishing enterprises, which primarily focus on overseas markets, facing the shock of high tariffs? According to Observer Network, several Chinese listed home furnishing enterprises have recently responded to investors' inquiries indicating they are prepared to cope with potential shocks through measures such as directly raising prices, opening new factories, or flexibly adjusting capacity.
Qisheng Technology stated on its interactive platform that the company’s export ratio to the U.S. in 2023 is approximately 79.38%. The company manages potential risks through a global capacity layout. It currently has smart manufacturing bases in China and assembly factories in Vietnam and Mexico, working together to develop a flexible supply chain system to supply the U.S. market flexibly. The company has 9 overseas subsidiaries in the U.S., Mexico, Portugal, Lithuania, and other locations.
Similar to Qisheng Technology, Mlily is another mattress company with a large proportion of its exports overseas. Mlily stated that it would adjust its pricing strategy in a timely manner according to tariff policies and market changes. The company's global capacity layout, especially the local capacity layout in the U.S., helps to enhance Mlily's competitive edge in overseas markets, consolidate advantages such as scale production, supply chain stability, and product quality, thereby partially offsetting the impact of U.S. tariffs.
Craftsmanship Home manufactures smart electric sofas, electric beds, and their core components. In 2023, the company’s overseas revenue accounted for 98.97% of its total revenue, with factories located in Vietnam. Craftsmanship Home said that in response to current challenges, it is exploring ways to reduce potential cost pressures and operational risks, such as setting up new factories, new legal entities, diversification market strategies, and capacity shifts. It will also flexibly adjust the global industrial chain layout, promote high-value-added product lines and smart transitions, strengthen deep cooperation with strategic clients, and, if necessary, evaluate reasonable capital market tools to maintain shareholder confidence.
Zhishang Technology is a well-known global internet home furnishing brand. Currently, revenue from the European region accounts for 60% of the company’s total revenue, while the U.S. accounts for 30%. It plans to strengthen its foothold in the European market and expand into emerging markets. In response to the U.S. market, it will counter short-term cost shocks with overall price increases and establish dual supply centers in Southeast Asia and China to flexibly respond to future changes.