Author: Lu Zhimei
On June 14th, the domestic leading mattress company for human healthy sleep, Deuce (001323.SZ), will start the subscription. Since the establishment of the company, Deuce has been adhering to the corporate mission of “making people sleep better”, focusing on the research of human health and sleep, and continuously realizes the iterative upgrade of the product matrix through design, material and intelligent technological innovation, and truly realizes the “bed” Adapt to people” to improve people’s sleep quality. The company’s main products include: mid-to-high-end mattresses, bed frames, bed products and other products, of which mattresses are the company’s core products. According to the sales ranking data provided by Red Star Macalline and Easyhome, a national comprehensive shopping mall for home furnishing and building materials, Mousse mattresses rank first in the domestic market, with sales of mattresses reaching 1,576,400 in 2021.
From 2018 to 2021, the compound growth rate of Rousse’s revenue and net profit attributable to the parent company is as high as 27% and 47%, respectively, showing outstanding growth. In addition, the company expects revenue to grow by 5.02% to 12.14% year-on-year in the first half of 2022. Market analysts said that despite the impact of the epidemic, from the perspective of this performance expectation, the company is very resilient. With the gradual control of the epidemic, the company’s performance may have a good performance in the second half of the year.
“Changyou” sleep economy blue ocean leading enterprises have benefited significantly
With the rapid development of society and economy, the pressure of people’s life and work has increased, and sleep problems have become increasingly prominent. The “2021 Exercise and Sleep White Paper” jointly released by the China Sleep Research Association and other institutions shows that more than 300 million Chinese have sleep disorders, and the incidence of insomnia among adults is as high as 38.2%. Long-term lack of sleep will not only reduce learning and work efficiency, but also may reduce cognitive judgment. In order to solve the negative impact of sleep problems on people’s body and spirit, the sleep economy is booming. Relevant research reports show that the market size of China’s sleep economy industry in 2020 is 377.8 billion yuan, and the market size is expected to reach 570.7 billion yuan in 2025.
The sleep economy can be mainly divided into three parts: home hardware, sleep aid APP and auxiliary products. Among them, home hardware is the main component of the sleep economy, and mattresses are also the top priority of this track. However, although my country is the second largest consumer of the mattress industry in the world, with a compound annual growth rate of 6.15% in the mattress industry from 2010 to 2020, the industry penetration rate is still significantly lower than that of developed countries.
On the whole, the mattress industry is rapidly rising by the “Dongfeng” of the sleep economy, and leading companies with strong brand influence, outstanding R&D capabilities and large-scale production capabilities will usher in good development opportunities. With the development of the industry, the market concentration of the mattress industry will be further enhanced. As a leading mattress enterprise, Deuce may “swam” the blue ocean of the sleep economy.
“Mousse” brand is deeply rooted in the hearts of the people to establish a competitive advantage in multiple dimensions
Deuce has been deeply involved in healthy sleep products for more than ten years. With its excellent R&D technology, stable product quality and meticulous after-sales service, it has established a multi-dimensional competitive advantage.
Products exist on the shelf, and brands exist in consumer perceptions. Today, “Mousse” has become a well-known brand in my country’s mattress industry, and its brand image of high quality and good after-sales has been deeply rooted in the hearts of the people. The company has formed a series of products including “Mousse”, “V6 Home Furnishing”, “TRECA”, “Mouse International”, “Sleep Designs”, “Mouse Sofa” and “Mouse Sofa”. The 7 main brands including Mercure, the complete and diverse brand matrix can meet the needs of different audiences. With its strong brand influence, the company’s products are ranked first in the industry in terms of online and offline terminal sales. Benefiting from the influence of the “Mousse” brand and refined production cost control, the company’s main business and comprehensive gross profit margin have been maintained at a relatively high level. Taking 2021 as an example, its gross profit margin is as high as 44.98%.
In terms of sales network, after years of accumulation, the company has established a diversified and omni-channel sales network system covering the whole country with “distribution as the mainstay, direct sales, direct supply, e-commerce and other channels coexisting”. As of the signing date of the prospectus, the company has developed more than 1,900 dealers and more than 4,900 specialty stores, covering more than 500 cities in 31 provinces, autonomous regions and municipalities in China. Actively promote the sinking of channels; in addition, Deuce has continuously tried to cooperate with well-known brands such as customized furniture, home textiles, building materials and hotel management related to the industrial chain, actively broadened the diversion entrance of the product sales market, and successfully established the “OPPEIN” ” and “Jinjiang” and other direct supply cooperation models, and conduct online sales through well-known e-commerce platforms such as “Tmall” and “Jingdong”. Through the layout of the omni-channel sales network, the company provides consumers with a diversified consumption experience and realizes the coordinated development and mutual promotion of online and offline businesses.
In terms of product R&D and innovation, in order to create a healthy sleep system, Deuce has hired well-known foreign designers to create bedding that integrates ergonomics, fashion and art and sleep environment, using 3D cotton, anti-mite cloth, space resin balls and other new Materials upgrade the experience of consumer home products. At the same time, Mousse continues to carry out high-end R&D cooperation with well-known domestic universities and a number of technology companies, and actively participates in the formulation of international and domestic mattress industry standards. Through a series of efforts in product design and development, material innovation, etc., Deuce has further consolidated its own research and development advantages.
Well-known shareholder blessing
Leverage capital market Comprehensive strength to a new level
It is worth mentioning that the leading enterprises in the home furnishing industry chain, Red Star Macalline, Easyhome, and Oppai Home Furnishing all directly or indirectly hold shares in Mousse, and the leading VC institution Sequoia Capital has also invested in shares through its private equity funds, which shows that. Industrial capital and financial capital highly recognize the strength of mattresses and healthy sleep tracks and competitors.
In this IPO, Deuce shares raised and invested projects including East China Healthy Bedding Production Line Construction Project, Digital Marketing Project, and Healthy Sleep Technology Research Center Construction Project. After the fundraising project reaches production, the company will add 950,000 mattresses and 150,000 bed frames.
Leveraging on the capital market, the company’s production capacity and R&D strength may reach a new level, the business coverage area will be further expanded, and new growth space will also be opened up. Looking forward to the future, with the release of the company’s production capacity, the completion of digital transformation, the construction of 4.0 super factories, the further improvement of the dealer team, and the development of the industry to fuel the company’s progress, Deuce may further consolidate its leading position in the industry and increase its comprehensive strength. new level.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.
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