Relying on underwear sponge technology to create memory mattresses, mattress products alone sold billions of dollars in Amazon a year, from the traditional factory to the successful transformation of the sea selling Foshan Love home, announced a full withdrawal from cross-border e-commerce, it is regrettable.
On May 28, Ge Xuguang, CEO and cross-border person in charge of Love Home, issued a long message in the wechat circle of friends, announcing that Love Home withdrew from the field of cross-border e-commerce, abandoned all stores and brands in the world, and he himself left the company and withdrew from cross-border e-commerce, no longer engaged in any occupation related to cross-border e-commerce.
This lengthy farewell article recounts the entrepreneurial process of the team from zero, and Ge Xuguang also stressed that this is "a decision that everyone is satisfied with."
Under his own brand of Molblly love home, the majority of revenue from cross-border e-commerce. As a star enterprise in Foshan home industry belt, Love Home is also one of the top brands in Amazon's mattress category, and has been promoted by Amazon as an excellent example of industrial taking to the sea.
Why the sudden decision? "The idea has been around since last year," said Liang Daye, president of Ai Home. "It was a painful decision as international trade barriers have been rising."
Liang Daye said that as a responsible enterprise, Love Home will take care of all the business and consumption involved in cross-border stores, and then close overseas stores. For the future development direction, Liang Daye said love home will focus on the domestic market.
A thousand words farewell long text revealed not to give up
"It's a decision that everyone is happy with
Love Factory was established in 2007, and the cross-border e-commerce project has been online since the end of November 2018.
From the initial two people to five people in 2019 to achieve 200 million sales, and then to 2022 sales exceeded 1.5 billion. High-speed growth of cross-border business, suddenly stopped, it is no wonder that a big love home cross-border business Ge Xuguang refused to give up.
Ge Xuguang also thanked the members of the team who worked hard together, the shareholders who were willing to give high trust, the supplier partners who supported the business development, and the small partners in the cross-border team who were willing to stay and deal with the aftermath.
"I am also very pleased to be able to settle all of your arrears from the internal diplomatic dilemma ………… Please rest assured that we will respond to and deal with all the follow-up matters one by one, and absolutely will not leave any unfinished business!"
The reason: Increased overseas competition
"It was also a very painful decision."”
Whether it is Ge Xuguang's farewell message, or the reply of shareholder and founder Liang Daye, the two founders have mentioned overseas competition without exception.
According to CSIL data, the global prime mattress market grew from $24.7 billion in 2013 to $31.3 billion in 2022. Among them, the United States is not only the world's largest mattress consumer, but also the largest mattress importer, the United States mattress imports in 2022 at about $1.437 billion.
North America and Europe are big markets for mattress products. In the past, old-line mattress companies such as Suda Simmons and Teppel Srenz in the United States, as well as Internet newcomers such as Purple and Casper, have occupied competitive advantages in local retail. However, with the rise of Amazon and even cross-border e-commerce channels such as SHEIN and TEMU, the home circuit has also ushered in a new pattern of flowering. By leveraging the advantages of China's supply chain, Chinese brands have also taken a place overseas, and even the possibility of challenging established American companies.
Taking stock of local companies in the United States, such as Internet brands Purple and Casper fell into losses, and Suda Simmons is facing bankruptcy reorganization. With continued inflation in the United States, rising labor costs, and changes in the international situation, it is not difficult to understand the concerns of companies that have pressed goods and warehouses heavily.
In fact, such concerns are not unfounded. Recently, some media learned from the China Furniture Association that Canada will impose anti-dumping and countervailing duties on upholstered furniture imported from China, with the maximum amount of anti-dumping duties levied reaching 295.90%. Many well-known domestic home sales are included.
As Liang said, "It was also a very painful decision." Love home torrent behind the retreat, there is helpless. However, relying on its own supply chain foundation, as well as the innovative use of underwear sponge technology to play explosive memory mattress, such a big sale at sea, but also have the confidence to turn around.
