Is the Home Furnishing Industry Entering the Succession Tide of the "post-80s" and "post-90s" Holds
In the home furnishing industry of, a succession tide is coming: Dongpeng Holding, Xilinmen, Huida Sanitary Ware, Nature Home, Popular Cloth Arts, Jiusheng Flooring and other leading enterprises are gradually stepping into the core positions of the company, opening the era of the second generation taking over the helm. Compared with the self-made "post-50s" and "post-60s" home entrepreneurs, can the "post-80s" and "post-90s", as a new generation growing up with the reform and opening up, undertake the mission of prospering the family business?
In November this year, Xilinmen announced that Yang Gang, the former director of the company, and Xu Danyan, the vice president of the company, had announced their resignation. The board of directors agreed to appoint Chen Yicheng as the president and Zheng Shuangquan as the vice president of the company. In 2019, Chen Yicheng, the son of Chen Aiyu, the founder of Xilinmen, had already entered the board of directors of Xilinmen as well as served as the vice president of Xilinmen, which was considered as the way for Chen Yicheng to "take over" in the future; In 2021, Chen Pingqi, the daughter of Chen Aiyu, also entered the board of directors of Xilinmen, showing the "background" of family inheritance of household enterprises.
According to the statistics of the relevant media on 84 listed household building materials enterprises, 20 "second generation" of 19 household enterprises have officially gone to the front of the stage and held important positions in the enterprises. The reporter of Yangcheng Evening News noticed that during the handover process of these enterprises, some of the "second generation" will work in key departments or positions after taking up their posts in the company. When the "second generation" starts to take up the core positions, professional managers will retire to secondary positions or even leave.
Unlike professional managers who "fly" to the top, "second generation" people often have many years of experience before taking over. Like She Jiajun, the "second generation" of Nature Home, who started her own business and entered the coffee track, He Ying, the "second generation" of Dongpeng Holding, worked for Guangdong Techpool Biochemical Medicine Co., Ltd. and MarmeCanada Inc, Zhang Kai, the "second generation" of Jiusheng Flooring, served as the general manager of Jiusheng's subsidiary, and Chen Wei, the "second generation" of Sunlight, worked as a trader in the company's international marketing department for four years.
When the "second generation" is tested by the market and the industry, the "third generation" of some enterprises has emerged. In November this year, Huida Sanitary Ware announced that Dong Huazhong, the company's director, and Yin Kang, the director and deputy general manager, all proposed to resign from the company. After Dong Huazhong and Yin Kang resigned, Huida Sanitary nominated Wang Jia and Zhang Chunyu as candidates for non independent directors of the sixth Board of Directors. Wang Jia, the "85 Generation", is the daughter of Wang Yanqing, the actual controller of Huida Sanitary Ware, the chairman of the board, and the granddaughter of Wang Huiwen, the founder of Huida Sanitary Ware.
Innovation: inject new vitality into enterprise transformation
Different from the "post-50s" and "post-60s" home entrepreneurs, the second and third generation of home entrepreneurs are facing drastic changes in the home industry. Under the background of stock competition and personalized demand, the intensity of competition is far from the past. When home furnishing enterprises are moving from the "entrepreneurial era" to the "entrepreneurial era", many "second generation" people who have inherited their father's business from their sons and daughters have brought new ideas to the fore.
She Jiajun of Nature Home said in an interview that although he admired his father for doing so many things "from 0 to 1", he would not simply "copy homework". "After all, the whole macro-economy and consumer demand are different". When he just returned to Nature Home, he promoted the research and development of upstream environment-friendly materials by virtue of his interest in chemical materials, and developed a variety of new green products such as negative ion floor, new environment-friendly floor, fast-growing wood floor, soybean glue floor, etc.
As a synonym for "manufacturing" in the international bathroom market, Huida Sanitary Ware, the "post-85" Wang Jia and his father Wang Yanqing jointly selected the "big beam". In order to seize the consumers of Generation Z, they accelerated the creation of a young brand image through a series of innovations. From product design to keeping up with the fashion trend, developing beautiful, functional and tasteful sanitary wares, to planning activities and topics that young people like, Wang Jia entered the management and made frequent appearances on behalf of Huida Sanitary Ware.
Challenge: facing the pressure of business performance
The reporter noted that after the exit of professional managers and the handover of the second generation of creators in some enterprises, the market was cautious about the management of their second generation of successors. After Xilinmen changed from a professional manager to a second generation succession management, investors have doubts about whether Xilinmen can achieve its performance goals this year. This year, Xilinmen's performance evaluation goal is that the annual revenue is no less than 9 billion yuan or the net profit is no less than 700 million yuan. However, as of the third quarter, the company's revenue was only 5.741 billion yuan and the net profit was 389 million yuan.
The second generation inheritance of some home furnishing enterprises is "one chicken feather". Liu Shaoxi, the actual controller of Yihua Life, has long planned the succession of the second generation of the family. His second son, Liu Zhuangchao, was "supported" as the chairman of Yihua Life in 2017. In April 2019, Shanghai Stock Exchange sent letters to Yihua Life twice to inquire about the company's problems in the 2018 annual report of Yihua Life, such as "carrying out high liabilities and causing high financial costs when monetary funds are abundant".
In January 2021, the CSRC held an information conference to reveal that there were serious false records in the periodic reports of Yihua Life from 2016 to 2019, and the amount of financial fraud totaled more than 40 billion yuan. According to the punishment of the CSRC on the parties involved in the incident, Liu Shaoxi, the actual controller of the company, was fined 9.3 million yuan and banned from entering the securities market for life, Liu Zhuangchao, the chairman, was fined 4.5 million yuan and banned from entering the securities market for 10 years.
In the first half of 2022, the overall annual report of listed household building materials enterprises shows that the total revenue of 63 enterprises is 102.663 billion yuan, with a year-on-year growth of 3.85%; The net profit attributable to the parent company totaled 6.969 billion yuan, down 20.15% year on year. In the market environment of constantly changing consumption concepts and stock competition, these "second generation" household enterprises who have taken over or are ready to take over may not be able to enjoy the well-being of their parents' families.
