We believe that the reform wave of new retail is very much in line with the existing industrial pain points in the home furnishingindustry. Alibaba and Jingzhijia signed a strategic investment agreement, investing 5.453 billion yuan in Jingzhijia and holding 15% of the shares, becoming the second largest shareholder of Jingzhijia. The cooperation between Ali and other industrial capital and Jingzhijia also marks the BAT Such as the leading new retail strategy formal local in everyone's home plate. The furniture industry is a field with low Internet penetration in the retail industry. The furniture industry can apply new retail ideas to implement "big data" and "situational" to create one-stop shopping + situational experience, so as to realize brand differentiation.

The new retail model is expected to accelerate the increase in the concentration of residential sectors.

From decoration building materials, home furnishing manufacturing to home furnishing retail is a trillion level of the big market, but the current industry pattern is scattered, leading share is very low. Home furnishing industry's huge market share and better industry growth has become the focus of industrial capital. With the intervention of capital and Internet giants, everyone is expected to enter the stage of accelerated integration, home furnishing brand leading and home furnishing stores leading share expansion will greatly speed up.

Home furnishing leading water new retail, model power to promote industry change.

Sofia steadily promotes big data strategy, builds informatization advantage, uses its data to gain insight into consumers, predicts new consumer demand in the next 3-5 years, controls the operation efficiency of dealers, and deeply helps dealers gain customers. It is expected to lead the informatization development of domestic furniture industry in the future. Shangpin Homefurnishing attaches importance to comprehensively improving consumption experience. The company started from Yuanfang Software and has advanced software technology. It launches an integrated cloud platform with new retail ideas and its own software advantages, enabling home decoration channels and creating one-stop shopping experience.

Overseas wrapping paper import substitution is not established, pay attention to the change of product price difference.

At present, the price difference between domestic and overseas wrapping paper is basically maintained at 750-1000 yuan/ton. Attention is paid to the impact of overseas import substitution brought by the change of price difference. Since 2017, China's total import of paper and board increased, supplement the domestic supply of paper products, considering the total proportion of factors, imported finished paper has not caused a significant impact on the domestic supply and demand balance, data from the General Administration of Customs showed that in 2017, China's total import of paper and board was 4.75 million tons, an increase of 59.93%, but the increase of imports only accounted for 12.542 million tons of domestic paper in the same period And cardboard output of 1.42%.

Risk warning.

Pay attention to this round of wrapping paper price increase landing situation. The relaxation of environmental protection policies has led to the resumption of small production. New production capacity on the supply side of the industry was released more than expected. Paper enterprise new production capacity is blocked.