Clearwater Capital has invested in ZhiJia Hommey, an innovative online-to-offline furniture retail platform designed to enhance the customer shopping experience.

Target Information

Clearwater Capital recently invested in ZhiJia Hommey, a pioneering online-to-offline home furniture retail platform designed to enhance the shopping experience. This innovative model merges online browsing with offline ‘experience homes,’ allowing consumers to evaluate products in a familiar environment. Given the unique challenges in the furniture industry, ZhiJia Hommey aims to address consumer needs for both visual and tactile experiences while providing a more immersive shopping context.

The furniture market in China is expansive, boasting a valuation of approximately 850 billion yuan. Traditionally, furniture retailers have faced high operational costs and fierce competition, with brand margins typically between 30-40% and distributor margins reaching upwards of 80%. ZhiJia is positioned to tap into the growing demand from younger consumers who prefer seamless online experiences coupled with the physical validation of their purchases.

Industry Overview

The Chinese furniture industry has evolved significantly over the past 20 years, paralleling the real estate sector's development. Major players, like Red Star Macalline, have established busin