Luolai Lifestyle Technology Co Ltd

Good operational quality and clear transformation strategy

Luolai has had an earlier rebound in revenue growth and better operational quality than its peers, in addition to faster inventory turnover and healthy cash flow. With destocking largely completed, the company could be among the first to benefit from a recovery in demand.

The company has completed the acquisition of 12 franchisees as part of its efforts to take direct control of sales outlets. It has also been expanding its home furnishings offerings and its brands have opened a total of 100 home furnishing retail outlets. On the product front, a combination of independent R&D and resource integration via acquisitions shows the company's steadfast and clear push for transformation.

Further improving the online home furnishing ecosystem

With replacement demand for domestic textiles rising, consumers prefer more affordable products with lower mark-ups and the online channel is key to meeting this demand. In addition, as part of its investment-driven push into "internet plus" segments, the company has partnered with industry leaders and investment agencies to enter the smart bedroom furnishing field, further improving its online home furnishings ecosystem.