IPO Observation | Cross-Border E-commerce Home Brand Jiesi Launches IPO Guidance

Recently, Jiesi Home Technology Co., Ltd. (hereinafter referred to as "Jiesi") has conducted guidance and filing with the securities regulatory agency, with a guidance institution being Zhongjin Company.

Jiesi is primarily a home manufacturing and trading company that mainly engages in cross-border e-commerce home industry, following CROSSTEC after another cross-border e-commerce home enterprise.

Home Trade Origins

Jiesi Home Technology Co., Ltd. was established in 2006 and reorganized into Hangzhou Jixi Textile Company Limited in 2014, with an American company, MeiKeLa, founded in 2013. It is a comprehensive textile group enterprise that integrates R&D, design, production, and sales, covering various product lines such as home textiles, bedding, decorative items, pet supplies, art crafts, and household goods.

As of now, Jiesi has three brands: Jiesi, Sincerely Life, and Jixi. The company's home products line covers sofas, mattresses, dining tables and chairs, wardrobes, window treatments, and other types of home products. Currently, Jiesi has 14 own-brand stores on Wayfair, Amazon, Home Depot, Overstock, and other major North American e-commerce platforms, with a Top3 seller on the Wayfair platform; meanwhile, the company has established its own subsidiary in the United States and built three large overseas warehouses to radiate the eastern, central, and western regions of the United States.

Jiesi originally only engaged in traditional trading, but after seizing the opportunity of cross-border e-commerce, successfully transformed into a cross-border internet home enterprise while retaining its traditional trading business. In 2013, Jiesi founded B2B foreign trade company-Zhejiang Hengyi Tong Information Technology Co., Ltd., and in 2014, it established a cross-border e-commerce company to provide one-stop solutions for cross-border vertical e-commerce for domestic traditional home enterprises. Leveraging Hengyi Tong's self-operated business and accumulated experience in the cross-border e-commerce industry, Jiesi has successfully exported 90% of its products to countries such as North America, Europe, and others.

Jiesi's chairman, Zheng Geqing, once said, "To make a brand successful in an extremely unfamiliar market, it is essential for the product and service to be explosive." Therefore, Jiesi initially focused on producing high-quality products that were popular with customers, resulting in a 10-fold increase in sales.

The company's official website shows that currently, Jiesi has a team of 50 full-time R&D personnel, releasing over 100 new fabrics and patterns each year, as well as over 300 new products. It also adopts international advanced ERP systems to implement information management.

According to the official announcement, Jiesi's sales revenue in 2023 will exceed $1 billion.

Cross-Border E-commerce Market

In recent years, cross-border e-commerce has become a new hot track in the e-commerce industry, and Jiesi's cross-border home e-commerce is another emerging market.

According to Amazon's white paper on China's export cross-border e-commerce in 2023, China's export cross-border e-commerce has accelerated its growth, with a year-on-year increase of 19.9% in the first half of 2023, which is twice the growth rate of China's export cross-border e-commerce in 2022.

The COVID-19 pandemic has also driven the rapid development of cross-border e-commerce, especially in the home industry. In the face of physical store closures, online shopping has made significant progress in the United States.

According to Statista data, from 2017 to 2020, the global furniture market's online sales proportion increased year by year, and online channels have become the new engine for global furniture market development. In this context, China accounts for 48% of the world's furniture exports, mainly exporting to Europe, Japan, and South Korea.

Euromonitor also predicts that the home goods market in North America will continue to grow to 2025, with a scale of $2.1 billion in the United States and $2.55 billion in Europe. The online penetration rate of home goods is also rising. In 2022, the European home goods market's online penetration rate increased to 27.6%, while the US home goods market's online penetration rate rose to 27.6%.

In addition to Jiesi, other cross-border e-commerce companies that have listed on the growth enterprise market board in June include Crosstec.