As domestic competition in China's home furnishings market intensifies and profit margins shrink, many Chinese companies are setting sail overseas in search of new growth opportunities. Among them, ZIEL Home Technology has emerged as a standout performer in the global home furnishings sector through its exceptional market performance.
From Zhengzhou to Global Markets: The Rise of ZIEL
Founded in 2010 and listed on the Shenzhen Stock Exchange's ChiNext board in 2022, ZIEL Home Technology specializes in the research, design, and sales of furniture, home furnishings, outdoor, and pet products. The company operates three proprietary brands—SONGMICS, VASAGLE, and Feandrea—with products reaching consumers across Europe, North America, and Japan.
Unlike many cross-border e-commerce players focusing on apparel or electronics, ZIEL strategically targeted the furniture and home goods sector. Founder Song Chuan's study experience in Germany helped him identify the fast-moving consumer goods potential in furniture products catering to frequently relocating international students.
Product Differentiation as Competitive Edge
In the highly competitive furniture industry where product homogeneity is common, ZIEL has built its success on product differentiation. The company established a dedicated market research team in 2021 to conduct on-the-ground consumer studies in Europe, using local insights to guide product development.
ZIEL's product development process emphasizes minimal modifications for maximum differentiation, balancing cost control with transport efficiency, easy assembly, and practical functionality. A prime example is their best-selling height-adjustable electric desk on Amazon, which incorporated storage solutions after analyzing market shortcomings.
The company's product portfolio spans nearly all home furnishing categories, from large furniture pieces to small decorative items and specialized pet products. Furniture and home goods contribute approximately 80% of the company's revenue.
Strategic Focus on European and North American Markets
ZIEL reported impressive 2024 financial results with annual revenue reaching 8.124 billion yuan (approximately $1.12 billion), representing 33.74% year-over-year growth. This success stems from the company's deep penetration in Western markets.
Unlike many competitors prioritizing the U.S. market, ZIEL initially targeted Europe, establishing subsidiaries in Germany and other key markets. By 2018, it had become Amazon's top home furnishings seller in Europe, with European sales accounting for over 60% of total revenue.
In 2024, Europe contributed 4.896 billion yuan in revenue (31.31% growth), while North America generated 3.017 billion yuan (38.83% growth). The company is also expanding into emerging markets like Japan, where sales grew 29.76%.
ZIEL employs a hybrid online-offline sales strategy. Its 2023-established North American key accounts team secured major retail partnerships with Hobby Lobby, Target, and HomeGoods within a year. Online, the company diversified beyond Amazon to platforms including OTTO, TEMU, SHEIN, and Wayfair, achieving 99.7% growth in non-Amazon B2C channels.
The company tailors its brand strategy by platform—maintaining three sub-brands on Amazon, focusing on large furniture on Wayfair, and offering smaller home items on Shein. This approach has made ZIEL the category leader on Amazon's German, French, British, and Italian sites.
Opportunities and Challenges for Chinese Home Furnishings Exporters
China's furniture exports reached 483.034 billion yuan in 2024, with Western markets remaining primary destinations. Current international consumer trends include:
- Sustainability and smart technology: Growing demand for FSC-certified eco-friendly furniture and smart home products in Western markets
- Value and localization: Price sensitivity combined with cultural adaptation requirements in emerging markets
As the world's largest furniture producer and exporter since 2006, China possesses strong manufacturing advantages. However, exporters face several challenges:
- Intellectual property protection and original design development
- Building internationally recognized brands beyond OEM manufacturing
- Optimizing logistics and supply chain efficiency
- Ensuring compliance with diverse international regulations
ZIEL's success demonstrates how Chinese home furnishing companies can achieve global competitiveness through market insight, product innovation, and strategic international expansion. As more Chinese brands venture overseas, ZIEL's experience offers valuable lessons for industry peers navigating the complexities of global markets.