Schmidt to branch out into custom-made furniture sector

Schmidt, one of the Europe's leading kitchen and interior solutions suppliers, has decided to branch out into the custom-made furniture sector, in a move to cater to the rising needs of China's high-end consumers for modern home decoration.

Gan Mingzhong, general manager of Schmidt's marketing department in China, said Schmidt aims to become the top imported furniture brand in terms of both the number of stores and sales in the next three years in China.

"Rather than selling a set of integrated customized home solutions, Schmidt aims to be a lifestyle brand -- a way of life," Gan noted. "Shifting the focus from kitchen furniture to custom-made home furnishings, we are not only expanding our business and upgrading the brand, but also entering a new stage of comprehensive upgrading of brand and improving the quality for the public."

The French-owned kitchen brand first expanded into China market in 2014, when it launched a joint venture with Suofeiya Home Collection Co Ltd, a Shenzhen-listed bespoke furniture supplier based in Guangzhou.

Gan has seen huge growth potential in the booming China market, saying an increasing group of middle-class people is willing to pay to live a high-end life.

"The number of middle-class people in China has reached 350 million," Gan said. "With the rising consumption power of China's middle-class group, 60 percent of consumers between 20 and 49 are willing to pay over 250,000 yuan ($38,725) for home decoration."

In terms of product research and development, Gan said the company is able to build a database of consumers' home furnishing needs with the support of leading home furnishings.

"We are dedicated to offering high-quality and highbrow international integrated home furnishing solutions for China's high-end consumer group," Gan added.

According to the financial report by Suofeiya Home Collection Co Ltd, Schmidt Kitchens gained 1.21 billion yuan in revenue in China last year, up 42.26 percent year-on-year.

As of the end of 2020, Schmidt Kitchens had about 1,108 outlets and 948 dealers in China.