顾家家居：并购扩张之路

KUKA HOME Furniture Co. Ltd. ("KUKA") led China’s upholstered furniture manufacturing market. As early as 1982, KUKA Workshop, KUKA’s predecessor, produced sofas in its own factory and market in a direct-selling model. In 2000, Gu Jiangsheng took on the baton and launched the KUKA brand, and in 2006 KUKA HOME was established. In the following ten years, KUKA entered the construction materials market, but a subsequent failure made Gu confirm that KUKA HOME should concentrate wholly on furniture. Gu put forward the "Big Furnishing Strategy" and set a ten billion revenue goal. In 2016, KUKA HOME listed on the Shanghai Stock Exchange, and in 2017 it adjusted strategy from "focusing on home furnishings" to "focusing on the manufacturing and strategic investment in upholstered furniture". In the same year, KUKA HOME's only major move on the capital market was investing ￥500 million of its own funds into indirect holding of 0.1602% of equity in Evergrande Real Estate Group Ltd. and they established a strategic partnership. Since 2018, KUKA HOME has made massive acquisitions on the capital market: Natuzzi, Ban Erqi, EASYHOME, Rolf Benz, Nick Scali, Xibao Home Furnishing, Kawen Home Furnishing, Xilinmen Furniture. This case sketches KUKA HOME's profile and the above referred acquisitions it has made. Based on the case materials, students can analyze the reasons behind KUKA HOME's swerve in developmental strategy, reasons for launching intensive M&A activities in 2018, whether these M&As contributed to fulfilling goals, and whether such a growth model could be sustainable in the future. This case also provides a reference on strategic layout of development for mid-range brands.