Core Viewpoint - Several soft furniture companies are exploring the hotel industry as a means to expand into downstream sectors amid an overall industry downturn [1][4]. Group 1: Company Initiatives - Left Home has opened its first hotel, "Left Home Happiness Hotel," in Shenzhen, featuring 156 rooms priced between 300-500 RMB, positioning itself in the mid-range hotel market [1]. - Dream Lily has launched its first hotel, "Dream Lily Zero Pressure Hotel," in Shanghai, with 119 rooms equipped with its signature zero-pressure smart beds, emphasizing a deep sleep concept [1][3]. - Both companies are transitioning from product manufacturers to lifestyle service providers, marking a significant shift in their business models [1][3]. Group 2: Business Strategy - Dream Lily aims to open 2,000 hotels, integrating hotel functions with product experience and sales, effectively turning each hotel into a showroom for its products [3]. - Left Home's hotel also allows guests to purchase furniture directly from their rooms, utilizing technology to collect user sleep data for product development [3][4]. - The core strategy for both companies remains focused on selling products, despite the hotel industry's emphasis on service operations [4]. Group 3: Industry Context - Historically, soft furniture companies like Dream Lily and Left Home have collaborated with hotel chains, indicating a trend of moving from suppliers to direct competitors in the hotel space [5]. - Dream Lily previously partnered with major hotel groups and has recently taken legal action against them, highlighting the competitive dynamics in the industry [6]. - The hotel business for both companies is still in its early stages, and it remains uncertain whether this will become a significant growth area for them [6][7].

Core Insights - Huazhu Group has launched its own "M3 Memory Pillow" to expand its product offerings in the new retail sector, challenging Atour's success in selling pillows [1] - The M3 Memory Pillow is priced at 289 yuan and is currently available only online, with plans for future promotion in Huazhu's All Seasons Hotels [1] - Atour has seen significant success with its "Deep Sleep Pillow PRO," generating sales of 370 million yuan in 2023 and contributing 30% to its total annual revenue [1] Company Strategies - Huazhu has 190 million members and its supply chain platform, Huazhu Mall, is projected to reach a transaction volume of 28.4 billion yuan in 2024, supporting product development [2] - Unlike Atour's closed-loop model of "hotel experience to retail conversion," Huazhu is starting with online sales and plans to adopt a retail conversion model in the future [2] Market Dynamics - The introduction of retail products by hotel giants aims to expand brand markets and influence customer perceptions, potentially increasing hotel revenue [2] - The pillow market faces challenges due to low technological barriers and competition, making brand influence and marketing strategies crucial for success [2]