With the launch of platform network channels such as Taobao Mall's "Home Improvement Pavilion" mall, as well as the gradual maturity of professional online malls in the home market and self-built channels for home furnishing companies, home furnishing companies have shifted from traditional channels to online markets to tap new profit growth points The time has come. Since the second half of 2010, the online sales of many home furnishing companies that have been the first to reach the Internet have achieved explosive growth. However, it is inevitable that the current home furnishing network sales are still in the initial stage, and new e-commerce channels Brand awareness, integrity, management and control capabilities, service capabilities and other aspects have put forward new requirements. Facing the post-80s and post-90s potential consumers who have grown up with the Internet, how to crack the limitations of the traditional industry itself, how to make full use of online resources, and how to resolve all kinds of online and offline conflicts will be Problems that home furnishing companies need to solve urgently. This issue of entrepreneurial circles will explore these issues in depth.
How to break the ice for home business
Dilemma 1: The product has a non-standardized bottleneck
Question: For many years, the traditional home furnishing industry has mostly customized and personalized products, and the user decision-making process is long, which is not conducive to online transactions. There is also a lack of professional e-commerce talents, which makes it more difficult for home furnishing companies to reach the Internet.
Tips: Separate products, select products suitable for online sales according to the characteristics of online sales, introduce professional e-commerce talents, and improve the level of enterprise informatization.
Cao Lei: The home building materials industry is highly professional and the materials and processes are relatively complex. Most consumers are often difficult to judge the pros and cons of such products. The products in the home building materials industry are currently mostly customized and personalized. At the same time, there are many brands in the industry, and the variety is good. The wide variety also dazzles consumers. It is still very cautious to buy in physical stores. Directly affects the process of home companies hitting the Internet.
Zhuang Shuai: Home building materials are a typical traditional industry. There are many non-standard products, and practitioners do not understand the Internet. The level of informatization in the enterprise is very low. Many e-commerce talents are concentrated in non-traditional enterprises, so traditional Enterprises are always stumbling when doing e-commerce, which is an obstacle to attracting talent. In this regard, Dongfang Jiayuan is conducting mentoring of ideas, hoping to achieve transformation through the training of internal staff.
Hu Yi: The non-standardization of household goods has caused a series of practical problems, including distribution, installation, after-sales guarantee and other localized services. This is the first threshold for the e-commerce of the household industry. In order to solve this obstacle, we adopted the new marketing idea of ​​furniture "fitting room", that is, setting the home into a place similar to the "fitting room", which is equipped with a large number of household product sets, which can allow consumers to buy like Like clothes, you can “try on†a piece of home goods until you are satisfied, and then buy it again, which surpasses the physical properties of home goods. This personalized home experience is relatively innovative in the home industry.
In the specific implementation, we transplanted marketing thinking from the apparel industry, and turned the home "fitting room" into reality through the most advanced network three-dimensional virtual technology on the network. At present, the "fitting room" marketing model of Xinju.com has already played two roles: one is to provide a one-stop home furnishing overall solution to meet the personalized buying experience; the second is the non-standardization of household goods , A large number of physical characteristics, Xinju.com has created a ground service system constructed by 600 underground stores, providing consumers with free door-to-door measurement rooms, free plan design, free distribution installation and a series of after-sales guarantees to complete its The last link of the e-commerce system.
The home building materials industry itself is a highly professional industry. There are many types of products involved in the industry market, and the specialized market attributes require high professional talents and integration talents. The online market in this industry is just in its infancy, so at this stage, professionals in the home furnishing industry and the Internet industry are urgently required to join together to cultivate integrated new talents suitable for the future development needs of the home furnishing industry.
Zhao Yongjun: For the non-standardization of household goods, our solution as a third-party platform is to use online promotion and offline group purchases to gather consumers. We promote and organize group purchases for physical stores. All online The stores in the mall have offline physical stores, which is the biggest difference between us and Taobao Mall. At present, the traditional self-built online platform in the home building materials industry has not developed well, and the emergence of third-party merchants can exert their respective professional advantages. We can quickly bring together the consumer groups, and third-party platforms can stand From a fair perspective, the price and quality of the merchants are required, which actually plays a certain role of supervision, which has a considerable promotion effect on the home furnishing companies to touch the Internet to eliminate consumer doubts. Since we are organizing group buying auctions online and conducting auctions in offline physical stores, this basically solves the bottleneck problem of non-standard products, and our profit mainly comes from two parts: first, online brand manufacturers enter Our page becomes our VIP user, we charge online promotion service fees; and the other part comes from the service commissions drawn from the brand manufacturers' offline auction sales.
Dilemma 2: Slow supply chain response
Question: For a long time, the supply chain of the home furnishing industry has been slow, the logistics system is imperfect, and it does not support home delivery, and it is inconvenient for consumers to pick up the goods. Under the current situation, launching online business will naturally not receive effective support, and there is also a clear conflict in the price system of online and offline channels.
Tips: Explore a combined business model, speed up the response speed of the supply chain, use multiple models to improve logistics, and use product differentiation to solve online and offline price conflicts.
Deng Huajin: The problems in the traditional home furnishing industry are mainly: long channels, low efficiency, serious regionalization, large product differences, and non-standard services. Qijia.net provides a space for suppliers to fully demonstrate themselves, and The online world is unlimited. We have no restrictions on the facade of traditional home building materials stores. As long as they meet the needs of consumers, Qijia.com can help them open online stores. Qijia.net will also invest 200 million yuan to build a national logistics system, specializing in the logistics system of large-scale standard products. The main reason why we want to intervene in the logistics link is that consumers are increasingly demanding the supply chain. If offline services are still provided by the suppliers themselves, the service standards are difficult to unify and may even allow consumers Experience is hurt.
Cao Lei: Imperfect logistics system is a major problem that restricts the home furnishing industry from hitting the Internet. Since most home furnishing companies use logistics companies for transportation and do not support home delivery, this has caused great inconvenience for consumers in picking up goods. For example, many home furnishing companies basically do not provide door-to-door installation services. The logistics and merchants are not well connected. If the goods are damaged during delivery, consumers can easily complain of no door, coupled with high transportation costs, and the loss of users when returning or replacing goods. Big.
Zhuang Shuai: The sales model of e-commerce requires a quick response to the supply of goods, which requires the supplier to replenish the goods quickly; in addition, online consumers first consider factors such as service and logistics and distribution, these needs are not the same as offline of. Dongfang Jiayuan's approach is to first select products based on online consumption characteristics; second, to develop new suppliers through the market, because many suppliers are now highly networked and more professional in customer service; Third, we have also established our own warehouse logistics. Due to the large number of non-standard products for home building materials, we currently mainly cooperate with suppliers to complete logistics distribution. Specifically, we mainly adopt three logistics models: first, express companies are mainly based on small pieces of standardized commodities; second, large pieces pass through logistics companies; The third is the large customer logistics, which is mainly based on the logistics model established by the group customers for many years, and is mainly used in the group purchase transaction. These three models constitute the three-dimensional logistics system of Oriental Homeland.
Hu Yi: Our offline supply chain of customized furniture is based on one-stop solution to customer needs. Mass customization is the core of this model, and the customized cabinet products are all produced by our factory. We provide the most effective customized solutions for home furnishing needs; in addition, supporting parts such as sofas, dining tables and chairs, etc., we solve them through OEM, so that customers can buy all the required furniture products once they enter the store. It can be said that Xinju.com has adopted informatization technologies and means to integrate the information transformation from online sales, factory production to raw material procurement, from the entire supply chain to local processes, and has taken the lead in the furniture industry Scale customized production. Since customers can place orders directly on the Xinju website, and orders can be placed directly to the factory, the e-commerce problem of home furnishing companies can be solved with zero inventory.
It is unavoidable that although the response speed of the supply chain has been resolved, the conflict between the online and offline channel price systems still exists. Since most of the online market of the home building materials industry is extended from the offline market, after saving costs such as space, shopping guides and inventory, the advantages of e-commerce have become the constraints of these offline brands. The traditional sales channel and online channel have great differences in price, which has also caused conflicts and internal friction between brands and channels. This has indeed become the first thing to consider when entering the online market in the home building materials industry. A difficult problem. If this step is not passed, the online market will be difficult to travel, and e-commerce in the furniture and building materials industry will not be discussed.
Zhao Ruihai: In 2009, Qumei created the "Mouse Cement" e-commerce platform, and its performance has been very eye-catching since its launch. One of the most important reasons is that we have adopted a channel-cooperative e-commerce model, that is, we have transformed channel vendors Service providers and channel providers sell products directly on the Internet, and provide services such as transfer, distribution, maintenance and installation of products. As for the price conflict between offline and online, our approach is to use e-commerce to unify the price across the country. Now all products are assigned by the headquarters to implement price adjustments in different regions, so as to achieve a profit balance.
Dilemma 3: The brand dispersion model is the same
Question: The domestic furniture industry is characterized by a relatively low concentration. No furniture company accounts for more than 5% of the domestic market share. Although many furniture companies have obtained financing or achieved listing, the overall investment and financing level of the industry is relatively low Its growth and return on investment are not favored by domestic and foreign venture capitalists.
Tips: Explore your own business model, develop toward scale, reduce production costs by strengthening supply chain management, and gather large-scale customers at low prices.
Zhao Ruihai: The domestic furniture industry is characterized by a relatively low concentration. No furniture company accounts for more than 5% of the domestic market share, so capital operation will become an inevitable trend.
Feng Lin: Many leading companies in the home furnishing industry have already obtained financing or achieved listing, but the overall investment and financing level of the home furnishing industry is still low, and its growth and return on investment are not favored by domestic and foreign venture capitalists. As far as the entire home furnishing industry is concerned, there is a similar business model with scattered dishes and low concentration, and fierce price competition makes it difficult for companies to achieve large-scale growth. At the same time, it is not standardized in corporate structure governance, so it is difficult to attract venture capital. If an enterprise wants to be optimistic about investors, it needs to first develop towards branding, improve product quality, and strengthen brand recognition; secondly, it needs to develop on a large scale, by strengthening supply chain management, reducing production costs, and gathering large-scale customers at low prices. , And then enhance the ability to bargain upstream of the product on a scale.
Deng Huajin: As a third-party platform in the field of decoration, building materials, and home furnishing, Qijiawang has successively received investment from CDH and Baidu. Baidu Zijia.com is very recognized, because we have explored in e-commerce for five years, we have figured out a set of more successful models, and Baidu also wants to create a pan-e-commerce strategy centered on daily consumption, They are very optimistic about the successful experience of Qijiawang in the past, and hope to build their e-commerce in one step, so the cooperation between the two parties is a snap.
Hu Yi: The company that the investor loves is always a type: it has a unique business model, controls core resources and has a high replication threshold; the company has great growth in the future, and has strong self-replication and expansion capabilities. During the financial turmoil in 2008, Xinju.com received investment from Dachen Ventures, which laid a good foundation for the future expansion of our company. An important reason for our investment is precisely because of our innovative business models in the industry, such as the realization of mass customization in the furniture industry, the low-cost realization of mass customization in the business model, and the industrialization and informationization. Convergence and other aspects, these aspects happen to be on the main chain promoted by the national economy, which is also where investors are optimistic about the commercial value of Xinju.com.
Taking initiative is the best way to win
When the post-80s and post-90s become mainstream consumer groups, online marketing will also become the future development trend and trend of the home furnishing industry, and the online market will also become an indispensable place for merchants.
In fact, the home furnishing industry has opened up online channels, and traditional merchants such as Dongfang Homeland and Actual Home have been touched for a long time. "The wave of touching the net" was really heated up. According to Zhao Ruihai, President of Qumei Furniture, "In the one and a half years of Qumei Mall's launch, online products have accounted for 40% of Qumei's total, directly driving sales growth by 30%."
Although this market has been heated up, there is still no business that is really popular online. Chen Can, senior consultant of Analysys E-Commerce Center, believes that this is mainly because traditional merchants have not really paid attention to this market. There are three modes of doing e-commerce: small, medium, and large. The industry of home building materials has difficulties in transportation. The requirements of customers are relatively high. Therefore, if there is no good investment, it can only be done small. Not paying enough attention will naturally make many home e-commerce platforms very difficult.
The reporter also felt in the interview: Although the home has occupied a considerable market share offline, the person in charge still has nothing to say about the expansion of e-commerce business, and there is only one official home website After clicking on the channel name of the online store, the content is not yet online. This is enough to show that traditional merchants are also immersed in the traditional concept that home is not easy to sell online.
In fact, compared with the large and comprehensive shopping websites such as Taobao.com, the home furnishing online shopping platform built by the traditional home building materials market can help the physical store to extend to the online market. At the same time, through the organic combination with e-commerce, the physical storefront can be The scale of the exhibition has expanded several times. Once the operation is mature, it can help merchants or self-employed enterprises in the store to effectively save the cost of site rent, water, electricity and labor, and ultimately reduce the cost of goods sold. On the other hand, the existence of the physical market also provides a good localized service for online sales. Therefore, Chen Can believes that the time for home furnishing companies to compete in the online market has arrived. Companies cannot always be in the role of passively accepting the network, and only pay enough attention and take the initiative to accelerate the pace of establishing their own business models and market expansion In order to get a slice of the soup in this emerging market first.
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