Is the "savior" or "trap" of the e-commerce home furnishing industry?

In recent years, with the increasing popularity of home e-commerce, the industry has also increasingly questioned furniture e-commerce. The root cause of the question is the increasing number of home e-commerce, but few have reached the market scale and can make profit. . After in-depth understanding of the home furnishing industry, the author believes that there are many problems in the home furnishing industry. Only by recognizing these problems can we better measure whether e-commerce is a "savior" or "trap" for the home furnishing industry.

Three major problems restrict the development of traditional home furnishing industry

In the era of e-commerce, there are many problems in traditional home furnishing. Today, when China's economy is in line with the world, these problems must be paid attention to and resolved.

The traditional home furnishing industry has a single marketing model and immature channel construction. This is a recognized fact in the industry. In terms of terminal sales, many home accessories manufacturers do not even have salespeople. Their market mainly depends on relationship customers or customers who come to their own homes. Although some major enterprises have established their own channel channels, the management of the channels is too confusing. The cost of channel marketing is too large, which limits the development of enterprises.

Secondly, the chaos in the home furnishing market led to different prices. Many home furnishing companies recruit dealers, but rarely establish their own direct stores and specialty stores. In dealer stores, many products have different prices in different channels. Some dealers even ask for prices, so that in some There is a "profiteering" situation in the region.

In addition, weak brand awareness is also one of the problems. At present, most domestic home furnishing enterprises engaged in export are engaged in OEM production, and they have no need or awareness of the brand. Although some domestic businesses register their own trademarks, they do not know how to cultivate and maintain the brand. Several brands were launched, and as a result, the brands were overwhelming. No one could dominate the market.

E-commerce: Promote traditional home to solve problems

Some insiders say that e-commerce is not suitable for the development of the home furnishing industry, because the user experience of online marketing is poor, home products and services are not uniform, and so on. The leading domestic e-commerce provider Zhongsuo believes that the emergence of e-commerce can exactly promote the development of the traditional home furnishing industry in terms of channel costs, market prices and brand building.

In terms of channel construction, the "non-regional" nature of online sales can save a lot of channel costs. Enterprises do not need to recruit channel distributors from all over the country, but only need to improve the distribution and service system to cooperate with online sales to achieve perfect cooperation between offline and online transactions. For example, Eagle Sanitary Ware has implemented regionalized management of its online after-sales service, which is directly allocated to the service scope of physical stores in the corresponding area. Its online marketing model has greatly improved its sales performance.

In terms of the market, the transparency of information on the Internet can guide the home furnishing industry to unify market prices, cut industry profits, and break the previous situation of price confusion. Taking Qumei's e-commerce road as an example, in July 2009, Qumei Home Furnishing established an e-commerce platform. Its practice of unifying national prices through the Internet was questioned by many insiders at the time, but it turned out that Qumei ’s method of unifying national prices has achieved extraordinary success. At present, Qumei ’s sales in first-tier cities such as Beijing and Shanghai are 40% From the Internet, the second and third tier cities are as high as 60%. Consumer trust in Qumei's products has risen sharply.

In terms of brand building, the development of electronics in recent years has fostered a huge post-80s young consumer group. The “post-80s” consumer group has a strong sense of brand selection. As it gradually becomes a consumer, unknown brand manufacturers must Will be engulfed by a few brand companies. Therefore, the development of e-commerce will prompt more home furnishing enterprises to strengthen brand building.

Zhongsou: The prospect of home e-commerce is still optimistic

Although e-commerce in the domestic home furnishing industry is still in its infancy, the home furnishing industry has trillions of dollars of consumption each year, and its prospects are self-evident. In early September, the first day of the launch of a B2C home furnishing website called Lettuce.com ushered in the achievement that daily sales exceeded 120,000 yuan. The Chinese home accessories portal, which started from a traditional industry, passed the China Search platform in just two years An unusual new model.

Focusing on providing e-commerce services for traditional enterprises, Zhongsou said that the prospects for the development of e-commerce in the home furnishing industry are very huge. In 2009, the output value of China's furniture industry was 650 billion yuan, accounting for 70% of the world's home manufacturing, but Alex ranks in the top 50,000 There is no furniture e-commerce platform on the website, and in developed countries such as Europe and the United States, online furniture purchases account for 30% of the total furniture consumption, so the domestic home e-commerce space is huge.

Zhongsuo believes that, under the circumstance of booming e-commerce, the success of home e-commerce is only a matter of time. After various problems of traditional home are addressed and resolved, home e-commerce will surely usher in remarkable success. On the Chinese search platform, in addition to the Chinese home accessories portal, dozens of home vertical portals for home decoration, furniture supplies, wooden doors, kitchen and bathroom, radiators, etc. have been born. These websites will be possible after several years of growth. Become the protagonist of the future home e-commerce.

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