The Internet home improvement industry is developing towards a one-stop overall decoration model
The home improvement industry chain involves many links including design, quotation, construction, materials, supervision, furniture, and acceptance. Traditional home improvement has been distributed layer by layer with falsely high prices and low efficiency. With the changes in the market, the younger and more fashionable decoration consumption, especially the Internet thinking has brought new ideas, home improvement companies are gradually moving towards a one-stop overall home improvement service model that includes the integration of various links in the industrial chain and even related financial services. That is to say, the decoration mode has changed from the original package cleaning to half package and full package, to the integration of soft furnishings and home appliances, and the "holistic home decoration" that packs all the home elements, providing the decoration owners with a packaged accommodation mode.
Internet home improvement channels accelerate sinking
In terms of traditional commerce, those who gain channels win the world, and so does the Internet economy. "Channel sinking" has become an important part of Internet home improvement companies' business expansion and occupying the market. This can also be learned from the planning of various Internet home improvement brands: Qijia.com proposes to cover 1,000 cities in 2017; Aispace said that within three years, the city partners plan to land in 120 cities and serve 100,000 home improvement a year. Users; I love my home said that it will cover 80 cities in 2017; Meilele plans to open new stores in 17 cities in 13 provinces and cities in 2017.
It should be reminded that although channel sinking can provide some performance growth, it also brings no small challenges. In the process of rapid offline expansion of enterprises, it is necessary to determine a business model that can be replicated, as well as management of regional characteristics and market emergency mechanisms. In addition, with the fierce competition in the first- and second-tier cities, high operating costs, and the gradual reduction of profit margins, some home improvement brands have set their sights on third- and fourth-tier cities, hoping to outperform their opponents with a “rural surrounding the city” attitude.
Self-built warehousing and self-built logistics will become new flashpoints
Most of the Internet home improvement brands adopt the F2C factory direct sales model, cutting off the intermediate links to reduce sales costs and ensure the interests of merchants. In the actual user decoration experience, the transportation means are not unified, and it is difficult to control the materials in the logistics transportation process. Loss, resulting in delays in the construction period, poor customer experience, and even the need to spend a certain amount of cost to transfer goods from the manufacturer.
"Pseudo-Internet home improvement companies" that rely solely on the Internet as a means of sales will eventually be banned, and the completion of market education has made new consumption models that are separated from traditional sales, supply chains and constructions gradually being gradually adopted by more and more consumers accept. After nearly two years of price wars, how can the remaining quasi-oligarchs quickly conquer the city while also controlling various costs, such as directly controlling warehousing and distribution through self-built warehousing to satisfy consumers Benefits and own business development needs, on the one hand, achieve cost control, on the other hand, it is also conducive to the complete laying of the industrial chain.
The penetration of new technologies and new ideas
In 2017, China's domestic decoration industry has truly reached the critical stage of promoting industrial innovation and upgrading through technical means, such as VR technology, assembly technology, robots, etc. Some companies that enter the home improvement field with technological identities, most of which have online product intelligence and management processes The advantage of They have a more mature 3D virtual design, which is more suitable for consumption habits, can interact with consumers and generate stickiness. At the same time, traditional home improvement companies are also online assisted design 3D virtual design software or BIM software, hoping to use it for measurement, cost calculation, etc., to comply with the goal of becoming an Internet company.