When industrial innovation has become a general trend, when flexible manufacturing and intelligent production become mainstream, as more and more new technologies emerge in an endless stream, when consumption upgrades come, A new generation of consumers has begun to rise. When countless new species have become the market share of the veteran industry leader, when the traditional business inefficiency is less and less customer experience, we are faced with various changes and original success. The business logic has been greatly challenged, and the original experience and path seem to be in a mess, or even at a loss.
In the past, we thought that many mature industries have no what chance. However, we also have to admit that every day, our cognition is constantly being subverted and refreshed. The super-species created by the fresh-keeping industry and the Yonghui supermarket have become the benchmark enterprises; the automobile industry’s big search car, Amoy The car network and the peanut good car have also become the case of new retail; the bookstore industry’s words and the squatter bookstore represent the new retail space of the chain bookstore.
From the introduction of the new retail concept to the practice of various industries, it is enough to show that the new retail has begun to profoundly affect the business ecological transformation. The new retail war is also constantly upgrading. As an important part of a good life, the home industry still lacks the best representatives and cases of new retail. This is a new proposition and opportunity.
The status quo and change of the home retail industry
Accordingly, for the moment, the total value of the entire home improvement retail format industry is about 4 trillion, and with the upgrade of consumption and the intervention and innovation of Internet home and smart home. The scale of the industry may also grow at a rate of 10% to 15% per year. This is a retail market with a huge amount of consumer mass.
New retail has grown wildly across the industry’s territory, while subversive coverage has not largely spurred home retailing. a piece of cake. Why does the home industry seem to be an safe and sound island under the turmoil of the new retail boom? But how long can this kind of safe and long-lasting?
All the home furnishings consumption has been concentrated more and more offline, and the impact of online sales on traditional large-scale physical retailers is minimal. As a large-scale deep consumer goods, furniture and building materials belong to a unique branch in the entire retail field. Why is it unique? There are three main points:
First, it is directly affected by the upstream real estate industry. As a close supporting industry in the real estate industry, the home improvement retail industry is greatly affected by real estate consumption. Home furnishings retailing largely reflects the true value of real estate consumption in the total size of real estate consumption.
Second, the experiential requirements of the consumer process are higher. As a large-scale deep consumer goods, consumers have a deeper experience, comparison and immersion in home furnishings retail products. You need to choose the right products according to your own preferences and home decoration style, such as the size of the bed, sofa, tile, sofa, etc. These commodity elements require consumers to observe, compare and experience the goods at the offline retail store.
Third, the sales cycle is long. Building materials and some furniture products need to be customized according to the size and style of the customer’s home decoration. For example, cabinets, wardrobes, floor tiles, sofas, etc., are required to be measured at the mall, and the size of the door is measured. The order is customized to the factory. Due to the custom elements, the delivery period of the goods is relatively long, and some may be half a year or even a year later. Will deliver the goods to the customer.
Based on these three very significant and distinctive retail features, the impact of furniture and building materials on online retail sales is relatively The words are much smaller.
Internetization of home retail, class Jingdong mode or Meituan mode?
Around 2010, home retailing, including some factory companies, began to intensively try to transform the Internet. As of today, there are four representative models of Internet retailing in home retail:
First, custom platform. The representative brand is the Shangpin home decoration, including the later Sophia wardrobe, European cabinets and so on. These brands were originally traditional custom-made factories. In the process of online transformation, a whole home improvement was built online.The provider platform is mainly for customers to customize the various types of wooden cabinets, such as wardrobes, cabinets, bathroom cabinets and so on. Does not include basic home improvement building materials, such as tiles, toilets, etc.;
Second, standard finished furniture retail platform. As represented by IKEA, it offers a full range of finished furniture and daily necessities, including large furniture, sofas, cabinets, beds, tables and chairs, as well as various daily necessities such as bedding, ornaments, pots and pans. Scoops and so on. The IKEA online shopping mall mainly relies on offline shopping malls. Since all of them are standard products of finished products and all the products are self-operated, it can realize online coverage in cities with wired stores;
The third, a strict selection platform for daily necessities. The most representative is Netease’s strict selection. Strictly speaking, the strict selection platform is completely different from the traditional home retail. The products it faces are all kinds of daily household items needed after the decoration. The large furniture mainly includes sofas, tables, chairs, beds, and more. Small household items, including household items such as pots and pans, small household appliances, personal items such as toiletries, clothing, and even some snacks. The existence of strict selection has created a large grocery platform with almost all-inclusive but relatively limited SPU.
The fourth, home improvement platform. The most important resource for home improvement is the designer and home improvement company. The platform hopes to build an information service sharing that provides home improvement design and home improvement construction, and grabs the first entry link of home retail from the upstream. By mastering the resources of designers and home improvement companies, it is possible to conduct more efficient customer resource drainage and distribution for offline physical stores.
Four home retail models, each with its own length and weakness
IKEA’s online store is the most standardized furniture retailer, similar to the Jingdong model, which relies mainly on offline physical stores, with standardized products and its own brands. More suitable for online sales, however, its distribution can only be limited to the area under the line, the coverage is very limited;
Custom The core advantage of the platform lies in the production of various wooden cabinets for household use, which can meet diverse needs according to customer characteristics, but the category is very narrow, and other products in the home decoration field such as building materials, sofas, bedding, etc. have no advantage.
There are too many SKUs for the platform, including household and household items, food, personal items, toiletries, including Clothing, etc., lack of focus, and most of them are self-operated brands, operating costs and operational risks will be great.
Home improvement platform is an ideal solution, but it contains a lot of risks, uncertainties and high cost investment. It is not difficult to see that the nature of the home improvement platform is similar to that of the US group, linking all home improvement companies and customer groups to provide valuable information services.
However, the most difficult but inextricable problem for the service platform, both for the seller and the buyer, is that the platform Where is the attraction? Why attract designers to enter, and why attract customers to place orders on the platform. A few years ago, the US Mission made a bloody road with a high amount of money burned, giving consumers the benefits and benefits, and today has the strong customer stickiness and industry voice.
At this stage, the huge problem facing traditional home retailers’ venues
Today’s era, for the traditional offline home retail market, has faced tremendous changes and challenges.
First, the product is highly similar. For any retail mall, a large number of home and building materials are highly similar, and the price and style are not much different, leading to vicious competition. Small and medium-sized brands and dealers with lack of competitiveness are on the verge of loss and profit.
Second, the consumer demand in the domestic real estate market has entered a rational period. In recent years, the real estate market has been completely different from previous years. The demand for furniture and building materials is far less than that of 0708 years ago. The market has shown a trend of rational consumption and even shrinking. After 80s, the population has basically passed the age of real estate consumption, and the total number of people after 90 is already low, and their consumption concept is more advanced and rational. There are more and more retail malls and hypermarkets for home building materials, and the pressure of competition and survival pressure is huge.
Third, the elimination of young people in the context of consumption upgradingThe concept of fees has changed dramatically. ACNielsen believes that the so-called consumption upgrade is essentially rational consumption. Today’s young people’s consumption concept is no longer the pursuit of the “symbolic consumption”, that is, no longer blindly pursue the brand, the pursuit of high prices. It is not the kind of “silk-type consumption” in the past, and it is cheap to pursue.
Young people are very individual and independent. They don’t care much about what others think, and they don’t like to pursue “local tyrants”. Consumption style, like fashion, simple, tasteful, individual, fun and new things. In this context, compared to the home retail market itself and the goods in it, there is no individuality, the whole layer of sofas, beds, bathroom toilets, etc., the products are extremely numerous, and almost all products are similar. The result is that the first has no features, and second, the customer’s choice is more difficult.
Fourth, the shrinking of dealer resources or the interests of dealers cannot be more effectively guaranteed. As a leasing system, there is a game and partnership between the retail platform and the dealers. The mall hopes to increase rental income and other income from the dealers, and the dealers hope that the mall will reduce the rent and reduce the operating costs.
At the other end, the factory prefers dealers to pick up more goods, even prepay, pay a deposit, and so on. The cost of booth decoration, staff salary, venue rental expenses, marketing and promotion expenses, etc. have accumulated, making it difficult for small and medium-sized dealers to make profits. At the two ends of the factory and the operating platform, dealers have become the most vulnerable people in the field of home retail.
The homogenization of the product, the strength of the branded factory and the level of resource utilization on the retail platform affect the dealer Whether the crowd can make a profit. However, in terms of shopping malls, the value of the occupancy rate of the shopping malls and the level of rental income are more valued. Although the mall has overall marketing investment, it does not guarantee that every dealer in the mall can make a profit. Once the dealers are unable to support, they will withdraw. The mall started to invite merchants to replenish business again. In this cycle, dealer resources are shrinking more and more, and the more the exits, the more difficult it is to attract investment.
What new species will emerge in the future of home retail?
Whether it is the current IKEA (class-like Jingdong model), or the home improvement designer platform (class group mode), Or the family life groceries strict selection mode, focusing on the whole house custom-made Shangpin home delivery mode, each of which is one end, is not an online master and leader in the field of home retail.
The online and offline end of the home retail sector expects a super unicorn to appear in the near future.
Overview of the many new retail formats, you can find that the online and offline experience stores have been integrated. Online and offline empowerment, online shopping, shopping, and distribution services, while offline experience stores create more experience in the field, new and beautiful store design and decoration, different products It assists leisure, entertainment, and catering to make the offline store a more popular place for customers, willing to go and can be worth staying.
So will there be new species in the home retail sector that are similar to freshmen or more independent innovations? The author believes that this answer is almost certain, for three reasons:
First, the scale of home furnishings retail consumption is huge. An ordinary home decoration consumption, which is hundreds of thousands or even hundreds of thousands, is several times that of other daily retail products. With such a huge cake, there will always be a new influx of innovators.
Second, after the home decoration consumption, followed by the consumption of electrical appliances, household daily necessities, the household consumption of the customer group is very The value of the retail audience, while the big data of home consumption is even more high value.
Third, the current products, services and environmental experiences provided by traditional offline retailers are no longer able to adapt to new changes in market demand. From product to service, it is urgent to update and upgrade.
So, what will be the future of new home furnishing and how will it be born? Do an exploratory design here.
First, how can the online service + retail platform be built?
No matter whether Jingdong or Mei Tuan, it is not a whole class at first. You need to find a cut-out that is more easy to survive and easy to attract traffic. Jingdong starts from the home appliance, and the US group begins to cut in from the restaurant group purchase, the last two One became a giant in the field of tangible goods retailing, and one became a giant in the field of intangible services.
So, for the home retail sector, The ultimate goal is to create a super-retail giant of the “commodity + service” provider on the online side. In order to better attract traffic at the beginning and reduce the operational pressure in the initial stage, where should we first cut in?
The first step is to cut in from “IKEA mode + strict selection mode”. For home decoration, basic building materials, including tiled bathroom custom closet cabinets are not suitable. Online retail, such goods involve pre-worker-to-home measurement, design and post-professional installation services. Online sales are more suitable for IKEA’s “standardized furniture goods”, standardized sofas, tables and chairs Beds, etc.
In addition to large pieces of furniture, online platforms need a more selective “household of daily living”. Abandoning the personal products selected by NetEase, including cosmetics and cosmetics, focusing on “housewares.” Through small household items, the flow of online shopping malls is guaranteed, and the frequency of repurchase is guaranteed. DAU (Day Living User) in the mall. Because it is a standardized product, you can get rid of the offline storefront and achieve nationwide distribution.
The second step, extending to home improvement and basic building materials. This step, relying on the on-site service provided by the offline storefront. Home improvement and basic building materials are no longer online stores, but build The platform is stationed by the factory or the dealer. Because the basic building materials and customized products require very complicated on-site measurement design and installation, and even the delivery cycle is long, it can be provided to a professional third party. When the platform merchant passes the first Achieving a higher online DAU is to further extend to the basic decoration category, and it will be more effective with the upstream of consumption.
Three steps, introducing home improvement companies and designers, to build a “service provider” at the entrance to the home improvement. As mentioned earlier, this step is the most difficult, but also the most valuable. Grasping the resources at the entrance to the home improvement will be thoroughly Open the whole link from home decoration design to product retailing. Why should we put the designer platform to the end? It is mainly when the online shopping mall has sufficient user traffic to have the negotiation and control of the designer resources and avoid Enterprises have become more and more immersed in an endless pattern of burning money.
Step-by-step extension of self-operated standardized products 1. Focus on home life: standardized large furniture + household items (both Self-operated, also have dealers or factories); 2. Larger coverage; 3. Select fewer products, have quality and tasteful products, and reduce customer selection costs
Second, how do home-based retail offline experience stores do better cross-border and scene innovation?
Rely on the powerful online store, the offline experience store needs to think more about how to do the scene. Cross-border and innovation has become a space worthy of customers.
First, the function needs to make up for the lack of online. It is important to emphasize that the home improvement products and other retail products have huge differences, the site customization is stronger and the delivery cycle is longer, so the on-site service function of the offline store is particularly important. When the online mall extends to the “basic home improvement building materials” and the “designer platform”, the offline experience store needs to enter the same part of the goods and designers.
Second, strict selection and limited control of goods. A large number of similar goods are a huge burden and waste for both buyers and sellers. Experience the store online, the products need to be carefully selected and controlled, just the right arrangement and display can not only show the quality of the goods, but also leave a greater free cross-border space, giving customers a more comfortable experience, easy Purchase.
Third, the artistic space of the scene space, living and diversification. As a new retail species, and focusing on the home retail sector, it is entirely necessary and more likely to achieve a rich and diverse spatial experience. Completely transforming the original home retail space model, incorporating reading, rest, music, coffee, art and other elements to create a more comfortable leisure scene, and all this needs to be integrated with selected products. The offline experience store is both functional and casual.
Conclusion: Home retail, a new imagination of trillions of dollars
Home retail is the beginning of all life retail. The high single-value, high customer base has made the industry have a huge scale effect, while the special consumption and supply methods, the backwardness of the existing supply model, make this field have a huge imagination and development in the near future. space. From what angles, what kind of new species to build, what is the current pain point and how to build a new model to give more and better new experiences is a topic worthy of in-depth research and thinking in the home retail industry.
As the Internet giant continues to extend its reach to the offline, the home improvement industry is increasingly unable to become a small retail industry Island, change is happening, just what the new future is, when it comes, it is only a matter of time, or sooner or later, it will always destroy and create new life.
Relevant recommended products
CNBM Solar Monocrystalline 156 Series 330W
Smd3528 Smd5050 12V Rgb Flexible Led Strip Light
Aluminum Sheet Five Bars Aluminum Sheet 0.1~5Mm 3 Bar Embossed
3-25mm density 0.47 eco-friendly forex board pvc foam board
LED PAR 38 Light Finned Radiator 18W E-Type Spot Light E27 Base SMD LED Chip 85-265V