"Electronic business, e-commerce..." This is probably the most vocal word in the home industry in the past two years. The rise of Tmall and Jingdong, the counterattack of Suning, and the blush of various shopping websites have had a huge impact on the traditional department store model. Although this shock wave has not yet formed a head-on collision with large home furnishing companies, the transmission of pressure has already stunned the industry. Faced with the embarrassing trend of e-commerce, people in the industry are generally somewhat impetuous. In fact, they calm down and study their essence. If they use it well, they may become happy.
Trying to test the success or failure of water
The home industry has a high output value, extensive development, and incomplete competition. In the e-commerce thinking, such an industry is too promising and too easy to attack. Therefore, in recent years, under the spur of capital and its own high growth targets, e-commerce companies have begun to eagerly cast their eyes on this traditional industry. And some home furnishing companies, through the pre-judgment of the trend, also began to choose to contact e-commerce or simply build their own e-commerce platform.
First of all, let us first count how many home furnishing companies have experienced the "electric shock" - from the early young boat to the home easy to stand, Qumei home e mall online, to the Merlot to enter and exit Taobao, "home" on the ground, Love bee tide moved to the city outside Chengcheng, Lanjing Mall low-key online, and then to the red star Meikailong to spend huge sums to do the red beauty mall, the home of the strong force to push the online ... mainstream stores, all with the e-commerce .
At the same time, the number of traditional well-known furniture manufacturers in Tmall has soared to dozens, such as Qumei, Huari, Red Apple, Chivas, All-Friends, Gujia, Top 100, etc.; other building materials brands, Such as Philips, Kohler, American Standard, icon, Nippon, Dulux, etc. are also reported. Most of these merchants are also preparing to open stores on Jingdong Mall, Suning Tesco and other websites.
In addition to fashion, what kind of excitement is e-commerce, so that these companies are rushing? And after they have tried the water, what comments have they made on e-commerce?
The answer may be a bit embarrassing. Although they all think it will be the future trend, many companies simply cannot understand the meaning of e-commerce. After the industry has paid so much attention to people, finances and materials, no company or model is generally considered to be successful or reproducible. Even Qu Mei, who has always been envied in the operation of e-commerce, has no smiles. Its president, Zhao Ruihai, said, "I want to be slower!" "Free up, I want to overthrow it all!"
At present, the e-commerce forms are diverse
What is the nature of e-commerce? Some say it is business, and some say it is a new business relationship based on new technology.
In an interview with Jinghua Home Furnishing, it was found that due to different business projects, different decision-making roles, different regions and participation levels, the concept of e-commerce understood by everyone is different. However, the trend is more consistent, it is generally believed that e-commerce is not the same as online sales, not simply moving the traditional business model to the Internet. It is no longer limited to geography, space and time, but by aggregating consumers, reverse integration of suppliers, payments, logistics, etc., in order to achieve the ultimate goal of creating a new business ecosystem.
These concepts sound boring. So, let's put down the theory. Let's take a look at what platforms does e-commerce provide for home furnishing companies?
The first category, the integrated e-commerce platform, is characterized by large traffic, such as Tmall, Jingdong, and Suning Tesco, Dangdang, Amazon, etc., which occupy most of the market share. Home manufacturers open brand online stores on the platform, import passengers through Tmall, Jingdong, etc., and sell specialized network-specific products and some online and offline synchronization products. As mentioned above, Qumei and Quanyou have done a good job on this kind of comprehensive platform. Last year, the Double Eleven created a so-called "miracle" of over one million days and accumulated billions.
The second category is the vertical e-commerce platform for the home industry. It is characterized by varying sizes and unevenness. Under this category, there are three kinds of existence - the first ones such as Melaleuca, Unicom, etc., which sell their own brands, are displayed on the cable, and also under the national chain experience store under the cable. The second type is a small and medium-sized professional website such as Qijia, Home, and Niuwo. They have limited capital investment and brand sales are open. The third model has the largest investment and the biggest controversy. Supporters believe that it can completely change the competitive landscape. Opponents believe that it does not conform to the objective law. It is useless to burn more money. Its representative is Red Star Macalline and Real Home. The two major stores have invested heavily in the creation of the Red Star House and will be online. The two "net second generation" born with the golden key will go online in September and November respectively, and the future is still unclear.
The third category, traditional home stores and brand online malls, such as Blue King Mall, Qumei Internet Mall, etc., generally promote sales through the theme activities.
The fourth category, large-scale home websites with certain media attributes, such as Sina Home, Sohu Home, etc., conduct customer group diversion through activities, and benefit from sharing with suppliers.
The fifth category, small and medium-sized home group buying websites, such as a decoration network, urban home network. The method is basically the same as above.
(Note: Due to partial crossovers and unclear views in the industry, Jinghua Home Weekly is classified according to its own methods and is for reference only.)
Related network sales are difficult
Why haven’t that home furnishing companies ever received consistent recognition in e-commerce? The short time, no successful experience to follow, is definitely an important reason; and the particularity of household products or services also makes the road to e-commerce, the difficulties in the theory into the actual process.
One of the hardest ones is probably online pricing. For more than a decade, traditional channels have formed relatively complete supply chains, and factories and distributors have long been acquainted with commodity pricing, sales areas, and profit ratios. Nowadays, to break this stable pattern and achieve the same price online and offline, the natural contradiction is enormous. In addition, the development of various regions is uneven, and the labor and logistics costs are not the same. In the case of different interests, it is hard to unify the price and it is not realistic.
As a result, platform vendors and factories have made various attempts. For example, the introduction of online sales special products that are not available offline. However, large-scale goods have no experience and no reference, which obviously lacks attractiveness; while the similarity between online products and offline is too high, it will inevitably have an impact on the entity. In addition, there are also companies that have tried to launch products that are truly nationally priced. In their own words, they have to “go through five customs and six squadsâ€, not only to talk to dealers, but also to cooperate with them, but also to find ways Compressing costs, subsidies to remote dealers... But they only "agreed to help" in stages, because the sale of such products, the profit is thin but the service and after-sales have not decreased at all.
Secondly, the problem of delivery and installation of online sales products is also a difficult problem for a large number of enterprises. Unless the national logistics or after-sales system is built, the second half of the e-commerce transaction is difficult for enterprises to control. The delivery period of large-sized goods is too long (three months or even half a year), or is not equipped with professional installations, which indirectly leads to a decrease in consumer satisfaction, and the resulting complaints and returns have increased transaction and processing costs. This point, after the double eleven last year, there are many cases, it is worthy of the industry to think.
Of course, there are still many similar problems, such as the interface between the management system and the e-commerce platform, which hampers the traditional manufacturing enterprises. However, for companies such as Melaleuca, which are originally Internet brands, the impact is small, and their main problems. It lies in the capital chain. In this regard, the industry's evaluation is that the former is facing the problem of upgrading and transformation, while the latter is the problem of survival.
Calmly look at e-commerce performance
Compared with the thinking of traditional enterprises, e-commerce thinking is snobbish and ruthless, but they are willing to invest heavily in “water and fish farmingâ€, and its purpose is also very clear, that is, role model effect.
Obviously, the e-commerce platform companies are most eager to obtain customers, which are the big brands in the traditional business field, because they have the capital, the willingness to develop, and they are easy to be persuaded to take the initiative. They have a certain brand awareness, which will improve the quality of the platform and enhance the viscosity to consumers. Moreover, they are free advertisements and are highly motivating for the same brand or small and medium-sized brands in the industry.
In this context, let's review some brilliant e-commerce cases. Will we see some traces of using rules and joint hype? According to the Jinghua Times reporter, at the beginning of the preparation of Tmall, the support for the well-known brands that joined the company was quite strong; the service was also thoughtful and considerate, helping customers to think about activities, strategies, and even providing a lot of free resources. Tmall must shape the example.
Therefore, in the past two years, we have seen the record of tens of millions of yuan and hundreds of millions of large enterprises, and we have seen many successful stories of grassroots overnight. Of course, there are companies that pay the rewards they deserve, but the authenticity of many things is also debatable. An insider of an e-commerce told reporters that one of their important strategies is to stir up the situation and let the traditional channels mess up. "To make them anxious, let their brains go away." In this way, opportunities will arise. Facts have proved that this trick is very effective. Take Tmall as an example. At the beginning, only a few big home brands such as Qumei and Quanyou supported it. In the following years, the amount of traditional enterprises added increased by geometric multiples.
This kind of development is in the middle of the platform, but for the companies that are stationed, the competition will only become more intense. Many resources are no longer free, not only the benefits are divided, but also the introduction of passenger flow, and the cost is getting higher and higher. "If you don't invest, you can only stand in the corner and watch the huge passengers pass by. You can't get a chance to talk directly with consumers, what are the deals?" This is why some brands are booming, some The root cause of the door. This is not necessarily related to the sound of your brand, the store decoration is not necessarily related, but only whether the platform has passenger flow, and whether it guides you.
Therefore, behind this piece of prosperity, companies have been unable to withstand the performance or cost pressures of “electric shock†and “fishing the rocksâ€. Other brands that have accumulated a certain popularity, such as Melaleuca, have also begun to escape from Tmall and set up a separate portal.
Development follows the laws of business
It must be acknowledged that the rapid development of e-commerce has disrupted the structure and structure of existing channels and has begun to force the home industry to improve industrial efficiency. However, the new technology only represents the advanced direction and does not necessarily mean success. E-commerce must also follow the laws of business development and constantly improve itself.
The industry believes that the new business relationship created by e-commerce should be to create new demand, rather than letting the companies stay together. For example, e-commerce allows people who want to buy but cannot buy a certain brand product to get what they want, which is positive. And if you just spell the price without a bottom line, it is negative.
Through many days of interviews, Jinghua Home reporters found that whether it is e-commerce thinking or traditional thinking, some people have reached a consensus on a point of view - e-commerce is not the terminator of traditional channels, it may become an offline store Parallel virtual big platform.
Today, it is in its infancy, with a farmer's market, a morning market, and a street stall. Consumers are also relatively casual and blind. When a discount or a clearance sale is made, someone will fly to the past. However, this kind of legal supervision is insufficient, and the difference in product quality and service is the same as that of the same stage. It will not last. This platform will change the form and rules with the needs, there are upgrades, there are boutiques, but also peeled out to open independent stores ... By then, the company is fighting for products, services, comprehensive satisfaction Degree, not who is more likely to be fooled, who has more means. For consumers, it is also more secure.
No one denies that e-commerce will be a trend, but e-commerce will never be the only one. It must intersperse and help each other with traditional businesses. Emerging industries will experience explosive growth in the early stages of development, and there will be repeated and twists and turns. Ma Yun and Wang Jianlin, together with the new gambling of the car construction, are not just a momentary sigh. Since the judgment is different, wait for the time to test.
â–¡ Jinghua Viewpoint
1. The current e-commerce products are still price-driven, attractive and profitable should be the product portfolio, spikes are just a means of drainage.
2. Reducing the cost is not only to reduce the exhibition area, but also to implement it, such as design. The design concept of IKEA is very worth learning. It has the most economical principle. All products must be able to be packaged in flat. The raw materials must be used to the extreme, and the price can be reduced.
3. Don't overestimate the ability of consumers and installers, and develop some common tools.
Also easy to disassemble products, such as plug-in products.
4. If the funds permit, it is still an advanced information management system. Although its post-service is bottomless, it does optimize processes and reduce costs, thereby increasing customer satisfaction. Lenovo has benefited a lot from it.
5. Strengthen the communication with e-commerce people and try to change the mind to look at the problem, but keep calm and don't easily negate the law. Don't look at other people selling online well, they are anxious, earning no money, and knowingly. Change must also be stable.
6. The e-commerce business needs to be nurtured and waiting to give it the opportunity to grow and make mistakes. The assessment objectives at this stage should not be just sales performance.
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