In 2017, after customizing the home, after the climax of the listing, all kinds of large and small custom home furnishing companies have sprung up, but everyone is more like a slap in the face of pursuing this hot air, and there is no essential label. Change is not a custom product that consumers really need.
Behind the large number of homogenized products, the entire custom industry reflects impetuousness and chaos. Tear off these so-called traffic labels, how many of the remaining home businesses can be accepted?
On July 8-11, 2018, in the 20th China Construction Expo (Guangzhou), which covers the entire industry chain industry, custom home furnishing companies have occupied 45% of the booth. But in addition to the well-known European, Sofia, Marg, Zhibang, Piano and other big brands, more are the appearance of many small brands in the public eye, the "main brand" of the East and West custom homes are even more Going out of the nest...
This reflects the transformation of more and more traditional furniture companies into custom furniture, while the market penetration of custom furniture is gradually increasing.
If the start of Sofia's listing in 2011, custom furniture has entered the fast lane of development. With the climax of the listing in 2017, let us see the vitality of customization, it seems to have been a big enthusiasm for the industry.
As each family invests heavily, competition in the custom home sector is becoming more and more adequate. Industry transitions and cross-border players have sprung up, capital power is flowing, and how do custom-made home businesses live under such heat? As more and more companies want to share a piece of cake, when the customization is getting heavier, how many brands can play custom and play long-term?
The pigs on the tuyere may not be able to fly.
At least 10 years ago, custom homes were on the road. Probably from 2015 to 2016, custom homes have gradually become a hot spot in the industry. By 2017, it has risen to a peak and is regarded as a cusp. But not all pigs can fly on the tuyere.
On the surface, the custom furniture industry has low entry barriers, can be customized for production, and hundreds of thousands can start projects. Therefore, in the years of custom-made popularity, small national workshops have sprung up. But most of them have not become "pigs on the wind" in the past few years because of their insufficient marketing and operational capabilities.
Some people also said that some of the main price packages are difficult to make profits, the industry's net profit is generally only between 15% and 18%, to a certain extent, only 1% to 2% of profits, and may not be profitable. .
At the same time, the giant brands have also entered the market with great gold. In 2018, Gujia Home purchased Bilchi and entered the whole house customization. After 315, the European, Sophia and Shangpin homes also set off a market battle for the Big Three, and the pace of national channel expansion accelerated. But the industry is still in a very fragmented state. According to last year's annual report, the Big Three's total revenue is less than 20 billion, accounting for less than 10% of this market capacity.
Equipment, plant, software and other inputs can be solved through capital, but the company's product system, technical talents, terminal operations, supply chain systems, etc., is the core that truly determines the development of the enterprise. For example, some small and medium-sized enterprises do not choose the whole country, but they are deeply cultivating the region or focusing on high-end, single-item products, and they can live like a duck. It can be said that under the premise of upgrading its own products and operating systems, the giants can compete for their own one-acre three-point land.
Customization that is not based on consumer demand is “following”
Small businesses focus on survival, and large companies focus on scale. Since 2017, many brands have customized the whole house, or custom-made from the kitchen to the bedroom, the living room, or directly from the cabinet to the floor, a variety of "+", "big" concept.
Cross-border brands are generally strong in strength. Many people think that large-scale investment, multi-stores, and Jianda stores can quickly break through the regional market. It is not uncommon to see 100 stores a year, three years and five hundred million; but the service cannot keep up. There are also a few links that cannot be reached.
For example, when Baidu searches for a “complaint” keyword of a leading brand, there are more than 2 million search results with various consumer problems and troubles, including long production cycle, customized products, and no shipments. , deferred orders and so on.
Most of the customer complaints stem from the internal production supply system. Behind the rapid expansion must be supported by a strong system. From the expansion of the main business to the customization of the whole house, the customization becomes more and more heavy, and at the same time, it is necessary to follow the whole supply chain management of the home improvement and the follow-up of the personnel and the construction period.
From the order of the order, design, production, logistics, arrival, installation machine after-sales work, a customized order requires more than a dozen processes, if only provide products but can not provide a system of services, the floor has not been laid The cabinets, beds and wardrobes are not a pair, so the patchwork will only affect the reputation of the main business.
To cross-border custom-made enterprises to lay a solid foundation, it is necessary to upgrade the squad step by step, seeking 1+1>2 category expansion, rather than the department store type of various categories. All customizations that are not centered on consumer service are “running tricks”!
The so-called customization, can be "customized" is the serious thing
Whether you are walking in a custom pavilion or browsing a certain treasure, a custom brand flagship store on the east, it is very interesting to know if you hide the product LOGO. And this year's style is similar to last year, and it seems similar to 5 years ago. Originally, the customization of the consumer's vision in the form of personality and self, seems to be a slap in the design of the finished furniture.
During the 315 period, Sina home reporter visited and found that the so-called whole house customization, in fact, based on the sample of the exhibition hall, the secondary design and re-layout of the indoor space according to the needs of the owner, similar to the splitting and assembly of the module. The owner can change the color, size, shape and layout of the custom furniture, but the basics are fixed. Even the sales of some well-known brands will come to the forefront to tell you that "full house customization is sometimes just a marketing tool, not all capable of landing."
Design is a key element. Custom homes have long been immersed in the atmosphere of price wars and small profits but quick turnover. Many companies are reluctant to spend human and material resources to design. The current increasingly transparent market and fierce competition require companies to maintain a design mentality to make products that can be differentiated and recognized.
At the same time, custom design must be designed from the living space, just change the color, size and layout of the furniture. It is impossible to talk about the so-called "customized", nor can it provide a personalized life. And this also violates the original intention of customization. In order to guide the flexible customization of the factory from the consumer demand, and then stimulate the C-side consumption by the factory production, a closed loop of design, production and demand can be formed. Putting "customized" into practice, the so-called customization is more than just a marketing gimmick.
Recently, the semi-annual report on the listing of home furnishing companies has been released, and the performance in the custom field is still bright: in terms of operating income, Piano has increased by 40.8% year-on-year, Ou Pai home has increased by 25.05%, and Zhibang kitchen cabinet has increased by 25.69%. However, compared with the year-on-year revenue of 2017, the growth rate slowed down.
The consumer demand for custom-made housing is on the rise, but the industry has already entered the stage of fierce competition. Concept marketing, price wars, etc. will soon be taken out of the custom track. If you do not grasp the design and service, customization can only be one. Concept, capital may bring a momentary push, but good products can really put the castle in the air.