In the year of "chilling and pressing", how can we be born again in disillusionment?
There is no doubt that 2018 has become a watershed year for the whole industry. As we all know, this is an extremely fragmented market. We have to face not only the adjustment of the structure, the change of the model, but the reshuffling of the whole industry. Looking back this year, we can summarize several key words: “new retail”, “new technology revolution”, “package”, “big home”, “finished house”, “supply chain”, “closing tide”, but this power It will also continue its enormous impact on the industry in 2019 or even longer.
Through the research on social, market, industry and consumption trends in the past year, and integrating various industry authoritative information, it summarizes the analysis and reference of the development trend of China's home improvement industry in 2019.
The home building materials retail market will further shrink and present a "multi-format integration" coexistence situation
In the past, due to the large scale of building materials and home stores, the choice of a wide range and management practices, the store has become the best choice for consumers to wear at home. But in recent years, with the intensification of competition, coupled with the devastating impact of the Internet, traditional stores urgently need to transform. Affected by the overall environment, many merchants have reported that the operation is in a dilemma. There are not many cases of losses and withdrawals. Negative news such as merchants’ rent retreat and protest boycotts are not uncommon.
According to statistics, sales of home building materials above designated size in the year decreased by 22.6% year-on-year, and sales in 2018 decreased by 13.89% year-on-year. We can clearly see that the traditional sales model of home has shown signs of decline.
The traditional home building materials industry is accustomed to passive transactions, merchants are almost in the store and other customers, but with the rise of new retail channels such as the decoration, e-commerce platform and shopping mall shopping mall, a large number of passengers are intercepted at the front end, to the off-season It’s a door. Retail terminals are no longer the only channel for consumers to buy home building materials.
This will undoubtedly send a warning message to the building materials home store: the traditional way of operating the store has obviously not adapted to the current development. Similarly, the terminal brand also needs to make strategic adjustments to avoid the fate of being eroded.
In terms of the transformation of the store, the actual home has resolutely stepped out of the first step of change. The home experience mall, which opened in April this year, has achieved a multi-format approach to attracting customers and cooperating with each other to truly enjoy the “one-stop” shopping experience. It is reported that since the opening of the business, the passenger flow has more than doubled compared with the same period of the previous year.
As a terminal brand, it is also necessary to quickly see the changes in the retail market pattern that have already occurred. At the same time, it is necessary to accurately judge the future direction of the retail market, so as to adapt to changes in the terminal market and make strategic adjustments in real time. Traditional home furnishing retailers have also made a move to find new ways and growth points through their own industrial upgrading, involvement in e-commerce, cross-border cooperation, and group heating.
Also in April of this year, Shangpin House was launched with the world's first “Super Collection Store”. For the first time, “Super Collection Store” uses a multi-format collection to create a new experiential consumption space for consumers and plans to lay out more than 500 physical stores. As everyone knows, since 2004, Shangpin Home has been innovating in response to changes in consumer trends, and what innovations will be brought forward in the future.
At present, the business model of the industry is facing the test of transformation and upgrading. New retail and new ideas will break the traditional operation pattern. Regardless of the kind of reform and innovation, the consumer experience is the king, and it is more appropriate to find ways to be closer to your users.
Diversified cooperation channels will fission huge market energy
In the past, home improvement companies have access to store formats, telemarketing, residential stagnation, etc. For large multi-package companies, these are almost the only survival channels, and even the most important marketing channels. However, with the introduction of relevant policies and regulations, these marketing methods are suspected of violating the law. At the same time, Internet home improvement enterprises have also suffered bad luck. In addition, the development of the above-mentioned stores has also presented multiple difficulties, which is hard to protect.
For home improvement companies to develop for a long time, they must explore new marketing models and actively seek a marketing method that is more suitable for the modern market and more acceptable to consumers. In recent years, many brands have increasingly favored the construction of diversified channels, and they have taken channel innovation as a breakthrough to regain their vitality. Home improvement enterprises are extending upstream and downstream and integrating related resources, which is becoming a universal way of survival and development.
Home improvement companies integrate furniture, building materials, accessories and other materials, which in many people's eyes may only extend downstream. With the introduction of the national “Hardcover House” policy, home improvement enterprises need to be more widely integrated in the new market transformation, and closely cooperate with upstream and downstream products, services, management and price systems.
The scale and growth rate of the new housing market have begun to gradually decrease, and the stock market will show a long-term upward trend in both scale and growth rate. At present, the national stock market has reached 200 trillion yuan. The good days of the home industry relying on the market dividend have passed, and the next one is a big integration of comprehensive strength. In this process, most small and medium-sized enterprises face the constraints of resources, scale and capacity, and will face unprecedented challenges, or welcome the front line, and the strong will be stronger.
In the era of stock room, home improvement business will become a new profit point for housing enterprises
In 2018, the real estate market is also a very heavy year. The state has not relaxed the regulation of the real estate market and introduced various policies. Especially for some first-tier cities, such as Shenzhen, Hainan and other cities, it has issued the most stringent regulatory policy in history.
In July of this year, the rumors of “one country cut across the shed” made the market scream. As we all know, the real estate industry has a direct relationship with more than 20 industries, involving more than 50 industries in the upstream and downstream. Due to the turmoil in the upstream housing market, the home improvement industry is inevitably affected. From blank to hardcover, from increment to stock, under the influence of multiple reform factors, the home improvement era has been refurbished and consumption has arrived. For home furnishing enterprises, it is also a challenge. opportunity.
Under the new market structure, three mainstream formats have been formed: the rough house market, the hardcover house market, and the stock room (second-hand house and old house) market. In the past, the traditional marketing model mainly included “mainstream stores + mainstream location + image store + home improvement channel + promotion activities”, and the store was mostly sold. However, the premise of the traditional marketing model is that the store must have sufficient passenger flow, and the market must have enough rough houses. Obviously, it is now the world of pure stores and rough houses.
The home improvement market has been extremely fragmented. In the early days, traditional home improvement enterprises occupied the main market, but with the addition of leading housing companies, the market structure has changed. Vanke, Greentown China, Country Garden and other leading housing companies have been locating this market for the past two years, and at the same time have high hopes for the business development of this sector. At present, the home improvement business model has evolved from a pure product model to a comprehensive multi-modal model, mainly including: home improvement + custom mode, self-assembly + full house customization mode, and bag-staying mode.
In the stock room era, the old house marketing business model mainly includes quick repair, bureau installation, self-installation, and homestay. The home improvement company's standard for building stores can be selected in the old residential quarter with higher housing prices. For each privately-owned company, it is necessary to have a clear pre-judgment for the future, so as to strategically adjust its own business direction and business model. At the same time, with the advantages of upstream and downstream, we can support each other and grow together.
Data-driven service-oriented enterprises are ushing in rapid development
The ever-changing market demand and the fiercely competitive complex environment have caused the traditional business management model to no longer adapt to the fierce competition environment, and also require the furniture home improvement industry to be more intelligent and informative.
Based on the mobile Internet technology and the market demand-driven Didi taxi software, Internet thinking is used to connect people and transportation services, effectively realizing the information docking between users and taxi drivers. All of these findings and responses are based on the collection, analysis and application of data.
Drip not only drove the rise of new modes of taxiing, but also created a turning point in the humanized upgrade of the taxi operating model that has remained unchanged for decades, profoundly changing the big thing in people's clothing, food, housing and transportation. And in the big thing of "living", for our home improvement companies, who can see the farther future, and find the path, methods and tools to the future, who can find a blue ocean. With the optimal configuration of data-driven resources, and improving the production efficiency of all factors, we can gain a firm foothold in the fierce market competition.
Home improvement returns to the essence of word of mouth is the coming of the king era
The home improvement industry has always been criticized by consumers and is not a catch-and-see. In the traditional sales model, the problem of “information asymmetry” frequently occurs: the exquisite model room is only a signboard function, the quotation and engineering quantity calculation are opaque, and the designer eats “kickback”. and many more. What's more, some companies with insufficient qualifications have used the chain of interests in the name of “packaging all-inclusive” to play the edge ball. It seems that the scale is large, but the actual ones have their own watches. However, consumers are powerless. Change this situation.
According to some surveys, in the main basis of the user's choice of decoration company, the word of mouth accounted for 47.4%, and the user has no problem with the decoration company. The main reason is that the process is difficult to control and the variables are too many.
Of course, both the supply and demand sides are always promoting each other, the demand is getting bigger and bigger, and the supply is becoming more and more abundant. Nowadays, the home improvement market has gradually presented a gesture of blooming, and many companies have also made the marketing strategy more transparent and convenient. Direction adjustment, the word-of-mouth operation management mechanism and new credit system in the home improvement industry are accelerating.
The decoration company should quantitatively judge all aspects of the industrial chain, simplify the industry chain as much as possible, and finally let the users have examples to follow, thus enhancing the overall reputation of the industry.
The “packaged” mode will continue to ferment
In 2018, the home improvement industry has gone very difficult. The large-scale chain home improvement enterprise Apple decoration is deeply immersed in the "running road" storm, and the well-known home decoration brand in Jiangsu has suddenly collapsed. At the same time, the Internet home improvement that has flourished since 2015 is now It seems that the outlook is not optimistic, and Yuju and No. 1 home network have declared bankruptcy.
The industry "big bang" is still the case, and other small and medium-sized enterprises that have fallen silently are countless. 2018 is the "winter" year of the industry, and it is also a year of rapid development of "package".
On the one hand, the dividend of the 4 trillion home improvement market is attracting more and more participants to attack the city, such as real estate developers, building materials companies, home furnishing companies, and e-commerce giants. On the other hand, according to the “White Paper on China's Home Furnishing Design Trends in 2018” released by Tencent Home, among the respondents, the proportion of “all-in-one, all-inclusive” was 39.6%, accounting for 43.57% after 80. After 90, it was slightly lower, which also accounted for 38.93%. The number of owners who hold the above ideas continues to grow in number, which is enough to support the formation of a mainstream business model.
Why do companies from all walks of life do not hesitate to take a share of the cross-border? The big cake of the decoration business has a large imagination. Once the C-end user's entrance to the decoration service is truly grasped, there is still an opportunity to drive the positive cycle of the company's overall industrial chain, thus gaining huge profits. Many cross-border brands have chosen “fitting” as a breakthrough, which has transformed the whole industry from the previous decentralized development to the unified development of the unified direction. The number of enterprises, industry scale and consumption consciousness have reached an unprecedented height.
In 2010, the "customized first year" opened the brilliant development of the custom home industry for eight years. In the past, China's custom furniture mainly focused on the fields of custom cabinets, custom wardrobes, etc. With the improvement of people's pursuit of quality of life, the concept of furniture consumption Mature, as well as the improvement of production technology of furniture enterprises, custom furniture has gradually expanded to the whole house furniture field such as study, children's room, living room, restaurant. In addition, the 2016 “Whole House Customized Home Products” industry standard has been introduced and implemented, and the industry standards for custom furniture have also been improved year by year. Customized furniture is increasingly favored by consumers, and has become a new and fast-growing point in the field of furniture consumption in recent years. At the same time, the pattern of customized industry giants has long been a foregone conclusion.
As far as the current situation is concerned, the strength of some large-brand enterprises has become more and more powerful, and some small companies lacking scale and characteristics have struggled. The market for the whole assembly is still chaotic, and it has not yet formed a certain industry norm. The entire industry needs to be changed. But it is certain that "package" will be an inevitable trend in the future. This trend is vast, and it is the same as the wave of custom homes in the finished home.
The industry will soon usher in a watershed. Only by breaking the game, innovating, and breaking the old thinking mode can the company emerge in the brutal competition. How to recognize the trend, integrate resources, and find the right traffic entrance is the subject that must be faced by home furnishing enterprises. In 2019, for the whole decoration, it will become the first year of new development. In 2019, it is also the "year of stereotypes" of the whole-installation model. The transformation cannot be delayed!