The home furnishing industry explores new outlets through e-commerce and needs both online and offline

 

After experiencing the collapse of last year, many home furnishing retail companies have "touched the net" this year, hoping to explore new outlets through e-commerce channels.

A few days ago, the world ’s largest furniture and building materials retail entrepreneur Debao, the international furniture chain retail enterprise Meikemeijia and the home of a large-scale home building materials theme shopping mall (Community Network Forum), also announced their entry into Tmall to test water and electricity suppliers, which is after home appliances and department stores After the supermarket and supermarket industry, home improvement retail companies have "touched the net" for the first time in large areas.

In fact, previously, furniture manufacturers represented by Qumei Furniture, Elvis Furniture, and Meiyijia Furniture have opened up e-commerce channels and achieved initial results. According to reports, Red Star Macalline's e-commerce platform "Hongmei Mall" will also be launched recently.

In an interview with reporters, iResearch analyst Zhang Jing believes that the entry of home retail companies into e-commerce is a way and way to expand business, which will play a certain role in companies' market development, but the effect will not be obvious.

Mo Daiqing, an analyst at the China E-Commerce Research Center, also told the International Business Daily reporter that with the popularity of e-commerce, it will be a trend for the offline home store business to expand online, but online is an offline one. Supplement, can not rely entirely on online, because household products have more demand for consumer experience.

In addition, industry insiders believe that pricing, logistics, etc. have also become challenges for online home sales.

"Touch the Net" to Deal with the Tide of Bankruptcy

In 2012, the performance of China's home furnishing stores was poor, and many enterprises closed their stores. This is one of Tmall's Home Depot. In September last year, Home Depot announced the closure of all seven of its home furnishing retail stores in China.

After 9 months, Home Depot chose to cooperate with e-commerce. The person in charge of the official flagship store of Home Depot said: "Choosing Tmall as a strategic partner to establish the first domestic online flagship store has provided Home Depot with a platform directly facing the huge consumer group, and Tmall has provided a lot of support for the settlement of Home Depot. Under the general trend of increasing demands for product quality, environmental protection, personalization and pre-sales and after-sales service, Home Depot hopes to work with Tmall to jointly cultivate the high-end imported home building materials market. "

In Zhang Jing's view, Tmall's user and traffic advantages have become an important reason for home retail companies to choose to cooperate with them. She said that in 2012, Tmall's B2C business accounted for more than 50% of the country's B2C share, "the status and impact are obvious."

Tmall said that its 500 million consumers will gather more popularity for home brands. Qian Mingfa, the president of Lijia, actually said that he hopes to provide products and services to more consumers through multiple channels, especially online channels.

Statistics show that household consumption in first-tier cities has become saturated, sales per unit area of ​​home stores are declining, and low-cost, high-yield third-tier cities are increasingly becoming the main front for home stores. E-commerce is becoming the "highway" for the rapid development of traditional home retail. E-commerce has advantages unmatched by traditional marketing channels: low cost of sales, precise positioning of target customers, one-to-one marketing, rich and comprehensive information, etc. Not only that, e-commerce can also help home brands accumulate reputation and cultivate a fixed consumer group.

Explore business models in challenges

Some people in the industry believe that it is a good thing for home furnishing companies to "touch the net" for both businesses and consumers. It can save costs and follow the trend. It is undoubtedly a big survival rule for the current sluggish home retail market.

However, some people in the industry said that household goods have their own particularities, and "touching the net" will cause many specific problems: first, consumers cannot obtain a sufficient consumer experience online, so they cannot accurately grasp the size and texture of the product. , Affecting its purchase decision; secondly, household products are bulky, difficult to transport, and vulnerable to damage, so return and replacement are troublesome and costly, especially logistics costs; again, household products have higher requirements for logistics and after-sales The process is complicated, and it is difficult for enterprises to handle the relationship between after-sales, logistics and offline channels.

Mo Daiqing said that online pricing may impact the offline price system. At the same time, e-commerce may have certain requirements on suppliers in terms of price, thereby squeezing the profit margins of suppliers and affecting cooperation between the two parties.

Gong Wenxiang, Vice President of Huaqiangbei Online, believes: "To successfully expand online business, home furnishing companies must consider how online marketing can be combined with physical display, and ultimately highlight the core competitiveness of cheap prices, while protecting the existing price system Distinguish between some online products and offline products, these are issues that home furnishing companies must consider when entering e-commerce. "

The online business model of the home store is still in the exploration stage. Zhang Jing believes that home e-commerce should adopt some promotional methods that are different from offline, such as providing free design and other services.

Industry insiders believe that O2O is the best sales model for the home furnishing industry. At present, one of the best cost-effective models is the online collaboration between online stores and offline stores to form a community of interests. The relevant person in charge of Meikemei's home appliance business said that Meikemeijia took Tmall as the first stop of e-commerce test, relying on e-commerce platform to achieve effective integration of product flow, logistics and customer flow, exploring a The road of cross-border transformation of "offline experience". (Editor: Peter)

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