Customized home furnishing enterprises enter the market and become leaders or struggle to survive?
Recently, Sofia's flagship store of direct packaging was launched in Shenzhen's Livable Nest. Home furnishing enterprises compete vigorously in the field of packaging while grabbing the doors and windows track. But then again, hard decoration has always been a hard nut to crack for household enterprises. In the face of the whole decoration that has not been won in the decoration industry for 30 years, can the household enterprises get through its "two veins of responsibility and supervision"?
How did the head enterprises come into the bureau for decoration?
Full decoration refers to the integration of basic decoration, hard decoration, soft decoration and other household elements, providing design and construction services from basic decoration to soft decoration, as well as one-stop shopping services from basic materials to furniture, lighting, curtains, ornaments and so on.
When the custom home gradually presents the red ocean attribute, it becomes the destiny of the custom home enterprises to find new blue ocean. For example, doors and windows with high expansion value, and packaged goods with high customer value are all attractive.
In fact, the whole house was not popular this year. As early as 2017, several enterprises of full house customization have been experimenting with the whole house. 2021 is called the "first year of the whole house" by the industry. This year, the concept of whole house and whole house has become a trend.
In recent years, major customized home furnishing brands have successively set foot in the whole package and accelerated the competition for the whole package track. What are their outfits like? Follow the new paradigm of home furnishing.
By the end of 2017, Shangpin Homeware, who was born in "software", adopted the BIM packaging model for consumers, established a packaging brand - Christmas Bird Packaging, launched HOMEKOO packaging cloud, and integrated the supply chain, construction and delivery with its best information, networking and other means to empower small and medium-sized packaging enterprises; In January of this year, it publicly announced the full transformation of the integrated packaging company.
Oupai Home Furnishings opened in Sichuan in May 2018. Now, it has reached cooperation with more than 2000 national and regional head decoration enterprises, such as Yezhifeng and Liangjia, to form resource complementation (product+service) and strong alliance. Essentially, it is to use brand influence and the ability of whole house customization to integrate the home decoration supply chain.
In December 2018, Gold Medal Kitchen Cabinet invested 22.4 million yuan, accounting for 80% of the shares, and jointly established Xiamen Gold Medal Jujiayun Integrated Packaging Co., Ltd. with some shareholders. On September 27 this year, we worked together with Jiuding Decoration and Tmall Premium to create a new model of "customized home decoration 4.0".
In April 2019, Sophia joined hands to promote the whole package, formally laid out the whole package track, and then signed an in-depth cooperation agreement with head decoration enterprises such as Shengdu Home Decoration and Xingyi Decoration to jointly open a whole package subsidiary to launch the whole package products and services.
Unlike the whole house customization, which takes the cabinet category as the cutting edge, the packaged service is a one-stop integrated service from design, construction, customization of main materials, auxiliary materials and woodwork to distribution and installation. At present, the essence of home furnishing enterprises entering the market is business cross-border and strong alliance. Where can they go in the future?
The production capacity, channel scale, brand advantages and service advantages of customized home furnishing enterprises are prominent, and the centralized procurement mode of the supply chain forms scale effect, which can further reduce costs; At the same time, the extension of the vertical industrial chain has also improved the customer value and profit space to achieve a better level of profitability.
However, through the re listing of the Internet home decoration industry, the new home decoration paradigm found that the home decoration industry still has problems such as long industrial chain, cumbersome decoration process, and asymmetric information between buyers and sellers. Therefore, enterprises face many challenges in the process of transformation and packaging.
The first is the capital risk of high input and low output. The upfront investment of funds and resources required for the whole package is large and extensive. If the enterprise is not fully prepared for risk prevention, integrated management and comprehensive control, once encountering an accident, the funds and resources may face a "big loss of blood". Not only the whole package business may be affected, but also the original main business may be involved. In the past two years, the collapse of Apple Decoration, Tianhe, Midea and other packaging companies has been related to the rupture of the capital chain.
Secondly, hard decoration has always been a barrier for customized home furnishing enterprises to enter the whole package. At present, hard decoration resources are mainly in the hands of real estate companies and home decoration companies. Cooperation with it can handle the hard decoration link in the whole package for customized furniture enterprises, but the modularization and industrialization of hard decoration required by the whole package is difficult to achieve at this stage for the home decoration companies that can only play an intermediary role!
Moreover, in the process of transforming the whole decoration, the customized home furnishing enterprises are faced with the practical challenges of complicated manual order placement, complicated manual order splitting process, and low material utilization during the transition of the traditional manufacturing mode. The whole decoration will also have higher requirements on the enterprise's systematic delivery capability, supply chain management, integration capability, etc.
Finally, home furnishing enterprises were limited to product integration at the beginning of integration, and even returned to selling their own products when landing. Sophia landed in the flagship store of Shenzhen Liju Nest, which was directly operated by the store, and promoted that the above items were all new home products of its own brand. And the whole package of enterprises such as Oupai, Shangpin Homeware, Golden Kitchen Cabinet, Paterson, Canoa, etc. is also based on customized cabinets, supplemented by soft furniture.
As you will recall, Kebao Boloni entered the decoration field on a large scale around 2006, and finally sold to Ouhao Group as a whole in the second half of 2017, becoming the "martyr" of the earliest customized home furnishing enterprises.
For the customized home furnishing enterprises, it is unknown whether they will become the "catfish" that will disturb the market and become the industry leader in the future, or whether they will be involved in the trend of earlier home furnishing enterprises, making a living like sardine, as they go from alliance marketing to independent cultivation and move forward in the tide of closure of the home furnishing industry.
