Customized home "fight" C-end Market
The change of home decoration demand urges customized home furnishing enterprises to explore new sales channels and integrate diversified products.
A regional person in charge of customized household brands told reporters, "at this stage, about half of the customers are hardbound houses, and 30% to 40% of the customers are rough houses such as second-hand house renovation." In the view of customized home sales staff, although a large proportion of hardbound houses have been delivered in recent years, some customers will carry out partial renovation of hardbound houses, or even dismantle and reinstall them.
With the transformation of hardbound houses and the gradual emergence of home decoration motivation of stock houses, customized home furnishing enterprises have "increased" one-stop home furnishing consumption such as whole customization and decoration in recent two years, and increased efforts to reach C-end consumers by extending new categories and cross-border cooperation.
While customized home furnishing enterprises compete for the C-end market, the bulk business channel for the b-end has also presented another scene in the past two years. In the face of the rising penetration of fine decoration, how customized home furnishing enterprises will operate large businesses in the future has become a difficult problem.
Bulk business has been "tested"
In recent years, the continuous improvement of the penetration rate of fine decoration has provided an opportunity for customized home furnishing enterprises to develop bulk business and engineering business.
For the sales mode of bulk business, Guangdong piano science and art home furnishing Co., Ltd. (002853.sz, hereinafter referred to as "Piano") once pointed out in its 2021 annual report that the company has established cooperative relations with nationally renowned real estate developers directly or through engineering dealers, signed strategic centralized purchase contracts, and provided fine decoration supporting integral cabinets, whole house customization The sales revenue from the design, transportation, installation and after-sales business of customized household products such as door walls and supporting cabinets will be recognized after the customer's acceptance.
When combing the data, the reporter noted that although the layout of customized home furnishing enterprises for bulk businesses is different, bulk channels are one of the important sources of business revenue.
According to the annual report data, from 2019 to 2021, piano achieved bulk business revenue of 643 million yuan, 712 million yuan and 879 million yuan respectively. Guangzhou haolaike creative home furnishing Co., Ltd. (603898.sh, hereinafter referred to as "haolaike") also achieved bulk business revenue of 123 million yuan and 740 million yuan respectively from 2020 to 2021.
On the one hand, bulk business can contribute operating income to customized home furnishing enterprises. On the other hand, bulk business also makes many customized home furnishing enterprises bear "burdens", such as being in arrears, extending the payment collection period, and affecting cash flow.
AVC also recently pointed out that bulk business, as a sharp weapon for the revenue growth of many household enterprises, has gradually become a stumbling block to the development of enterprises due to the shortcomings of low gross profit, slow payment collection and high risk of bad debts in the process of risk exposure of real estate enterprises.
A number of Engineering wooden door and wardrobe suppliers also told reporters in the exchange that at this stage, mass customized wooden doors, wardrobe and other products need to pay the purchase price before they can be delivered, and it is not new for the buyer to default on the purchase price.
At the level of listed companies, haolaike recently announced that the performance commitment Party of Hubei QianChuan door and window Co., Ltd. (hereinafter referred to as "Hubei QianChuan") plans to repurchase 51% of the equity held by haolaike in Hubei QianChuan with a cash consideration of 792million yuan.
According to the previous announcement, Hubei QianChuan is mainly engaged in the design, production and sales of complete sets of solid wood doors, solid wood composite doors and other household products, and is a leading enterprise in the field of engineering wood doors. In October 2020, haolaike purchased 51% equity of Hubei QianChuan with 700million yuan in cash, and the performance commitment Party of Hubei QianChuan also promised relevant performance indicators to haolaike.
The reporter noted that when acquiring QianChuan, Hubei Province, haolaike once said that "the bulk market benefiting from the increase in the proportion of hardbound houses will actively expand with the help of QianChuan's brand". However, in less than two years, due to the fact that QianChuan, Hubei Province, is expected to be difficult to complete the relevant performance indicators, the acquisition ended with the "return" of haolaike.
From the perspective of the industry, Ovi cloud data shows that in April 2022, the penetration rate of fine decoration in a single month nationwide reached 42%. Ovi cloud also recently pointed out that bulk business, as the second largest sales channel at present, although the risk exposure of real estate enterprises has had a great impact on the brand, the continuous rise in the penetration rate of fine decoration means that the scale of bulk business remains the same, and "giving up food for choking" must not be the choice of customized home furnishing enterprises.
Demand changes drive enterprises to seek innovation
On the one hand, customized home furnishing enterprises are exploring new bulk business cooperation models, and on the other hand, consumers' home decoration needs are also changing, prompting enterprises to develop new sales channels and expand new categories.
Referring to the 2021 home decoration industry research report released by iResearch consulting, the home decoration motivation of new home decoration is still the main reason for home decoration consumption demand, accounting for 34.2%. However, the proportions related to stock houses such as old houses, aesthetic changes and expanding family accommodation are 14.6%, 10.2% and 5.4% respectively, and the sum of the three proportions exceeds 30%. The home decoration motivation of stock houses gradually appears.
The annual inventory and trend insight of the home furnishing industry from 2020 to 2021 released by yiou think tank also pointed out that the urbanization rate has further improved, the housing transactions in the first and second tier cities have entered the era of stock, and the implementation of the hardbound housing policy will reduce the proportion of rough houses in the supply of new houses. With the reduction of the supply of rough houses, second-hand houses and stock houses will become the new focus of the home decoration industry, and the traditional way of getting customers in the home decoration industry will usher in changes.
The regional head of the aforementioned customized home brand recently told reporters that although the hardbound room is equipped with cabinets, wardrobes and other products, the delivery standards of each community are different, and some customers will customize cabinet products separately. "Some customers need to buy more wardrobe, TV cabinet, household cabinet and other products before moving in due to insufficient storage space and mismatching spatial pattern of the wardrobe equipped with fine decoration. They will consider choosing the form of whole family customized package and adding some cabinet products."
At the same time, a custom home brand salesperson also told reporters, "although a large proportion of hardbound houses have been delivered in recent years, there are also customers who partially transform hardbound houses, or even dismantle and reinstall them. In addition, there are some customers who move back to the house. They get blank houses and will choose to do the whole decoration, integrating the decoration team, design team and home products."
The reporter noted that in recent years, customized home furnishing enterprises have "overweight" the whole one-stop home furnishing consumption such as customization and decoration. From the practice of enterprises, Sofia home furnishing Co., Ltd. (002572.sz, hereinafter referred to as "Sofia") released the "whole family customization" strategy in 2021, and Guangzhou Shangpin home furnishing Co., Ltd. (300616.sz, hereinafter referred to as "Shangpin home furnishing") also launched the BIM packaging mode in the 2C consumer business field.
While developing the original products and businesses, customized home furnishing enterprises also increase efforts to reach C-end consumers by extending new categories and cross-border cooperation.
Taking the former as an example, Sofia recently officially released the brand of "Sofia doors and windows" and entered the door and window industry. According to gongjianzhao, general manager of Sofia Huahe door industry Co., Ltd., Sofia launched the integrated solution of "door, wall and window", which will start with the three engines of "software, products and stores", and adapt the product models of various business scenarios, covering the balcony, master bedroom, study, kitchen and other home spaces.
In addition, in order to better empower dealers, Sofia also mentioned the 3312 model launched by Sofia doors and windows, which gives partners more market tools with "three variable space packages, three training systems, a set of active marketing service system, and two-hour Renewal Service".
In the direction of cross-border cooperation, Shangpin home distribution has also recently reached a strategic cooperation with Lilin technology to create an integrated experiential consumption scenario of full house customization + smart home and provide a one-stop smart space solution. According to Shangpin home distribution, the two sides will promote in-depth cooperation in "Scene co construction, channel sharing, marketing promotion, and traffic sharing".
Shangpin home accessories said, "In the future, the two sides will focus on their own products, and jointly create a 'whole house ecological scene' with the integration of full link services of Lilin + intelligent products of Lilin + full house customization of Shangpin homestead + full house supporting facilities of Shangpin homestead; Shangpin homestead will enter the expansion plan of 2000 stores of Lilin and integrate into the experience area of 'whole house ecological scene'; they will enter the strategic supply chain system with each other to realize the synchronization of front-end marketing; joint user operations to realize customer resources Share. "
