What is the way for small and medium-sized enterprises to accelerate their entry into the cross-border "final circle"?

In recent years, with the adjustment of the downward policy of real estate, the market environment of the home furnishing industry in the downstream of the industrial chain has also begun to change - from the incremental market to the stock market. The household industry has enjoyed the decline of dividends from real estate, population, consumption, policy, manufacturing and other aspects for nearly 20 years, which has further deepened the "cross-border fever" and "package fever".

Cross border leading enterprises accelerate to enter the "final circle" of home furnishing

Now, a round of reshuffle has been completed in such subdivided fields as customized home furnishing, finished furniture, soft furniture and wooden doors in the pan household circle, and the leading pattern of the industry has been determined, such as the "new four families" of customized home furnishing - Oupai, Sofia, Shangpin Homefurnishing and Zhibang; Home care of finished furniture, Lin's wood industry; Mousse, Dream Lily, Xilinmen and Chihuashi of upholstered furniture; TATA, Mengtian, etc. in the field of wooden doors, a group of enterprises have successfully broken out of the competition and become representative brands in various sub sectors.

At this stage, the competition among leading enterprises is no longer limited to their own fields. They take customized home furnishing such as Oupai Home as the first mover. Through the concept of "big home furnishing", their products continue to expand to finished products, software, wooden doors and other categories. This measure effectively helps customized home furnishing to improve the customer price and promote the overall performance.

However, the cake of the market is shared, and more customized home furnishing means that other fields need to eat less. The disappearance of industry dividend accelerated the decline of the enterprise's performance. In order to maintain profitability, it is an inevitable trend to conduct business expansion in addition to doing well in its own business.

In fact, Gujia, a finished furniture company, began to customize the whole house as early as 2016, while software and wooden door enterprises started relatively slowly. However, with the repeated market in 2022, they had to accelerate the cross-border pace among enterprises.

More and more consumers pay attention to the requirement of unified style of the whole house. The deepening of one-stop service of "all house customization" from the initial demand for single product design to the development and extension of product series to the application of the whole house space scheme has also stimulated cross-border competition among industries.

The product logic behind the concepts of "whole house", "whole decoration", "door wall cabinet integration", "overall sleep" and so on, which are emerging in the pan household circle, is similar - providing product supporting services around one home.

In the future, perhaps the boundaries of the subdivided fields will be completely erased, and the "customization of whole room space" in the true sense will eat away at everything. For example, in the current customized home furnishing enterprises, the cabinet style and the wardrobe style coexist. In the future, the finished product style, the software style and the wooden door style will all belong to the "whole room space customization". The distinguishing point is that everyone has different starting points and different products, but their core service content is to decorate a home for consumers.

No one has an absolute advantage in competing for a piece of cake

It is an inevitable trend for the home furnishing industry to grow beyond borders. Competitors in the subdivided fields come out of their own tracks and enter the final circle, all of which are aiming to share more of the household needs of consumers.

Generally speaking, this is about the survival of enterprises. Once all businesses are occupied by "predators", an industry will be lonely. Among the cross-border players, there are attackers who take the initiative to launch "wars" and defenders who respond passively. However, despite their different roles, everyone has the same opportunities. As the leading enterprise in each subdivided field, the scale, strength and capital among enterprises are equal, which can support the enterprise's business expansion and leave room for return.

Of course, on the same track, the physical fitness of each competitor is different, including hot players, star players and unexpected players. But it is too early to make a decision on the final result of the competition.