Where is the way for small and medium-sized enterprises under Matthew effect?
Cross border integration has become an industry trend, so under the Matthew effect, how to survive for SMEs has become another focus of the industry. We are sure that most SMEs are not necessarily suitable to follow the trend of "all room space customization" across all categories of enterprises.
First, there is still a lot of room in China's home furnishing market, which is sufficient for small and medium-sized enterprises to operate and develop without direct competition with leading enterprises; Moreover, the capital, scale and strength of SMEs do not necessarily support their business expansion, and the cost of trial and error is too high.
Moreover, the geographical location of home furnishing is the natural advantage of some regional enterprises. Geographic factors such as transportation, installation and after-sales service are still an important part of consumers' consideration, and cannot be replaced by big brands.
On the other hand, with the homogenization of the industry restricting the development of enterprises, focusing on subdividing fields, and aiming at customer needs, mining enterprise differences is also an important means of enterprise growth. In the past, the growth of household enterprises mainly depended on channels and marketing. However, as the industry entered the stock market, facing increasingly rational consumers, the business strategy focusing on the B-end was difficult to work.
In the future, home furnishing enterprises will shift the focus of their strategic layout in factories, dealers and shopping malls to the C-end, that is, the user experience level. Rebuilding the user centered and product centered business model is the key. Iterative upgrading of product services is the key. For example, Paterson's water paint customization focuses on the environmental protection, formaldehyde free and other user needs of products, while Raka's "trendy" home furnishing focuses on the personalized needs of young people, It is a typical C-end business thinking that focuses on consumers to create competitive advantages.
