How is the home business flooding into the home improvement industry?

Playing cross-border in the home circle has long been a cliché and has never stopped. Going back a little further, as early as 2015, Vanke and Chain Home announced the establishment of a joint-venture decoration company, extending the reach of the business chain to the home improvement cake.

Whether the former is based on the integration of resource advantages on the business ecology, or the latter has a new retail momentum of marketing temperament, it makes people realize that the home industry will play more and more It is.

At the same time, the boundaries of the industry have become increasingly blurred. Home improvement companies, product vendors, distributors, and even real estate companies are relying on their own advantages to explore upstream or downstream, business infiltration between each other, and the integration of industries.

The “big home road” characterized by cross-border has become a trend in the industry. Among them, it is surprising that many listed home furnishing companies have chosen to put their chips on the chaotic home improvement track.

Plus size, Shangpin home, gold, Qumei preemptive layout

On the evening of April 19th, Shangpin Home Delivery released the full year 2018 financial report. Among the nine listed home furnishing companies, Shangpin is ranked third. The financial report mentioned that in 2018, the company launched its own self-operated packaging business in Chengdu, Guangzhou and Foshan. As a new business, the number of self-operated construction sites delivered in 2018 was 849. From the revenue data level, the income of the whole equipment industry also increased from 2.28 million yuan in 2017 to 194 million yuan in 2018, with a growth rate of 8401.91%.

The industry speculates that the possibility of expanding the self-operated self-installation business in 2019 is very full, and the main battlefields of East China, such as Wuxi and Shanghai, have long been eager to try.

On December 3, 2018, the gold-plated kitchen cabinet announced that it would invest 22.4 million yuan to invest in the establishment of the subsidiary Jinji Jujiayun. From the original cabinet business to the wardrobe business, and then cross-border to the wooden door, the ambition of the gold-plated kitchen cabinet did not stagnate in the face of the whole house customization. The birth of the gold medal orange home cloud is undoubtedly directed at the whole package business.

In the announcement, the gold-plated kitchen cabinet announced the scope of the gold-plated citrus house. Including household appliances wholesale, building materials wholesale, other interior decoration materials retail, lighting retail, kitchen appliances and daily sundries retail, sanitary ware retail, wood decorative materials retail, other Internet services (excluding projects subject to licensing approval). From the perspective of business areas, the definition of Orange’s cloud is expected to be a platform type in the later stage.

After September last year, Qumei also came to the Guangying store to put on the home improvement business, showing consumers a one-stop style of hardwear, soft furnishings, furniture, design and construction in the form of model rooms. How is the home improvement service carried out.

In fact, a number of companies such as Ou Pai Home, Sofia and so on are all testing the water in a small area.

Take advantage of the trend, compete for traffic portals

From the layout of home improvement to the realization of the whole package, the custom home enterprise has the advantage of the product side. In the face of the complex home improvement industry, products can only be said to be one of them.

The industry believes that the current home improvement industry is still a mess, and the shadow of more than 100 installed enterprises is still vivid. The supply chain system is complicated, the construction delivery is difficult, the individualization is difficult to meet, and the standardization is difficult to upgrade. The users are not willing to pay for the design…

All kinds of difficulties are in front of us, why are some people willing to lick this? water?

Since 2016, national and local policies have been intensively introduced. In 2017, the Ministry of Housing and Urban-Rural Development issued the “13th Five-Year Plan for Construction Industry”, which proposes that by 2020, urban green buildings will account for 50% of newly-built buildings, and newly-built fully-renovated finished residential areas will reach 30%. The policies on the fully-renovated finished houses were more intensive in various places, and China ushered in the era of “completely renovated finished houses”.

The arrival of the full renovation of the house means that the demand for many products in the C-end is in danger of being divided. If you do not take the lead in the renovation, the original market share may be divided.

On the other hand, the self-contained model is winning the favor of consumers. According to the data of the China Building Decoration Association’s residential decoration and parts industry branch, 64.3% of home improvement consumers currently use the all-inclusive model, of which 61.8% of consumers choose to quote in square meters. Among the consumers who chose the square meter price, 21.4% chose the base equipment, 15.9% chose the base furniture, 52.3% chose the base furniture soft decoration, and 10.4% chose the base furniture soft-packed appliances.

I have to admit that the home improvement industry as a consumer’s immediate need is already a natural traffic portal. In the face of the new demand that is eager to “stay in the bag”, the proportion of the whole package mode in this traffic pool is self-evident.

What is the future direction?

From the perspective of development history, in the past 20 years, China’s home improvement industry has experienced various periods such as clearing, semi-packaging, all-inclusive, standardization, customization, and assembly. As consumption escalates, people’s needs are constantly changing. There is still much room for development in the future home improvement market. Such as the transformation of local space and the creation of personalized space, these consumer demands will prompt the renovation from a low-frequency consumption field to high-frequency consumption.

This means that the traffic pool is growing at all times. Home furnishing companies are pouring into the home improvement industry. It is understandable that this is true. Even some upstream companies are reluctant to give up this piece of fat to their lips.

However, outside the temptation, the threshold of the home improvement industry should not be ignored. The industry has shouted for many years of “what you see is what you get” construction delivery requirements, the brand has a high degree of standardization, whether it is from the supply chain system, resource integration, or service chain, logistics needs to buildPut a lot of energy into building.

If you want to really retain users in the home improvement industry, there is still a way to go to customize home business.

However, many custom brands are very confident about this. They believe that the basic decoration and the conventional hard-wearing have become mature, and the customized products are the difficult part of the whole process, and it is precisely the part that the customized enterprise is good at.
(provided by Shenyang Building Materials Network) <


Relevant recommended products

Motor Grade 190HPr Gr180 from China with CE

EVA Geomembranes

FORKLIFT CPD20,Balance weight design allows for excellent cooling capacity

Grade 309_316_316L Stainless Steel Flat Bar with High Quality

PRODUCT NAME:High Lift Pallet Truck–SLT10

Leave a Reply

Your email address will not be published. Required fields are marked *