Brand home online for business opportunities 70 billion online shopping cake waiting for a slice

In the way of doing business, channels are king. With the gradual saturation of traditional channels, online channels have been in full swing in the fields of clothing, digital, and books. However, due to the large volume of products, weak experience, and troubles in logistics and transportation, the home building materials industry has been developing slowly. Recently, at the "2010 China National Garment Industry E-Commerce Forum" hosted by Taobao Mall, a number of companies and experts jointly discussed strategies for home products to enter the online shopping market in the e-commerce era. The reporter also interviewed many insiders on this new channel model.

Business

70 billion online shopping cakes waiting for a share

According to authoritative data from iResearch, a professional Internet monitoring agency, in 2005, when the online shopping share of the digital and apparel industries accounted for 3% of the total industry, the online shopping share of the domestic home furnishing industry was only 0.2%. Development, in August 2010, this figure has reached 2%. Among the 140,000 online stores in Taobao Mall that involve household products, the total number of products exceeds 3.7 million, and the daily turnover reaches 42 million yuan.

The data shows that the total transaction volume of the domestic home furnishing online sales market in 2009 was 11.2 billion yuan, accounting for 4.7% of the overall online shopping market. According to conservative estimates, this number will reach 70 billion yuan in three years.

Who is passionate about online shopping at home? Data show that in 2009, home online shopping users reached 62 million, accounting for 19.4% of the overall Internet users. Among these online shopping consumer groups, more than 80% are young people aged 23 to 35 years old, and this group whether it is the online shopping market or the offline physical market, is the backbone of household building materials consumption. In terms of geographical division, buyers from four regions, Jiangsu, Zhejiang, Guangdong, Shanghai, and Beijing, account for nearly 50% of the market, and western cities such as Chengdu, Chongqing, and Kunming are also important potential markets.

In terms of product categories, third-party data show that the most mainstream categories of home furnishing online shopping are decoration hardware and home decorations. The turnover of these semi-finished products is far greater than that of finished furniture. Building materials products are mainly consumed by bathroom supplies and decorative lamps; furniture products are mostly sitting furniture, bedding furniture and cabinet furniture; home furnishing products are best sold by cross-stitch finished products and craft furnishings. Due to the factors of brand influence, it is relatively easy for decorative hardware products to enter the online shopping market, and furniture products will be more difficult to enter, so there has been a pioneer monopoly.

status quo

Less than 10% get involved in e-commerce

The development of the home furnishing online shopping market seems to have advanced by leaps and bounds in recent years, but an indisputable fact is that most of the currently active home furnishing merchants are individual merchants, and they sell light-weight home decorations such as mattresses, paintings, carpets, lamps, hardware, etc. Well-known furniture and building materials brands that really open up online shopping channels are still rare.

The reporter learned that as of August 2010, on the home improvement platform of Taobao Mall, furniture, building materials, bathroom, lighting, home decoration, home textile and other categories have Qumei furniture, icon floor, Kohler bathroom, Aoduo lighting, Bo Foreign home textiles and other brands have entered, with nearly 3,000 merchants. And this seemingly huge figure only accounts for less than 10% of the total number of domestic household brands.

Statistics show that in August 2010, the top three brands of domestic furniture online shopping were Qumei Furniture, Lin's Wood and Suibao mattresses, while the top three brands of building materials online shopping were Jiumu Sanitary Ware, Kohler Sanitary Ware and Op Lighting. The top five sales of each category accounted for more than 50% of the total online shopping in this category. Such a high brand concentration shows the scarcity of home online marketing brands.

Bruise

Weak experience performance and other obstacles to development

What makes many home furnishing companies eager to try in the face of the ever-increasing online shopping market? The reporter learned in the interview that experience performance is weak, after-sales service and logistics transportation are the three major bottlenecks that constrain the rapid development of the online shopping market for home products.

Wang Ke, executive vice president of the Guangdong Furniture Association, said that the economic crisis last year brought a big impact on the furniture manufacturing industry in Guangdong, Zhejiang and other places. Many furniture companies reduced orders or exported to domestic sales. Under such circumstances, e-commerce is indeed the general trend. And because furniture products are not as easy to transport and handle as fast-moving consumer goods, cosmetics and clothing, the development of e-commerce in the furniture industry is relatively slow. Previously, the online sales of the home furnishing industry were mainly direct sales of self-built websites and online distribution by channel distributors. Relatively speaking, a self-built website is usually a brand with a high brand awareness. It is used as an online display platform, and it is rarely able to achieve true online ordering; dealer network distribution is difficult to achieve consistent high-standard services, more or more Less will affect the brand image.

The Suibao mattress, which officially opened the e-commerce channel in May this year, encountered its first problem at the beginning: the experience performance was weak. Chen Zhenhan, the manager of Suibao Mattress E-commerce Department, said in an interview with reporters that mattresses and other furniture products involve issues such as comfort, personal feeling, and sleeping habits. Consumers pay great attention to experience when buying. Therefore, through the investigation and experiment of the year before going online, we focused on solving the problem of experience. Just 5 months after its launch, the online sales of Suibao mattresses reached 2.6 million yuan. In addition, Suibao will also launch a trial sleep system on its own e-commerce platform, that is, to make an abstract analysis based on the human body data provided by customers, and provide quantitative mattress parameters suitable for customers to recommend to customers.

In addition to poor experience, price control is also a concern for many home furnishing companies. In books, clothing, cosmetics and other fields, the prices of online sales are often more than 20% cheaper than offline products. In the furniture online shopping market, many miscellaneous brands are sold at around 40% off. According to Chen Zhenhan, Suibao stabilized online shopping prices by providing intimate services such as invoices, nationwide free shipping, and door-to-door delivery, and basically developed online sales on the basis of maintaining the same level as offline prices. The most troubling issue for home furnishing companies is the issue of logistics and transportation. After the furniture and building materials products are traded online, the offline service often encounters problems such as high transportation cost of goods across the province, insufficient elevators, insufficient stairs, and difficult to disassemble furniture such as sofas and mattresses. Many logistics companies such as China Railway Express, Tiandi Huayu, Debon, etc. stipulate that goods of more than 50 kg are not sent upstairs, and the phenomenon of damage is also more serious. Kohler, Qumei, Boloni, Suibao and many other companies that have developed e-commerce have said that it is difficult to find a satisfactory logistics company that can provide perfect logistics and transportation services, which greatly restricts the expansion of the online sales market of home building materials companies. .

Outlook

The combination of manufacturers, distributors and websites

Kebao Boloni Home, which launched the front-end of e-commerce three or four years ago, officially opened a direct online store in Taobao in September this year. The most popular product categories of netizens are cabinets and sofas. According to Wang Lei, director of the e-commerce department of Kebao Boloni, it is undoubtedly that home furnishing companies develop direct sales online shopping systems to grab the rice bowls of local distributors. Therefore, it is the only way for home furnishing brands to promote online shopping in conjunction with local distributors. Boloni has been cooperating with distributors to transfer the consumer information obtained online to the distributors. The distributors and designers come to the door to measure and design, then conduct online transactions, and then use the distributor's channels for home delivery. This not only ensures the interests of dealers, but also maximizes the expansion of online channels, and also guarantees the quality of delivery services and after-sales service.

Strengthening the group purchase cooperation with the website can also quickly promote online sales channels. Qumei Furniture's "Qu Yituan" trillion-dollar large-scale group buying activity launched during the summer vacation, integrating online and offline channel resources, relying on its online store flagship store to attract more than 10,000 customers at a minimum price of 55% off. The value exceeds 100 million yuan. For a time, "group buying" swept through the home improvement industry. Jixiang Wood, a well-known flooring manufacturer, also kicked off the "Ji Tuan Army" floor group buying war in September through the wind of the Mid-Autumn Festival and National Day holiday, attracting more than 50,000 people. The predetermined square number reached more than 9,000 square meters in one day.

Ma Xuejun, general manager of the home improvement project of Taobao Mall, said that home improvement brand manufacturers not only directly meet the needs of consumers through direct sales through online stores, but also can produce flexible production through the exchange of information, and can even carry out classified marketing and joint marketing online. Sales channels and online brands. It is understood that many home furnishing manufacturers even provide dedicated online contributions for online storefronts. For example, Jixiang Wood Flooring provides four types of wooden flooring. Consumers can first go to physical stores to check the goods and place orders online. Ma Xuejun said that for home improvement brands, the mall will also provide help in operation and promotion, through massive data for precise marketing, to find the buying group.


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