Strategic services, e-commerce, financial capitalization A new model for shaping the Chinese furniture industry in the next decade
Guest: Wang Linpeng actually home president
Li Lianzhu Shangpin Home Furnishing, Chairman of Xinju.com
Ke Jiansheng, General Manager of Sofia
In the context of the reorganization of Chinese furniture companies, the three waves of strategic services, e-commerce, and financial capitalization are all higher than one wave. These driving forces are shaping the new model of the Chinese furniture industry in the next decade. The three dialogue guests in this meeting room are the representatives: the home is the leader of China's home furnishing industry. Shangpin Home Furnishing innovatively proposes the concept of digital customization, and Sofia explores and nurtures subdivisions with customized services. market.
How have these entrepreneurs deeply integrated manufacturing and channel services to promote the transformation of the furniture industry from manufacturing to services? Under the traditional circulation model, what innovations will e-commerce bring to the Chinese furniture industry?
The real challenge starts now
Win Weekly: In the past 10 years, Chinese furniture companies have undergone tremendous changes in industry and market. How did you get out of this decade? What do you think about the trend in the next 10 years?
Wang Linpeng: In the strict sense, China's furniture industry has just spent the first decade. I think the development of the furniture industry in the past 10 years should be smooth sailing. It has developed in the process of rapid GDP growth, and companies have not really lived. Whether it is production or circulation, everyone is pursuing expansion, pursuing sales promotion, and pursuing market expansion, but there are few enterprises that really work hard from the management and service of enterprises, and those who really practice their internal skills.
From 2011, the furniture industry will face a new environment. The national economic policy has changed, labor costs are rising, and the foreign trade environment is facing all sides. 2011 was a difficult period for all furniture industries. In the face of difficulties, can all furniture companies pass this level? I think this is a change. The first ten years of the furniture enterprise was a stage of extensive operation, and now it is necessary to change the management service and the direction of the internal practice of the enterprise in the latter ten years. I think this is a huge change.
The second big change, the industry has said that there are no large enterprises in the furniture industry, and there are no circulation hypermarkets such as Gome and Suning. This is no problem, because there have been no large enterprises in the furniture industry in the past decade. I think that in the next decade, the furniture industry will definitely see big brands and big enterprises, whether it is production or circulation. Production enterprises will rise to large brands, and circulation enterprises will also progress with the improvement of upstream production levels. In the next ten years, furniture distribution enterprises will certainly have large enterprises.
Li Lianzhu: Actually, the desire for transformation and innovation of furniture companies was very strong ten years ago. At the beginning, Shangpin Home Furnishing served the decoration industry, provided design software for the furniture industry, and improved design efficiency. With the development of the furniture industry, we developed software-assisted furniture vendors five or six years ago to help consumers buy furniture. Our original idea was that the products of furniture companies were so homogenous. Why can't they provide different services in the process of buying furniture in service shopping, help them design, and reduce the risk of buying furniture? After it was launched at that time, the market was not very accepted, and it was difficult to realize this service. So in 2005, we will do it ourselves. Use software technology to provide customers with free design services through customized furniture, and provide one-stop services from design to installation through IT technology.
The potential of customized furniture is very large. Shangpin Home Furnishing has maintained a 100% growth for three consecutive years. The output value in 2010 was 400 million, and it is estimated to be 700 million in 2011.
This kind of innovation will help the furniture enterprise to change from a manufacturer to a manufacturing service provider. This will be a huge change in the next decade.
Ke Jiansheng: The furniture industry is a service-oriented manufacturing industry. This is very accurate for Sofia ’s custom wardrobes. Our service cost is very high. The process of the service is from front-end measurement, drawing to communication with consumers and ordering plans. The entire manufacturing There are many service elements in the process of service installation. Therefore, in the entire strategy, we cannot compare the price with the products of standard furniture factories, because the service cost is very high. In this case, only accelerating brand building can stand out, so we have increased brand building in the past two years.
On the other hand, the problem of channel expansion and the elimination of bottlenecks in production and services is the practice of internal skills. We will also invest in informatization construction, do a good job of services, and assist our manufacturing industry. Both service and manufacturing must be done well. This is the current strategy. Perhaps our strategy can reflect the status quo of service-oriented manufacturing.
Hypermarket model should change according to consumers
Win Weekly: The golden decade that Chinese manufacturing has gone through has laid the foundation for the development of an export-oriented model. The Chinese furniture industry has benefited a lot from this wave. However, we cannot ignore that the furniture industry has the typical characteristics of China's manufacturing industry. In the next ten years, are you worried about future competitors? How will you adjust and maintain your lead?
Wang Linpeng: This involves a topic, that is, the current furniture circulation model, that is, the hypermarket model, is it backward or in line with the actual development of China.
After furniture entrepreneurs develop a brand, how do they sell it? Do you build a specialty store yourself, or find a big dealer? The reason why China's furniture stores are so developed at the moment is that we have too many upstream manufacturers, too many brands, and each brand is too small. You have no other way. You have to enter the store. Entering the hypermarket is the fastest way .
How does the store adapt to the tremendous changes in the furniture industry in the next decade, and how to provide services to everyone? First, the store must first adjust according to the manufacturer's positioning. According to the needs of furniture brands, adapt to consumer needs, and thus adjust products. Second, stores and manufacturers must also make adjustments and must act as guides. Because the market is constantly changing. Third, the last ten years of the store are very testing the management and service links. In the final analysis, this also needs to be adjusted according to the needs of consumers.
Li Lianzhu: I think the model of Shangpin home delivery can be built into a very strong core competitiveness in the next ten years. In the future, we will directly serve consumers and furniture designers all over the country. Our biggest competitiveness now is to make design solutions for customers through the Internet and physical stores. All are made through computer simulation. In the future, in this set of solutions, we will not only provide furniture, but also provide sofas, carpets, wallpaper, etc The complete solution.
Ke Jiansheng: We are more specific and have been nurturing and digging in subdivided fields. We have been designing custom wardrobes since 2001, and this year we have achieved market sales of around 600 million. We also have computer software, but it is not the same as the system of Shangpin House. We developed it in 2004. Through the design of the software, we have integrated the common needs of customers into the software, and then passed the information of this software to the factory. This is done. What we are doing now is to import the data directly to the machine, which is produced by the machine. The space for customized furniture is still very large, and the development of wardrobes in recent years has been very rapid.
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