/ Asahi/August 30, 2022 Guangzhou -- Huawei President Ren Zhengfei's internal article "The whole company's management policy should shift from the pursuit of scale to the pursuit of profit and cash flow" has aroused widespread resonance and anxiety in all walks of life, including the home improvement industry, where many people are crying "chilling".
In fact, is this such a bad thing altogether?
Not necessarily. Lao Tzu said, "Misfortune depends on fortune, and fortune depends on misfortune." Bad things often contain elements of change to good, and good things often contain elements of change to bad. This chill, for some home decoration practitioners, is "danger"; But for the other part, it's a machine.
< /p>Cold kill, are not rooted in the weeds
After nearly 30 years of development, China's home decoration industry has formed a "big industry, small business" pattern. "Big industry", because the threshold of home decoration is low, many 0 experience people can also insert a foot, practitioners; Small enterprises, because home decoration is non-standard, difficult to scale copy.
This made for a long time that industry standards were mixed, and with other firms, some bosses turned out with little hope of making it big, and instead made a fortune by turning out shoddy, setting up additional entries, etc. Serious, solid outfit firms struggled, "bad money drives out good money".But in recent years, all walks of life continue to decline, consumers choose clothing companies more cautious, Ren Zhengfei said that the "cold" permeated in the home decoration industry, the situation is changing. Bad money no longer in demand, good money opportunities are coming.
Because the key to success is to open the market through brutal price war, rapid expansion of money, once the thunder, they will use the word "drag" or run away.
But it also leaves them with an Achilles heel. The company has been able to expand rapidly because its prices are far below normal market prices, relying on vicious price wars to squeeze out competitors and secure a steady stream of orders. But behind that, margins have been squeezed to very low or negative levels, and cash flows are fragile.
This is exactly the practice that Ren Zhengfei criticizes in his internal article. Once the expansion of these companies stalls, it is followed by a wave of closures.
In good times, these enterprises can be prosperous; When the industry goes down, there is a lot of grief, a lot of death.
On the contrary, honestly do a good job of products and services, although many do not expand so rapidly, but in the industry contraction, but can rely on good market reputation, maintain stable order volume, cash flow and profit, always standing.
The old saying goes: "The wind knows the strength of grass, the board knows the truth", the chill of the home decoration industry, the impact is more of these "make fast money, no foundation" of the installation enterprises, and some of the solid delivery quality of the installation enterprises, but can stand out at this time, show more tenacious survival ability.
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How to prepare for the "winter"?
How can an assembly company improve the quality of delivery?
The core is to overcome the "non-standard" attribute of home decoration.
The delivery quality of the decoration enterprises is unstable, from the "non-standard" attribute of the home decoration industry, "non-standard", but also from the high dependence on manpower, manpower is the most unstable. If you do a good job, you might do a bad job the next one because a good designer leaves or you can't find the right workers.
Therefore, to solve the problem of delivery quality, it is necessary to solve the installation enterprise's dependence on manpower.
Domestic well-known digital package solution provider - HOMKOO package Cloud, does just such a thing.
On May 28, 2022, HOMKOO Integrated Cloud launched the latest digital integrated mode -- Integrated 3.0 mode. Different from the traditional decoration mode, the whole installation 3.0 mode will decorate the matter from "human-driven" to "system-driven", so that the delivery quality of the installation enterprises from the past unstable to stable, practice internal skills, greatly improve the "cold resistance".
The core of the whole installation 3.0 mode is "installation twice"
< P > Before the formal construction, the design scheme will be imported into the BIM virtual decoration system for trial installation, automatic error correction, and rapid output of construction drawings and calculations. It is equivalent to using the system to help designers share a large part of the work of checking, calculating and drawing, which solves the excessive dependence on designers' manpower.
After the trial assembly is completed, the actual assembly stage is entered. At this stage, the whole Assembly 3.0 mode relies not on the project manager to dispatch people, materials and fields, nor on the workers to construct according to their own experience, but on the digital decoration platform to realize the real-time optimal mixed scheduling of multiple sites, multiple types of workers and the whole series of supply chains. In short, it shares a large part of the work of project managers and workers with the system. Overreliance on the manpower of project managers and workers is addressed.
When the construction was on the ground, HOMKOO had a keen insight that the quality of the workers' team using the traditional subcontracting system was unstable. Therefore, the workers' team in the 3.0 mode were all industrialized workers with unified training, unified ordering, and the work scheduling was carried out by the digital scheduling system. It minimizes the instability of delivery quality caused by the instability of the worker team, and reduces the redundant costs such as the intermediary cost of the project manager, so that the labor expenditure of the workers is lower than the traditional subcontracting system.
In every link, the 3.0 mode of complete assembly has eliminated the excessive dependence on manpower to the greatest extent, thus bringing stable delivery quality, stable delivery quality, and stable orders, cash flow and profits, which are the "winter clothes" that the assembly enterprises rely on for "winter".
Package 3.0 mode has been implemented by HOMKOO Package Cloud's self-operated package brand - Christmas Bird Package. In the industry generally shouted "cold has come" today, Christmas bird outfit but bucked the trend, only the Dongbao flagship store this store, has achieved a single store annual sales of 600 million yuan, and continues to grow this year. This "colder, hotter" phenomenon is closely related to the steady delivery of the Full 3.0 model.
< /p>As previously said, the "chill" of the home decoration industry, for some internal work is not deep installation enterprises is bad, but for some internal work solid installation enterprises, it is good. The harsher the environment, the better the company. There is an old saying, "You don't know who's swimming naked until the tide goes out." Now, "when the cold sets in, you know who has no clothes." The Christmas Bird set an example of how to survive this winter with the Set 3.0 model.
