Three years ago, as a new furniture segment, custom furniture was only available in a few furniture companies on the market. In the past three years, as the market demand for personalized furniture became more and more obvious, furniture enterprises, no matter the original cabinets, wardrobes, wooden doors, floors or finished furniture, flocked to transform and customize, and their market share grew at a high speed of 18% a year. At the Guangzhou Construction Expo in July, customized furniture brands accounted for more than 70 percent of the exhibition area, dominating half of the country. It can be seen that the customized market has become a "Red Sea shopping" from the "blue sea diving" three years ago, and the competition is fierce.
Therefore, how to keep growing in the Red Sea market by constantly adjusting the development and layout strategy is a problem that many customized furniture enterprises need to think about. As one of the earliest enterprises to enter the "custom furniture" market, Shangpin Home Accessories stands out from the competition. It not only recorded an annual turnover growth of 60% in 2015, but also was recently selected as one of the "Top 500 Chinese Service Enterprises in 2016". How did it achieve success?
Attack the Internet to attract traffic
As the Internet gradually becomes an essential part of People's Daily life, all kinds of enterprises scramble to transform into the "Internet mining era". As an innovative furniture customization enterprise relying on the rapid development of the Internet and high-tech, Shangpin Homewear has created a strong online fan platform, accurately locking users: on the one hand, through "Xinju.com" as an online direct selling platform on the PC side, to provide consumers with online product display and design experience; On the other hand, it successfully attracted 8 million fans through the wechat official account, which became an industry myth and ranked the first on the wechat Wealth list of Chinese enterprises in 2014.
According to incomplete statistics, Shangpin Home matching online attracts an average of more than 1 million new intention customers every year, a steady stream of customers to offline stores. Meanwhile, Shangpin Home Furnishing uses cloud technology to accumulate data of 100,000 room types of about 2,000 real estate in key cities across the country, including materials from hundreds of home furnishing enterprises and thousands of third-party designers, which lays a data foundation for attracting a large number of customers and quickly providing personalized design.
The vertical layout of the shopping mall occupies the channel
In recent years, the trend of shopping malls becoming mainstream retail is becoming a reality. Therefore, in addition to the online "full fire", Shangpin home match offline also "dense gongs and drums" extensive layout of the physical flagship store.
By 2016, Shangpin Home Distribution has opened more than 50 direct-operated flagship stores and more than 600 franchising stores in China. Not only the store scale is huge, but also the channel layout in-depth study of the behavior and habits of contemporary consumers, and has reached strategic cooperative relations with retail giants in Guangzhou, Beijing, Shanghai, Nanjing, Wuhan and other first-tier cities. It created a precedent for furniture brands to set up shop in shopping centers, and opened stores where there were many people, ensuring the continuous improvement of customer flow and store rate. In the next three years, Shangpin Home will continue to implement the "flagship store expansion plan" and "standard direct store expansion plan" to further improve and improve the layout of physical stores.
One-stop experience to play retail transformation
The essence of retail transformation and innovation is to break the inherent operation mode and meet the life needs of consumers in an all-round way. Therefore, Shangpin Home Furnishing creates a "one-stop" home shopping and service experience for consumers to eat, drink, play and enjoy offline. It has successfully copied the whole country and set off a wave of user experience nationwide, becoming a benchmark enterprise in the transformation of physical retail stores in China.
For example, in 2016, in addition to holding various offline themed marketing activities such as "Angel Love Beauty" and "Walk with you" to interact with consumers, Shangpin Homewear actively cooperated with well-known brands in animation, parent-child, early education, home appliances, clothing and other fields to "attract customers" and provide consumers with more personalized service experience. Realize the innovative transformation of "from display to experience".
Industry 4.0 leads the great transformation of production mode
With the rapid increase in consumer demand, rapid and mass production seems inevitable. Shangpin Home with automation and intelligent flexible production technology, quickly into the era of industry 4.0, to solve the natural contradiction between personalized customization and mass production, under the rapid and efficient production can still maintain product quality, completely subvert the traditional production mode.
The manufacturing base leaves more than 1,000 sets of furniture and produces about 200,000 completely different plates every day. However, through the complete internal software system and digital labels, it makes it possible for the same machine to produce different plates at the same time. Therefore, the daily production capacity has been increased by 6-8 times compared with the past, but the material utilization rate has increased from 70% to more than 90%. The error rate has been reduced from 30% to 10%, and the lead time has been reduced from 30 days to about 23 days, greatly improving operational efficiency to meet the increased demand for capacity.
Keep the strong to eliminate the weak, five years after the custom furniture may only be left three!
Some industry experts predict that the custom furniture market seems to be "a hundred schools of thought contending" at present, but in the next five years will enter a consolidation period of "retaining the strong and eliminating the weak". In this process, the leading enterprises that occupy the strategic heights early in the morning will integrate market resources more effectively and become more powerful. In the competition that follows enterprises, they will be gradually phased out due to the impact of homogenization and price war, and the customized furniture industry will develop in a more centralized direction. There is a good chance that market share will be split between just three giants.
Stable strategic highland, first mover advantage to seize the market
Facing the fierce competition in the Red Sea market, Shangpin Home Furnishing gives full play to the four major advantages of "Internet, layout of shopping centers, improvement of offline experience, industry 4.0 intelligent production", and creates a unique "O2O" business model in the home furnishing industry and realizes a rapid upgrade.
The competition of enterprises in the future will become more and more fierce, which is the fate of all enterprises in the commercial society. Especially in the economic growth has entered the new normal environment, the growth of the furniture industry is generally weak, so for most furniture enterprises, only by giving full play to their own advantages in the Red Sea market to steadily occupy the strategic highland, in order to "stand out" temperament based on the market, to avoid falling into the deadlock of "Red Sea shopping".
