What are the models for real estate companies to “touch the net”?

The home industry has the possibility of success in cutting into e-commerce itself, but it is not inevitable. In fact, as more and more home furnishing companies lay out the Internet, how to achieve breakout in the increasingly fierce market competition is also a problem in front of home furnishing enterprises.

The advent of the Internet era has innovated the business model of the real economy. Recently, China's Ministry of Industry and Information Technology announced the list of 2017 smart manufacturing pilot demonstration projects. Among them, 8 companies including Hunan Mengjie Home Textiles Co., Ltd. were on the list.

In recent years, through the combination of the Internet and industrial technology, many home furnishing giants including Mengjie, Jinlu, Yazheng Home, Luolai Life, and Da Ya Sheng have frequently “touched the net” and laid out e-commerce fields. However, it is worth noting that although many companies have deployed the Internet, the profitability of the e-commerce sector is still not optimistic.

The relevant person in charge of Suzhou Jinhao Building Decoration Co., Ltd. said in an interview that the Internet pays attention to benefit sharing, product and service sharing, and emphasizes price transparency, transparent service and transparent management. It opens up a new vision and realizes users and service providers. The interaction between. But the Internet home is ultimately home, the brand's point of view should return to the essence, quality and service is fundamental, not the Internet.

Hu Zhongxin, secretary-general of China Home Building and Decoration Association, said that the e-commerce in the home furnishing industry has indeed achieved great success, but only the packaging of all household products, that is, soft-packed products, is competitive. Product, the possibility of success is not great. At the same time, compared with relying on mainstream e-commerce, traditional home furnishing enterprises still face greater difficulties in doing their own e-commerce.

Internet home is favored

In the face of huge market, home furnishing companies have “touched the net”. The relevant person in charge of Jinhao told the reporter that in the hug of the Internet, the company’s first four stores opened in December 2015, and there were already 124 stores in October this year. Jinhao·Home constantly innovates the Internet home package mode and implements network operation at the same time. The online platform includes official website, Tmall, Jingdong, APP, and self-media.

In addition, Jin Hao·Home has a CRM customer relationship management system that analyzes network marketing data in an all-round and multi-level manner, providing technical support for decision analysis for better network operations. In terms of system development, its store management system, supply chain system, platform management system, project management system, financial sharing system, VR research and development, etc. provide a strong guarantee for store operations.

Yazhen Home Furnishing Co., Ltd. disclosed in the prospectus last year that the company will raise 632 million yuan for the expansion of marketing network, expansion of sofas and furniture, technical transformation of furniture production lines, construction of information systems, and home service platforms. . Among them, the marketing network expansion project accounted for the largest proportion, which was 65.7%.

On October 24th, Jingdong joined forces with many home textile brands to launch “Jingdong Home Textile Super Category Day”. It is understood that at present, Luolai Life Technology Co., Ltd. and Mengjie have reached an in-depth cooperation relationship with Jingdong. The reporter noted that Mengjie's flagship store in Jingdong has already launched a brand event, and Luolai Home Textiles also played an ultra-low activity price. In addition, Luolai Life has also launched the “LOVO” brand to impress consumers with a new brand image for the e-commerce channel.

For the traditional home business to actively embrace the Internet, Zhu Yi, executive director of CIC Consulting, believes that in the home industry, traditional B2B e-commerce will gradually be eliminated by the market, and a new round of competition and growth highlights will be the main The part derived from B2C.

Industrial economic observer Liang Zhenpeng said that with the constant changes in consumer demand, whether it is B2B or B2C home enterprises, the development of online channels is to cater to the trend of e-commerce development and actual market demand. And the e-commerce channel itself has a lower cost, which is conducive to enterprises to improve their own profits.

In fact, as more and more home businesses lay out the Internet, how to achieve breakout in the increasingly fierce market competition is also a problem in front of home enterprises.

The relevant person in charge of Jin Hao said frankly that with the help of Internet thinking and Internet tools, the process of decoration transfer can be reduced, intermediation and channelization, optimization and integration of industrial chain resources, and standardization and transparency of services. At the same time, there are still problems such as heavy conceptualization, home improvement is on the ground, quality and service are fundamental. In the future, the company will focus more and work harder to optimize service processes and enhance the consumer experience.

Self-built e-commerce needs to break the "profit bureau"

Although the home business "touch the net" heat is not reduced, but there are statistics, in the choice of household product purchase channels, 37% of consumers choose furniture stores, 32% of consumers choose hypermarkets and 10% will choose in department stores In the mall, only 21% of consumers choose online stores.

Due to the particularity of the industry, the reporter noted that the well-known home furnishing companies including Daya Shengxiang Home Furnishing Co., Ltd. and Mengjie Shares have not achieved satisfactory profitability in the self-built e-commerce platform. The home furnishing industry is exploring the e-commerce road. It seems that no real profit model has yet been found.

In May 2016, Daya St. once again actively embraced the Internet and created an Internet home service platform, Home Yuga, which aims to create online and offline interoperability for users' home improvement life cycle. Standardized services and personalized solutions Combined space beautification decoration platform, building materials and home products installation service platform, O2O community life public service platform.

According to the information, the main unit of operation of the house is the Shanghai Yishang Information Technology Co., Ltd. (hereinafter referred to as “Shanghai Yishang”), which is fully invested by Da Ya Sheng Xiang. In 2016, Da Ya Shengxiang invested RMB 3 million in Shanghai Yishang. Due to the stage of investment, Shanghai Yismith’s 2016 net profit loss was 2,405,700 yuan. In the first half of 2017, Da Ya Shengxiang invested 900 yuan in Shanghai. Ten thousand yuan, and its net profit continued to lose $5,037,800.

Similarly, Mengjie shares are not smooth in the wave of self-built e-commerce. The 2017 semi-annual report shows that although the company's Hunan Mengjie Mobile Internet E-Commerce Co., Ltd. realized operating income of 73.751 million yuan, its net profit was only 1,263,700 yuan. In July last year, Mengjie announced that the company intends to set up a wholly-owned subsidiary, Daguanjia Home Service Co., Ltd. with its own funds of 50 million yuan. According to the announcement, the establishment of the big butler is to better implement the strategy of listed company Internet + CPSD (C for customers, P for products, S for services, and D for channels).

More than a year later, the reporter learned from the financial data that Daguanjia Home Service Co., Ltd. realized operating income of 3.0403 million yuan and net profit loss of 1.195 million yuan in the first half of this year. In this regard, Mengjie shares said that because the company is in the sensitive period of the third quarterly report, it is not convenient for interviews.

“Electronics is not essentially different from traditional stores, because he also specializes in storefronts. In fact, it does not save much money compared to traditional stores, but the methods and methods are different. Most entrepreneurs currently engaged in the home industry are over 40 years old. It is very difficult to play e-commerce at this age. Some companies may come out of the second generation and try to set up a brand separately." Hu Zhongxin pointed out to reporters that it is more difficult to do e-commerce than relying on mainstream e-commerce. Most e-commerce websites built by home furnishing companies are just pre-loaded.

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