The collapse of "Niuwo Net" has pushed the topic of "How the Home Industry Goes Online" has been pushed to the forefront. This rumor has invested over 100 million yuan, and the home e-commerce platform, which claims to have more than 700 merchants and has been on the line for only three months, has recently been confirmed to be inaccessible and the project has been suspended. Its attempt to integrate online and offline business models has also been widely questioned.
On the other hand, the O2O model aimed at â€œoffline experience online salesâ€ (in the mobile Internet era, consumers can carry online/Online virtual world and offline/Offline interaction) began to sprout in traditional home business. .
Yu Lei, the vice president of Xilinmen (603008.SH), which is mainly engaged in mattress and soft bed related business, recently explained to the â€œFirst Financial Dailyâ€ that â€œwe found that the purchase behavior of consumers occurred during product management last year. In the past, the closure, single to today's open changes, so the company began to plan O2O this new business model. Its essence is to form a closed loop of online and offline sales, so that consumers can achieve offline experience, online purchase."
In addition, the old furniture brand Yihua Wood (600978.SH) (hereinafter referred to as "Yihua") also announced in the middle of last month that it will cooperate with Tencent's Guangdong Tengnan Network Information Technology Co., Ltd. to promote Yihua. Construction of the home WeChat application platform.
In contrast, IKEA, an international home furnishing giant with a good store experience and a concentrated flow of passengers, seems to be not eager to launch e-commerce and O2O business. More domestic home furnishing manufacturers are still waiting to see.
From "sitting business" to "trading"
"Consumer's habits have undergone subversive changes." This is the consensus of most home furnishing companies today. The days of waiting for customers to come to the door will be gone.
Liu Weihong, deputy general manager and secretary of the board of directors of Yihua, felt deeply about this. He emphasized to reporters that the passive waiting for the offline business model has not adapted to the development of the entire market, and â€œneed to optimize the business modelâ€.
There are three types of online homes: first, Merlot, Qijia, and other vertical e-commerce, and second, Qumei Online Mall, Red Star Macallineâ€™s Xingyiâ€™s representative third-party furniture or channel brand e-commerce, and third Tmall, Jingdong and other professional platform vendors.
However, the home industry must face the natural barrier of poor online experience. At the same time, online and offline are prone to the embarrassing situation of â€œleft and right hands and fightsâ€. Mo Yiqing, an analyst at the China E-Commerce Research Center, said that unlike retail goods such as clothing, home appliances, and food, furniture is a personalized and durable consumer product that emphasizes experience. Consumers often need to touch, see, or even compare themselves. Buying behavior occurs after the price, so it is difficult to sell the furniture itself online.
Taking Yihua as an example, the furniture group buying business launched in cooperation with the platform merchants has tasted the sweetness brought by e-commerce. At the same time, however, the lack of experience, high platform usage fees and high traffic costs, and the inability to accurately push product information to potential customers have also made Yihua quite a headache.
The emergence of the O2O model seems to provide a solution to these challenges.
In Liu Weihong's view, group buying is in some sense the initial stage of O2O, but Yihua is now not only limited to group buying business, but also to obtain customer data through social platforms such as WeChat, to be precise and point-to-point. Push and service, combined with offline store experience and online sales.
"To change from 'sitting business' to 'trading business', take the initiative," he said.
A "sleep test passport" combines the online and offline lines of Xilinmen. Xilinmen introduces customers online and offline to experience and consume, while obtaining a large amount of consumer data. In the future, this company will "realize all retail data networking, and future sales will be fully realized through mobile Internet APP."
Xilinmen quietly stopped the production of all the old products except the soft bed, and strictly enforced the online and offline national retail price during the launch of new products. Yu Lei believes that this provides the basis for O2O.
In response to the problem of â€œboth right and left handsâ€ between online and offline, Xilinmen simply included all of its more than 800 stores in the country, including franchisees, into O2O projects, ensuring the convenience of customers to the store experience, and also achieving logistics for Xilinmen. The after-sales provides the basis.
Yu Lei revealed that the retail profits between the ex-factory price and the retail price of the Xilin Gate are given to the franchisees, while the latter bears the after-sales service costs such as the distribution and installation of the mattress. Such distribution is acceptable to both the brand and the dealer.
Compared with Xilinmen, Yihua is currently taking the route of direct store experience + self-built channels. Liu Weihong said that at present, Yihua has only included 10 directly-operated stores in this O2O layout. These stores are large independent stores, covering the company's full range of products, which is more suitable for customers to shop experience. In terms of logistics, self-built regional transit warehouses in the city where the experience hall is located may become the primary choice for Yihua.
The outlook is still unclear
More companies are still leaning to wait and see. A furniture brand from Beijing clearly told reporters that he would not consider entering the e-commerce business for the time being, let alone the idea of â€‹â€‹O2O layout, because "logistics problems can not be solved temporarily."
In fact, IKEA provides consumers with relevant product prices, local store discounts, store addresses and other information on its official website and Weibo. These are actually an important part of O2O. However, it has not been carried out online and offline linkages, and the reason may be subject to logistics costs.
Pinway CEO Liu Wanyi worked at IKEA. She pointed out to reporters that although panel furniture is more suitable for transportation than solid wood furniture because of easy disassembly, in fact, IKEA shipments are often loaded with a large container. Small pieces, if you subcontract from it and distribute it to the online order, the cost will increase dramatically.
â€œPlate furniture is only a little cheaper to distribute, but the gross profit margin is very low. In addition, the traffic has been increasing, the marketing cost is high, and the profit on both sides is gone, which directly leads to the unsustainable mode.â€ Said.
In addition, the problems of imperfect mobile payment methods, the uniformity of online and offline products in the running background, and how to complete after-sales service such as product distribution and installation are also bottlenecks in the O2O model.
On October 21st, the children's anime furniture e-commerce platform with O2O and light asset model as the main selling points won the investment of 100 million yuan from Tiantu Capital. The enthusiasm of the capital market also raised the confidence of traditional home enterprises to test O2O. Vibration.
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