"There are finally better products than retail in the whole package". At the 2020 european-style home marketing summit of "new engine, cast strong foundation, and leap to new top" held in september, yao liangsong, chairman of the board, was quoted with emphasis. This may be the current consensus within the European faction.
The connotation of this sentence is meaningful:
1. The model of European style complete home is very popular in the market.
2. The sales volume of European-style integrated large household has achieved relatively satisfactory growth.
3. In the future, the European faction will invest unprecedented in the large home sector.
In the financial report released at the end of August, the number of stores announced by oupai increased to 334. Although it did not directly announce the performance of the first half of the year, it revealed that the growth rate of receiving orders-70%, which hit 1 billion at the end of the year. This is the evidence of Yao Liangsong's internal speech.
After the exploration and trial and error from 2015 to 2017, oupai and Shangpin Home collection developed two relatively different integrated development paths: oupai tends to cooperate with mainstream decoration companies in third-and fourth-tier cities, in the brand promotion, it mainly focuses on the brand of "European style Complete Home". With the high goodwill of European style, it mainly focuses on the consumption upgrading route of third-and fourth-tier cities.
However, due to the IT gene of the founder's team, shangpin home collection preferred the technology platform thinking in the idea setting. At the end of 2017, IT launched the "complete cloud" and later built the complete brand "christmas bird".
Sophia, the "second chair", has the slowest shot. It seems that she is waiting for the "boss" and "third" to find out a doorway before following the strategy.
In the future, the proportion of packaged channels in customized home furnishing enterprises may be as high as 50%. The channel attributes of decoration companies are changing the management strategies of customized home furnishing and stores.
At present, the european style and shangpin home collection are the two most prominent representatives of the customized home development channel. According to the current performance results, is it clear that which one is better?
According to the development trend of the industry and the expectation of customized home furnishing enterprises, the share of packaged channels will be greatly expanded. How to balance the interest disputes between the original distributors and the new packaged channels? The whole layout of different modes seems to have been divided into Bozhong in the short term. Will there be new changes with the expansion of the layout?
There is no doubt that the development of the whole installation channel is an important force in determining the layout division of customized home in the next ten years.
Both modes start at the same time
Two years later, the results are different.
At the end of August, four customization Enterprises announced the performance of the assembly project in the semi-annual report of 2020, among which the three major customization enterprises, Europe, Sofia and Shangpin Home Collection, had the most outstanding performance. After four or five years of accelerated running of the whole assembly, the large whole assembly model of customized home seems to have a stable result.
Oupai's three major business modules, including oupai's large home, ouboli's large home, and large customers, were established in 2018. Oupai finally established the operation mode of the large home, that is to say, we can directly select and cooperate with local companies and high-quality home improvement companies with large scale and good reputation, and make full use of the company's advantages such as high brand awareness, rich product categories, and integration of category matching technology and plates, synchronize brands and products to empower them. In the whole customer service link, the company is responsible for providing product manufacturing and marketing support training, and the home improvement company is responsible for providing customized home design and installation services and home decoration design and landing construction.
Two years of development, as of the end of 202020's semi-annual report, there are 293 full-sized home dealers and 334 full-sized home stores. In the context of the epidemic, from January to June this year, the growth rate of orders received by the company's integrated large household exceeded 70%. In the European semi-annual report, it was written that the whole house customization is more prominent as the entrance of home drainage, and the track pattern of the whole channel has also been expanded. The whole house customization and the whole house customization have become the core of driving retail performance.
During the same reporting period, the data released on Shangpin Home collection was that 3,000 integrated cloud members were developed, with a half-year income of 0.156 billion yuan, that is, the sales contributed by each member was only 52000 yuan. According to this trend, the annual flat income also seems to be difficult to match 160000 in 2018 and 138500 in 2019.
Let's take a look at the data of oupai. Oupai did not announce the sales volume in the first half of 2020. according to the annual report of 2019, 288 integrated large home stores have an annual income of 0.7 billion yuan, and the average store income has reached 2.43 million yuan.
In this comparison, we can find that the decoration company cooperating with the european school does have a good market position in the local area, some of them were sent by Europe to become the "Double Dragon plan". Both sides of the pre-cooperation have considerable strength. As can be seen from the average store income, as long as the decoration companies that have established cooperative relations are seriously practicing the business model of european-style integrated large household, the cooperation is very sticky.
Compared with this, the current activity of integrated cloud members in Shangpin Home collection is very low, and in the past two years, it may be mainly based on the number of expansion, a large number of small decoration companies, so that the average member income has been seriously declining year by year.
In the investor's question after the release of the semi-annual report in 2020, shangpin home collection dong mi said that the focus of the development of the integrated cloud in shangpin home collection is still on increasing the number of members and expanding the scale. As for how to solve the problem of member activity in Shangpin Home Collection, it depends on their follow-up measures.
However, Sophia, who only started to take real actions in 2019, seemed to be watching and thinking, and finally began to copy the complete home model of the European joint decoration company.
European style: Future 300-50 billion
It must be a large home
At the summit in September, Zhang Xiaofeng, deputy general manager of the home furnishing business department of oupai home furnishing group, believed that the goal of oupai home furnishing was to "reshape the industry standard of high-end custom home furnishing".
Xinju space design is a cooperative company of European style complete home in Anqing, Anhui province. Whether it is store logo or various logo design in the user's home, all of them are mainly European style complete home, your logo is complementary. From the user's decoration process, we can see that the European style is indeed setting high standards.
At present, the European style integrated large household is mainly developed in the third and fourth tier cities, and almost no one or second tier cities are involved.
It is the idea of upgrading the consumption of the third-and fourth-tier cities that we want to see the cooperation between the european-style integrated home furnishing and the local decoration company. European brands occupy the top of the reputation of customized home brands, "playing low with high", affecting the local relatively high-end circle. The characteristic of sales in third-and fourth-tier cities is that people's consumption is highly homogeneous. Once it is recognized by some consumers, it is likely to spread through circles and obtain the following consumption of a considerable number of people.
In the past three years, the european faction has promoted the deep cooperation between the european faction and the head home improvement company from top to bottom. Since the end of 2017, the European style integrated home has incorporated most of the top 50 agents in an internet home decoration brand system.
The european style integrated large home has broken the mode of exclusive authorization of an agent in a region of the custom furniture industry in the past. At the same time, it allows the home improvement company with excellent performance to become the authorized agent of the european style brand. Through the incentive mechanism, strongly promote home improvement companies to tilt the key human and material resources to the market development and performance improvement of european-style large household products.
In terms of terminal layout, oupai integrated large home will lead the sales entrance. At this stage, oupai integrated large home will take the form of store-in-store for channel construction. Intuitively speaking, it is to drive the stores of oupai to the home improvement company. For home improvement companies, the cooperation with the European School has greatly improved their own competitiveness. According to the data, after adopting the integrated large home model, the signing rate of home improvement companies can generally increase from 20% to 40%. Yang Yaoxing, the secretary of European household, once said, "in the future, we must capture the hearts of consumers and solve the two pain points of how lazy they are and how beautiful they are.
Mr. Liu Shunping, the vice president of marketing of oupai, who has gone to work, is the person in charge of the once assembled large household. He once said that the main form of future commercial competition is scope economy, popular understanding refers to providing more services/customer lifetime value for a single customer. The essence of the value of the big home proposed by the european school is to improve the customer value. Just as ou pai chong tens of billions is achieved by cabinet clothing category, but the future goal of 300-50 billion, or even higher, must rely on big home.
Yao liangsong, the chairman of oupai, said more publicly that self-assembly is the strategic direction of future enterprise development. He once issued a "soul torture" at the dealer conference-"what is the meaning of enterprise existence?" The whole audience was lost in thought.
"Meet the needs of consumers to the greatest extent." Yao Dong emphasized. "Oupai has upgraded from 'customization' of single items to 'One holder' integrated home service providers and even service platforms, constantly improving diversified home ecological chains. The starting point is always 'close to consumers, understand consumers and meet consumers' needs '".
He himself will spare no effort to promote the expansion of the European-style assembly project. He thinks that the essence of business is to take advantage of the trend, take advantage of the trend and make the best of the situation. Therefore, in the face of the question of multiple functions, "how to develop the European style home furnishing, uncertain events such as changes in the world are external mutation factors one by one. No matter how big the force of factors is, the big logic of function questions will not change. The European group will improve the complete supply chain system, improve the layout of production bases, introduce efficient business models and other measures, solidly promote endogenous growth and extension expansion, speed up the informatization process, explore new trends of digitalization, and generate" wisdom "with" wisdom ", stimulate new dynamic energy.
Compared with shangpin home collection of the integrated cloud, oupai pushed CAXA smart home design software, a home design artifact jointly launched with digital generous, which is a 3d CAD platform based on CAXA's completely independent intellectual property rights. From the effect diagram to the quotation, the line diagram, and then to the order, from the original 12 hours to 7 hours. At the same time, ou pai is also developing "BIM virtual decoration system".
Integrated channels are increasingly powerful.
Interest disputes are intertwined
At present, the pace of customization enterprises is still in the initial stage, and the continued development is bound to expose more interests.
As for whether the opening of the integrated large home will encroach on the interests of the european custom furniture dealers who had already suffered from development block, the european style has not disclosed the specific division of interests at present. About this, Yao Liangsong issued a short reply: "different products, different stores, performance calculation, benefit sharing."
"Different products" can be understood as the product line of the whole large household is separated from the original distributor network, which is for dislocation competition. "Different stores" means that large home furnishing companies also have their own display scenes.
"Performance co-calculation" and "benefit sharing", these two sentences are actually the core of the success of the european style integrated home, this strategy creates a community of interests for distributors and large home furnishing companies, which is equivalent to opening up store channels and decoration company channels. If the customers of European distributors have decoration needs, they can transfer them to the whole shop. If the whole shop customers have a fancy to the distributor's product line, they can also share it. Another possibility is that the distributor of European school is responsible for the storage and handover of all products, and is also responsible for the installation and after-sales. In this way, the two channels can communicate with each other and share resources.
In fact, the development of integrated large home furnishing to today is the result of the continuous exploration of european school from 2015 to 2017. From expanding categories to encouraging dealers to do decoration, frequent trial and error. Only by expanding the category, the European school finds that there is still a huge gap in the service, which can only solve some of the needs of consumers and is highly alternative. Although the number of orders received by dealers for decoration is considerable, the delivery is difficult due to the complexity of the whole assembly construction.
Therefore, the cooperation between oupai and decoration company is imperative. Whether yao liangsong's four words mentioned above can definitely balance the relationship between the original channel and the new channel will take time to check.
According to the European style, if the development goal of the future 300-50 billion is largely realized by the complete assembly, the number of cooperation between the European style and the decoration company will be met by at least thousands of people. In this process, the trend of the original distributors in Europe is very subtle.
At present, oupai home series has more than 7,000 stores and 5,000 distributors. European dealers are the strongest in the industry.
The A- level market of European style cabinets has an average of 8 stores for Each Distributor, and the-level market of European style cabinets has an average of 23 stores for Each Distributor, which is three times that of cabinets. What kind of energy can open a store like this? In the-level market, the annual input cost (decoration, sample, salary, rent, sales cost) of each store is calculated 5 million/year, which means that the-level distributor of european wardrobe needs to invest 0.115 billion/year. What is the concept of 0.115 billion investment? Can hang 95% of the annual sales revenue of customized furniture brands; The corresponding output is about 0.4 billion, and can crush 99% of the annual income of customized furniture brands.
How will distributors with such great energy face the assembly strategy of European style home? Obviously, this is also an important topic within the european faction. Even though there are already 300 large home stores in the european faction, there is almost no layout in important first-tier cities. Most of them only test water in third-and fourth-tier cities, apart from the fact that small cities are easy to play the market, obviously there are also elements of interest disputes.
To achieve tens of billions of big goals, it is imperative to enter the-level market. It is too difficult for the original big dealers to do home decoration, but no one is willing to give up the hot cakes in the market. If we follow the "performance co-calculation", according to the principle of "benefit sharing", the original distributor is responsible for shipment and service, but after a long time, if the market share of large home stores is larger, no one wants to be the money-making tool of the original big dealers. Settling the interest division will be a very important topic for the future of the european faction.
Shangpin: too much internal involvement
The force is relatively scattered
Compared with yao liangsong's "heroic words" on the aspect of assembly and frequent participation in the conference of assembly partners, shangpin home collection senior officials have not seen much public statements on the aspect of assembly in the past two years.
The most recent one was in july, 2018. In an activity, li lianzhu predicted that customized furniture would die out in 3-5 years. When many enterprises are still focusing on how to develop and sell products, and even some enterprises have changed from selling single items to regional integrated suppliers and service providers, in li lianzhu's view, still did not jump to the thinking of selling products, "the so-called good service is not for consumers who buy tiles, but to really understand what is the demand of consumers."
The earlier speech was in early 2017. Before the release of the full-sized cloud, li lianzhu said that he believed that he had the ability to integrate various main materials through his own brand, and through investment promotion, joining, agency, the mode of rapid development of expanding channels is not valid. In his original words, "in a sense, they are all failures."
Li lianzhu, who was born in IT, has always called himself a "software man", so the development of shangpin home collection is destined to be a platform-based thinking.
There are also some disadvantages and limiting factors when customized enterprises enter the home decoration field. The traditional sales channels of customized enterprises are mostly distributors, while the home improvement business, as the front-end entrance, is easy to snatch the orders of distributors. This will impact the original customization business.
Shangpin Home Collection of the integrated cloud members once revealed: "Once the integrated cloud sends orders to member enterprises, Shangpin Home Collection of the distributors will have opinions., Once the distributor objects, Shangpin Home Collection will not dispatch the order. On the other hand, in shangpin home collection, the dealer was forced to open a decoration company, and the final order would only be sent to the dealer. In the future, the bigger city dealers may open their own decoration company."
"But if shangpin home collection forces the distributor to open a decoration company, it will definitely require the distributor to do home decoration services, but the distributor is not willing to do services, and the awareness of the two is actually contrary, the distributor system will become a big stumbling block. Therefore, in general, it is hard to say at what stage the integrated cloud business can achieve. It is too complicated to coordinate the interests in the middle, and it is not easy to do well."
In an industrial chain, customized enterprises will easily lose each other if they take care of this.
Perhaps in the process of promoting the whole cloud, I realized the characteristics of the investment promotion of the whole cloud. In shangpin home collection, I launched my own whole brand "christmas bird". At present, the brand is mainly expanded to guangdong, chengdu, nanjing and other places.
However, this move has created a layer of competition for the partners of the integrated cloud project, and the internal competition for Shangpin resources may be more intense.
(Image source: pan home circle-public number, invasion and deletion)
The whole package is a customized big chess plate.
It is the angular force of concentration and dispersion.
At present, the european style large home model seems to have achieved remarkable results, but there are still many potential structural problems. At present, European parties are giving priority to the most powerful local decoration companies to establish the "Ssangyong plan", which has an impact on the choice of other decoration companies. Whether the appearance of integrated large home stores will have exclusive effect, reduce or stop other companies from using european products. In this form, other decoration companies are bound to consider "hugging the thigh", so the increase in the customer group of the integrated cloud Shangpin Home collection is relatively considerable.
According to the data released by the current two customization enterprises, the same is true: there are 300 stores and 3,000 cooperative enterprises in the whole package of oupai, and shangpin home collection of oupai seized the leader, shangpin home collection includes all scattered and long tail forces.
When the european faction vigorously expanded the full-sized stores, it was really a positive competition with the full-sized cloud of shangpin home collection. At this time, it was still more empowering than anyone who could get real benefits from the decoration company.
Although assembly is not a necessary option for customized enterprises in these two years, it is the key to start the second curve of enterprise development. The core significance of complete installation in customized enterprises lies in the channel, whether it is to make complete installation by yourself or to jointly decorate the company.
Customization and assembly are the result of the evolution of customization enterprises and the dream of some large customization enterprises. However, this evolution method looks beautiful and looks smooth, but it should be the most difficult way to evolve.
Although the revenue of customized home is still relatively limited in the package channel, the growth momentum cannot be underestimated. In the layout stage, whether customized enterprises can establish strong links with as many home improvement companies as possible will determine the channel capability in the next three to five years.
There is no final conclusion on the mode of making full-fitting in the customization industry. Although we analyze and define it as decoration retailization, for all enterprises with different attributes, the positions of the stations are different, the position of the industrial chain is different, their own attributes are different, and their abilities are different, so the mode of doing is not exactly the same. There is no final conclusion on which mode has more advantages. If one day it is determined, at least three to five years later.
(Article Source: Pan home circle-public number, invasion and deletion)
