According to statistics, even if there is no epidemic, the growth rate of social retail in China is also declining. In the home building materials industry, even if there is no new epidemic, the traditional logic of performance growth has also suffered great challenges.
We compared the industry situation during the SARS period. First of all, after SARS in 2003, China's retail industry ushered in a rapidly rising e-commerce era. Jack Ma said at that time: in the future, there will be either e-commerce or no business. Today, with the development of the epidemic, live broadcast has deeply affected our lives. We can make a prediction that live broadcast e-commerce Conference will become a new outlet in 202020.
Secondly, after 2003, real estate ushered in 15 years of gold, and the scale of real estate in China also increased 15 times. After the new Crown epidemic, we combined with other agencies to investigate and find that 65% of consumers have improved housing demand after the epidemic. We predict that there will be a huge demand for improvement in the real estate market in the next ten years.
(Image Source: American Furniture Today, invasion and deletion)
tang Lei, chairman of Sihe consulting and founder of Meiju MCN
three new changes in the industry
in 2020, the changes brought by the epidemic to the household industry included three aspects.
1. Reconstruction of supply chain relations
at present, the semi-annual reports of listed household enterprises are released one after another. Most of those enterprises that have achieved positive growth have a rule: the rise of bulk businesses. Today, the products package of fine decoration has reached more than 95%, and the fine decoration business of kitchen appliance brand Fotile has accounted for more than 20%, while the hardcover business of furniture enterprises accounts for very little, because of our research and development, the chain of production, supply, sales and service still stays in the traditional mode of attracting investment and opening stores.
The composition of the home supply chain will form three new chains. The first is terminal retail. Today, for a brand, whether it can reach 3,000 specialty stores nationwide is an important indicator. Through this channel, accurate matching between products and users is completed. The second is the bulk business chain, which is divided into fine decoration and complete installation. The third is the overall rise of online, with new live broadcast, e-commerce and O2O formats, forming a chain reconstruction of upstream and downstream product research and development, production and sales.
2. Reconstruction of consumer relationship demand
the passenger flow at the terminal is getting smaller and smaller, and the size of large household 4.5 trillion is increasing every year. But why do we feel that the passenger flow is less? It's not that customers are decreasing, but that you are getting farther and farther away from customers. Now the post-80s and post-90s are the main consumers. They are Aborigines of the Internet and are naturally used to completing product experience, evaluation and understanding of enterprise information online. Therefore, it is very important to plant grass online and to build and promote sales channels for young people. The first core of this refactoring is comprehensive online.
The second core is the rise of the new middle class. China's economy is forming a double-cycle drive with domestic internal circulation as the core and international external circulation as the supplement. China will create 0.5 billion middle-class consumers, surpassing the total population of EU + US + Japan, and driving the development of the global economy. The demand of consumers will change, and the brand of enterprises needs to go up. At the same time, the products need to sink and the consumption power of the new middle class in the true sense should be grasped. This is the reconstruction of consumer relations.
3. Reconstruction of marketing growth model
in the past, the growth of China's furniture industry relied on explosive growth, but today it relies on squeezing to find the stock. The essence of traditional exhibition investment promotion and Taobao store is the logic of "people looking for goods", but today a Anchor with 30 million fans wants to find their favorite products for his fans, behind it is the logic of "looking for goods.
The pattern of the emergence of e-commerce industry has undergone earth-shaking changes now, and all businesses are worth doing again today. The retail industry is facing a big opportunity of comprehensive reconstruction. Under this reform, the role of stores has become very subtle.
(Image Source: American Furniture Today, invasion and deletion)
4. Build a super traffic pool for brands in the new era of "short and fast" live broadcast
in the past, China's e-commerce pattern was "dogs and cats" (Tmall, Jingdong, Pinduoduo), which accounted for the top three. Today's e-commerce head pattern is changing to "Cat TikTok" (Tmall, TikTok, kuaishou).
The enterprise is divided into two departments, one is called the market/brand department, which is used as the Air potential energy, and the other is the sales department, which establishes the national sales network and captures the sales payment. However, on the TikTok platform, the "human goods yard" is reconstructed.
For example, TikTok attracts target consumers and matches corresponding products through short videos sent by the anchor celebrities, and then solves the product supply through the window of TikTok store, and signs the offline drainage, become a brand new people's freight yard. In this way, we found that every store in the terminal has the ability of "New Retail.
(Image Source: American Furniture Today, invasion and deletion)
5. Let people who know the most about products come to live broadcast to bring goods
from Internet celebrity to stars to entrepreneurs and professional media hosts, live e-commerce continues to develop towards professionalism and credibility. Brand anchors, President anchors, store manager anchors, the shopping guide anchor has become the new power of the anchor.
We set up a professional MSN company named Xinju network with Shangpin and wayes, which has incubated dozens of independent brand IP addresses, similar to designer a Shuang, teacher Gao of decoration, etc, and signed nearly 300 online celebrities, forming a comprehensive online promotion and drainage capability.
Great changes have taken place in the experience, entry and flow modes of the entire Chinese retail industry. In the past, China's furniture industry took opening stores as its core model, and then ushered in the era of traffic. Whoever has strong ability to obtain traffic becomes powerful, but then it will enter a brand new era, it is called "content era". Whoever can build good content will have good traffic and will have more orders.
6, build a brand Super traffic pool
harvard Business Review, the world's top business magazine, wrote that traditional marketing methods including traditional advertising, public relations, brand management and corporate media have all failed, many people in this field seem to have not realized that their departments or organizations have only left their bodies.
Today, every Chinese household owner must return to the nature of store management, namely, customer management and content marketing. Traffic is the first strategy of all home furnishing industries. Short video + live broadcast forms a super matrix to distribute stores and build a super traffic pool for brands.
Where are the customers? Data in 2019 showed that the consumer traffic of graphic information declined by 40% year-on-year, but the video category increased by more than 40% year-on-year. Short video platforms such as TikTok Kuaishou are very powerful, so the marketing of the whole Chinese home industry has become short, flat and fast. Short videos are used to plant grass. Through the transformation of private traffic, community grass cultivation, and live broadcast, a normalized traffic pool model is established.
(Image Source: American Furniture Today, invasion and deletion)
7.4 battlefields of retail enterprises
community + store + live broadcast is a new terminal model for building retail store growth. China's home and retail industries are facing four new battlefields.
The first is content warfare. Take the brand department as an example, the traditional brand department takes the traditional media as the core, but where is the battlefield of the brand department today? Is it good content. Can your content be an independent IP address to provide consumers with better home improvement solutions? In Xiaohongshu, Zhihu, public comment and other platforms, do a good job in online content planting grass, which is the core battlefield of our brand department and marketing department today.
The second core is e-commerce warfare. The consumption proportion of e-commerce in various industries has become higher and higher, but at present, there is only less than 10% market share in the home building materials industry. Online e-commerce live broadcast will form a huge traffic bonus. A large number of excellent enterprises have begun to establish live broadcast portals in Taobao, Jingdong and Pinduoduo.
The third core is Channel warfare. In the past, the pace of marketing was promoted by quarter, and then the industry evolved to monthly marketing. Now it has evolved to weekly, which means that thousands of terminals are mobilized from the whole country every week to fight a channel War. In the past, it was "big fish eat small fish", and today it is "fast fish eat slow fish".
The fourth battlefield, terminal store Battle, the protagonist of the battlefield is the dealer. No matter it is home improvement company, assembly company or custom home furnishing enterprise, all terminals are short of passenger flow, but today we can plant grass by online content. Although there are no guests in my store, there may be 20 potential customers in the live broadcast room, and the live broadcast may affect thousands of people recommend. The normalized live broadcast of distributors will become the core, and the enterprise organization will complete the overall evolution, which is the comprehensive marketing battlefield we need to build.
Today's marketing methods have really changed. It is not that there are fewer and fewer customers, but that we cannot use the past methods to solve today's problems. Reconstructing the internal circulation of the household industry means the great changes in consumption patterns and carrier Media, which will bring about the overall reconstruction of the entire Chinese household industry.
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(Article Source: American today furniture, author: Gao Dan, invasion and deletion)
