We talked about the transformation and upgrading of the custom home industry, and mentioned integration, informatization, characterization and regionalization. Integration and informatization have requirements for the strength of enterprises. After more than 20 years of development, the customized home industry has been listed with the listing of oupai, Sofia and gold medal, including Shangpin Home Collection, the pattern of leading professional brands has basically been formed.
Since 2017, the entire custom home industry has entered the second half of the competition. One of the most important differences between the first half and the second half is that the first half of the competition is single category competition, and finally the brands that have grown up are single category champions, for example, oupai is the champion of cabinets, Sophia is the champion of wardrobes, TATA is champion of wooden door and so on. In front of a broader market, these champions mainly transform and enhance their competitiveness through integration and informatization.
For a large number of other brands in this industry, especially those with potential growth brands, cross-border Champion Brands, regional strong brands, characteristic brands of products and some second-tier professional brands, the important path for them to seek growth is to lead the market segment, and the most important way to lead the market segment is to carry out characteristic innovation.
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three main paths of innovation mode
the characteristic innovation of custom home industry has always been there, but under the current competitive situation, its importance is more prominent. There are three different paths for characteristic innovation:
the first path we call it product characterization
one of the characteristics of the product originates from the change of material. For example, log packaging is expanded to the direction of packaging in log products, including wall panel and suspended ceiling, which is the characteristic of a product. Another prominent scale influence is stainless steel. Fadio, PATTNIUM, and Wan Gree are typical representatives of the stainless steel cabinet industry.
Compared with wooden cupboard, stainless steel cabinets have the advantages of formaldehyde-free, durable and flame retardant. For customers who have the first decoration experience and have certain life experience or consumption ability, it is very easy to agree with stainless steel cabinets. Stainless steel materials can be processed with arc, geometric angle and color surface, showing a sense of technology and fashion that cannot be achieved by wooden kitchen cabinet. If stainless steel goes down, its innovation in style may be relatively small, but its value in the whole functional level will be more prominent. We see stainless steel cabinets springing up like bamboo shoots after a spring rain, which is a direction of product characteristics.
There is another direction for product characteristics, that is, imported products. The development of foreign cabinet and wardrobe products is much earlier than ours, so the product technology and craftsman spirit are much more mature than our Chinese enterprises, and the processing level is much stronger than that of domestic crafting details. This can also be understood as the characteristic of a product.
The second path is the characteristic of the pattern.
From the very beginning, Shangpin Home Collection has positioned the efficiency of transforming the entire industrial chain of the customized home industry with the Internet. Whether it is the production end or the supply end, it has formed the whole house customization mode that is now unique. In Shangpin Home Collection, only 9 percent of cabinets are sold, only 27 percent of wardrobes are sold, and 62 percent of other categories are sold. Behind this high driving rate, it is a new mode of integration from the Internet online and offline.
Another Enterprise is Daxin. The final advantage of Daxin's standardized product model is price. After the price has enough advantages, the product display, terminal personnel training and distributor selection it presents at the terminal are completely different from our traditional medium and high-end brands. Daxin's cabinet products can not increase prices for many years, behind which it can drive the sales of kitchen and electricity products and create more profit space in terms of quantity, price and scale.
There is also a very important direction for the differentiation of the model, which is to pack the whole house or call a bag to check in. For example, Evergrande and Country Garden cooperate with Asian and lovelife to create a bag-carrying mode, which is also a new direction for the development of customized home furnishing industry. In the first half of 2020, Evergrande's purchase volume of products in Zhanmeng customized home related brands has reached more than 2 billion. The bulk business has greatly promoted the growth of customized home brands. 2 billion is nothing to the real estate industry, but it is also a huge scale in the customized home furnishing industry. So far, there are four enterprises in the customized furniture industry with a manufacturing scale of more than 2 billion, including oupai, Sofia, Shangpin Home Collection, haolaike, gold medal and Zhibang. Therefore, carrying bags and staying as a model is characteristic, there are great prospects for development.
The model features to a height, which is a large home. Shangpin Home Collection of the integrated cloud and European-style integrated large homes are essentially a model feature. With the application and development of Internet technology, the continuous extension of large household industry categories will become a very important direction for industry transformation and upgrading.
The third path is the characteristic of positioning
the so-called positioning feature is to look for new brand opportunities in various market segments according to different consumer groups and lifestyles. For example, Debei has been following the urban light luxury route, and has a firm attitude and attitude in product design, terminal atmosphere construction, product details and technology, which is also a differentiated positioning. For example, Tucson Gao Ding, focusing on high-end customization for more than 10 years, has finally ushered in the most prosperous period in the history of development.
Similar to Gao Ding, the brand with characteristic positioning can maintain rapid growth under the fierce competition of our single product. The fundamental reason is the positioning characteristics.
Whether it is the characteristic of products and models, or the characteristic of positioning, the characteristic innovation of customized home furnishing industry has broad prospects.
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(Article Source: Dingfeng meeting, author Liu Xuedan, invasion and deletion)
