The King of the Last Kilometer of Home? AI Home and Industry Rivals


"The advantages are gone in front of the trend". There will always be some philosophical words in the speech of Xin Fumin, chairman of the board of directors of snimay. Embracing digitalization has become the consensus of many home furnishing enterprises. For snimay, this is not a slogan gimmick, but an externalization of the company's strategy and operation mechanism.

On September 15, at the 2020 online intelligence Expo, Ma Yun said: The real opportunity is those who change their traditional industries with new technologies. The digital economy of the Internet is gathering a strong domestic demand force. The main job creation in the future is not manufacturing, but the service industry of the digital economy.

Household companies mean that the operation is dominated by products, and the research and development of household products and brand effect are the core competitiveness. However, for companies with less brand influence, it is easy to fall into homogeneous competition and be submerged. However, technology companies mean data-based, intelligent, systematic and modular, which means that the future direction will not focus on products, but on the digital operation of all channels and all companies, digital level is the core competitiveness of enterprises. Then it is easy to get out of the second curve on the strategic focus.

Under the background of technology companies, it also means that the importance of traditional channels is decreasing and the weight of technical factors is increasing. For the time being, regardless of the final competitiveness, the company's positioning really needs to change. Top-level design is essential to drive the concept reform of all employees.

From home furnishing companies to technology companies, the route of breaking the circle of snimay is launched here, breaking the old and setting up a new one. Where is the new one?

家居企业

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01

AI home will defeat the entire industry.

The transformation from home furnishing companies to technology companies can be said to be a kind of subversion. First of all, it is an iterative concept, which means that from then on, management informatization, intelligent production, flexible channel activation, technology-oriented, let data speak and people become a point in several dimensions, the role of people is to connect and coordinate the process chain, not to lead it. In general Xin's words, "I am not here, and the company still works." Not only automated production processes, but also automated management processes.

Getting out of Comfort Zone is actually something that most people fear. Fear comes from worrying about the unknown. But as an individual, when you follow your heart and look for something you love, as a company, when you seize the pulse of the times and do something that conforms to the trend, then getting out of the circle means jumping upward. From college to home industry, from teacher to boss, this is Xin Fumin's own circle. The transformation from home furnishing company to technology company and from traditional industry to technology industry is the strategic transformation of the company. Breaking the comfort zone requires courage and courage. If you accidentally cross the wrong zone, it may be doomed.

OA-based collaborative office system, "Business + management" "digital dual engine", nearly 1,000 mu of intelligent production bases in Guangdong and Hubei, everything, all of them are designed to connect from order to production delivery, improve order turnover rate, improve product delivery quality, and shorten the cycle. Through unified information, knowledge and unified process, combined with unified cost control, it enables all employees to cooperate efficiently and manage finely.

Both inside and outside, up and down are constantly innovating under the guidance of digitalization. The result of innovation is that it-"AI". A week ago, the cooperation officer of AI home and Midea Group announced on snimay to jointly build a small store in tens of millions of communities, and the Battle of the last kilometer began.

Compared with the head enterprise, the AI to be done in snimay has less traction and highlights flexibility. The positioning of technology companies means that at the channel level, compared with the head enterprises, they actually start to compete on a horizontal line, which is completely a new competition channel, and the scale benefit of the head enterprises may not have advantages.

When the homogenization of products becomes more and more serious and the brand premium becomes smaller and smaller, the new mode and operation can often stimulate the underlying purchasing logic. For a store of 30 square meters, you can join it at 50000 yuan, which is mainly cost-effective. The target is young consumer groups, especially those under the third-and fourth-tier cities. What AI wants to go is that a head enterprise has not yet set foot in, it is not easy to get involved in the field. As mentioned before, the inertia of large enterprises cannot be easily overcome. If we can accelerate our efforts in a short period of time and quickly occupy the market, there will be a lot of commercial space.

Not long ago, AI announced its strategic cooperation with Midea, which is part of several ecosphere of Midea. AI home community stores will integrate Midea categories in matrix, plus-sized pairs of refrigerators, washing machines, air conditioners, kitchen appliances, cooperation in embedded all-in-one machines, gift bags and other aspects, on the one hand, using Midea brand endorsement to expand the market, on the other hand, let high-frequency commodities drive the sales of low-frequency furniture products, and enhance the frequency of customers entering the store and shopping, it makes up for the natural disadvantage of customized household products.

In terms of location selection, AI home community stores use crowded commercial streets, large buildings, shopping squares, etc. as contacts to reach the target consumer groups like capillaries, with low time cost in small spaces, low capital cost to win higher profits.

Mr. Xin asked: What do you think can defeat elephants? It's ant ". Yes, it must be small that can subvert the big one. General Xin analyzed the current situation with the momentum of fighting. "The head enterprise is the Red Army, and we are the Blue Army. We must not do what they do. AI is a competition for the whole industry and a complete revolution".

02

channel Breaking Ring + sinking

A new model rooted in new youth

"Some dealers in head enterprises are after 60 s and 70 s, while mine are after 80 s and 90 s, which are called 100,000 young people and 100,000 troops, one inch of mountains and rivers and one inch of blood." AI is looking for brand-new distributors, such as entrepreneurial youth, sales, designers, and customized youth. They don't even have to have experience or money. What they need is hard work and seriousness to do a small business, hundreds of millions of youth in a small town, tens of millions of community stores are exactly their goal, and Pinduoduo in the home industry is quietly laying out.

Snimay Huang Weiguo, executive president of home furnishing, expressed ten expressions: We invite investment: "We cannot be too old or too rich. This industry does not require proficiency in the Internet, however, we must have basic understanding and recognition, so we do not accept those who are too old and old-fashioned. As for why you don't accept too rich, it is because doing this business requires a high degree of energy investment, research and judgment, and you can't hold the mentality of testing water if you love to do it or not ".

General Manager Xin believes that future competition is the embodiment of the market competitiveness of distributors. Different distributors must have different competitiveness. In snimay, the emerging human beings are chosen. They don't have to have experience or money. They are youth in a small town. The small shop economy they formed is a magic weapon to revitalize the third-and fourth-tier cities, contact young consumers in a mode that young people are good. Think about it, if there are several cool-looking small shops in a small town, it seems that even if you live in a corner, you can connect with the world. For the huge consumers in the three or four lines and the following regions, first of all, we have reached a kind of psychological identity and identity.

Baudrillard mentioned in "consumer society" that there is a dialectical relationship between identity and consumption, confirming identity, expressing identity, and consumers choose to consume. When consumption is completed, it has further deepened consumers' recognition of their identity. Especially in the sinking market where community communication is more obvious and opinion leaders can play a better role, what we rely on is to penetrate into every community and let them have spontaneous influence, thus making choices in identity.

In essence, the innovation of this channel model is that the new business model will no longer be limited to one-way ToB or ToC, and it will pass the broader-based public innovation model, in a new form of customized sharing, AI home will focus on empowering distributors and designers to create a win-win model for all.

Especially after the cooperation with Midea, AI home has obvious advantages in brand endorsement and revitalizing community economy.

AI home brand positioning, product positioning is younger. AI home focuses on 85-95 people and people with young mentality, while 85-95 accounts for 68% of the people in need of decoration. In the huge scale of hundreds of billions of home furnishing market, we focus the crowd accurately, lock in this group of emerging consumers with the largest base, and strive to win 10% of the market share.

Light and beautiful shops are especially suitable for channel sinking. Young people in small towns in the new era are not so dependent on brands. They are willing to try new things and look for freshness and technology, this is the group object that AI home can satisfy.

One link is a huge young consumer group, and the other link is young people who want to start a business but have limited funds. Whether they join in or consume, they have a promising future.

However, the low-cost model of the store seems to be very beautiful. Whether the category breadth and service depth of the big store can be made remains to be tested by time.

Community stores need technology to connect the chain, improve service quality, and build personalized brands to truly interact with consumers. Although the physical distance with consumers is short, the shortening of psychological distance still requires efforts in drainage, community marketing and brand building.

03

rely on e-commerce drainage

service refinement in the store

"Most enterprises started live broadcast only under the situation that the epidemic forced them, but live broadcast was not a whim for snimay. Our pace in online live broadcast has been far ahead of 2 years, A professional live Day group and Internet celebrity club have been trained internally, and online live broadcasts continue to be conducted continuously every month. They have mastered the skills of live broadcast skillfully. Therefore, when the epidemic comes, we can enter quickly without any sense of violation."

AI home not only breaks the singleness and constraint of offline channels, but also upgrades the marketing model to the combination of online and offline, reducing the absolute dependence on a single channel. The company works closely with Tencent, Baidu, headlines, TikTok and KOL at the circle to build a private domain traffic pool for enterprises.

Snimay there will be about 2 live broadcasts of investment promotion every month, and some KOLs will be invited to endorse the brand. For example, in May this year, we invited Macao's new architect Lusi to the live broadcast, striving to expand the brand influence and appeal of snimay among the new generation of consumer groups.

In terms of live content, there is also a complete and sound incubation system and operation process. There are not only factory exploration and store exploration links, allowing the audience to directly see the source of the product; There are also enterprise executives speaking on behalf of the brand to enhance the credibility of the brand; There will also be internal staff sharing themes to snimay products, investment promotion and other related content are explained; Coupled with the creation of interactive links such as lottery and cheerful atmosphere, the interaction and participation of investment promotion live broadcast are significantly improved.

New retail has been proved to be an important carrier in the industry. Enterprises above the scale do not pay attention to e-commerce. The proportion of e-commerce has accounted for more than 50% in many enterprises. In the data given by Chairman Xin Fumin, snimay of e-commerce accounts for 30%. "From now on, the entire order source relies heavily on e-commerce, including live streaming."

as early as two years before the industry's downward trend appeared, snimay began to think about the future development direction, and made many underlying frameworks and technical innovations for AI.

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first of all, through the effect diagram designed by kujiale front-end, it is transmitted to the Ingram system through the interface to generate processing data, and the order is completed through the back-end system to form a closed loop, realize the integration from design to order to production and delivery.

Secondly, based on the modular, standardized and mass production of AI home, under the premise of high quality standards of big brands, product prices can compete directly with local small brands, it will not only become the second weapon for dealers to win the market, but also bring a truly subversive value revolution to the industry.

Thirdly, in terms of service mode, on the one hand, intelligent systems are used to improve service efficiency; On the other hand, distributors are required to respond quickly and respond within 0.1 seconds to meet the brand positioning of "light fashion and fast Customization.

Next, snimay have to face the operational level of community stores. Although technology has been upgraded and digitization is also iterative, does rooted communities have natural advantages in traffic? What products can bring this advantage? What kind of services can deepen this advantage? There is still a long way to go.

However, facing the rise of emerging consumer groups and the traffic trap of professional stores, digital community stores must be the trend. "The advantages are gone in front of the trend." What is the trend? The first is the rise of community economy, and the second is the rise of close communication, such as designer channels. Xin Fumin believes that AI home is exactly in line with the future civilization situation. "When a new civilization appears, it doesn't make much sense to how large you are now. At that time, the proportion of Motorola and Nokia markets was so high, didn't they all collapse in the end?"

following the trend, ants will eventually grow into elephants one day.

Reprint: Future Home Research

(Article Source: guangchafer-public number, invasion and deletion)