In recent years, the topic about the survival crisis of home decoration enterprises has been widely discussed. It has also become the industry consensus that a large number of decoration companies have been eliminated in the reshuffle. Decoration companies have stepped out of the comfort zone and burst out the consciousness of survival. Especially in the post-epidemic era, the competition in the field of home decoration is more intense, and the demand for transformation and upgrading of decoration companies and improving competitiveness is unprecedented. However, contrary to this, the consumption habits caused by the epidemic, changes in market demand tend to strengthen the Matthew Effect in the industry, leaving little time for small and medium-sized decoration companies.
As for the improvement of the competitiveness of installation enterprises, the most discussed ones are "digitalization" and "online", that is, abandoning the traditional offline service mode, use digital infrastructure to improve service efficiency and quality. It is true that the direction of digital transformation and upgrading is correct, but the author believes that for the majority of small and medium-sized decoration companies, it is not practical to discuss digitalization alone, recognize the trend of industry integration, learn to integrate and communicate, using force is the way to pull four or two thousand Jin.
(The picture comes from the creative idea of taking a letter, invasion and deletion)
under the trend of great integration, cross-border is a must-choose topic.
There is no need to repeat the survival crisis of decoration companies. A set of data is enough to illustrate the problem: the blue book of Chinese architectural decoration released by China Architectural Decoration Association shows that from 2011 to 2018, A total of about 20000 architectural decoration enterprises were eliminated, mainly small and medium-sized decoration enterprises. After 2018, with the change of market demand environment, this trend became more and more obvious, and more insiders described the industry as having a "tide of bankruptcy". However, under the attack of the epidemic, although countless statistics have been made on the bankruptcy of many loading enterprises, the peers all know that the situation is not optimistic.
In fact, it is not difficult to understand the reasons for the collapse of the installation enterprises. In short, it is nothing more than "supply exceeds demand" and "survival of the fittest". With the weakness of the upstream real estate market and the deepening of the hardcover housing policy, the market cakes left to more than 100,000 decoration companies have been eroded, and the competition has become more intense. Consumers who have transferred to the buyer's market have more voice, coupled with the sweeping wave of consumption upgrades, consumers demand higher cost performance, faster decoration speed, more labor-saving services, more personalized designs, and better household products...... However, some traditional decoration companies have been in the comfort zone for too long, which is really too bad to meet the above-mentioned needs of consumers. Besides, they also go against it, engaging in price competition, cutting corners, adding items and missing items, losing user trust, accelerating the process of self-death, and becoming the "inferior option" that is eliminated ".
In recent years, the "bankruptcy tide" has triggered the "survival mechanism" of the majority of decoration companies. Almost everyone is shouting for transformation and upgrading. However, how to transform? How to improve competitiveness?
The author discussed this topic with many bosses of decoration companies and found that the keywords of "digitalization" and "online" appeared most frequently,, bosses still have too shallow understanding of these two keywords, among which there is no lack of people who believe that digitalization is to transfer customer acquisition channels from offline stores to online internet home improvement platforms, news feed ads and new media channels. In addition to the digital trend, a more macro mainstream trend has been ignored: the trend of industry integration. Real estate developers, building materials and home brands, whole-house customization enterprises, some Internet home improvement platforms and large-scale comprehensive e-commerce platforms have integrated into the decoration subdivision areas one after another, and even snatched the cakes of decoration companies, decoration companies must attach importance to these "foreign" competitors, learn to integrate and communicate at the same time, build a new type of competition and cooperation relationship, and turn crisis into a turning point, thus improving competitiveness with half the effort.
The essence behind cross-border integration is the integration of high-quality resources. As an industry with extremely long industrial chain and extremely low resource integration, the integration of resources in place will greatly reduce costs and increase efficiency, to improve user experience, digitalization is a tool and bridge to integrate resources.
Taking the cross-border cooperation between the decoration company and the whole house customization enterprise as an example, with the support of the whole house customization enterprise in product supply, as well as the joint and connection between the two parties in design, the decoration company can provide consumers with "one-stop" and "bag-carrying" whole-fitting services, taking into account the standardization and personalization of decoration at the same time, greatly improving the quality of products and services. At the same time, the diversion between customers of both sides also plays a role of mutual benefit, avoiding the inefficient loss of resources, which is undoubtedly beneficial to the improvement of competitiveness of both sides.
Similarly, the cross-border cooperation between decoration companies and real estate developers will reduce the cost of customers and communication for decoration companies; The cooperation between decoration companies and building materials brands will improve the efficiency of home decoration for decoration companies, increase profit points; The cross-border cooperation between the decoration company and home furnishing stores gives the decoration company the advantage of "getting close to the water floor first month......
Various types of cross-border cooperation are taking place in the home improvement industry, and the ways of cooperation are constantly enriched and innovated. Obviously, these cooperation are actually changing the service experience and efficiency of the industry, however, compared with those enterprises that actively integrate and communicate with each other, those enterprises that are still shrinking in the comfort zone will gradually lose their attraction to consumers, and at the same time suffer from high operating costs and low operating efficiency, will eventually be eliminated. Under the situation that everyone is in cross-border integration, there is only one dead end to fight alone.
Left small and medium-sized home decoration enterprises "Circuitous tactics"
however, cross-border integration is not easy. If you want to play with others, others may not want to play with you. Taking the cross-border cooperation between real estate developers and decoration companies as an example, those who can win the favor of real estate developers and large hardcover houses or large public decoration projects must be those decoration companies with stronger strength and higher reputation, small and medium-sized decoration companies have no chance to show their faces. This is also why the hardcover housing policy encroaches on the market of small and medium-sized decoration companies.
To take a step back, even if there are strong people willing to play with small and medium-sized decoration companies, the latter may not be "affordable". Cross-border cooperation requires the two sides to realize docking in human resources, knowledge structure, technical system and other aspects. If the latter is really backward in these aspects, the docking between the two sides will be difficult or even impossible to complete.
Does that mean that cross-border integration only belongs to head players, waist and below decoration companies have no chance? That is not true. As long as there is demand, there will be new business forms. The author believes that the birth of the internet home improvement platform can meet the needs of the transformation and upgrading of small and medium-sized home improvement enterprises.
According to public data, in recent years, the total revenue of 17 listed decoration companies in the industry has never exceeded 3%, and the degree of low industry concentration is very serious. Except for a few head decoration companies, small and medium-sized decoration companies are the main body of the market. Most of the annual output value is even less than 100 million, and the number of teams is less than 100. Let these decoration companies build the digital infrastructure necessary for cross-border integration, it is very difficult to get through the data resources of both parties. This situation has created a huge market demand for the birth of the platform. The internet home improvement platform can aggregate this part of decoration companies and reuse its own traffic, digital technology, the advantages of high cognitive level empower decoration companies, help decoration companies gain customers, improve their digital service capabilities, build supply chain ecology, and create conditions for cross-border integration for decoration companies.
Take jia.com as an example, how can jia.com help decoration companies improve their competitiveness in the supply chain? We know that under the trend of consumption upgrading, even home decoration consumers in third-tier and below cities prefer first-tier building materials brands, but regional small and medium-sized home decoration enterprises do not have bargaining advantages before first-tier building materials brands, it is more likely that the obstacles in warehousing, logistics management and other aspects can not provide consumers with first-line building materials brands. In this situation, whoever captures this city will have competitiveness in the local area. However, jia.com uses the advantages of the platform to build a high-quality product library through centralized purchasing, and at the same time creates a digital warehouse distribution service system. Through professional warehouse management system, transportation management system, city smart logistics helps decoration companies solve supply chain problems, indirectly enabling decoration companies to achieve integration and interconnection with home building materials brands.
As mentioned earlier, digitalization is a tool and bridge to integrate resources. Small and medium-sized decoration companies can use the platform to build digital systems and enhance the ability of digital management and operation, internalize external support into the strength of the enterprise itself, and strive for the opportunity of cross-border integration with other powerful players through this "circuitous tactics. At the jia.com home decoration industry ecological conference, Yuan Chuan, the founder of Guangzhou Hengyi decoration, vividly explained this "circuitous tactics". Yuan chuan introduced that before joining jia.com, hengyi decoration is just a small team composed of 7 people. With the operation support of jia.com, the team scale has expanded 10 times in 4 years and gained a firm foothold in Guangzhou market: "Jia.com combines our data for operational analysis to help us optimize operations and management, and help us realize technology and digitization in design, materials, construction, etc."
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in fact, big integration is not just the trend of home decoration industry. All walks of life are actively exploring the mode of integration and interconnection, so as to integrate high-quality resources, improve efficiency and competitiveness. Decoration companies must establish a new type of competition and cooperation relationship, actively "go out", and strive for opportunities for cooperation with high-quality resources, while the strength of the platform is the shortcut to achieve this goal.
(Article Source: Tencent home, invasion and deletion)
