Where is the exit of furniture e-commerce in the new retail era?

In 2016, the Double Eleven passed the eighth year. This year, Tmall's “Double 11” turnover reached 120.7 billion yuan, up 32% from the 2015 double 11 transaction volume. However, Ma Yun is one step ahead. At the Hangzhou Yunqi Conference in October, the word “e-commerce” will soon be eliminated. In the next 10 or 20 years, new retail will replace the concept of e-commerce, which is online and offline. The new retail industry created by combining with modern logistics will have an impact on pure e-commerce and pure offline.

For the furniture industry, this will be no small challenge. In the new retail era, O2O and experience consumption requirements are higher. Now many companies have made adjustment strategies and focused on online and offline omni-channel integration.

Furniture e-commerce brand growth slows down in the future

Tmall announced the list of double 11 furniture sales, Lin's Wood, Quanyou, Gujia still occupy the top three, Lin's wood industry even reached an astonishing 660 million!

Double eleven residential furniture industry sales rankings

From the 2016 TOP10 ranking of 11 double 11 furniture, it can be found that the traditional furniture brand occupies 8 and the furniture e-commerce brand has only 2, only Lin's wood industry holds up the furniture e-commerce brand. Compared with the top 10 furniture TOP10 in 2014 and 2015, the furniture e-commerce brand has a significant downward trend, and the growth rate is far less than that of traditional furniture brands. Obviously, the traditional furniture brand has already occupied half of the furniture e-commerce, and the furniture e-commerce brand “unified the world” has ceased to exist.

Double eleven residential furniture industry sales TOP10

Furniture e-commerce has maintained a "high speed, big pace" development from the beginning, Lin's wood industry even in the double 11 into the Tmall class currently ten. However, careful analysis of the performance of furniture e-commerce in the past two years, will find that the "fast train" of furniture e-commerce is getting tired. In the same way, Lin's wood industry: In 2014, the double eleven Lin's wood industry won the same title with 330 million yuan, a three-fold increase compared with 2013; by 2015, this value has become 510 million, 2016 660 million, the growth rate is gradually slowing down. In the same industry, the top three are also home and all friends, but the results are also not bright.

With the increasingly fierce competition in Tmall's traffic resources and the rising cost of traffic, traditional furniture brands have gradually mastered the development of Internet channels. The traditional furniture brands represented by Quanyou and Gujia have shown their influence and resource advantages. In contrast, the future upside of furniture e-commerce brands is limited.

Experience consumption is short-board furniture e-commerce has opened stores

The reason why the furniture e-commerce brand can get better development is that the O2O e-commerce model saves the dealer and other links, thus saving costs and providing users with a better online shopping experience at a lower price. However, the market share of furniture e-commerce is limited. Senior furniture media person Gui Jianxun communicates with many senior people in the furniture industry and concludes that the market share of furniture e-commerce does not exceed 10% of the total sales of furniture. .

This is due to the limitations of e-commerce itself. According to the “Investigation of Urban Household Purchase Expectations in the First Quarter of 2016” issued by the Important Commodity Forecasting Center of the Ministry of Commerce, the proportion of “physical stores + online shopping” selected in 2016 was 31.0%, showing an upward trend year-on-year. Compared with direct online shopping, many consumers are more willing to go to the showroom or the factory to look at the real thing, and then enjoy more convenient network services such as ordering, payment, distribution, installation.

In the sales of furniture, experiencing consumption is very important. Without experience, it is difficult for consumers to make up their minds. E-commerce is still difficult to meet the consumer's experience needs. Looking at the pictures and introductions on the Internet is not enough for consumers to be completely assured of the quality, environmental protection, technology, after-sales service, etc., which must be confirmed by personal experience.

The sense of experience is the key to the survival of traditional stores. At the same time, the lack of experience is also one of the reasons why many furniture e-commerce companies have expanded from online to offline.

In September 2015, VISNEY Wei Shili O2O Ecological Life Experience Hall opened. Official data said that in the next three years, VISNEY Wei Shili will also build 365 stores in China.

In 2016, Lin's wood industry, which started from e-commerce, is accelerating the O2O experience hall under the layout line. Currently, 26 companies have been opened in the country, and major cities such as Shenzhen, Tianjin, Nanjing, Hangzhou, Changsha, Wuhan and Chongqing have already laid out. .

Lin's Wood Industry Offline Experience Store

On July 16, 2016, the first store was opened in the “Creation” of the A round of 15 million financing last year. The intention is obvious: to flow, to sell, so that consumers can observe every detail of the product 360 degrees.

Omni-channel marketing in the new retail era is the trend

As Ma Yun mentioned “new retail”, many online retailers are now talking about “omnichannel” issues, and online retailers generally open two stores for two reasons: to provide a better consumer experience, and Avoid increasingly fierce online competition and rising traffic costs.

For furniture companies, the e-commerce business a few years ago meant changes in the marketing environment and how to deal with these changes. For example: how to use the network to promote and sell their own products; how to reduce operating costs; how to seize the more rational purchasing psychology of consumers. From the current trend, the omni-channel development of “e-commerce + offline stores” seems to be a new direction for the development of furniture enterprises.

Compared with e-commerce furniture brands, traditional furniture brands have irreplaceable advantages. The first is brand awareness. The traditional furniture brands with the top ten sales have strong influence almost online. This brand influence determines sales to a certain extent.

Moreover, traditional furniture brands have a complete production chain advantage, and the variety of goods and inventory that can participate in activities is generally better than the furniture e-commerce brand, which is one of the important reasons for the rapid growth of traditional furniture brand double 11 sales.

Traditional furniture brand factory production line

Therefore, in today's furniture industry, although Tmall is still the absolute main battlefield of this year's double 11 furniture enterprise e-commerce, but they will not lose their official website, other e-commerce platforms and offline entities in Suning Gome, Jingdong Mall, etc. Shop, experience the city of the store. Home furnishing companies are forming a new pattern of omnichannel.

In the context of the rise of new retail, cross-channel consumer experience is an inevitable trend. The author believes that with the comprehensive e-commerce of offline brands, the boundaries between furniture e-commerce brands and traditional furniture brands will become increasingly blurred, and eventually return to the competition between brands and brands. Only by taking products and services as the core, actively seeking breakthroughs and firmly catching customers is the key to the brand's invincibility in this Internet era.

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