In recent years, cross-border brands have entered the customized home industry on a large scale. There are few successful cases behind the boom. Due to its low input threshold, ultra-high growth rate, and lack of a complete business model and system, although it has many natural resources advantages, it has become a little tired and even "acclimatized".
Low industry threshold?
On the surface, the customized home furnishing industry seems to be to invest some equipment, invest hundreds of thousands of funds, and invite a few industry experts to start operation. Such a low threshold has led to the "blooming everywhere" of enterprises with the brand of customized home furnishing in the market. Enter the keyword "customized furniture" into the national enterprise credit information publicity system, and there are thousands of search results, but in fact, most of these enterprises do not have the ability to provide customized services for consumers.
After operating for a period of time, many customized home furnishing enterprises have found that they have gone through countless detours and wasted a lot of human, material and financial resources, and are still "unable to find the north" and are trapped in a long-term unprofitable state.
The iterative upgrading of consumers has opened up the market for personalized home customization. The core of the operation of customized home enterprises is not only the investment of heavy capital such as equipment, plant and software, but also the product system, technical personnel, terminal operation, process control, software information construction and supply chain system of enterprises should be the key to the core engine on the customized track.
This big cake doesn't bite well
At present, there are hundreds of cross-border customized household brands, not to mention small factories and workshops. Dozens of cross-border enterprises do customization every year, but dozens of them fail to make customized home furnishings every year, and then return to the main business. There are few successful cross-border cases.
Every order of customized home is a small project. From scale design to production, logistics and distribution, and finally to installation and after-sales, this kind of customized project has strict requirements on process control. Customized home furnishing is a typical service-oriented industry. The service of factory is reflected in delivery time, quality control, logistics distribution, etc.
All aspects of high requirements, the brand strength put forward a test. Therefore, it is not difficult to see why there are few successful cases of cross-border brand customized home furnishings, because this "cake" is not so easy to eat.
Misunderstanding 1: resource advantage ≠ core competitiveness
There is no doubt that cross-border enterprises have unique advantages in brand resource sharing, terminal resource construction, channel resource integration and so on. They can achieve greater benefit returns with less marketing costs. Because of this, many cross-border enterprises will be confused by the previous "excellent" achievements if they directly use the original brand resources. However, after switching to the custom-made home, it can be said that if we blindly copy the past successful model, we will only fall into the embarrassment of "acclimatization".
The comprehensive ability of cross-border brand is undoubtedly better than that of grass-roots customized home brand, but this does not mean that its core competitiveness in the customized home market is stronger.
Misunderstanding 2: lack of systematic cognition on the nature of customized home furnishing industry
It has been more than ten years since the development of customized home furnishings. Many cross-border brands have just entered the industry and boasted of the business goal of 1000 stores in three years and one billion yuan. However, operators rarely do in-depth research on products and business process system.
For example, for example, cross-border customized home products. From the perspective of marketing, the essence of customized home is system + service, which includes production, logistics, sales, design and installation; From the service level, it includes pre-sale shopping guide, design in sale and after-sales installation; The finished product is production, investment promotion and sales, and production determines sales, which makes it lack of a link with consumers and perception of market change demand.
Therefore, for cross-border brands, their first priority is to straighten out the whole industry line of customization and establish a complete system of factory + supply chain + distributor + service.
Is it "general trend" or "pit"?
According to the "2017-2021 China customized furniture industry in-depth research report" released by CIC consultants, the current penetration rate of customized cabinets is about 60%, the market capacity is close to 100 billion, the penetration rate of customized wardrobe is about 30%, the market capacity is 50 billion, the penetration rate of other customized furniture is about 10%, and the market capacity is 15 billion, Therefore, the market capacity of the whole customized home field is about 165 billion.
However, compared with the foreign market share of 60% - 70%, according to the 5% growth rate of China's customized furniture, the customized home market is expected to break through 300 billion in 2020, and basically reach saturation state. However, with the current development trend, more than 60% of the enterprises (according to the survey data of Guangzhou Construction Expo) have entered the field, that is to say, all the enterprises that should come in have entered the Bureau, and have entered the white hot stage of horse enclosure.
Often after reaching the peak stage, the industry will realize the fact that market supply exceeds demand in the field of customized home furnishing, followed by the bubble burst and industry reshuffle. In addition, with the popularity of hardbound housing and the development of brand influence, it is inevitable that small enterprises will unite and giants will compete for hegemony.
The ultimate thinking of cross border customized home
In fact, "cross-border" is not a new vocabulary, nor is it a unique stage feature of the home furnishing industry. Cross border means that there may be a sea of stars ahead, but at the same time, there will be rough seas at any time. At present, many cross-border players are still in the stage of constant exploration. Whether they will succeed in the future is still unknown.
Two suggestions must be made before cross-border brands enter the board:
1. High and cold
“ This is the most typical characteristic of whole house customization enterprises, and it is also a major factor that makes it difficult for enterprises from the traditional "production determines sales" mode to defeat enterprises; For enterprises without enough capital, service and investment attraction ability, the more attractive the interests, the greater the risk.
2. Think of danger in times of peace
Famous economist Xu Xiaonian once said: "there is no sunset industry in the world, only sunset enterprises, no sunrise industry, only sunrise enterprises." Enterprises in the face of changing business environment, there is no need to have too much anxiety about this environment. So at this time, what should enterprises pay attention to? It's the market, the customers and the employees. The environment is changing and the air outlet is changing. What remains unchanged is to create and enhance the core competitiveness of enterprises, and what remains unchanged is to continuously create value for consumers.
Although the voice of "not optimistic about cross-border" accounts for a large proportion in the industry, there are still those who are not afraid to invest in it one after another. In the next three to five years, the integration speed of the home furnishing industry will be more rapid and fierce. The enterprises that can break through the encirclement must be the outstanding ones to realize the leapfrog development in this period.