Recently, the home of Fengqi Road in Hangzhou City closed its doors, and the giant store in the home furnishing industry only lasted for 8 months from opening to closing. In fact, in the past six months, more than three home stores in Hangzhou have left the scene. According to industry insiders, this is only the beginning. In the future, there will be more stores with poor location and poor management.
In fact, the store is not terrible to close the store, the loss of the manufacturer will not harm the actual interests of consumers in the short term, but for the home industry, this is a signal, a signal that needs reflection.
First, it is the relationship between blind expansion and market saturation. For the home furnishing industry, in addition to the very few stores with high-end or low-priced positioning, the vast majority are still in the state of brand hodgepodge. This means that it is difficult for stores to avoid falling into the quagmire of homogeneous competition. Under the premise that the market is approaching saturation, if the store cannot win a fixed customer base through the market segment, then “closed shop†is not far away.
Second, it is the relationship between channel construction and consumption habits. Today, as e-commerce matures, the expansion of stores is far from meeting the needs of channel construction.
From the perspective of cost, the store is a high-cost format from the beginning of construction. The cost of land, construction cost, water and electricity property, etc. must be passed on to the manufacturer through the form of booth leasing, and finally passed on to consumers. In comparison, the network is not the same, the cost of pre-construction and post-maintenance is not high.
From the consumer's consumption habits, more and more people have begun to adapt to online shopping, and the consumer groups entering the store are gradually shrinking.
So, what should the main function of the store be?
In my opinion, it should be an experience. In addition to meeting the needs of some consumers on-site purchases, the main function of the store should be to provide consumers with a place to see and see for themselves. At this point, the store has the advantage that the network can't match, when it comes to play.
Looking back at the network, it is full of vitality. At the first Alibaba Home Furnishing Summit held recently, Taobao said: In the first half of 2011, Taobao Mall's household transaction volume increased by 468% year-on-year; in the second quarter, the growth rate of home improvement materials, bedding, and residential furniture They are 430%, 530%, and 560% respectively.
The same is from the news at the summit, many home business enterprises with more mature e-commerce channels have ushered in explosive growth, and the online influence is far greater than offline. For example, Lin's wood industry's online turnover reached 100 million yuan last year. Experts predict that at this rate, the turnover of Lin's wood industry will exceed 500 million yuan next year. After Kohler, Jiumu and other enterprises entered the e-commerce field, sales growth was also extremely rapid, and online transactions increased by 10 times compared with last year.
Coincidentally, the network construction of the store has also begun. Hangzhou's new era of home life square seized the opportunity, and cooperated with professional technology companies to develop a refreshing 360-degree three-dimensional panoramic home online shopping system. The traditional home furnishing market, including Red Star Macalline and Ouyada Home, has also stepped up its research on network marketing. Through self-built online shopping malls, it has quietly started “reverse osmosis†on physical stores.
It should be said that no matter whether it is a manufacturer or a store, channel construction needs to be diversified. Who can preempt the formation of a new channel chain and clarify the division of labor between manufacturers, agents, channel partners and other partners, who can win the initiative of development.
It seems that how to make channels and what channels to make is a question that the entire home industry will consider in the future.
In fact, the store is not terrible to close the store, the loss of the manufacturer will not harm the actual interests of consumers in the short term, but for the home industry, this is a signal, a signal that needs reflection.
First, it is the relationship between blind expansion and market saturation. For the home furnishing industry, in addition to the very few stores with high-end or low-priced positioning, the vast majority are still in the state of brand hodgepodge. This means that it is difficult for stores to avoid falling into the quagmire of homogeneous competition. Under the premise that the market is approaching saturation, if the store cannot win a fixed customer base through the market segment, then “closed shop†is not far away.
Second, it is the relationship between channel construction and consumption habits. Today, as e-commerce matures, the expansion of stores is far from meeting the needs of channel construction.
From the perspective of cost, the store is a high-cost format from the beginning of construction. The cost of land, construction cost, water and electricity property, etc. must be passed on to the manufacturer through the form of booth leasing, and finally passed on to consumers. In comparison, the network is not the same, the cost of pre-construction and post-maintenance is not high.
From the consumer's consumption habits, more and more people have begun to adapt to online shopping, and the consumer groups entering the store are gradually shrinking.
So, what should the main function of the store be?
In my opinion, it should be an experience. In addition to meeting the needs of some consumers on-site purchases, the main function of the store should be to provide consumers with a place to see and see for themselves. At this point, the store has the advantage that the network can't match, when it comes to play.
Looking back at the network, it is full of vitality. At the first Alibaba Home Furnishing Summit held recently, Taobao said: In the first half of 2011, Taobao Mall's household transaction volume increased by 468% year-on-year; in the second quarter, the growth rate of home improvement materials, bedding, and residential furniture They are 430%, 530%, and 560% respectively.
The same is from the news at the summit, many home business enterprises with more mature e-commerce channels have ushered in explosive growth, and the online influence is far greater than offline. For example, Lin's wood industry's online turnover reached 100 million yuan last year. Experts predict that at this rate, the turnover of Lin's wood industry will exceed 500 million yuan next year. After Kohler, Jiumu and other enterprises entered the e-commerce field, sales growth was also extremely rapid, and online transactions increased by 10 times compared with last year.
Coincidentally, the network construction of the store has also begun. Hangzhou's new era of home life square seized the opportunity, and cooperated with professional technology companies to develop a refreshing 360-degree three-dimensional panoramic home online shopping system. The traditional home furnishing market, including Red Star Macalline and Ouyada Home, has also stepped up its research on network marketing. Through self-built online shopping malls, it has quietly started “reverse osmosis†on physical stores.
It should be said that no matter whether it is a manufacturer or a store, channel construction needs to be diversified. Who can preempt the formation of a new channel chain and clarify the division of labor between manufacturers, agents, channel partners and other partners, who can win the initiative of development.
It seems that how to make channels and what channels to make is a question that the entire home industry will consider in the future.
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