The change of home improvement electric business

(This article is published in "Home Wired" magazine.) ）

The internet is changing our way of life, and the change is the marketing model of goods. This change in the marketing model is not just an increase in internet sales channels, in some industries, the Internet will revolutionize the entire industry business processes and marketing methods.

Home furnishings industry is about to be completely changed by the Internet Business mode of one of the industries.

1. Home Improvement needs

For most people, decorating is an exciting thing: a new home, a new way of life. However, for the vast majority of people, home decoration is also a headache: too many tricks, too many traps, it is painful.

Home furnishings industry is a very special industry. Its particularity manifests in the following several aspects:

1 home consumption is very important for consumers. People's life may only experience a few times home decoration, investment, high degree of concern, the results of family life quality of the impact of large;

2 Home Furnishings Market management is very irregular, the decoration process in many, it is impossible. The price of household goods is opaque and the quality is difficult to judge.

On the one hand, home decoration consumption is very important, on the other hand, home decoration consumption traps more risk. The asymmetry between the importance of this consumption and the degree of risk of consumption becomes the intrinsic demand and main driving force of the home improvement reform.

2. The possibility of home improvement

The internet has brought about a possible change in home improvement.

The risk of home furnishings consumption mainly comes from the home improvement project and the information asymmetry of household goods. The advent of the Internet, but to break the consumer and business information asymmetry created conditions.

I am in the analysis of Home building materials Network Group buying, the original home building materials Network Group buying is actually the behavior of consumers spontaneous. Home installed consumers began to install, they are online to seek relevant information and other netizens help, and some enthusiastic netizens will also be willing to install the process in the course of their work with the merchant wits of the experience to teach other green rookie users. Home users gather together, found through the collective purchase, it may persuade businessmen about a certain discount. This is the embryonic form of online group buying.

I am in the "home electric business channel marketing chain Analysis" (can be read by Baidu), the article points out that the Internet for household goods marketing brought, not just a new sales channels, but the enhancement of marketing functions. The following figure, the black Word is representative of the traditional Home channel marketing function, white representative, it is through the Internet to enhance the function of home marketing. I put the internet to the home marketing enhancements to the function outlined for home furnishings consumption of the front shopping guide function.

It is obvious that home furnishings consumption of the front sex shopping guide information to make home consumption information become transparent. This is the Internet home to install the essence of the consumer revolution.

The internet is expanding the connotation and extension of home furnishings industry marketing system. The change of the extension is simply manifested in the change of sales channel and mode, and the change of intension refers to the fundamental change of the marketing mode. Network Marketing will be the marketing of household goods from the traditional sales and after-sales service to expand to provide home decoration Shopping Guide information, this is the Internet for home goods marketing in the marketing model of the fundamental changes.

The internet makes it possible to change home furnishings.

3. Change the direction of home improvement

According to the characteristics of home purchase shopping information, I put forward the concept of "domestic consumption flow entrance", and that this is the future home decoration industry competition strategic commanding heights.

We understand the concept of "home improvement consumption flow entrance" from the home improvement consumption process.

Traditional household decoration consumption process, we generally divided into home decoration company services, decoration main material purchase and furniture purchase three major parts. But logically speaking, the purchase of building materials and furniture is also part of the consumption of home furnishings. It may be the geographical distinction of the real world or the traditional custom of home decoration, which makes a whole process be divided into several parts.

In fact, the concept of "home improvement consumption flow entrance" is not my invention. Traditional home channels even include some on the scale of the company, have been playing this "domestic consumption flow entrance" attention. For example, the traditional home channel set up or investment decoration company, is to guide home goods consumption, thereby promoting the sales channel. Among them, the marketing model is to home decoration companies to promote the sale of goods to the hundred homes to bring more than 50% of the supermarket sales. Also such as on the scale of the company, also in the integration of their own home furnishings supply chain, its essence is also want to make full use of their own home decoration consumption flow entrance, to drive the sale of main materials.

However, due to the information asymmetry in home furnishings, because of the logical division of the process in the real world, in the traditional household decoration consumption, the so-called home improvement consumption flow entrance function has not been able to get better play, through the House of Domestic goods sales guide is not very obvious.

But the internet can not only through the series of information, home purchase and household goods to buy together into a whole, but also through the provision of the former shopping guide information so that the site's home furnishings and household goods consumption links more smoothly, thus forming a real "traffic entrance."

The Internet "boss alone big" aggregation characteristics, more likely to make the future line to form a huge "home improvement consumption flow entrance", such as Baidu search on the Internet. This is what I have described as the commanding heights of competitive strategy.

4. The change of home improvement electric business

The core of the reform is to make full use of the Internet technology and information resources, to attract the home decoration consumers by providing the shopping guide information, and to provide the household decoration service and the household goods line, and to form the online "home decoration consumption flow entrance", For home improvement services and household goods sales to provide accurate consumer flow.

This is what I call the concept of home improvement electric quotient.

The home electric business is a more thorough revolution to the traditional home improvement process. First of all, the home electrical manufacturers changed the way the consumer behavior. Because of the provision of a large number of home decoration consumer Shopping Guide information, so that domestic consumers to install household consumption before the Internet search, to obtain the necessary information. This also makes the "home improvement consumption flow entrance" possible, and secondly, the selection and implementation of home improvement services become transparent and fair. Home Electric Business website can provide home decoration for consumers and family consultation and House tender Services, and through a fair evaluation system of the fittest, and constantly improve the quality of the service; In the end, the house electrical manufacturers through the consumption of precision flow control, to guide the sale of household goods. In a way, home furnishings design basically determines the style, grade and other elements of household goods. Through home installed consumption flow of precision control, can better guide the sale of household goods.

In a word, the home improvement electric business is according to the consumer's demand, makes full use of the Internet technology and information integration means, for the home improvement consumer to provide the system effective decoration information, and the whole process of the consumption to carry on the system optimization, the reconstruction of the internet age home decoration consumption process.

5. Home Electric Business

Home appliances are not just online solutions to solve the problem of pure decoration services, but more importantly, the House electrical manufacturers to the line of household goods sales to provide and control accurate flow. Therefore, it is necessary to carefully distinguish between home appliances and household electric dealers.

First of all to look at home electric dealers, which we have been more familiar with the sale of household goods online mall. There is no doubt that the main function of home electric dealer is online sales of household goods. From this point of view, home appliances and household electrical manufacturers have a more obvious difference.

However, because the line of the actual flow of the entrance of the home, each household electrical appliances are invariably in their own web site to add the function of decoration, such as providing home information, to provide home decoration Company and designer information, and to promote home decoration consumption services (such as home decoration process tendering and bidding, etc.).

People can not help but ask: home appliances with the function of the electrical business is what you call the house of the electrical business?

The answer is no.

We from two aspects to distinguish between home electrical appliances and household electrical business: first, the site's positioning. Home appliances are the main business of consumer services for home furnishings, while the main function of household electrical appliances is online household goods sales; the second is the business structure of the website. Home appliances are based on family services as a starting point, the natural guide to the sale of household goods. and the home electrical appliances function is often the site's auxiliary function, and household goods sales is independent.

Because there are the above two major differences, home electrical manufacturers may become online "home improvement consumption flow entrance" Imagine, if you want to install, you originally want to on the site is specifically for home improvement services site? or the sale of household goods mainly with home furnishings function of the site?

6. The implementation of home electrical manufacturers

Home electric business is to build the flow of household electricity importers, but also from the overall consumer purchase behavior system control.

Home appliances is a completely different from the existing household electricity business model, it in the business strategy positioning, Web site architecture, business logic structure, information integration methods and the latest 3D technology applications, are the existing home electric business innovation and breakthrough.

According to incomplete statistics, home furnishings industry has a capacity of 3 trillion, of which decoration, building materials, furniture 1 trillion. Such a large market capacity of the flow of the entrance, how important it is, so I predict it is the future home furnishings industry competition strategic commanding heights. For any enterprise that tries to make a difference in the development of the electric business in this industry, it should be a strategic deployment which cannot be neglected.

However, how should the home electrical manufacturers implement it?

Here I can only talk about some of the principles of the proposal, too specific implementation of the scheme may already involve trade secrets, this cannot be disclosed. However, I believe that the home electric business is a general direction, the specific implementation of the plan, not only one. In the near future, we may see the pattern of different home improvement electric dealer websites compete with each other and develop together. After all, this is 3 trillion of the market, can not be a monopoly.

First of all to insight home improvement consumer demand, home improvement electric business development, must be closely around the needs of home decoration consumers.

The second is to have a precise positioning of the home improvement function. We have explained this in more detail earlier.

The third is to make full use of advanced Internet technology and 3D technology, to strengthen the design of home furnishings and household goods online display, to enhance the online home merchandise sales function.

In the final analysis, home electrical manufacturers still need to be in practice through constant exploration in order to get continuous development.

This article is just a draw.

(Please pay attention to my Sina Weibo: http://weibo.com/1587970060)