The opportunity and challenge of electric quotient reform in household enterprises

(This article is published in the May 2013 issue of "Home Connection")

To develop the electricity business, the first task is to find out what the development of the electric business means to the furniture business. Specifically, is to answer such a few questions: 1 Why do we enterprises to develop electricity business? 2 What is the goal of our business development? 3 What are the difficulties and challenges of our business development electric chamber?

In the enterprise can clearly answer these several questions and form a unified understanding within the enterprise, only then began to consider "how do we do electricity business?" "Question.

This article is a brief discussion of enterprises to do before the electricity business should seriously consider the three questions. If there is no in-depth thinking on these issues, the electric business may become an "electric injury".

1. Why should the furniture company develop the electricity business?

At first glance, the answer to this question seems too simple: the development of electricity business is a big trend. Everyone started the electricity business, we do not electricity business how to do?

Speaking of which, it is estimated that the speaker is beginning to think about the rationality of the above logic. In fact, why the furniture enterprises to develop the issue of electricity, related to our enterprises to develop the motives of the electric business. And this motive, then decides our electric business development target and the road. So it is the first important strategic issue to think seriously about the development of electric business.

Ma Yun in 2012 years double Shilai to say this:. "I personally firmly believe that the day cat shopping carnival will be a signal of China's economic restructuring, that is, the new economy, the latest marketing model of the traditional marketing model of the war, so that all manufacturers traders know that the situation has changed today." For the traditional industry, the war may have begun! "Here Ma said the war, more accurately is the traditional channel and the Electric Business channel."

Therefore, the furniture enterprises to do the first motivation of the electricity business, is to solve the channel "lines" of the problem: is not the choice of electrical business channels? The problem has been solved for Ma Yun. But for our furniture enterprises, may be the problem has just begun: why must choose the electricity business channel?

Why?

Because our consumers have changed their consumption patterns: they began to search through the internet for furniture products, they understand the knowledge of furniture products through the network, they communicate with each other through the network to buy furniture products experience and feelings, they pay through the network to obtain more secure consumption, they are the network "pet" You have to call him (her) "Pro" to appear your sincerity, they are accustomed to the network furniture products price, they are more accustomed to "burst" and "Seconds to kill" ...

In a word, we have to do electricity business, because our furniture consumer began to electricity business.

If we take the problem one step further, it is that our furniture enterprise needs organizational change at present, because our business environment has undergone a radical change.

We furniture enterprises should be from the perspective of organizational change to understand the development of electric business: our consumers change their consumption behavior, how should we continue to maintain and enhance the relationship between our business and furniture consumers? What changes should we make to the furniture consumers to better find that we know us and love our furniture products? How can we make full use of consumer Word-of-mouth to promote the brand and products of our enterprise? How should we let consumers tell us what kind of furniture design they prefer? How can we better develop our distribution channels to meet the changing needs of furniture consumers? ......

These problems are our furniture enterprises must seriously consider the problem. Although we did not mention the electricity quotient, but we know that each of the above problems with the electrical business close contact, will eventually fall on the development of the electrical business. But the essence of the difference is: we are no longer for the electricity business and the electricity quotient, we are talking about the problems and development direction that our enterprise faces. We are talking about the development of the core competitiveness of enterprises.

The development of electric business is a historic development opportunity for our furniture enterprises. We can change the enterprise through the opportunity of the electric business development, enhance the core competitiveness of the enterprise. Keep in mind that the development of the core competitiveness of enterprises is the only real motivation for enterprise development. The development of electric business should only be a means of realizing the development of enterprises. Never go upside down.

Forget the electric dealer, can better develop the electric business. Because of this, we can grasp the real motive and direction of the development of electricity quotient.

2. What are the objectives of our business development?

The front "why the development of electricity quotient" solves is the furniture enterprise electric business development motive and the direction question. Next we need to solve the business development of the company's more specific goals. Of course, the specific goal we are talking about here is not how much the electric business will do in a year or on a large scale, but what kind of business the enterprise eventually becomes after the development of the electric business.

Generally in our concept, the electric business development has two kinds of goals: one is the electric business channel, the second is the Independent Electric Business Company (team). The two are interrelated, because the electric business channel is bigger, the electric business team also needs to develop independently. Besides, is there a third target for the electrical business?

Let's talk about the history of Suning electric business development. (The internet is so fast and magical, 1 years ago Things are almost history!) You know, Suning is the second half of 2009 to officially online. Before this, Su Ning experienced from the disdain electric business to try to develop the understanding change of the electric quotient, moreover in the early stage of electric business development, Suning's electric quotient strategy still has a traditional enterprise to develop the principle of the electric business, that is cannot damage the original traditional channel of interest. But with the threat of Jingdong mall more and more serious, suning began to break wrist, at the expense of the traditional Suning electric shop under the interests of high-speed development suning easy to buy. Earlier this year, Suning began a new change, renamed as Suningyun Business.

Su Ning explains the fashionable concept of "cloud quotient" in this way: "We think that the future of China's retail model will be ' store business distributor ', we call it ' cloud quotient ' mode." Suning said in the announcement, Suning will gradually explore the line under the multi-channel integration, the whole category of business, open Platform services business form.

We can see that Suning has gone through four stages in the development of the Electric business: 1) suspicion to the electric dealer, 2, under the principle of the protection of traditional channels, the development of electricity quotient, 3, the development of electricity quotient, 4, the cloud business model, that is, "store business and retail service provider" mode of development.

I use "big business without electricity" to sum up the cloud business model of Suning, that is: the core value of traditional enterprises in the development of electric business can not change, the development of the electric business is only to enhance the core value of the enterprise. The electrical quotient develops to the extreme, when the electric business fully integrates in the traditional enterprise each department's work, when the electricity merchant already with the enterprise each employee blood compatibility, the electricity merchant's concept is diluted or completely disappears. This is the original traditional enterprises have been reborn after the return. The implication is: the core business of the traditional enterprise, after the development of the electric business is still the core business, but more solid.

Suning at the beginning of the development of the electric business, should be not fully understand the electrical quotient, so is careless or did not go all out, and later in the Beijing-east of the heavily armies attack, began to spare no effort to build electric dealers to resist the invasion and killing. Wait until suning easy to purchase and offline traditional channels together to stabilize their defense, Suning began to regroup adjustment, deployment of new development strategy, this is the line under the common development of "cloud business" strategy.

Su Ning's experience of the electrical business Development Road, may be most of our furniture companies are facing or have been on the road to experience the development of the electric business. If we can seriously study the development of Suning to the electric quotient of the summary and understanding, it may be less detours, accelerate the speed of the development of electric business, and enhance the development of electricity to enterprises to bring the positive energy-the core competitiveness of enterprises to improve.

What is the goal of our company's electric business development? It's a brand new business with a multi-channel business: more iron, more fan-like consumer relationships, more effective distribution service system, lower cost of raw material supply and production, more to the brand promotion, more rapid market response mechanism, more systematic enterprise information system and the establishment of this information system based on production and sales operation process, ...

Perhaps at that time, no department of the Enterprise is called the electric dealer, but the electric business has been integrated into every detail of the operation of the enterprise. This is our furniture business development goal of the electrical business.

As a traditional furniture enterprise, our electric business development goal should not be a so-called "electric dealer" furniture enterprise. This is the common understanding that must be formed in the enterprise before we develop the electric business strategy.

3. What are the difficulties and challenges of our business development electric chamber?

The home industry may be the only existing Shanglanhai. I summed up the domestic building materials industry channel electric Business development is: The line on the down, offline. The current status of the electrical business is determined by our home industry distribution system and product characteristics.

With the development of the industry channels of the current situation is closely related to the development of our furniture business manufacturers of the difficulties and challenges. When our furniture enterprises have determined the direction of the development of the electric business, we should know what difficulties and challenges we will encounter on the road of the electric business development.

The first and biggest challenge comes from the business unit within the enterprise. They are the enterprise of the current cash cow, the heyday, can not be shaken. The development of electricity dealers may pose a threat to the interests of these sectors in the first time. In other words, the development of electrical business in the vast majority of traditional businesses, it is to rob their jobs, to move their cheese. Therefore, the development of electric business is often due to the lack of internal departments of the necessary cooperation and slow or even premature death.

The second challenge comes from the traditional dealer channel. Furniture business development, often inseparable from the existing dealer system under the line support, this is what we often say the furniture network to buy "last kilometer" logistics installation and maintenance services. However, the development of the electric business channel also poses a certain threat to the traditional dealers. Therefore, the existing dealer's resistance to the development of enterprise electric business will be another serious challenge for the development of the electric business channel of furniture enterprises.

The third challenge of the development of the electrical business in the furniture industry is the price system of the traditional channel. The price system of traditional channel of furniture industry has two main characteristics: 1 The price of different regions is not uniform; 2. The above two characteristics, is the furniture enterprise development electricity business channel formidable obstacle.

The forth is the construction of the Electric Corps team. Wait until the enterprise to set up the Corps team, will suddenly find that basically recruit not only understand the electrical business has knowledge of the furniture industry compound talents. Because it is almost unprecedented, talent is scarce.

Of course, we have many other difficulties and challenges in the development of our furniture business. But the above four points are the most significant and most important.

Finally summed up: 1 The most fundamental motive of the development of our furniture enterprises is to enhance the core competence of the enterprises in the new market environment. 2. The goal of our business development is a brand-new enterprise which fully integrates the function of the electric business. After the development of the electric business, the core value of the enterprise is unchanged, but it is more firm. 3. Our enterprises in the development of the road, the biggest resistance will come from the original enterprise departments, distribution system and business model.

After fully understanding these questions, we can discuss "how does the furniture enterprise make the electric business?" ". Of course, the more accurate statement is: how the furniture enterprises through the development of electric business to improve the core competitiveness of enterprises.

(This article is published in the "Home Wired" May 2013 edition)