A probe into the electronic business of the traditional household enterprises

(This article is published in the July 2013 issue of "Furniture Business Road")

Home building materials Enterprises to develop electricity business, has become a recognized trend of development. But how to develop electricity business? There are two options in front of the enterprise: one is to set up an independent electric company, run alone, and try to make the whole enterprise electronic business. What kind of choice should we make in home business?

My suggestion is to choose the second way: to make the traditional enterprise electronic business. This is also the subject of this thematic discussion.

How far is the electrical business of home enterprise from us? There is a sentence advertising word: How big the heart, your stage will be big. Apply to this question is: How close the heart, you from the electrical business is how close.

In fact, home business electronic business in close proximity, at the foot of.

But the process of electrical business of home Enterprise is a long road.

Here I would like to briefly talk about the following questions: 1. What does electronic business mean to traditional home enterprises? 2. Why do companies have to do electricity business alone? 3. How to realize the electronic business of the traditional household enterprise?

1. What does the electronic business mean to the traditional home enterprise?

I have in the domestic famous traditional home building materials shopping malls business general training courses, to the merchants have done "let the mall plug in the electric business wing" keynote speech, which talked about the traditional home building materials channels facing the crisis and challenges.

Traditional home business and traditional home shopping malls have dependent close relationship, whether the electronic business, but also related to the future development of traditional home enterprises.

I use the concept of "marketing chain" to analyze in detail the changes of the competitive environment of the traditional home enterprises brought about by the electric business development.

Before the electricity business channel appears, our household enterprise in the traditional home building materials channel sales work, basically has such several key functions: sale, Post-sale service, customer service (solves customer complaint). The specific marketing functions are as follows:

For many years, our traditional marketing has been doing this. In addition to doing some advertising, we are basically waiting for customers to come to the door, and then sales, and then after the installation service, there are problems customer service processing. We are used to it, it seems that customers are used to it.

But is this marketing process in line with the needs of home furnishings consumers? If can not meet, the consumer of home furnishings and what kind of consumer demand?

The two factors determine the home building materials consumer's marketing function has a unique demand, and this special demand, but also determines the home business development of the core competition connotation.

The first is the importance of home improvement. A person's life can not buy a few sets of houses (of course, those housing elder sister room daughter-in-law except), each new house decoration decoration, is a big event in life, involving more funds, investment energy, the family happiness has a significant relationship. So choose household goods need to be cautious and prudent.

The second is the immaturity of the home market. and household goods on the importance of the consumer is extremely asymmetric, is the home market is immature: merchandise does not price price, a variety of intermediary rebate system, each category of countless brands, goods used in the material of a lot, and so on. Household goods consumption is a step by step alarming.

Home consumers in the pursuit of new home excitement at the same time, the purchase of household goods have a great fear. They need to have a source of reliable information for analysis, and need to have other consumer experience for reference. This is the so-called home goods pre-sales shopping information. The research shows that the home purchase information of the house is of great influence on the decision of the consumer to buy the goods of building materials.

Thus, the marketing process of home building materials, not only limited in the product sales and service links, it is a full inclusive of consumer Word-of-mouth, home information, brand information, products and price information, such as links to the front of the marketing chain of information shopping process.

The lack of traditional channels, is precisely the above mentioned in the front of the shopping guide of each important link. And the internet for this kind of home goods in front of the purchase information to provide the growth of the soil, thus forming a closed-loop electric business marketing chain. The Front sex shopping guide information, or will become the future home improvement consumer's flow entrance, is the electric business time household enterprise strategists must contend the strategic commanding heights. This is the traditional channel in the future competition in the industry is facing the biggest crisis, but also our traditional home enterprises are facing a major crisis.

Therefore, the traditional household enterprises in the electronic business, should be closely around the closed-loop electric business marketing chain expansion.

For the traditional home enterprises, the electronic business means that the traditional home enterprises can establish, improve and strengthen the electronic business era of marketing chain function.

2. Why should the electricity business be developed separately?

People talk about the development of electric business, perhaps more is the idea of setting up a power company to develop alone. So what is the difference between this independently developed electric company and what we call the traditional home business?

Let's talk about what they have in common: the so-called Home enterprise electric business, not excluding enterprises to set up a separate electric business company, also does not exclude the electric company to establish independent sales channels. Therefore, the independent mode of the electric Business Company is included in the mode of the electronic business we are talking about.

The difference between the two is concentrated on the strategic objectives of the development of the electric business.

Home enterprises of the electric business strategic objectives, may look more abstract, but we can use a simple problem will be specific: after the development of electric business, the original enterprise how to do?

This problem may bring us back to reality from the strategic vision of the electric business development. We know that the electrical business of traditional enterprises to develop a huge challenge. If we build a new electric company, the development of the company may be able to compete with other electric companies, but the new electric company for the traditional business, especially the traditional channels of enterprises how to help? Will the new electric company be able to bless the traditional business of the company from being swept away by the electric dealers?

Objective analysis, if the enterprise is an independent development of electric business company, that the new company and the traditional business between the enterprise should not have a greater correlation (otherwise it is not independent development), so it is difficult to form an effective traditional business protection, and even may be the original business of traditional businesses bring great impact. So, unless we decide to abandon the traditional business of the enterprise after the development of the electric company, it should not be the best policy to develop the electric company alone.

When Suning development is easy to buy, first worry about easy to buy under the line of the real store impact, and then in the east of the press only forced to break the wrist full development. It has been proved that if the development of online dealers is not combined with the traditional business of enterprises, the independent development of electric power companies may only impact the interests of traditional channels under the line.

It is worth pointing out that one of the important prerequisites for us to discuss the independent development of electric companies is that the traditional home enterprises can develop the electric companies alone. But this assumption is not tenable in many traditional home businesses.

We know that household enterprises to do a major obstacle to the electrical business, is online sales still need offline experience and measurement installation Services. O2O is the development model of home building materials. In other words, the electrical business development of household enterprises, to a large extent, can not be separated from the traditional line of business channel support. Therefore, the independent development of electric Business Company's road, for many traditional home enterprises may not be feasible.

This is perhaps the most fundamental obstacle to the development of electricity dealers in many traditional home enterprises.

The traditional household enterprise develops the electric business, inevitably encounter the following aspects of the contradictions, I call them the traditional home electric business development line under the five contradictions: 1 online sales channels and the original distribution channels under the contradictions; 2 the contradiction between the unified price on line and the price under the line 3) Online pricing and the contradiction between the price of the traditional channel and opaque, 4 the contradiction between the online product display and the offline product experience; 5 The contradiction between the online merchandise sales and the online pre-sale measurement and after-sale installation service.

To resolve these contradictions, we must line up the traditional business of the full support of the development of the electric dealer. In the final analysis, the traditional channel of enterprise support to the development of online electric business, which is what we talk about the traditional channel of electricity business.

We start from the independent development of a power company, but back to the traditional home business of the electronic business of the track. This should be home building materials enterprises to develop the internal law of the electricity quotient.

I am in another article about home business to do electrical business, the main obstacle to the development of the electric Business company comes from the offline traditional business, the main reason is because in the traditional business units, especially in the business of traditional channels, the dealer's development is a threat to them, is moving the line under the traditional business of cheese.

If the traditional business unit, especially the original dealer system does not support the Enterprise electric Dealer's online sales, the development of the electric Business Company will certainly encounter great difficulties. A lot of household enterprises to develop the electricity business finally nothing, but also most of the online under the traditional business does not support the cooperation.

So, how to obtain the support of the traditional business department (especially the distribution department) becomes the key to the development of the electric quotient of the household enterprise.

And this is what we call the core of the traditional business of the electricity business.

3. How to realize the electronic business of the traditional household enterprise?

In front of us, the author analyzes the challenges of the electronic business closed-loop marketing chain function faced by the traditional household enterprises in the era of electric business, and also discusses the development of the household industry's traditional business. Therefore, the development of household enterprises should choose the electrical business of the road, and the enterprise should be closely around the promotion of electronic business marketing chain function.

I am in an article about the traditional channel of home building materials development electric business, it is discussed that the development of the electric business should be regarded as the organizational change of a traditional enterprise, which requires the enterprises to make corresponding changes according to the needs of the development of the electric business in terms of organizational structure, enterprise culture, business process, distribution system and customer relationship.

The electronic business is the name of this organization change. Now, let's have a brief analysis of how this electronic business organization change should unfold.

First of all, to determine the development of electronic business is to enhance the electronic business era of traditional enterprises core competitiveness. From this goal, we will easily exclude the simple to do a company's road, the reason is simple: because the development of a separate electric company, and can not enhance the traditional home enterprise core competitiveness. (Of course, the original enterprise is not strong, want to rely on the development of electric dealers except.) ）

Secondly, we should know what is the core competitiveness of household enterprises in the era of electric business. Earlier, according to the electrical and commercial times of consumer demand, home enterprises must provide closed-loop marketing chain. And this closed-loop electric business marketing chain, it constitutes the core competitiveness of home enterprises.

What is the closed-loop marketing chain for this home business? If we analyze from the point of view of the relationship between lines, it actually represents an integrated O2O closed loop (see photo) under the line, and provides a brand-new user sales and service experience for the household consumption of the electric business era. And to build this line under the integration of the O2O closed-loop, is the traditional home business process of electronic business.

In this way, we will be more easy to see the specific contents of the home business Electronic Business:

1) offline channels of electronic business. This is the main content of electronic business of home enterprise. This piece of content is more, this article cannot expand. But its core, is the offline channel began to establish the consciousness of the electric business, can actively enable online resources to carry out effective marketing. In a word, the online resources can be used as their own resources to operate, but also with the online marketing activities;

2) on-line platform construction. This platform, can be enterprise independent website, also can be enterprise in each big electric business platform of shop. In the current competitive situation, home enterprises do not encourage the development of electricity business platform, but may wish to have their own independent website;

3 From line to line O2O (Offlineto online): This is different from the line down to the line of the O2O. Do you remember what is needed to be displayed online in the closed loop of the electric business marketing chain? Brand information, commodity information, consumer reputation. Enterprise's online platform for the offline channel opened a new information channel, can make it easier for home buyers to find distributors under the line, better understanding of corporate brands and products, more effective dissemination of positive energy consumption word-of-mouth. Of course also includes offline products online marketing, but this topic is somewhat complicated, we will discuss the topic in the future;

4 from line to line O2O (Onlineto Offline): This is the "traditional" sense of O2O, online display, offline experience and services. For most furniture enterprises, pure online sales is not far, need this O2O link to support. On the other hand, the O2O can also be offline support. After the user from the online traffic flow, to properly shunt to the offline market for experience and sales. Of course, this O2O also includes the so-called "last kilometer" of goods distribution and installation services.

This electronic business model reveals the following characteristics of the development of the traditional household enterprises ' electric business:

1 The electric quotient of the household enterprise is designed according to the characteristic of the electric Business Times home decoration, it satisfies the consumer's demand;

2 It is an integrated closed-loop system on line. Online under the line of mutual dependence, mutual promotion and common development;

3 The process of electronic business in home enterprise means the reorganization of the enterprise's BPR. It is not only to increase the power quotient of the enterprise, but also to integrate the function of electric quotient into the business system of the enterprise organically;

4 The process of electronic business means the reorganization of the distribution system of household enterprises. More electrical business awareness and more electrical operators to operate the skills of distributors, the enterprise's electrical business system operation has a deeper awareness and awareness of participation;

5 and offline organic combination of electric companies, responsible for business online. Help line, also rely on offline;

6 change of customer relationship. Although there is no express in the picture, but we from this O2O marketing closed-loop content, we should be able to feel the relationship between the enterprise and home users are undergoing qualitative changes.

Of course, this household business model of electronic business contains more content, we are not here to start the discussion. We said that the electrical business development of household enterprises, if according to the consumer demand for home improvement, will naturally form this O2O closed-loop electric business marketing chain, online integration of healthy development.

In particular, it should be pointed out that: in the process of electronic business development of household enterprises, we should pay attention to the benefit guarantee of the traditional business under the line. The interest relationship is handled well and with less effort. If it is not handled well, it may not develop. Companies that try to develop a business without success will tell you the same story.

(This article is the original, only representative of the personal point of view.) All rights reserved, reproduced or quoted please indicate the source. ）