About home Textile Electric dealer, you should know three trends

From the 2012 day Cat "Double 11" began, Raleigh home Textiles for the representative of the home textile enterprises began to emerge. Eliminate the "Double 11" the day of resource advantages, home textile enterprises of the degree of electrical business? What exactly are the players in this vertical market? Has the industry developed to the sunset?

With these questions, I went through three people spinning listed companies (Raleigh Home Textiles, Dream Clean, fuannacompany) The recent earnings, as well as to engage in the industry to consult the relevant people, and gradually understand some of the home textile industry electric business that matter.

High concentration of home textile players

In the vertical market, apparel, digital, beauty makeup, food, books and other categories are consumers of high-frequency demand. In other words, consumer demand for products and services in these markets is repeated, and the consumer experience is the most sensitive.

Because there is enough market space, give independent electric business enterprise more opportunities. Corresponding to it is, the birth of such as the only product will, Jingdong, poly United States, a shop, when such a vertical electric dealer, of course, there are days cat, Taobao such platform-type electric business.

Unlike the above vertical market, home textiles is a fabric-type market, a typical "functional and practical" industry, there is no so-called fashion, there is no so-called style. This makes home textiles become a high degree of brand concentration, into the low threshold of the industry. A home textile practitioner said, basically produces the processing fabric, pastes a brand, may enter the home textile this market.

Low entry threshold does not mean you can survive in this industry. On the contrary, the living environment is extremely difficult. Apart from the market environment, such as home textiles export blocked, the expansion of the cost of the line, home textile enterprises themselves are facing inventory pressure, consumer brand awareness of the problem of concentration.

In addition, the existing wholesale model under the line is gradually shrinking, and small and medium sized companies are difficult to develop. and small companies are limited by the strength, can not layout online channels, the presence of electric platform does not have the strength to contend with the big brands.

Non-consumer high-frequency consumer demand, high brand concentration, resource integration capacity, resulting in this industry can live a good life of the players are not many, such as home textile industry often said the top ten brands, such as the three listed companies (Raleigh, Dream Clean, fuannacompany), Mercury, Boyang, Heng and so on.

What needs to be highlighted here is that China is a big textile exporter, compared to digital, clothing, beauty makeup and other industries, international brands into China's few, because the domestic textile technology itself is very cool, high-end consumer groups are relatively small, such as Indian cotton, Egyptian cotton and other people have the need but very small. And these international brands into China, but also through the Raleigh of this brand integration ability, under the line covering a wide range of agents cooperation.

Therefore, various factors show that the home textile market, high brand concentration, consumer loyalty to the brand far more than other market segments.

Electricity quotient is more and more obvious

The high concentration of brand, home textiles is entering a high-speed electronic business strategy of a traditional industry.

First from the three textile listed companies disclosed in recent earnings, Raleigh sales accounted for more than 15% of the total revenue, especially the Lovo brand in the past 5 years, the composite growth rate of more than 120%, is expected to be more than 1 billion in the next 3 years; Dream Clean last January-December, the sales of electricity dealers accounted for nearly 8%, The composite growth rate of electricity quotient is over 100%, it is expected to sell more than 600 million in the next three years.

Behind these data, three listed companies invariably mentioned the pull of the electric dealer. Fuannacompany said that the rapid development of the company's electrical business has become one of the main drivers of sales growth. Raleigh Home Textiles, increased the power of the channel investment and support efforts.

A person close to the three listed companies, a company platform, said that the next two years, including home textiles, such as the next well-known brands are expected to increase the proportion of electricity sales to 30% to 35% of the range. This is the ideal ratio, but also a traditional brand of reasonable sales structure.

In addition to the inevitable trend of electronic business, these textile companies have encountered which offline real problems?

First, exports are blocked. China is a large textile export, in recent years, the export blocked, enterprises began by export, so that the original saturated market has increased sales pressure.

The second is home textile Enterprises inventory pressure. Home Textiles is the standard product, the same face a huge inventory pressure, in the warehousing storage, personnel management, logistics and distribution needs greater input. With the cat, the only product will, Beijing-east and other electrical cooperation, can quickly release the pressure of inventory, especially home textiles have no clothing over the season, even if it is clear inventory, but also to ensure a good profit.

Finally, the cost of offline expansion is getting higher. Home textile industry, there is a saying is not to become the line under each expansion of one square meters need to increase the income of one square meter. Otherwise, the investment is a failure. With the increase in the cost of open shop under the line, whether it is to open a direct shop, or to join the mall, the cost of expanding the line will only become higher.

The same is true of other home textiles brands. These conditions are undoubtedly aggravating the textile enterprises to go online.

Industry needs innovation

Although the home textile industry is not a sunset industry, but an indisputable fact is that the traditional textile industry is facing a decline. In particular, offline sales growth continues to slow.

Actively embrace the electrical business although to the home textile enterprises found a way out. But not all of the home textile enterprises can rely on the day cat, the only product will be such a large number of platforms shipments. On the one hand, because of the high brand concentration, let the electric platform to choose more competitive consumer brands, which means that the small and medium-sized brands do not have the opportunity to compete in these large platforms, on the other hand, the concentration of the electrical quotient is also getting higher. China National Textile Association disclosed data shows that the first 10 months of last year, home spinning total sales reached 53 billion yuan, of which the Sky cat platform accounted for 26 billion yuan. Home textile business people say, home textile industry is a typical herding effect, as long as several big brands take the lead in a platform to sell goods, others have followed, competing against each other.

However, now the mode of cooperation between home textiles and electric dealers is too unitary. Electrical business is only the home textile enterprise shelves on the line extension. From three listed companies in the first half of the report can be seen in the electric business cooperation exploration will have a new model out. Especially for the young consumer groups now growing up, the demand for bedding is no longer a packing, what manufacturers produce, what they buy, but the desire to achieve personalized needs through customization.

From Raleigh, Fuannacompany, Dream clean insiders revealed that the use of large data and the cat launched the C2B cooperation, the use of independent production lines to operate, once the operation is mature, the mode of replication to other electronic business platform.

Cooperation model innovation is certainly desirable. But the cat, the only product will, Jingdong and so on can not be home textile enterprises the only life-saving straw, these platform strategy changes at any time may endanger home textile enterprises. People familiar with Jingdong said that Jingdong will probably give up the category of home textiles. This means that the electric dealers in the field of home textile players more and more centralized.

Eggs cannot be put in one basket. Home textile enterprises with the help of the electric dealers to achieve self-help at the same time, to learn as their own electronic business. Raleigh Network Brand Lovo has done a very good example, set up their own official mall, although will also encounter apparel and other traditional industries still face the flow, after-sale experience, the two sets of team issues, but the new exploration should be actively encouraged. In particular, small and medium-sized enterprises can not be on the only goods will, the cat to do sales, but also need to explore their own new sales methods, such as from Taobao, micro-shop, are a good choice.

In addition, how to use international brands to stimulate the domestic market diversification of demand. Home textile industry personage discloses, international brand starts this year, plunge pushes into the domestic market, they seek to have the cooperation of the agent of the high quality resources, this has given the domestic textile enterprise an opportunity to integrate the brand resources undoubtedly. In the highly competitive domestic market, with foreign brands is bound to make this market more fully competitive, let good currency expel bad currency.