Beauty Lele Lift: Stumbled into the home industry

Absrtact: Although in recent years the household industry continued to slump, but as the furniture industry, the vertical electric business, the United States Lele use the online beauty Lele home network and the United States and the line of the beauty Lele experience Pavilion O2O model, to provide customers with set decoration, furniture, building materials, home textiles is equal to

Although in recent years the household industry continued to slump, but as the furniture industry, the vertical electric business, the United States and Lele use the line "Beauty Lele Home Network" and offline "Beauty Lele experience Pavilion" combined with the O2O mode, to provide customers with a set of decoration, furniture, building materials, home textiles equivalent to one-stop home service, a great success, Leng sold billions of of the furniture that was hard to sell on the Internet.

November 2014, was a Red star United States Kai Long president of the Vanke veteran Berber, announced to join the United States Lele, responsible for offline business, once again let the industry feel the charm of home electric. With Vanke President Yu Liang said: "Real estate has entered the Silver Age, if the current industry is in the Golden Age, only the internet." ”

To this end, The Times weekly reporter interviewed the United States Lele founder and CEO, asked him to talk about how the electric business to pry the traditional home industry.

Stumbled into the home industry

As a "returnee" faction representative figure, it comes from the strong and strong technical background. He is a graduate of mechanical engineering from China University of Science and Technology, and is a master of computer in Georgia State University and an MBA from the booth Business School of the University of Chicago, USA. Before returning to China, he has been working for nearly 10 years as a High-tech company in Silicon Valley.

Times weekly: From Silicon Valley to start a business, why choose furniture this labor-intensive and highly polluting industry? And the furniture is not very suitable for internet sales.

Lift: I really stumbled into this industry, we several founders are successively into the company, the first is Huang he sold furniture, he is now our COO. It was 2008, and we were a little late for the electric business, when books, clothing and other people are doing, there is no market space, but there are few people involved in furniture, as you said, furniture is not suitable for online buying, logistics is also difficult, so do less people, this is our opportunity, we do is the most bitter hardest.

Taobao for a few years, there are millions of of income, but more and more problems, how soft the bed, cabinets have no peculiar smell, only with a few photos and comments, can not convey to consumers the real feeling, after all, is to use things for many years, or to experience, to feel the line, so we taobao consumers are not mainstream consumers, The picture is cheap, like renting a house to someone else.

Of course, there are logistics, damage rate and many other issues, 2011 we decided to withdraw from Taobao, their own beauty Lele.

Times Weekly: Entrepreneurial difficult, have you ever thought of giving up time?

To lift: Yes, there must be. At the beginning, there was no money, little orders, we are begging for factory to our production, that will ride electric bicycles to the factory delivery, sometimes even the factory door can not go into, and then bought a BYD, catch up with the production season, the factory said do not dry, we can only look everywhere for factory orders.

Warehousing is also, furniture industry has obvious light season, so we can not rent too many warehouses, the peak season when the warehouse can not put up a rain shed, the following furniture, but also afraid to be stolen, we take turns in the rain shed sleep, looking at the goods, in the South winter is not so cold.

More than half of the home store surplus

In high opinion, because of the unrestrained expansion of home stores, far more than the actual demand, resulting in a lot of waste.

Times Weekly: At present, the traditional household industry is very depressed, what is the main reason?

Soaring: China's household industry is in a vicious circle, furniture is a windfall industry, from the factory to the end of the consumer hand, probably added several times the price, but, the upstream of the industrial chain, Guangdong Province this year, there are 30% of the furniture factory closed, Sichuan and so on, the living furniture factory is also a meager profit operation, the middle of the dealer, Also miserable, being coerced by the store, the new store more open, too late to cultivate the market can not see the profit; So, the money is the downstream of the Home shopping mall earned away? In fact, many of the chain Home store vacancy rate has been as high as 40%, some just opened the shop closed.

In recent years, home stores have expanded too quickly, far beyond the actual demand, 2008 to date, the store area has expanded by one times, the rent rose 50%, but the market demand has been declining, I think more than half of the surplus, but a lot of home stores are doing commercial real estate, so hope the bigger the better, and the dealer is disconnected.

Times Weekly: US Lele can expand against the trend, what is the advantage?

Lift: We have more than 300 online experience shop, through the network preliminary screening, and then to the actual experience of the store, the last in the shop through the network orders, basically half of the customers will complete the order. Before our experience shop smaller, this July, the United States Lele first area of 5500 square meters of "large-scale experience pavilion" opened in Chengdu, after the United States Lele Online Experience Museum construction will be the main experience hall.

And our rents are cheap, only one-third of the big stores, but the ping effect is much higher, the big stores per square metre of sales is about 4000 yuan, of which the rent accounted for 40%, plus advertising and other costs, not labor costs accounted for 50%, and our rent plus publicity accounted for only 15%, Also less than one-third of the peers, so calculate down, our ping effect is nine times times the peers.