Home electric dealers impact on traditional stores, traditional stores "blocked" and since the establishment of electricity dealers

Objective

Home electric dealers impact traditional stores

"China's furniture, building materials, decoration of these three industries add up to more than 3 trillion output value." January 10, in a café in the east third ring of Beijing, US Lele Home Network CEO to describe the home electric dealer's Market "money".

At present, there are three kinds of retail channels in the household industry: one is the Red star of the United States Kai Lung, incredibly the house as the representative of the mall or furniture city; the second is a brand factory with its own channels; there is also a retail channel is the electricity quotient.

Household electric dealers weaken the "authority" of traditional stores

China's household electricity market share accounts for about 4% of the household industry, while the mature market in the United States is 20%.

Since its inception 6 years ago, only taobao sales of furniture shop, to set up an independent E-commerce site, and then to "online Mall + offline entity shop" O2O platform, the United States Lele has been groping home electric business development path.

Soaring said, "online sales + offline entity shop" business model, bringing the production end and the cost of sales terminals low. Excluding all levels of dealers and high store rents and other traditional channel costs, beauty Lele products on average can do 51% of the price of the product line.

"US Lele started relatively early, has the advantage of the first, on the other hand is also the lead to explore." There is no ready-made experience to draw on. Said the lofty.

Now, the United States Lele plan to "open up" their own electric business platform to other brands open. This behavior is undoubtedly further moving the traditional home store cakes. "Furniture seems to be a lucrative industry, but the channel business to make all the money away, manufacturers, distributors want to see new channels in." Said the lofty.

Traditional stores "blocked" and self-built electric dealers

For the threat of home electric dealers, traditional stores have to deal with, on the one hand, "blocked" the third party electric, on the one hand, from the establishment of electricity dealers.

Last year, "double 11" period, including the Red Star of the United States Kai Lung, incredibly the home, including the 19 stores, collectively to its various stores issued a boycott of the day cat notice.

At the same time, Red Star United States Kai Lung and incredibly home and so on are currently trying to do electrical business.

But in high opinion, the traditional home sales channel represented by the hypermarket has a natural contradiction with the operation mode of the electric business, facing the dilemma of the right hand.

"Different channels and models will be long-term competition, which is good for consumers, there is competition will have a choice, will be the profiteering to pressure down." Said the lofty.