On the mystery of game under the line of home electric business online

Home industry traditional channels collectively boycott the O2O model of the cat, become 2013 Taobao cat Double 11 shopping carnival focus. Home electric Business Line directly under the direct confrontation also opened the curtain.

We do some simple reading on the game under the line, so that we can better understand the mystery behind it.

1. Why does the cat want to do the home decoration O2O?

First of all, this is the trend of the development of the electric business: from the pure line to the line of the real store development. O2O has become the direction of the further development of the electric business, pure online electric dealers have become a tradition.

The second is the characteristics of home furnishings industry, because many are large non-standard goods, the need for pre-sales physical experience and after-sale distribution installation Services, so the pure online home electric dealer running up particularly not smooth, must rely on the line of co-ordination.

Home furnishings industry has become the first cat to try O2O mode of industry. 2011, the days of the cat in Beijing to open a line of experience museum love Honeycomb. For a variety of reasons, love honeycomb performance so far passable, can not be fully promoted.

So this time double 11, the cat tried to force the use of others offline channels, to get through their O2O access.

2. Why do traditional channels fear the o2o of the cat?

This double a day cat O2O mode of the core, in the home industry, is the cat opened the shop in the home enterprise call its customers to its set online in the physical store to personally experience want to buy home goods, then in the physical store with the cat's POS machine card transactions, and by the entity store to complete the "last kilometer" distribution installation services.

Behold the move under the line of the domestic channel of joint boycott. We can not help but ask: the traditional channel is usually lack of traffic, now the cat to the flow to the door, why these traditional channels to refuse the flow of traffic in the outside?

The crux of the problem is that the cost structure of the goods sold under the line is different. Frankly speaking, is the online sale of household goods than the traditional channel sales of goods cheaper than the price.

How much cheaper? In terms of furniture, general online sales of furniture commodity prices may be only the factory price multiplied by about 1.3 of the coefficient, a higher point is only on the basis of the ex-factory prices multiplied by 2. and the traditional channel price, usually the line is generally accepted prices are based on the ex-factory price multiplied by 4. But in practice I feel that the actual coefficient is much higher than 4! (The above figures are for reference only, not absolute.) ）

Even consider the net shopping flow fees and other additional costs, this is also a terrible difference! The traditional channel rejects online home merchandise customers to the channel entity shop experience, as they know that online experience customers are not likely to buy offline expensive home goods. And they are more worried that by experiencing comparisons, the secret of the spreads under the line will become public knowledge, and thus further affect the flow of offline traffic to the line.

When the offline channel is in absolute disadvantage in commodity price, the flow of barrier line becomes the most effective resisting means.

3. Is the traditional channel boycotting the electric dealer?

Against the traditional channels of joint boycott of the cat's behavior, the internet uproar, have denounced the line is against the trend. Fact。 The traditional channel resists not the electric dealer, but only the cat's electric quotient behavior.

Traditional channels should have recognized the need for the development of electric power, and has long been trying to implement the strategy of the development of the electric business, including the martyrs who have fallen on the road of the electric business development, and more still struggling on the road of the electric business. So far, the home of traditional channels to do electrical business, no success.

The reason is that almost all the traditional channels are doing cat-type electric dealers. But the cat-type electricity quotient, is to the traditional channel negation.

The traditional channel development of the cat-type electric business platform, the traditional channel will have a huge impact on itself, and because the line under the same brand Halo share under the customer base, this impact is more than other electronic platform and more destructive. So I think only when the original traditional channels to rout, or at the same time to beat the original channel to rout, otherwise the traditional channels of home can not build their own cat-like electric business platform.

Some people may ask: if the traditional home channels should not build a cat-like platform, then how to develop the electricity business? My answer is: through the Mall of the electronic business to achieve online integration.

4. Even if the line does not boycott, the cat's home Improvement O2O Project can be implemented?

My answer is: No!

To this end, we also want to introduce in this line online game of the other two players: home enterprises and their distributors.

Home business at the same time online and offline shop, so only the line under the direct confrontation. And the dealer is the home enterprise in the traditional channel agent.

Because of the increase in the enterprise and its distributors, this line of online home electric business game becomes more complicated: enterprises need to rely on dealers in traditional channels to sell their products, but also to develop online sales channels, and hope to rely on dealers to complete their own online product experience and after-sales service. On the latter goal, the enterprise is the same as the day cat that represents the platform of the electric business; dealers online under the agency's brand, but its interests are consistent with the traditional channels, because the first victims of the electricity business Revolution is the Distributor (second is the mall).

Therefore, the cat's home O2O project even if there is no traditional channels of resistance is difficult to implement, this is because the dealers instinctively rebel against the power of its channel invasion, and the vast majority of household enterprises do not have a good control of their dealers.

This from the cat failed to effectively organize the O2O project was proved: it is said that only Vue household enterprises to participate in the cat's home Decoration O2O project, and each enterprise can organize the dealer is very few pitiful. According to a well-known home enterprise, in its line of thousands of dealers in the shop, only a self-employed shop to participate in the O2O project. Can be seen, home enterprises to participate in the O2O project, but also more with a tentative color.

Therefore, even if the offline home shopping mall does not boycott the day cat, the O2O project industry can not achieve satisfactory results. Perhaps this is why the offline shopping mall a resistance to the cat to undo the project, it is estimated to be just borrow the stairs under.

Therefore, the offline Distributor is to boycott the cat Home O2O Project REAL main force.

On the other hand, because the line under the channel to the control of its merchants more and more small, if the distributor decided not to follow the relevant system of shopping malls, shopping mall management may also be at their wits. So if the dealer does not boycott the cat O2O, the market's resistance may also be powerless.

5. How will the game be developed under this line?

Briefly predict the trend of the development of home electric business:

1 O2O is a trend. That is to say, the line is going down, the line is going up. Online integration of the line;

2 Although the line online under the integration, but the line under the development of the channel will present the development of differentiation. Different genes, the focus of their respective management is not the same;

3 Offline shopping malls in the development of the electric business is on the defensive, its survival and development space will continue to shrink, it should eventually reach a balance point, based on line on the development of the two camps of Chu-han separated dynamic confrontation;

4 under the line the living space of the dealer will also be compressed, the last line of the dealer's function into the enterprise's Commodity experience and service center;

5 Home Enterprise Online under the dynamic game, and constantly optimize their own distribution system, so as to provide consumers with line online under the integration of Sales and service distribution service platform.

Although all parties to this game are based on their own interests to layout, but ultimately determine the results of the game, is still home consumer demand.

The experience of home consumers will be the core of this game.