Some thoughts on internet in household industry

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As a decade ago, "the Internet will change all aspects of human life". Ten years ago, no one would have thought the Washington Post would be peddled, and no one would have thought that it would be possible to buy things online, and no one would have thought of buying a big meal online. For ten years, a new vocabulary of business-to-business, Business-to-consumer, 020, consumer-to-consumer and even C2B has slowly emerged from the perspective of life. Ten years, the internet and e-commerce two words are constantly mentioned. This year's Forbes China Rich List, 10 years ago or the technology or the grass-roots have been reversed, become China's new wealth representative. They are young, the representative of China's new economic era, but created incomparable value, there are Baidu Robin Li, Tencent Ma, Alimayun ... perhaps, even they did not think, the Internet will bring them such an amazing wealth. This is destined to be an era of internet change.

The internet has changed a lot of traditional industries, such as catering to buy-qi, home appliances industry began to walk 020 routes, such as where customers in the industry business agents. But there is an industry in the internet door wandering, it is the traditional furniture industry. So, like the traditional home industry how to embrace the Internet? How to conduct the Internet positioning of the home industry, playing a good role? As the old saying goes: insiders, interlaced without reason! Nowadays, there are so many traditional industries in the test water Internet, what can be used for reference and taste? The author lists several different business models, Each model and home industry has the same or that the model can be used for reference, hoping to play a role in the first.

The Internet of household appliance industry--Suning O2O

The entire household appliance industry Internet is not initiative, but passive. Home appliance industry began in the last century in the 90 's, when the domestic leader such as Gome, suning such large enterprises. Gome, such as Su Ning is the Home appliance platform Strategy, they do not produce home appliances, is a home appliance platform. Merchants settled on the platform or merchants to give Su Ning, gome a reserve price, the United States Su Ning again prices of the reset to integrate their own profits. At the same time, Suning Gome and other in the development of the continuous expansion of their stores, and most of these stores are direct purchase, so suning Gome in the continuous expansion of the main cost comes from human and logistics costs.

Suning and the United States in the expansion, just in time to catch up with the development of China's home appliances industry, sales are rising year by month, and there is a good news is that suning Gome in the expansion of the stores purchased over time with the constant appreciation. But the times are changing, when the Internet is slowly getting involved in people's lives, business or business, but the ways and means of doing business are different.

The greatest spirit of the Internet is development, and the second is to solve the problem of space and time. Suning, Gome to put their perspective to the three-tier cities, according to the old routine is to send experts team to visit the local, to see the local GDP, per capita consumption, urban development space to meet the standards of open shop. But E-commerce is not the same, as long as you have enough merchandise and credibility, you can not need to go to the local shop promotion, you just let others know you, knowing you, and trust you, then you can sell your products. Beijing East began to disrupt the traditional household electrical appliances industry in China, home appliances industry also began to take the route of the Internet. Jing Dong initially made 3C products, the annual sales are several times the growth, but the volume is very small, did not cause a large enterprise such as Su ning attention. But as Beijing and Tokyo continue to expand the category and volume, its explosive force began to grow, but also let these traditional appliance giants began to panic. Later, after the "815 Beijing-Soviet War", the traditional home appliances giants also began to take the Internet road. Gome to buy Bowser network, the development of Gome online, and everywhere to attract electrical talent. Suning is more thorough, hundreds of millions of dollars to build suning easy to buy, buy red children into the mother and child market, open payment links, change the company image, named Suningyun and so on.

Su Ning and Gome although in the road of the electric business, but the road under the line is still moving, just said that the contraction of the offline part of the store. Offline stores remain the bulk of sales, but growth is slowing. The online business increment began to rise. Some time ago, Suning announced the line with the same price online. In fact, behind the same price, from a commercial point of view on the line below the price of what is implied behind. Line on the same price will come to several aspects of positioning, one is the line played a role, what role offline. According to Suning official wording is, online payment purchase, offline experience. Customers to the physical store to see the goods, to the line to buy, logistics is still offline entity store owned by the nearest warehouse distribution. We think of a problem, the customer to Suning entity shop to see the merchandise, and then go home to search the product online, Suning, Gome, Beijing East, the days of cats have, found that the cat's relatively cheap, then decided to buy a day cat. In this way, Su Ning is not embarrassed? The role of the line is not invisible or not. Another problem is the question of cost, in most people's eyes, all think that the line is cheaper than offline, because the line needs to bear is the housing rental, personnel, equipment and other cost pressures, online as long as a small number of personnel and system support, then you can achieve advantages in cost. Suning Gome 020 What solution, the traditional furniture industry will face such a problem?

Home industry and Su Ning's model is the most similar, to incredibly house as an example, to explore the feasibility of this O2O model. Incredibly home is now in a big expansion period, gradually in the major second-tier urban layout, the growth of first-tier cities began to slow down. This layout is similar to the early Suning gome layout, which is to touch their own goods to the potential market, but the problem is the rising costs. Furniture and home appliances in common is logistics, after-sale and so on. However, if the furniture to take line with the same price, then the cost is the home appliance industry several times. The main reason is that the volume of the furniture is larger, the location is also in the convenient transportation, populated areas, the area and rental cost than suning such a higher household appliances enterprises, a separate type of 020, to take line with the same price compared to the home appliance industry impact greater.

Traditional clothing industry trade routes--line under different sections

Clothing currently in the field of electricity trading is only less than 3C products, is another major category of electrical business, Taobao in order to search for the key words of the number of babies more than 300,000. The clothing industry is also constantly exploring how to take e-commerce this route, such as the United States, Sen horse, to pure and so on. Traditional industries have hundreds of franchisees and agents, the road will not harm the interests of the franchisee. You know, the traditional clothing brand franchisee profit is far greater than the source of E-commerce revenue, is to have a broken wrist or power to protect the body. Clothing industry has also faced challenges in recent years, the most important is the expansion of the transition, the supply chain to control the lack of inventory pressure. Finally, the clothing industry to go the line is online under different sections, tail goods like every guest, cat, such as the platform to dump goods, to solve their own inventory problems, so that the return of funds. Online and offline The meaning of different sections is equivalent to expanding a completely different sales channels, so as to ensure that the overall interest of the group growth, but also to solve the conflict with the offline entity shop. However, the line on the channel is a proprietary electric business platform or large group of the platform, such as the cat, Jing Dong.

The final choice of clothing industry is as long as there is interest, both can choose, so we saw a variety of clothing brand Day cat flagship store, but also saw a variety of advertising platform to promote the clothing brand website ads. Finally, when all the test water, we found that the clothing industry's last line of profit from the big platform, its proprietary web platform does not bring profits, but is a loss, may now be identified as a strategic loss, but in the long term, this part of the loss is a substantial loss. Consumers have been accustomed to the specific platform to see the goods, Ling Lang, unless it is a super fan, otherwise rarely in the official online purchase.

Another clothing giant Zara also wired on line with the same price example, but Zara's strategic core is offline, even if it is more developed in China and the United States and Europe. Online is only a new product display, clothing introduction role, but customers can buy on-line, offline delivery or Zara will express their own nearest delivery.

Home enterprises to take the type of clothing types of electric dealers road, line and offline corresponding to different sections, then need to find more SKUs to enrich their product line. But the household industry is different, it is no franchise stores exist, and its major cities of the large stores belong to the head Office Direct Battalion, did not damage the interests of franchisee, will not face the embarrassment of franchisee. But if the online market to make a product display role, its publicity will not achieve the desired effect, but will pull the cost of the line.

Traditional department store type electric dealer--Yintai network type O2O

Yintai Network is a domestic entity department store holding business online business platform, by the Hong Kong listed company Yintai department stores to build, integration of more than 40 entity mall, hundreds of brands, providing a number of high-quality goods, is the preferred fashion consumer website. Department store by the impact of the platform, in fact, the impact of commercial real estate developers. The decline of traditional department stores also let commercial real estate developers at a loss, department stores have always been the top of commercial real estate, the content has not, the carrier of the way? Yintai is a department store + commercial real estate model, the rise of the electric quotient to the silver-Thai pressure imaginable. 2010 on the line of the Silver Thai Network, the development of passable, 2012 O2O is not difficult to understand, if the Silver Thai Mall can use the Silver Thai network to complete the road O2O, that Suning has overtaken the cat, where there will be jingdong what things! Now, the Yintai 020 route is unusually difficult, so began to take the line of breakthrough. As a result, silver Thai network began and the cat cooperation, the group of large platform, break 020. Consumers line up after the code to buy online, online platform and offline retail department formed Interactive.

Household industry should not hug like the sky Cat, Beijing East such a large flow of traffic? I think every home business that starts thinking about transformation will ask this question. The author thinks, the home enterprise currently has some obstacles in the Internet, abandon own platform route is unwise, in the long run is particularly unwise. The current flow costs are several years ago, the traditional enterprises will be TV, magazine ads to the Internet, so that the cost of traffic and customer conversion rates are poor. In the short term, the furniture industry to achieve internet profitability is very difficult, only their own category rich, to their own category as units to other platforms, to achieve a large platform under the growth of small platforms, such a strategy is desirable. At the same time, the cat is constantly in the exploration of the 020 model, but also in increasing efforts to push the big brand strategy, the traditional industry into the cat's policy is increasingly clear. More advantages than not to be settled in.

Traditional small-type electronic business platform--Jiuxian network

Jiuxian Network is a group of online liquor under the partnership created by the Web site, its founding team has a good offline resources, wine products and more understanding, the beginning of the electricity business has a natural advantage. But how to develop and enlarge Jiuxian Network is a problem that it faces. Jiuxian Network is a simple online platform, completely abandoned its own plowing offline market. Wine industry is also a competitive industry, the vast majority of resources in this industry in the hands of liquor-grade wholesalers. Jiuxian net wants to change is the user spends a small amount of money, purchase quality first-class product. Instead of spending money, buying fakes or buying less expensive products. Jiuxian network can be said to be the domestic wine platform, in just a few years to achieve such a magnitude, is not easy. The main reason is that Jiuxian network positioning itself as an internet company, pay attention to the spirit of the Internet, focus on marketing spirit, pay attention to quality. Its specific strategy is to work with the entrepreneur magazine and so on, to promote their own drinks, as long as you pay attention to their microblog and forwarding, it will send you free products. The second is to increase the exposure of the Internet, do their own image pr. Then take part in a program like a career, exposing yourself in front of the TV and promoting a good corporate image. Finally, in addition to the establishment of online shopping malls, but also in the continuous cooperation with other platforms, such as Jingdong Mall, the cat, such as large traffic and many platforms.

The similarity of furniture industry and wine is especially high, which mainly concentrates on the similarity of products. Furniture industry platform operation mode and marketing model can refer to Jiuxian network operation mode. The internet to operate the enterprise, but also pay attention to offline activities.

The road of the customer electric business--free brand + platform

Everyone seems to be on sale every day, there is a new style every day, many people are thinking, where the customer is how to make money. Although outsiders are rumoured to be unprofitable, it is easy to profit if the customer wants to. Every customer's specific strategy is to design their own clothing style, play version, mass production. Their customized clothing fashionable, price controllable, large profits, can completely control the flow and promotion costs. Through these cost-effective clothing to attract customers to enter the site to choose to buy, when the customer entered the site generated traffic, resulting in traffic can be exposed through these flows of other products, through the advertising part of the profit. At the same time, after a customer enters the website, often carries on the deep purchase, chooses other product category, thus further increases own sales degree. Every customer's strategy is to use their own cost-effective products to attract customers to enter, resulting in joint purchase, expand traffic, to achieve platform level, construction platform, platform maintenance.

Reverse C2B Mode

C2B is one of the models that Alibaba Group has been pushing forward in recent years, and there are still no large-scale experiments. The reason why the C2B mode can not be used in large area is that the price of goods produced by this model is not high, unless it is not suitable for mass production, such as jewellery, and consumers have not formed the demand of reverse customization. Now the domestic realization of C2B is only limited in jewelry and other industries. But carefully found that domestic household industry has such characteristics, furniture industry based on the preferences of each person and the size of the house, the region and so there are differences. It will not be due to large-scale production and reduce the cost, the scale of production does not produce much benefit, but due to customer accumulation and the reverse C2B model is more likely to produce benefits and Word-of-mouth.

Where is the home industry model? Different industries, positioning

From the analysis as a whole, it seems that there is no similar home industry of the Internet model, but as the saying goes: insiders, interlaced. Furniture industry should be an integrated e-business model. The basic mode strategy is b2c+c2b+o2o+b2b+ embracing large traffic and platform mode. Cat and Taobao changed a lot of the status quo, but also made a lot of incredible things, mainly because it caters to market demand. From 10 years ago to buy clothing online, to the previous period of online selling car models and online selling funds, so now will not sell furniture online? The answer is yes, the business model will continue to open up, like large cars can be sold online, then the furniture can also, but the timing and timing of the problem. Home enterprises only actively seek market changes, will not be eliminated by the market.