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    Home Textiles B2C Is Even Bigger Than The Home Appliance Market.

    2011/7/1 14:00:00 87

    Home Textiles B2C Home Appliance Market

    "The home textile market is huge, even bigger than the home appliance market. It is possible that this field will create a larger B2C company than the Jingdong mall."

    IDG Capital Partners Chang Chen explains why IDG quickly decided to invest 100 in elegance.


    The goal of Chen Tenghua, the elegant 100 founder, is to create an online shopping mall that sells high quality home textiles and daily necessities for people who pursue quality life.

    At present, the elegant 100 company has won the favor of IDG capital and DCM two venture capital institutions.


    Abandon millions of options and start business


    In the ever-changing e-commerce industry, a year's time is equivalent to five years of changes in traditional industries.

    Based on the timing of the venture, Chen Tenghua and Pei Yanpeng, who were the vice presidents of Dangdang, abandoned the one million dollar option and chose to start their business on the eve of Dangdang's listing.


    It is an unfortunate coincidence to hit Dangdang market, but personal loss is not enough, because we have been concerned about the home textile industry for a long time.

    At that time, there was no vertical B2C website focusing on home textiles, and the high-end home textiles market was a relatively blank area. Its market prospects and business opportunities were very attractive.

    Today does not mean that tomorrow does not exist. If I wait for a year to get the due benefits and then venture out, it may not be the current market conditions.

    On balance, I value the first mover advantage.

    Chen Tenghua told the China business newspaper that there is no leading brand in the home textile industry, and the home textile products are non standardized products. They belong to the emotional impulse consumption type. The industry is large enough to be suitable for entrepreneurship.


    Data show that as of the end of 2010, China's home textiles

    market share

    It has exceeded 10000 billion yuan.

    However, the lack of brand channel operation capability and design research and development capability is still a short board for Chinese textile enterprises.

    With the advent of online shopping, the traditional home textile brands are also starting to get involved in e-commerce. Taobao, Dangdang, and excellence are all doing home textile distribution and creating home brands of home textile products.


    "The upper and lower reaches are scattered and the value of integration is great."

    Chen Tenghua said, "elegance 100 is a high-end product."

    Home textiles

    Buy platform to provide consumers with similar IKEA shopping environment experience.

    On the one hand, the chain of home textile channel is very long at present, and the cost is very high. On the other hand, the product has strong production capacity and large demand.

    This provides the foundation for us to make our own brand. "


    Because of the large number of domestic textile production enterprises and the excellent production capacity, elegant 100 can be excellent and excellent.

    In addition, Chen Tenghua's partner - Pei Yanpeng is also a well-known purchasing expert in the industry.

    However, for e-commerce enterprises, procurement of goods is only a solution to the problem, and more importantly, the construction of the operation system.

    In Chen Tenghua's view, building a highly efficient front desk and backstage system is likely to bring about a unique user experience and enhance business efficiency.


    For example, he said, in elegant 100, a 3000 square meter warehouse, only a small number of employees can manage it, which is entirely due to the design of the entire operation framework and system.

    For electric business enterprises, it is particularly important to have a professional and efficient IT team and have mature experience in warehousing and logistics operation. Elegance 100, to spend millions of dollars to promote the strategic deployment of international talents in all directions, provides the most professional development space for top talents, thus alleviating the most scarce talent resource dilemma of the electricity supplier industry to a large extent.


    Taking user experience as the key link


    For many electric business enterprises now invest heavily in advertising.

    Brand and sales

    Chen Tenghua did not agree.

    He worries that the bubble of financial capital in the electricity supplier industry may be too big. "When you have money, you can say everything. The key is how many customers you can leave when you do not advertise."


    In Chen Tenghua's view, customer satisfaction is the most important factor for elegance 100, so the focus of the company is to do well on two products and services.


    In the product, the first is fine selection.

    "There are tens of thousands of light bed products in the market. We only provide hundreds of varieties for customers."

    Chen Tenghua said, customers do not have so much time and patience to choose from massive products. We choose for customers, select the best quality products, offer the lowest price to users, and achieve the best price performance ratio.


    In terms of services, Chen Tenghua emphasized customer satisfaction of 100%.

    He takes himself as an example: "now bed products like 4 piece sets to sell together, a double bed sheet, a double quilt cover, a pair of pillowcases.

    But my wife and I just like quilts, so ordinary four piece products can't be used for us, but we want to buy two single quilts.

    Now many places can not choose, and elegant 100 is the first to create a new way to buy goods, that is, they can be arbitrary combination, completely "take what they want".

    {page_break}


    He also found that some websites do not have enough analysis of consumers' habits.

    For example, many websites use size to differentiate product types, rather than by color, which makes customers need to jump several different pages when choosing the same color series.

    Elegance 100 can choose different sizes under the same color. For example, in a series of white towels, there are scarves, towels and bath towels.


    Chen Tenghua said that the difference between elegance 100 and other comprehensive B2C websites is mainly that the professionalism of home textiles is guaranteed.

    For example, elegance 100 can achieve the independent packaging of products. Customers can choose bedclothes from suits and choose different sizes, colors and codes according to their own needs.


    In order to provide customers with a better experience, Chen Tenghua is very strict in the use of product pictures, requiring all aspects of the product to be filmed.

    He said, "there are many good photography studios in Beijing, but they are not mainly made of home textile products, so it is very difficult to find some real scenes, so we are mostly shooting products in the south."


    Since its launch in November 2010, elegance 100 has doubled its performance every month.

    Chen Tenghua said that the gross profit margin of the home textile industry is above 30%, and it is not difficult to make profits. The key is to invest.

    For elegance 100, only when the scale of 1 billion yuan is achieved within two years will we begin to consider profitability.

    However, the scale of 1 billion yuan is not a small number for a new electricity supplier. To achieve this goal, the challenge of elegance 100 is not small.


    Investment story


    IDG Capital Partners Chang Chen:


    There are two key points for IDG to invest in early projects: one is that there are many industries in the industry.

    Obviously, the home textile industry has huge space, such as Luo Lai, Fu Anna, Meng Jie three listed brand enterprises, the annual sales volume is only a few billion yuan, but the market share is not high, vertical B2C website is still very likely.

    The two is the matching degree of the entrepreneurial team. Chen Tenghua and Pei Yanpeng two have rich industry experience, one is responsible for marketing, one is responsible for the supply chain, and the work is in harmony with each other.

    With these two points, we soon decided to invest.


    third eye


    Founder Lv Bowang, founder of Consulting Ltd.


    Home textiles have a lot of business on Taobao, but bedding is not the same as clothing, it is not the form of store, but the purchase order of daily necessities.

    At present, it is still relatively rare to list separately, so it is still a challenge to bring home textile products to B2C alone.


    The main market obstacle is the habit of consumers. After all, most of the purchases were done in department stores or supermarkets.

    In addition, the expansion from home textiles to home furnishings is no more advantageous than the expansion of home furnishings by selling furniture, so this is likely to become the problem that elegance 100 needs to solve in its growth.

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