Home Textile Business: The Way For Big Brands To Save Themselves

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Three major home textile listed companies (Luo Lai home textiles, Meng Jie, fuanna) recent financial reports, and to engage in the industry related people consultation, you can gradually get to know about the home textile industry electricity supplier that matter.

In the vertical market, clothing, digital, cosmetics, food, books and other categories are the high-frequency demand of consumers.

In other words, consumers' demand for products and services in these markets is repeated many times, and consumer experience is also the most sensitive.

It is precisely because there is enough large market space, to give independent electric business enterprises more opportunities.

Correspondingly, the vertical electric providers such as vip.com, Jingdong, poly America, No. 1 store and Dangdang were born. Of course, there are also Tmall, Taobao, and so on.

Unlike the vertical market, home textile is a fabric based market. The typical "functional and practical" industry is neither fashionable nor stylish.

This makes home textiles a high concentration brand and low entry threshold.

A home textile practitioner said that basically the production and processing of fabrics, a brand, you can enter the home textile market.

Low entry threshold does not mean that it can survive in this industry.

On the contrary, the living environment is extremely difficult.

In addition to the market environment, such as home textile exports blocked, the development costs under the line increased sharply, home textile enterprises themselves are facing the pressure of inventory, consumer brand awareness is concentrated.

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In addition, the original wholesale mode has gradually shrunk, and small and medium-sized companies are also hard to develop.

Small companies are limited by strength, unable to lay out online channels, and do not have the strength to compete with big brands.

Non consumer high frequency consumption demand, high brand concentration and strong resource integration ability result in not many players who can lead a good life in the industry, such as the ten brands often mentioned in the home textile industry, such as the three largest listed companies (Luo Lai, Meng Jie, fuanna), mercury, Bo Yang, Heng Yuan Xiang, etc.

What needs to be particularly pointed out here is that China is a big exporter of textiles. Compared with digital, clothing and cosmetic industries, international brands are few and far between in China. Because the domestic textile technology itself is very competitive, high-end consumer groups are still relatively small, such as those who have demand for India cotton and Egyptian cotton, but are very small.

Moreover, the entry of these international brands into China also needs cooperation through the brand integration ability of Luo Lai and the wide coverage of the agents under the line.

Therefore, a variety of factors show that in the home textile market, the brand is highly concentrated, and consumer loyalty to the brand far exceeds that of other market segments.

Besides the high degree of brand concentration, home textiles is entering a traditional industry that promotes the strategy of e-commerce.

First of all, from the recent earnings reports disclosed by the three home textile listed companies, the business revenue of Luo Lai accounted for about 15% of total revenue. Especially, the composite growth rate of LOVO brand in the past 5 years is over 120%. It is estimated that the sales of e-commerce will exceed 1 billion in the next 3 years. The sales of electricity suppliers in the past 1-12 years last year accounted for nearly 8%, and the composite growth rate of electricity suppliers exceeded 100%.

Behind these data, three listed companies invariably referred to the driving role of electricity providers.

Fuanna said that the rapid development of the company's e-commerce business has become one of the main driving force of the company's sales growth.

Roley home textiles has increased the input and support of e-commerce channels.

One close to the three largest listings

An e-commerce platform personage revealed that in the next two years, any well-known brand, including home textiles, is expected to increase the proportion of e-commerce sales to 30%-35%.

This is the ideal ratio, and it is also a reasonable sales structure of a traditional brand.

In addition to the inevitable trend of electricity suppliers, what are the real problems that these home textile companies have encountered?

First of all, exports are blocked.

China is a big exporter of textile products. In recent years, exports have been blocked, and enterprises have begun to export to domestic market, so that the saturated market has increased sales pressure.

Next is the pressure of domestic textile enterprises inventory.

Home textile is a standard product. It also faces enormous inventory pressure. In warehousing and storage, personnel management and logistics distribution need more investment.

With Tmall, vip.com, Jingdong and other e-commerce cooperation, we can quickly release the pressure of inventory, especially the home textile without clothing over season goods, even the clear inventory, can also guarantee good profit.

Finally, the cost of offline expansion is getting higher and higher.

In the home textile industry, there is a saying that it is necessary to increase the income of one square meter per expansion of one square meter under the line.

Otherwise, this investment is a failure.

With the increase of offline shop opening costs, whether open stores or MALL, the cost of offline expansion will only increase.

Other home textile brands are also like this.

These circumstances are undoubtedly aggravating the trend of home textile enterprises going online.

Although the home textile industry is not a sunset industry, it is an indisputable fact that the traditional home textile industry is facing a declining trend.

Especially offline sales growth continues to slow down.

Actively embracing the electricity supplier has found a way out for home textile enterprises.

But not all home textile enterprises can rely on Tmall and vip.com platforms for mass shipment.

On the one hand, because of the high degree of brand concentration, allowing the e-commerce platform to choose more competitive consumer brands, this also means that small and medium-sized brands do not have the opportunity to compete on these platforms. On the other hand, the concentration of electricity providers is also increasing.

According to the data released by China Textile Association, the total sales volume of home textile lines reached 53 billion yuan in the first 10 months of last year, of which Tmall platform accounted for 26 billion yuan.

Home textile enterprises say that the home textile industry is a typical herding effect. As long as several big brands take the lead in selling products on a platform, others are following suit and competing with each other.

However, the mode of cooperation between home textiles and electricity suppliers is still too single.

The electricity supplier is just the extension of the home textile enterprise's shelf.

From the first half of the three listed companies, we can see that there will be new models in the exploration of e-commerce cooperation.

Especially for young consumers who are growing up now, the demand for bed products is no longer a stuffing, what manufacturers want to buy, but what they want to buy, but they want to achieve personalized needs through customization.

Insiders from Luo Lai, Fu Anna and Meng Jie revealed that they will make use of big data and Tmall to launch C2B cooperation and use independent production lines to operate. Once the operation is mature, the mode will be copied to other electronic business platforms.

Cooperation mode innovation is desirable.

But Tmall, vip.com, Jingdong and so on can not be the only life-saving straw for home textile enterprises. These changes in platform strategy may jeopardize home textile enterprises at any time.

Eggs cannot be put in one basket.

Home textile enterprises should help themselves to save themselves while learning from electricity providers.

Luo Lai's online brand LOVO has done a good example, set up its own official mall, although it will also encounter other traditional industries such as clothing and other traditional industries are still facing traffic, after-sales experience, the two group of problems, but new exploration should be actively encouraged.

In particular, small and medium-sized enterprises can not go to vip.com, Tmall sales, at the same time, we need to explore new ways of sales, such as Taobao, micro shop, is a good choice.

In addition, how to use international brands to stimulate diversified demand in the domestic market.

Textile industry personages revealed that international brands began to pour into the domestic market this year, and they sought cooperation with agents with high quality resources. This undoubtedly gave the domestic textile enterprises an opportunity to integrate brand resources.

In the highly competitive domestic market, foreign brands are bound to make the market more competitive. Rang Liang coins drive bad money.