Which Kind Of Internet Decoration Company Is More Popular With Capital?

Non standard services, ultra-low frequency, consumption process irreversible, dense labor type heavy manpower, long chain, many participants, users dispersed......

All of these are more specific commercial representations of the Pan home decoration market.

For users,

The biggest problem and the most painful point are

。

The traditional decoration company is essentially an intermediary company that will package all previous consultation, design, material sales, construction, supervision, after-sale service, soft decoration, furniture sales, and its own right.

The control and integration capabilities of the supply chain and the construction contractor are very limited.

Limited by its own attributes, decoration companies have to attract users at low prices, and spend large sums of money in various ways, resulting in high cost of obtaining customers.

In order to earn high profits, the decoration company has disrupted the distribution of other participants' interests, resulting in deep problems in every aspect of the chain.

Designer link: first, because the masses of users are unwilling to pay for the design, the designer's function gradually weakens, which leads to the further lowering of the designer's threshold. A large proportion of designers are actually reduced to the sales of kickbacks to make money in order to make money.

Supply chain links: because the decoration companies are scattered and the body is small, they can only buy materials through agents or multi-level wholesalers. In order to ensure their own profits, instead of purchasing the poor quality main materials and auxiliary materials (not to discuss the package), even the purchase of first-line brand materials is mainly based on low distribution.

Constructor: as a result of the high cost of customer acquisition of the decoration company, in order to maintain its own profits, the decoration company subcontracts the order to the third party construction contractor (Foreman) at a lower remuneration, because the foreman's own short board of the customer capacity causes them to have to accept such orders, and the low remuneration causes them to gain extra profits by leaking additional items.

Due to the low resource integration efficiency and poor user experience of traditional decoration companies, new models are emerging in the market to pform the status quo.

The first is the third party supervision.

At present, most of the third party supervisors on the market are interested in decoration companies, and can not help users with an absolutely objective third party perspective.

Of course, there are also conscientious businessmen on the market, that is, the third party supervision company that attaches importance to users.

However, individuals believe that the third party supervision is at a very awkward node in the whole industry chain, and its core problem is that it can not change the standardization service system and profit distribution problem of upstream industry chain itself.

The threshold of supervision itself is relatively high, and the efficiency of people will be relatively low. How large is the space for subsequent extension? It is also worthwhile for entrepreneurs and us to think deeply.

With the penetration of the Internet, more and more Internet Co are entering the field with different business models.

SaaS service, Internet vertical decoration company and so on.

Home decoration market services and platforms

Platform class mode

The platform represented by tuba and Qijia net has built up a deep barrier at present.

They take the traffic model as the core, play the role of link through the Internet, get enough traffic and users, and control and change the downstream service providers through order.

Meanwhile, sales of building materials (main and auxiliary materials), furniture and soft decoration accessories are also carried out.

Finding foreman mode

Personally, it is difficult to deeply involve such services into service.

First, it is difficult to establish their own service standards and control the quality of service so as to solve the deep-seated problems of decoration. The second is that the number of excellent foreman in nature is relatively limited, and most of the best foreman will make decoration companies, with relatively stable and saturated orders.

In order to get the traffic, the platform has to play a low price. For the best foreman, the low pay is not attractive. The demand for the passengers is not so great through the platform. The final result is that the quality of the service providers on the platform is relatively low.

So if entrepreneurs want to understand how to seize the foreman and retain them, how can they establish standards to control them?

Looking for designer class mode

Designers in the home decoration market is also an entry, but personally think that designers are not the core pain point of mass users.

The proportion of users seeking designers in the first tier cities is around 30%, and less than 10% in three or four cities.

Such platforms also need to think about how platforms can retain excellent designers and keep them active in addition to traffic.

SaaS services

This service company provides the SaaS system tools to the decoration company. It helps the customers to get the customers through the user service and display the past service cases.

It is difficult for individuals to think that the low-end non standard services such as 2C terminals can re create new traffic entries. It is very difficult for entrepreneurs to understand how to obtain traffic at low cost and high efficiency, while helping decoration companies get customers.

At the same time, this relatively round path is very demanding for the team, and it can also get users online, and expand the decoration company offline, and integrate and manage the supply chain.

In essence, I think changing the industry's deep problems through decoration companies will be much slower than doing their own business.

Internet vertical decoration company

This model is represented by millet decoration, love space, mushroom decoration, Yue Zhuang network, AI Jia Ji, 360 installed Housing Network headed by the batch of Internet decoration companies.

According to the statistics of IT oranges in April, there are over 175 Internet decoration companies in China.

In essence, the difference between the Internet decoration company and the traditional decoration company lies in:

Access channel and way (word of mouth) -- relatively low cost of acquiring customers

Standardized materials + standardized prices - aggregate procurement to obtain relatively inexpensive materials.

Cost structure - Internet decoration companies sacrifice their profits to ensure the interests of designers, foreman and workers, so as to fundamentally solve the missing items in decoration.

In a sense, the Internet decoration company is really aiming at the pain points of the users in decoration, such as price, configuration, effect and duration, to optimize and improve efficiency.

Personally, the core of the Internet decoration company is to build its own standardized service system by establishing its own construction standards (Education users and construction parties), and standardization process, so as to change the way and function of users and service providers.

The ideal decoration company will eventually get the order as a platform, purchase the supply chain, and then subcontract all the links of the decoration to different service providers, and all the service providers in the decoration section will become independent craftsmen freelancer, the industrial service providers, hard clothes designers (little demand for hard fitting design of small units), hydropower construction and carpentry construction will provide services according to the time and progress.

Now the whole industry has already had such a trend, for example, a construction company specializing in hydroelectric power and construction materials manufacturers (such as Nippon Paint).

Due to the difference of user group's decoration needs, the future development trend of Internet decoration company can also be foreseen.

The decoration of high-end people has higher requirements for design and supply chain materials, and is not so sensitive to price. This group of people will choose branded home furnishing and famous designers. But for middle class people, they will increasingly develop according to light decoration (standardized decoration) and heavy decoration (personalized decoration). Internet decoration companies will occupy a certain proportion in the future. And those traditional decoration companies (decoration, home appliances, 3W yuan package, etc.) and guerrilla teams will gradually disappear, which is also the mission and significance of the Internet decoration company.

Of course, the Internet decoration company also has its own problems. Personally, it is believed that even if the Internet decoration company solves the problems of user trust and satisfaction, supply chain management, construction control, and stability of the construction period, it still needs to face the problem of scale effect. With the increase of single volume, marginal cost will not drop.

This does not affect the profit of the decoration company, but it can not change the current situation of the small and large companies in the decoration market.

At the same time, the demand for soft clothing will become more personalized in the future. The demand for hard clothing and soft clothing may be more and more separated. The entry into the soft fitting market of decoration companies may not be able to penetrate enough depth, nor is it able to meet the diverse needs of users.

We believe that the future can really change the field of decoration is the standardization of construction technology and mechanization, through the labor factor to a minimum, only to really improve efficiency.

We will continue to focus on entrepreneurs who work hard for this vision.

Household goods

Home building materials sales have more than 4 trillion of the market, the traditional offline sales channels are trapped in high rents, showing an increasingly weak trend every year. But at present, the penetration of electricity providers is still less than 6%.

These 6% include Jingdong, Taobao, vip.com's Jiezhuang channel, tuba rabbit, Qijia network, a home decoration network, home like home platform, self built mode of Mei Le Le, cool residence, Shang pin home and single brand Lin's wood industry, Liwei family.

I have been thinking about whether the home sector can run out of a large volume of new mobile e-commerce / online IKEA, but at this stage, the situation is still pessimistic.

There are mainly the following factors:

Users have limited awareness of home brands, high cost and high consumption decisions.

Most of the high priced household goods need to be bought offline.

Relatively high frequency household goods category has been covered by many other quality mobile e-commerce platforms.

Household single category traffic is relatively difficult to obtain, and consumption frequency and repeat purchase rate are relatively low. Limited fixed scenes cause the platform to catch users or new groups.

Eventually, household products will become high frequency.

A subset of the platform, I will still go when people are few.

Let's have lunch.