Online Trading In Home Entity Transformation: The "Trinity" Is The Key.

Compared with physical retailing, shopping centers and other retail formats, home circulation industry is lucky to avoid some Internet shocks due to heavy experience and heavy sales.

Although the offline business has not been greatly affected, the proportion of online business is increasing under the tide of "Internet +".

Tmall and Jingdong continue to exert their strength. Suning and Gome have also been laid out. Baidu has invested in Qijia net and tuba rabbit has expanded rapidly. At present, the home circulation giant Hongxing Mei Kai Long is ready to launch a heavy blow.

The first financial and business data center (CBNData) released the report on the Chinese household style consumption preference insight, which showed that the online household scale expanded by about 2.3 times from 2013 to 2015, and the total volume growth in 2015 remained at around 40%.

Pan home industry's Internet pformation is speeding up.

Tmall and Jingdong continue to exert their strength. Suning and Gome have also been laid out. Baidu has invested in Qijia net and tuba rabbit has expanded rapidly. At present, the home circulation giant Hongxing Mei Kai Long is ready to launch a heavy blow.

Recently, at its 30th anniversary celebration, Che Jianxin, founder and chairman of the Red Star Group, announced that it will implement the "1001 strategy". The household circulation enterprise, which has already been distributed in more than 100 cities nationwide, will build 1000 home mall in the future, and embrace the Internet in depth. It means to integrate each other under the integration of online and offline, and create the largest pan domestic consumer service platform in China.

Whether it is "Internet +" or "+ Internet", the business form that only existed online in the past has begun to go online now. The difference is that some industries are affected by the Internet and forced to choose pformation. Some industries hope to make the best use of the Internet.

Then what kind of household industry is it?

Limited impact from the electricity supplier

In fact, compared with physical retailing, shopping centers and other retail formats, home circulation industry is lucky to escape some of the Internet shocks due to heavy experience and heavy sales.

"The impact of the Internet on home building materials retail industry is still relatively limited, because most of the products of home building materials need to be installed with after-sales service, and some even need more complicated construction, so completely online sales can not be achieved."

Wang Hongbo, a consulting partner with Mr. Jun, told the China Commercial Daily reporters that the standardization of home building materials was also relatively low, and there was no uniform standard for product pricing, which would also affect its sales on the Internet.

Now the main products on the Internet are mainly furniture, such as tables, chairs, stools, mattresses, etc., because they are more standardized and do not require much after-sales service.

Therefore, the impact of the Internet, especially e-commerce, on the home industry is relatively limited. Even if the mobile Internet home furnishings, which are relatively mobile in recent two years, the impact on offline stores is not great.

"These are more of a gimmick or a concept. It has not changed anything but a change in the trading platform.

What may need to be done through newspaper advertisements and TV commercials may now become a APP.

Wang Hongbo said.

Data may be able to illustrate this situation more directly.

Take another household giant IKEA as an example. In the 2015 fiscal year, the IKEA China market achieved a record sales of 10 billion 500 million yuan, and sales grew by more than 18%.

Meanwhile, IKEA club membership grew by 42% to 13 million 500 thousand.

The official website has visited 53 million times, an increase of 52.5% over 2014.

More than 75 million people visited IKEA mall in China.

At present, IKEA has 19 stores in China, and three shopping centers in Wuxi, Beijing and Wuhan.

The red star is ambitious.

Although the offline business has not been hit too much, it is "

Under the tide, there is no doubt that the proportion of online business is increasing gradually.

The first financial and business data center (CBNData) released the report on the Chinese household style consumption preference insight, which showed that the online household scale expanded by about 2.3 times from 2013 to 2015, and the total volume growth in 2015 remained at around 40%.

How can we get a share in the rapidly expanding online consumer market? Not long ago, IKEA announced that it would launch an e-commerce business in China. IKEA China responsible person told the China Daily reporter that online business is only a supplement to its offline business, and according to IKEA's existing plans, its e-commerce business will be tried only in cities with IKEA stores.

And the red star's 1001 plan is obviously more ambitious.

Li Bin, President of the red star, said that the red star will make 1000 home mall in two ways, namely, self built and cooperative operation, extending from one or two level cities to three or four tier cities and key counties.

On line, we build 1 Internet platforms, and take family as the core to carry out cross-border extension of the 5 major business platforms, such as real estate pactions, home decoration, commodity trading, services and finance.

About the 5 major business platforms, the red star has made specific explanations:

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Real estate trading platform: from the beginning of user purchase, we should make an independent and pure property consultant mode to solve the problem of information symmetry and trust between buyers and sellers. At the same time, based on the concept of design aesthetics, through the analysis of users' big data, we will make intelligent recommendation on the matching degree of geographical location, architectural style and surrounding environment.

Home decoration platform: to build China's largest Internet home decoration platform, based on the understanding of the industry and the integration ability of the supply chain, reestablish the industry decoration standard, train the basic workers, design and feel the quality to solve the user's decoration trouble and responsibility for the environmental protection of the user's family.

Commodity trading platform: at the commodity level, while maintaining the advantages of furniture and building materials, it will expand to home decoration, including curtains, vases, tablecloths, household appliances, furniture accessories and other commodities. This is also an important way to improve user consumption in the future.

Service platform: in addition to store services, it will expand to maintenance, repair, and even housekeeping business, community entertainment, community activities, etc.

Financial platform: financial products run through the above series of businesses, providing systematic financial services such as family financing, payment, consumption credit, family safety insurance and so on.

Consolidating the main business is the best policy.

From this grand plan, we can see that the red star is almost going to extend its tentacles to every possible field.

However, as far as the present is concerned, there are few enterprises that have done well in O2O on the counterattack line of real enterprises. Li Bin also pointed out that the biggest problem in the so-called O2O mode in China is the two skins under the online and offline businesses, and the right and left businesses.

So, can the Red Star triumphant dragon overcome this problem? To enter the field of real estate pactions, finance and so on, which is not good at it, what is the base of the red star?

Xue Shengwen, a senior researcher at CIC, told the China Commercial Daily reporter that Hongxing Mei Kai Long aims to use physical stores as a fulcrum, through the use of Internet technology, to achieve full digitalization of physical stores, and to set up platforms for real estate pactions, home decoration, commodity trading and other platforms on the Internet platform to carry out cross-border business and business extension. This will break the previous O2O mode that businesses simply stack physical stores with online channels, which is conducive to a greater degree of synergy between physical stores and the Internet, and can extend the industrial chain of enterprises and expand profit margins.

The development of the entity store can also help to guide its pan consumer service and improve user stickiness.

"I think this strategy is not very pragmatic."

Wang Hongbo told our reporter that if all the ideas of the red star were landing, its cash flow would be very intense.

And now in the field of e-commerce, especially the platform based e-commerce, the space left by Tmall, Jingdong and other e-commerce giants has been very small, and the genes of traditional enterprises are not there.

"If you want to give Mei Caron Te some valuable advice, I think it should be more conservative to deal with its main business, to consolidate the main, and then more active in capital."

Wang Hongbo said that from the current situation of home building materials industry, if red star Mei Kai long can upgrade the existing more than 100 stores, it has been very powerful. In some cities, there are too many shops, or shops, or pformation, so that each store will become the No.1 of the city.

In addition, efforts should be made to innovate on the existing storefront mode, so that more people can come to the store besides decoration.

For example, IKEA is no longer a place for consumers to buy furniture, or even a place for leisure and eating.

Red star, of course, must find a way, rather than imitate IKEA.

The key to pformation: "Trinity"

Xue Shengwen believes that the characteristics of heavy experience and heavy service in home furnishing industry determine the future O2O will become the inevitable direction of this industry.

It is noteworthy that there are many home and home furnishing enterprises O2O pformation effect is not optimistic, this is mainly due to most enterprises' understanding of "Internet +" is not deep, pformation way is biased, online and offline integration is more extensive, future industry O2O development will enter the "Internet +" 2 era, online and offline will appear more closely integrated.

In Wang Hongbo's view, in view of the fact that the comprehensive Internet is approaching the irreversible state, all enterprises should make full use of the Internet, but this does not mean that for all industries, the Internet can become its main selling channel.

"The Internet can be a way of communication, but it does not mean that it is a way of selling, which is not necessarily a success."

Wang Hongbo said that for the home building materials industry, many of its characteristics determine that it has no way to make a very good combination with the Internet.

To achieve full sales, after-sales service and so on a series of actions.

"We have turned it into a very important platform for communication and communication with consumers. There is no problem at all.

Many companies have done well at the moment, but they can't rely solely on it to sell. "

Wang Hongbo believes that sales of home building materials actually need to build a platform of "Trinity" based on people, rather than a platform based on products.

The first person is the consumer, the second is the seller of home products and building materials, the third is the installation and after-sale service of home building materials.

To build such a "Trinity" platform is actually a very difficult task, and at the present level of economic and technological development, it is very difficult for such a platform to survive on the Internet.

"Let's buy it."

It is all necessary to have a look at the scene. At present, the two-dimensional state of the Internet can not be seen clearly, and the consumers' perception is limited.

The state of development in the future will probably be better.

The annual "double 11" sales figures show that the sales volume of home building materials is over 100 million a day, and the rate of return is basically more than thirty or forty within two weeks.

This means that there may be various problems in it.

Wang Hongbo judged that in the short term, the concept of Internet home and home decoration will still be prosperous. But in the medium to long term, the biggest challenge facing the industry is still the Trinity platform. If we can not do this platform, it will be very difficult to survive.

"Because whether it's a home decoration company, a designer, a home decoration team or a product dealer, he can set up a shop in his own real scene, not necessarily relying on your network platform 100%."

Wang Hongbo emphasized.