Around The Furniture No Fear Electricity Supplier Ranking, Insist On High-End Positioning For Sale.

It is reported that left and right furniture is well-known furniture production in China.

From the sofa, it has three major brands: "left and right living room", "left and right cloth art", "left and right international", "left and right health", "left-right function", "Na Fei" and "Pollock".

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Huang Huakun, chairman of the left and right sofa, has publicly stated that the company will achieve the goal of billions of revenue in 2018, and brand products will still focus on sofa products and introduce customized products to cater for it.

Demand.

As a high-end furniture brand with an average price of more than 7000 yuan, what is the positioning of the electricity supplier business? Why is the development of furniture business slow? How does the traditional brand compete with the brand of e-commerce?

Wang Hailong, general manager of the household electrical appliance company, had a dialogue with the billion state power network, and answered the questions facing the furniture business.

The way left and right: control costs + special sales

According to the introduction, the stores under the main line of furniture are mainly franchising, and self-employed is subsidiary. "Although the dealer's professional level of furniture is lacking, the franchising mode will give dealers the feeling of being the boss for themselves, and the strong sense of ownership and intentions will bring good service," Wang Hailong said.

In order to conform to the trend and seek new increments, about two of the furniture businesses in the city began in 2012, and settled in the top B2C platforms of Tmall and Jingdong.

At present, the layout of the left and right furniture business has several characteristics:

(1) centralized and centralized integrated platform to reduce drainage input.

For the traditional brands that have just entered the electricity supplier field, vertical platform drainage costs are high and slow, and it is also difficult to maintain continuity. "Our annual sales of B2C platform has exceeded 1 hundred million, and it may soon increase energy and improve its own platform," Wang Hailong said.

(2) differentiated design.

Online and offline consumer groups are different, offline buyers pay more attention to safety and experience. Online consumers pay more attention to convenience and cost performance. Under the premise of guaranteeing quality, they will design different styles of goods for different channels.

(3) set up special electricity supplier contributions.

Under the fierce competition of offline furniture, consumers often compare the price between online and offline, in order to avoid the impact brought by the price line, the choice of offline sales is different.

Besides furniture, sofa furniture is also designed to produce tea tables, beds and other supporting furniture. But at present, sofa products still occupy about 60% of the left and right products, depending on different styles and sizes of furniture packages to meet the needs of different groups of people.

Furniture business biggest stumbling block: traditional interest chain

This reporter has learned that, for four years, sales of electric business now account for only 10% of the total sales of the furniture brand, but industry insiders say that the electricity supplier process of the left and right brands has been above the traditional brand. "The pformation speed of the traditional retail enterprises often depends on the location and importance of the senior business to the electricity supplier business, and their courage to challenge the traditional interests chain". The person said that the better the line of furniture brand, the bigger the impact of the electricity supplier on the supplier, but the bottom line is the fundamental unshakeable brand, which has become a huge obstacle to the development of the furniture business.

Wang Hailong said that the solution to the above problems is to set up special contributions to electricity providers.

He believes that the irreplaceable value of the line is experience, especially for the sofa with high price and non standard products, and it is worth feeling only if it feels in person.

In addition, taking left and right as an example, there are many objective characteristics of furniture category, resulting in the slow progress of its electricity supplier process.

(1) the rate of repeat purchase is low.

The average life expectancy of the sofa will exceed 10~15 years, and the rate of consumer repeat purchase is particularly low.

(2) the unit price is high.

The average price of the left and right sofa is over 7000 yuan, and consumers are worried about making decisions through e-commerce.

"High guest price of jewelry and auto purchase rate is not high, but it can also do electricity supplier."

Wang Hailong believes that any category can control the business of electricity providers, not in the repetition rate, but in how to use the electricity supplier. "We need to know what kind of way a category can be better and lower to get closer to consumers, and at the same time, it can bring better experience and interaction to consumers," he stressed.

Wang Hailong introduced that, for the layout of the electric business, the home and abroad will not stay in the use of the B2C platform for sales.

He believed that the traditional brand should be divided into several steps: (1) to spread the electricity supplier; (2) to sell the electricity supplier; (3) to turn the electricity supplier into an enterprise.

Among them, the enterprise electricity supplier refers to the application of internal and external data, so as to realize the Internet of the whole enterprise.

At present, the left and right are in the second stage.

It is reported that the mode of franchisee has been adopted by the left and right families, and its supply chain is closer to the B2B business from factories to distributors. But in the future, it will gradually begin to collect and manage the full channel data that touches the sales terminal.

Furniture business ultimate best medicine: experiential O2O

It is understood that since participating in the double 11 in 2013, the best ranking of the industry in Tmall's promotion is about eighth, compared to the Internet furniture brand that is stable in the top five.

"Many brands use this ranking as a brand promotion," Wang Hailong laughs.

He said that if you want to hit the top three, as long as the rich variety of goods, and provide more competitive price, but left and right hope to adhere to high-end positioning.

For competition strategy, Wang Hailong said that the advantages of traditional brands and Internet brands are different, so that different products will produce different market functions.

"Some products are used for volume and used to compete with competitors in the PK market; some products are used to attract eyeballs, such as products of the Boao forum theme series, and profit from high-end products.

Different product combinations are competitive strategies at different stages.

"Before we do business, we hardly need to stock up, most of the furniture is custom-made. Now we have begun to stock up in order to cater for the big promotion of electricity providers," Wang Hailong said. The next plan for the left and right furniture is to distribute prices in all parts of the country on the basis of the average logistics cost, and unify the price, upgrade the decoration of the stores, and make the left and right brands highly unified.

According to the briefing, there are factories in Shenzhen and Anhui in the near future, and plans are being made to build factories in Hebei recently.

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Wang Hailong told reporters that the more than 2000 stores under the online furniture industry are important resources to integrate online and offline businesses. In the future, they will upgrade the offline stores, through online marketing and sales, through the offline experience of high-end products and provide better services.

However, furniture products in the O2O mode will inevitably face the issue of whether the same price will be paid on the same line.

"This problem may be somewhat difficult for our industry," Wang Hailong admitted. The pportation cost of furniture is very high, and the cost of p provincial pportation of a set of furniture will be more than 1000 yuan, which directly leads to the different cost of goods purchased by dealers everywhere. Once the same price is shared, how to balance the profits of various stores will also become a challenge.

In addition, Wang Hailong pointed out that traditional enterprises must have a sense of crisis and act quickly.

"The bigger the company is, the higher the cost of operation. The input of each production workshop and warehouse must reach tens of millions, so the front end sales must keep up with investment. Many traditional furniture brands become martyrs because sales do not keep up with investment.

Nowadays, making electricity providers is a quick and effective way. "

He disclosed that the current growth in electricity sales is about 7~8 times that of offline sales. "Whether it's Internet brand or traditional brand furniture, it will eventually go to O2O," he stressed again.