Home e-commerce breaks into the ice and springs Ali to help transform furniture companies

Many factors such as high housing prices, rising rents, rising raw materials prices, etc., make the Chinese home furnishing industry “difficult to spend the winter”. Many offline home shopping malls are “door-to-door”: employee holidays, bosses running, and a large backlog of merchants. Experts predict that in the future, in the context of the normalization of the property market regulation, the home market may shrink, and home furnishing enterprises will face more pressure.

However, compared with the coldness of the offline home market, on the emerging e-commerce platforms such as Taobao and Tmall, the online consumption of various home furnishings and building materials is very lively. Many traditional manufacturing enterprises and OEM foundry companies have adopted the transformation and integration of e-commerce, breaking through the ice. According to data from Tmall, in 2012, the turnover of Tmall's home improvement category category reached more than 34 billion yuan, a year-on-year increase of 300%.

The rise of e-commerce, traditional home enterprises to catch up with the "tidal"

On November 11, 2012, Alibaba's Tmall and Taobao.com daily transaction volume reached 19.1 billion yuan. By the end of November, the cumulative transaction volume exceeded 1 trillion yuan. The scale of China's e-commerce economy reached 8.3 trillion yuan in 2012. It is estimated that by 2020, China's e-commerce economy will exceed 30 trillion yuan, making it the world's largest e-commerce economy. Among them, by 2020, online retail transactions will account for about 16% of the total retail sales of consumer goods. With the strong rise of the network economy, e-commerce is destined to become the new engine of the future economy.

In 2012, the household e-commerce entered the peak development period. According to the data provided by the Tmall Furniture Department, in 2012, the turnover of Tmall's home improvement category category reached more than 34 billion yuan, a year-on-year increase of 300%, among which the furniture category increased the most. Fast, up to 324%. This data will be even more impressive. E-commerce has become the best channel for home furnishing companies to resist cold and warm winters.

In 2009, influenced by the financial turmoil, the traditional furniture company Qumei transformed into e-commerce. In 2010, Qumei United Tmall Mall launched the “Quyi Group” activity. In more than 40 days, the sales performance of 13,500 orders and nearly 100 million yuan made Qumei e-commerce famous, and attracted more large-scale Furniture and building materials enterprises have been stationed in e-commerce. In 2011, German Hansgrohe, GROHE, TOTO and other brand enterprises represented by sanitary wares have entered the Tmall, and the trend is increasingly obvious.

In 2012, 1111 online shopping carnival, the furniture economy in the cold winter, and a fire. On the same day, the daily sales volume of over 100 million all-friends broke the sales record of Tmall platform home; the sales of Gujia Home Tmall flagship store exceeded 60 million on the same day; Lin's wood industry more than 58 million, Qumei furniture on the same day The transaction volume reached more than 23 million, and the high sales of 20 million people became the champion of Taobao children's furniture sales.

The brand behind the trend promotes the transformation of foreign trade export home enterprises

E-commerce not only allows traditional brands such as Jiu Mu, Qu Mei, and Quanyou to turn to the "winter", but also to give more small and beautiful personalized brand development and living space. No wheel is to make large furniture, or to do small lighting, or even to do some wardrobe hooks, shoe rack hangers can also make their own brand. The illuminating impression of lamps, the lighting of Otto, the "space master" selling wardrobes, and the AMA selling mattresses are all online shopping home brands that are fascinating to many online shoppers.

In 2007, Chaoshan Linzoyi founded the “Linshi Wood Industry” store in Taobao with his own name as the brand. After gaining market recognition through low-price strategy, he set about creating fist products, looking for manufacturers to develop their own brand products - Lin's pastoral sofa, personalized design and fresh pastoral style immediately captured the hearts of consumers, sought after by countless buyers . In 2008, Lin's overall sales exceeded 20 million. After that, Lin's wood sales have been growing steadily in multiples. Hundreds of thousands of loyal customers have become valuable assets of Lin's online stores and won the 2012 “Top Ten Global Nets”. Brand.

Shanghai Ao Duojia Decoration, previously a professional exporter of lighting products and other products. "The fate of half of foundry is in the hands of the world economy, the European debt crisis, the subprime crisis... There is a single wedding dress for others, and it is a waste of time to negotiate on the contractor." General Manager Li Yonghua said. In 2007, he sought out his own brand and set up an Otto home decoration to try offline stores. However, the high rents of offline stores have put pressure on them, and eventually led to the idea of ​​direct investment in e-commerce. In April 2008, Tmall's predecessor, Taobao Mall, was unveiled. Odado was first settled in and entered the fast lane of development.

Li Yonghua said: "Oduo is fortunate. With Tmall's platform, sales are growing every year, shop traffic is increasingly optimized, brand online popularity is increasing, and brand dreams are getting closer and closer to us." 2011, Oduojia Became the top 30 global network operators in 2011.

The 12 original IKEA OEMs in the traditional home furnishing industry also attracted a lot of attention. In 2011, Heilongjiang Endurance Wood Group, Qing'an Houcheng Wood Industry Co., Ltd. and Yichun Huali Wood Industry Co., Ltd., which have been working for IKEA for more than ten years, successively canceled the supply contract with IKEA, and then the media reported that there were nearly 300 IKEA China's foundries have announced that they will stop supplying IKEA. Cao Yuewei, Chairman of the Board of Directors of Endurance Wood Group, said: “Furniture raw material costs, labor costs and transportation costs have doubled, and IKEA purchase prices have fallen and dropped. The company lost about 5 million yuan per year at that time.” Other IKEA Chinese foundries also Go into desperation. In October 2011, Cao Yuewei took the lead in setting up the Chinese home furnishing brand “Jiayimei”. In October 2012, the Tmall store went online, with sales exceeding one million in 10 days and more than 2 million yuan on the same day.

Li Lina, a senior expert at the Ali Research Center, pointed out that after the international financial crisis in 2008, a considerable number of foreign trade enterprises began to turn to insourcing. Due to the general lack of domestic sales channels and brands, e-commerce has become a common choice for many enterprises. She believes that the integration of manufacturing into the Internet will help manufacturing companies to enhance their industrial value; improve the efficiency between consumers and enterprises, try to make sales, achieve zero inventory, improve the efficiency of business operations, and ultimately help China's manufacturing industry. Join the global network of "Digital Manufacturing."

Online and offline integration Ali helps e-commerce transformation

At the time of the transformation of e-commerce by many traditional enterprises and foundry manufacturing enterprises, the emergence of more new models will also help the success rate of enterprise transformation. For example, the “Experience Hall” mode of online and offline is used to dispel consumer concerns about purchasing furniture through the display of offline entities, and to achieve “online shopping”, “offline experience” and “one-stop delivery and installation service” seamlessly. Docking and integration. This online and offline "Online 2 Offline" mode will further integrate offline business opportunities with the Internet.

The Taobao distribution platform will also help traditional enterprises integrate online channels. In 2009, the traditional sanitary ware brand “Nine Animal Husband” took a fancy to the gold mine of Taobao. However, countless sellers who operate Jiumu on Taobao are not all authorized sellers. For the chaotic channels and chaotic prices, Jiu Mu decided to start from scratch. In 2010, Jiumu brand officially cooperated with Taobao.com, and authorized distribution of Taobao sellers through the distribution platform. At the same time, Jiumu also opened the brand flagship store on Tmall platform. In just one year, Jiu Mu became one of the best-selling brands in the home improvement category of Taobao. In 2011, the turnover reached 150 million. More importantly, Jiu Mu has developed nearly 300 authorized network agents through Taobao platform. In the environment where the big market faces winter, Jiumu's e-commerce business continues to maintain rapid growth. It is reported that at the communication meeting, manufacturing enterprises including Jiayimei will also cooperate with Taobao.

The various tools provided by Ali will also help furniture manufacturers to promote the smooth transformation of e-commerce in these traditional enterprises by means of C2B pre-sale. For example, Tmall C2B mode, through the convergence of consumer orders, reverse supply chain production, allowing furniture companies to reduce costs according to consumer orders, scale purchases, zero inventory, zero storage, consumers can enjoy more than 30% of similar styles under the line Affordable.

With the improvement of consumer awareness of netizens, the improvement of logistics, information flow, data services and other infrastructure, whether it is a traditional brand, or a small and beautiful personalized network business, e-commerce has become a new blue ocean for home furnishing companies to fully enter.

Zhang Ying, vice president of Analysys International, said that in the United States, traditional enterprises are the main force in the online retail market, and home e-commerce accounts for 19.8%. The scale of home e-commerce will reach 20.5 billion in 2015, the online shopping scale will increase by 249%, and the online shopping rate will reach 17.5%. Home e-commerce will also become the "next gold mine" after apparel and 3C digital.