Although the real estate industry has lagged behind the downstream industry chain, the low tide of the home industry has arrived.
Under the impact of Internet e-commerce on physical store sales and the stimulation of spoiler Xiaomi, the smart home war in the traditional home industry is on the verge.
The 21st Century Business Herald reporter learned that the Xiaomi, who is interested in cooperating with the housing enterprises to test the smart home, will release a smart home product on September 17. Goodnight Home first announced on September 5th that it will work with Hetai (002402.SZ) to develop the world's first smart sleep product, the SMART-X series of smart mattresses. Later, new products will be introduced in stages, including quilt covers and sofas.
In addition, the dealer-based model of the evening home also announced that it will be the largest profit-making dealers in order to expand the scale of the sales platform, the general manager of the evening home, Wu Hao revealed that "the vast majority of profits will definitely give dealers, we protect the platform scale ". According to Xin Wei, the executive dean of the Goodnight Home School, which has been working on the profit model, Goodnight Home is re-creating the O2O model. If it can really open up the online and offline modes, it will be able to cultivate a batch of tens of millions. Level dealer.
Li Qi, director of Xiaomi's smart home market, pointed out that it is easy for a traditional home enterprise to make a product starting point to fall into the misunderstanding of product marketing, while ignoring the product creation and user experience, coupled with the challenges of after-sales logistics and service, innovation is difficult. He predicted that the smart war in the home industry has just begun. In the next three years, there will be many "millet" coming out to challenge the traditional model.
A report on the home furnishing industry obtained by 21st Century Business Herald shows that China's GDP growth rate was 7.4% in 2014 (after revised 7.3%), and the household industry scale reached 1.3 trillion, of which the furniture industry grew at 12.9%. .
Wu Hao pointed out that after the decline of the whole industry, once the company does not have a strong profit model, such as the decline in sales of some stores, after the operational problems, it is difficult for enterprises to control the dealers. He also pointed out: Why are some traditional models and traditional store sales decline? The main reason is that too many new models have blocked its sales. For example, e-commerce directly pulls away many customers, and design companies and decoration companies block customers at the front end. Go, even real estate companies are doing home packaging sales business.
Therefore, it is not difficult to understand the challenges and opportunities facing the current home industry. On the one hand, the traditional sales model has come to an end. On the other hand, the 1.3 trillion industry is huge, and the largest company in the industry has a sales volume of two to three billion yuan a year. When the cake is big enough, there is still room for innovation in the enterprise.
With the infiltration of O2O and big data collection, home furnishing companies are aware of the importance of smart products and Internet strategies for industry reshaping.
For example, the SMART-X series released by Goodnight Home is based on the C-life smart home cloud platform for operation and service windows. It monitors and collects sleep data through cloud technology to reflect the user's sleep health.
Goodnight Home's partner of this smart mattress - and Thai is not the first time to cooperate with home furnishing companies. In 2014, Hetai cooperated with Mengjie Home Textiles, Luolai Home Textiles, Xilinmen, etc. to develop and produce smart products, but the smart mattresses of Goodnight Home are the fastest to launch. "As long as it is low-cost and differentiated, there will be a market." Wu Hao believes.
According to related sources, the cooperation with Goodnight Home and Goodnight Home Textiles is another layout of the â€œsceneâ€ in the bedroom. The difference is that Hetai will also provide hardware and software support for controllers and big data cloud platforms. However, it is still only a framework agreement, and the specific cooperation content is still uncertain.
This war without smoke was originally intended to kill a bloody way in terms of price and mode. Afterwards, several home brands proposed to reshape the home eco-chain, but this will not restore the decline of the industry, the professional managers will continue to resign, and the dealers will continue to upgrade.
It is worth mentioning that the loss of customers in the mid-to-high end of the good-natured homes in the overall market decline is not too serious. Wu Hao believes that in fact, the home industry is not a decline in overall sales, but is growing. But the problem with other companies is the same: e-commerce, including real estate, design companies intercepted customers are increasing, dealers customers are losing.
Therefore, Wu Hao pointed out that how to get back the sales of the front end is the key to the next two years. And the home business can get back to these customers after the customer can do the distribution, the key is offline O2O.
Cooperation is obviously a way to work. According to Wu Hao, Goodnight Home is negotiating a strategic framework agreement with Evergrande (03333.HK) to promote the form in the form of vouchers. "In the future, we will supply all the properties of Evergrande."
According to a person familiar with the matter, the cooperation between Goodnight Home and Evergrande Real Estate involves the division mode of the company to the dealer. The core of the future is that the dealer plays a local service organization, delivery agency, and realizes big sales together with Goodnight Home. layout.
Fight for 1.3 trillion market
The ultimate goal of doing smart home is to customer big data, and based on this, to create a closed loop of the home industry, from a single product to the living room, bedroom and other complete products. Previously, Wu Hao, who had successfully transformed the main conductor and the online and offline marketing strategy in Quanyou Home and Gujia Home, thought that he had more room to implement the Internet e-commerce strategy in his home.
According to reports, the annual turnover of Goodnight Home is about 1 billion yuan, of which the furniture business has achieved 20%-30% growth for 5-6 years. Therefore, it is planned to achieve a scale of 10 billion in 10 years through transformation and upgrading. The short-term goal is: plan to be the first in the bedroom home industry in about 5 years.
A large number of familyization has hindered the development of the industry. For example, Goodnight Home has been established for nearly 30 years. Until last year, it was completely family-based and fully realized professional managerialization.
The above research report pointed out that the new idea of â€‹â€‹the future home industry is: reshaping the business model based on Internet tools. And Goodnight Home starts from customer thinking and Internet thinking. The new opportunities are reflected in three modes: O2O mode: online and offline integration, open Internet, mobile Internet and offline terminals; C2B mode: based on standardized modular customization mode based on big data, free design as an Internet portal, Subsequent adoption of customized product models to improve profit margins; intelligent ecological model: brand and product positioning and differentiation.
As Xin Xin said, the gene for Goodnight Home is a distribution channel company. This gene has been available since the establishment of Goodnight Home. This is both the advantage of good night and the bottleneck of good night.
Goodnight Home Textiles (831795) officially listed the new three board in March this year, and Goodnight Home is preparing for the IPO, and finally achieved the overall listing.
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