Many furniture companies "touch the net" the first step to settle in Tmall, Jingdong and other platforms, but Novartis furniture and other companies chose to set up an online mall.
Looking at the story of the Guangdong enterprises' transformation and upgrading of the circulation industry in Guangdong from the new business situation
“Furniture e-commerce will not become a climate within five years.†Xu Guofang, chairman of the model home, said at the 9th China Home Furnishing Industry Development Summit held on the 26th. This view shows the fact that the industry has developed in recent years: among the furniture companies that have entered the e-commerce industry, there are not many successful ones.
However, this does not hinder the pace of furniture enterprises actively marching into the e-commerce field. Some enterprises even regard e-commerce as a good medicine to overcome the market downturn and to test the domestic sales of export enterprises. At the same time, third-party service organizations, “grassroots†entrepreneurs, and government and industry associations have also flocked to the field of furniture e-commerce.
The furniture e-commerce market is showing more development vitality and huge market opportunities under the multi-party force.
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Enterprises often have two misunderstandings in doing e-commerce. First, "e-commerce is a traditional channel accessory", and second, "making e-commerce can make a fortune overnight." Compared with the traditional model, e-commerce earns a small amount of money, but small profits but quick turnover. On the contrary, it is a company that is ignoring the low profitability of e-commerce. It should be noted whether it will face the danger of continuous loss of customers.
Selling furniture online
Cost reduction, the market is broader
The Ajun working in Dongguan Nancheng is a staunch supporter of online shopping furniture. After getting the keys to the new house, he was going to buy a set of European-style furniture, but after visiting five large furniture stores, the only set of furniture that satisfied him was tens of thousands of yuan. In desperation, the Ajun had to buy the same style of furniture in an online store. Unexpectedly, the online shopping furniture is not only cheap but also good in quality. Just add 100 yuan shipping fee, and the online shop will send the furniture he ordered and install it properly.
"Buy furniture in the future is still preferred to buy online." Ajun said. With the development of e-commerce, more and more consumers like E-commerce in the furniture industry are favored.
For furniture companies, the advantages of online sales are obvious. By reducing organizational and management costs, eliminating intermediate channels such as stores, and reducing storage efficiency, the operating costs are reduced and the selling price of goods is reduced.
In addition, furniture companies that used to focus on export sales turned to domestic sales because of the shrinking export market, and e-commerce is undoubtedly one of the convenient channels.
The Dongguan furniture industry, which has the advantage of producing land, has never given up its "ambition" in the field of e-commerce. Yu Xuhui, deputy secretary-general of Dongguan Ming Furniture Club, said that about 30% of Dongguan furniture companies have entered the e-commerce field in various forms. Some enterprises have established their own official mall websites, but more have chosen to enter Tmall, Jingdong and other electricity. Business platform.
Wang Yayun, general manager of Novartis Furniture Co., Ltd. told reporters that e-commerce is the future development trend of the retail industry. Although the furniture industry is slow to develop e-commerce, the impact of e-commerce will inevitably become larger and larger in the future. Because of this, Novartis Furniture launched the company's mall website in March this year. After the site is put into use, sales per month increase by 30% to 50%.
Online and offline cooperation
Sales and distribution services have a division of labor
Although the furniture industry is now "speaking about e-commerce," furniture e-commerce is not well done and is recognized by the industry. Dongguan's large-scale furniture enterprises have strong production capacity and strong financial resources, but so far there have been few companies that have developed particularly successful in the field of e-commerce. Therefore, the industry often laughs that furniture e-commerce is "a good name, not a seat", "thunder and heavy rain."
At the 9th China Home Furnishing Industry Development Summit Forum held on December 26th, Xu Guofang, chairman of the model home, said that it is difficult to solve the problems of furniture e-commerce logistics distribution, online and offline conflicts, and if the profit model is not solved. Furniture e-commerce is hard to live in 10 years.
Xu Guofang’s views have been endorsed by many people.
As early as 2011, the well-known window furniture of the city began to research and explore the path of furniture e-commerce, and quickly found in the aspects of e-commerce talents, e-commerce operations and how to coordinate the conflicts with dealers. difficult.
Today, the City Window has built a B2C mall and tried to solve the problem of brand and dealer profit distribution by adopting the online transaction and the “O2O†mode of offline service. Although the company has high hopes for this model, after a period of operation, it is still difficult to get on track. "Our e-commerce system is still trying to find out, it is far from successful," said the person in charge of the company.
Relatively speaking, the operation of Novartis Furniture's online mall is fairly smooth. Wang Yayun admits that the furniture industry has many obstacles to doing e-commerce. For example, furniture is not only bulky, heavy, but also requires professional after-sales service. In addition, on the Internet, customers can't experience furniture products well, and the results are not good.
For logistics issues, Novartis Furniture has set up a network area pricing module. According to the IP address, the background price of each item will be given in the background.
Wang Yayun said that the cheapest product price of the online mall is 40% lower than the physical store retail price. The mall started to reach a turnover of 3 million yuan in less than 4 months, and then maintained a growth of 30% to 50% per month.
At present, the products sold by Novartis Furniture through the online mall account for 30% of the domestic sales. Wang Yayun said that with e-commerce, the company will gradually adjust the ratio of domestic and foreign sales to 5:5.
"Nuggets" furniture industry
"80s" entrepreneurial team has sprung up
While traditional furniture manufacturers are still talking about whether e-commerce is promising, furniture professional e-commerce is rapidly emerging with a new attitude.
For example, recently, the website that focuses on making home matches has been loved by many netizens. The profit model of this website is very simple, that is, collecting and arranging the home matching effect map, and the customer can purchase every product on the rendering. Once the customer purchases the product, the "one pocket" can get the seller's commission. Because of the precise cut into the market with this market gap, this home shopping guide website created by a group of "post-80s" young people has been in business since April this year, and the accumulated sales have exceeded 15 million yuan.
Wang Yu, the founder of “Q Furnitureâ€, another furniture B2C website in Houjie Town, Dongguan, has been working in the e-commerce industry for 7 years. "E-commerce should let professional people do professional things." Wang Yu said that the company has only about 30 people, so it will send the production and other links to the cooperative enterprises. As a “assembly shopâ€, “Q Furniture†will focus more on design, quality control and operations, while reducing costs and giving to consumers. As the site is taking a low-profit route, the website turnover continues to increase. “Q Furniture†also deliberately set up office space in a dense area of ​​Dongguan Houjie Furniture Factory. Wang Yu said that the company already has 47 foundry factories, and production capacity is not a problem.
At the same time, the government and industry associations are also trying to guide furniture companies to "touch the net" as soon as possible. Li Huiqin, secretary of the party committee of Houjie Town, Dongguan, told reporters that Houjie is currently planning to establish a public e-commerce platform in the furniture industry. In accordance with the model of government subsidies, industry operations and enterprise participation, the furniture enterprises will be promoted to “touch the net†and grow stronger.
In this regard, Qi Xianwei, director of the Informationization Special Committee of the Guangdong Wholesale Market Industry Association and president of Dazhuo E-commerce, said that the e-commerce service industry is developing rapidly, and these service providers will help furniture enterprises to open up obstacles on the road of e-commerce. With the growth of these furniture service providers, many of them will intervene in the front-end sales to become sellers. If the pace of traditional furniture enterprises entering e-commerce is not accelerated, it will most likely become a production department in the furniture industry chain.
? Quick answer
Wang Yayun, general manager of Novartis Furniture Co., Ltd.:
Sell ​​all online sales profits to offline dealers
Nanfang Daily: Novartis Furniture has been an e-commerce company for nearly a year. What do you think is the hardest thing in the furniture industry to do e-commerce?
Wang Yayun: Now I feel that the most difficult part is that the current online shopping mall products are not rich enough, and the matching needs to be further enhanced. In addition, how to promote your own e-commerce websites and services on the Internet is also a difficult task.
In fact, Novartis Furniture Network Mall has encountered many difficulties, but fortunately, we have established a special e-commerce department from the very beginning and have our own e-commerce talents. In addition, Novartis Furniture has professional distributors throughout the country, which can provide after-sales service and product experience services to consumers of online shopping furniture.
Nanfang Daily: Furniture companies are embarrassed to e-commerce easily conflict with traditional channels. How does Novartis Furniture deal with this contradiction in the process of testing water e-commerce?
Wang Yayun: The best furniture that Novartis Furniture sells online is sofas and other products, because these products are cost-effective. If the online store has marked the price of the product too low, it will definitely impact the original physical store sales channels of the furniture enterprise. The furniture business model determines that there can be no dealers, because there is no dealer to solve the problems of online sales products experience, delivery, installation, after-sales and so on. In addition, it is true that many consumers place orders online after the store experience. Therefore, Novartis Furniture will give all the profits of the online mall to the dealers and increase the profits of the dealers. The online mall is not only the Novartis furniture to do it, but also the dealers to work together to make the Novartis furniture bigger and stronger.
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