The surging home decoration industry has already entered a more brutal second half competition.
The term "second half of home decoration industry" means that in the past, the extensive first half of the way of spending money to brush traffic, scale and marketing has been unable to continue in today's accelerated transformation and upgrading of the Internet. From high-speed development to high-quality development, the competition in the second half is more about efficiency and delivery ability, and the key to open a new door is supply chain.
Let's first understand a concept, what is supply chain? In short, supply chain refers to a functional network structure around the core enterprises, from purchasing raw materials, making intermediate products to final products, and finally the sales network delivers products to consumers, thus connecting suppliers, manufacturers, distributors and end users into a whole.
In the past 20 years, "big industry, small enterprise" home decoration industry has not been subverted. The decentralization of upstream, midstream and downstream makes products from suppliers to consumers experience profit sharing layer by layer. At last, consumers are still exploited. The industry is developing, but the efficiency has not been improved. What is the problem of home decoration market? At the end of the day, the supply chain has not changed.
The supply chain is a "big mountain" that can hardly be bypassed by the home decoration industry. In the next few years, it will be the decisive year of the supply chain. Only those enterprises that have the ability to integrate the supply chain resources can truly stand firm and become the king in the new second half of the shuffle.
Supply chain becomes the "life and death line" of enterprises
Just in winter, Shanghai seems to be particularly cold, "cold" is the perception of the Internet industry to the outside world in the past two years. However, even if the environment is not good, there are still enterprises to achieve adverse growth.
On November 21, meituan released its third quarter financial report, which showed that the transaction amount of its catering take out business increased by 40.0% to 111.9 billion yuan year-on-year, realizing quarterly profit again. Behind the profit, meituan will continue to tap the stock market and lay out the catering supply chain in 2019. Coincidentally, on the same day, at the third national home decoration industry summit, qijia.com, the first share of domestic Internet home decoration vertical platform, also announced that it will further deepen the supply chain empowerment of platform merchants in 2020.
Why do industry giants take supply chain as their strategic core? In my opinion, there are two points
First, the era of housing stock is coming, and the sinking market is becoming a new blue ocean for enterprise development. According to McKinsey's data, the proportion of the middle class in China will significantly increase in the next decade, and it is expected to reach 81% by 2022, becoming the most important force for China's consumption upgrading. Among them, the middle class in the third and fourth tier cities will be the fastest growing group, and it is expected to reach 40% in 2022. 3、 The rise of the middle class in the fourth tier cities and the growth of the demand for quality decoration make the third and fourth tier cities one of the "blue oceans" of home decoration. In the context of consumption upgrading, home decoration consumption is showing a "sinking" development trend, and the third and fourth tier cities will be the new key to the next round of game for the giants.
Second, the stronger the supply chain, the shorter the construction period, which means the higher the gross profit margin. Under the age of stock, there are many kinds of subdivision demands, such as old house renovation, local renovation, etc., which need to match the corresponding resources and service capabilities of decoration. However, there are hundreds of thousands of decoration companies in China. Their development scale and level are still relatively elementary. Facing the high efficiency and personalized needs of consumers, they are obviously a little inadequate. Therefore, only through the large platform can we concentrate the resources of the whole industry, carry out in-depth integration, and achieve real development. Under the trend of the industry, it is necessary to take the lead in integrating supply chain resources for platform enterprises such as qijiawang and meituan.
(open data of qijia.com's mid-term financial statements in 2019)
In fact, the "big cake" of the supply chain is not untouched. In the past two years, start-ups with the positioning of main material supply chain and auxiliary material supply chain hope to set off a new round of changes in the industry through the mode of deep integration of home decoration industry chain, but the effect is not obvious.
The auxiliary material supply chain enterprises, represented by xiaopangxiong and palmtop auxiliary materials, obtain the products at a lower price through establishing cooperative relationship with channel providers, and then sell the products to foremen and small and medium-sized home decoration companies to earn the difference. The difficulty of this kind of enterprise is that it is difficult to obtain profitability by itself. In the process of development, it needs to seek capital financing. The development speed is relatively slow and has certain limitations.
Ten billion level business, it's hard to get on the bus
Home furnishing is a 4 trillion level market. Some insiders predict that as an important part of the home furnishing chain, the growth of the supply chain industry in the future will be at least 10 billion levels.
Under the temptation of ten billion level business, what enterprises should do is to integrate resources, occupy the market and complete harvesting. But it doesn't seem that simple. The essence of home decoration is service. Before the transaction, it provides services such as consultation, experience, measurement, design and disclosure; after the transaction, it enters into the processing and manufacturing industry, and perfectly combines technology and materials into products through the use of tools by decoration workers. In the whole service chain, if the supply chain can not be solved well, then the decoration enterprise is difficult to make sustainable profits.
However, the integration barrier of supply chain is too high. For an installation enterprise in a county of Shanxi Province, if it wants to purchase the most popular new lamps this year, it must go through the county-level, district level distributors, provincial general agents and other layers of price increases. In the end, even if the price increases by three times, it still can not obtain basic profits.
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