Offline or is the future of the online furniture industry?

Since October 4th, some news about traditional furniture companies boycotting Tmall O2O furniture e-commerce has come to the fore. In the name of the China Furniture Association, 19 well-known home brands and stores, including Red Star Macalline and Real Home, launched a joint boycott of the Tmall Home O2O project, which was a great event that made the furniture industry a hit. Many people think this is the first large-scale positive conflict between traditional retail and e-commerce.

The great power of O2O

The positive conflict between the two sales models stems from the booming e-commerce in recent years, which has made the offline store last for hundreds of years and has encountered a deadly challenge. E-commerce is easier to grasp the complete data of customers than traditional physical stores, so it is easy to meet the individual needs of consumers. In today's era, information is the "currency" of the virtual world. Whoever controls the information, whoever masters the distribution rights and circulation rights of the "currency", also grasps the initiative.

O2O e-commerce is to integrate online and offline, and take advantage of both to create greater benefits for themselves. The representative of O2O - group buying is one of the best examples. Some group buying websites have created an impressive performance of more than 10 million yuan per month. According to statistics, the size of China's O2O market in 2011 was 56.23 billion yuan, and in 2012 it was 98.68 billion yuan, with a growth rate of 75.5%. Kai-fu Lee believes that "O2O will change China in the future, and once it is connected online and offline, this is a huge explosive force."

The sense of crisis in the physical store

According to the "domestic department store sales rankings", the first-ranked department store with the first-half sales in the first half of the year, which is 17.5 billion yuan in half a year, seems to be far ahead, but it has not reached the previous year's Taobao "Double Eleven" day of 19.1 billion. Sales. At the same time, the traditional furniture industry, which has continued to rise in price in recent years, is facing an unprecedented crisis. According to the statistics of the Department of Circulation and Development of the Ministry of Commerce, the cumulative sales of building materials stores above designated size in the country from January to June this year was 519.6 billion yuan, down 6.19 year-on-year. %. However, O2O furniture e-commerce has bucked the trend. Last year, a single-day order for a furniture company “Double Eleven” on Tmall exceeded 100 million yuan, which made many traditional furniture merchants look red.

To this day, Tmall has set the target for this year's double eleven to 50 billion yuan. Obviously, it is impossible to accomplish such a huge goal by relying on "light goods" such as clothing. Therefore, expensive household items have become the darling of Tmall. However, traditional stores such as Red Star Macalline and Real Home were deeply threatened, so they directed a "boycott" drama, which ended in a temporary victory of the traditional store.

O2O e-commerce or define the future of the furniture industry

Despite the boycott of 19 traditional furniture stores, Tmall had to suspend the promotion of the double eleven O2O furniture, but many people in the industry said that "this failed attempt is only the time for Tmall to make money, home has not yet arrived, home The O2O trend is hard to stop."

Taking the new O2O furniture e-commerce Liwei home as an example, in just a few years, online furniture sales have achieved full bloom, and the service area covers more than 50 cities across the country. Recently, its offline experience pavilion has also swung from the western city to Beijing, and the northern market has officially opened its doors. According to reports, the Beijing Experience Hall has only opened more than 20 orders in two days, and the network consulting customers have set a record of more than 200 people in a single day. The consulting volume is much higher than the traditional brand store model.

In addition to the superior quality and stylish design of the Liwei products, the O2O e-commerce sales model is also a successful aspect. The customer can clearly understand the details of the product online, and the pre-sales service personnel will contact the customer within 24 hours after the online order is placed. Liwei has established 6 service centers throughout the country, and customers can also go to physical stores for consultation. The Liwei family's process has greatly saved consumers' time and energy, and also saved the cost and expenses of the company.

Different from traditional enterprises, Liwei began to focus on building furniture brands in the network era, and built the dual dimensions of online experience and offline experience, achieving online and offline prices and services. Therefore, many well-known furniture brands have also opened flagship stores on platforms such as Tmall, and are always ready to transform O2O e-commerce.

The 19 hypermarkets forced Tmall's temporary compromise through "boycott", but the transformation of traditional furniture companies to O2O e-commerce has been overwhelming. If it is just a boycott, and not to improve the Internet thinking as soon as possible, the only thing that falls down is the backward self. The winner will be a company that sees the future, caters to trends and chooses innovative sales models.

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