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Say goodbye to high-growth home industry into a high-quality transition period
In 2018, the home industry ended a period of 30% rapid growth and entered a steady development stage. With the overthrow of the home improvement giants and the disappearance of the market dividend, various segments have explored the breakthrough. Looking back this year, the industry believes that after more than 20 years of development, consumers are returning to rational consumption. Due to the influence of the Internet, traditional marketing channels are facing transformation or sinking, while products continue to diversify and multi-dimensional development, forecasting 2019 A structural transition period for high quality development.
market:
Rational consumption, consumption reduction
Compared with the rapid development of the home industry in recent years, this year's situation is somewhat unsatisfactory. According to the earnings report of the first three quarters of 2018 disclosed by more than 40 home-listed companies, the growth rate of the home furnishing industry slowed down significantly compared with the same period in 2017. In particular, custom homes have officially ended the high-growth era of 30%~70%, and entered the new normal of 10%~20% growth. In fact, custom homes are still the best performing segment in the home-listed companies. Relatively speaking, there are many companies in building materials and sanitary wares with a single-digit growth rate. In addition, nearly 10 companies have even net profits. Negative growth, three negative revenue growth, including Qu Mei, Foshan Lighting, Yazhen, Dream Lily and other well-known brands.
The industry’s debate about whether consumption is downgrading has never stopped. In this regard, Lin Tao, the president of the Guangdong Wardrobe Industry Association and the chairman of Kefan Customs, said in an interview that the domestic consumer market cannot be said to be upgraded or downgraded. In the case of first- and second-tier cities, there are a large number of markets facing the market. Homogeneous products, most consumers tend to buy high-quality products under the premise of constant price; while consumers in third- and fourth-tier cities, after understanding the drawbacks of traditional home improvement, began to accept industrial customized products, and gradually established The correct concept of home improvement consumption. He said: "Overall, consumption upgrades or downgrades are not determined by the price level, but by the requirements of product quality, and now consumers are returning to rational consumer demand."
In response, Nielsen's recent 2018 Chinese consumer market research shows that 39% of consumers are still willing to continue to upgrade their consumption, indicating that they are willing to buy better quality but relatively expensive products, while 15% of consumers It is a product that is willing to buy a product that meets the basic efficacy and is relatively cheap, but only 1% of consumers are willing to sacrifice low-quality products at the expense of product quality.
The "Big Data Research Report of Home Furnishing Industry in 2018" released by 360 big data also shows that nearly 85% of the population will focus on the general needs of decoration renderings, furniture, materials, etc., and the proportion of attention to platforms and brands. Less than 9% respectively, which means that compared with price and brand, consumers pay more attention to product quality. Zeng Yong, secretary general of the Guangdong Customized Home Furnishing Association, believes that “consumption should be upgraded under the macro consumption trend. In particular, consumers in first- and second-tier cities still pursue luxury goods, but 'luxury’ is not reflected in price, but In terms of quality."
Channel: set off a new wave of retail transformation
In the case of the market tending to rational consumption, companies have also made various attempts in marketing. It is understood that since 2016, the concept of “new retail†has been thrown out. In 2017, it became the main line of action for companies with strong comprehensive strength. It is a year in which various new retail formats and elements are concentrated, and it is called “new†by the industry. The first year of retail sales." This year's home furnishing industry has also launched a new wave of retail transformation.
In April, the home of the family made efforts to build a home with 230 stores to experience the full layout of MALL to achieve the consumption of fresh supermarkets, catering theaters, sports and fitness, children's entertainment, home care, digital intelligence and other large consumer formats. Then, Shangpin Home has opened two 3000+m2 super-stores in Shanghai and Beijing, which is intended to create a slow life experience zone that integrates “home, fashion, art and socialâ€. Sophia, who is also a custom giant, has also explored three modes of smart stores, life experience museums and design stores.
Under the impact of the new marketing model, the traditional channels have gone from bad to worse. At an industry forum held in Guangzhou in August, Fan Xueyou, CEO of Haojia.com, revealed that a medium-sized store with an area of ​​20,000 square meters in Guangzhou can accommodate about 100 specialty stores. The sales volume will increase from Monday to Friday. At around 500,000 yuan, the average sales to each counter is only 5,000 yuan, which is a 20%-30% decline compared with the same period last year.
But this year, Red Star Macalline and the House of Reality have proposed the "Thousand Stores Plan." According to the official website data, the number of domestic Red Star Macalline shopping malls exceeds 300, and there are more than 270 homes. In the future, it will cover third- and fourth-tier cities while covering first- and second-tier cities. The same channel is sinking also by IKEA. This year's online e-commerce has expanded its service to 149 cities, breaking the tradition of buying IKEA products in only the first and second tier cities, and trying small downtown stores and experiences. Shop and so on.
In Zeng Yong’s view, based on the impact of one-stop consumption trends, most of the stores are now close to consumers, such as shopping malls, community stores, etc., and are no longer limited to traditional frameworks, showing a diversified development trend of channel layout. .
product:
Serving products
Diversified development
Products are based on the market. According to the data released by the Prospective Industry Research Institute, this year's domestic furniture presents different development trends. The wooden furniture focuses on materials and design, emphasizing visual perception; metal furniture pursues fashion, personality and Recreational function; software furniture is the key to the unification of art and function, and is dominated by high-tech content and high art content. More and more enterprises have begun to focus on production management, product research and development, from single product production to diversified product services. Some enterprises have achieved remarkable results in transformation and upgrading. The problems of serious product homogeneity and overcapacity have also been curbed.
Lin Tao believes that based on the complex and ever-changing characteristics of the domestic market, it is no longer possible to treat the entire market from a single dimension, but to adapt to local conditions, “such as the pursuit of quality in some regions, master designs will be popular; some regions If you look at the price/performance ratio, you can make a discount package," he said. "And each region is made up of multiple consumer groups, so diversification will not stop."
At the same time, with the release of the new environmental protection policy in 2018 and the increasingly clear industry norms, the home industry has gradually shifted from home producers to residential service providers, and is moving from the low-end to the mid-to-high end in the value chain, and needs to adapt to continuous reform and innovation. New development situation.
future:
Welcome to "Hundred Flowers"
High quality transformation
"I don't think there is a home 'cold winter' in 2018. Lin Tao told reporters: "In fact, the market has not narrowed this year. Enterprises feel that the difficulty of operation is due to the influx of a large number of non-compliant enterprises, disrupting the industry and increasing competition, so that the original healthy development. The industry has revealed a strange atmosphere. Regarding how to look at the development in 2019, he believes that with strict control of environmental protection policies and improved supervision, enterprises will survive the fittest and will leave high-quality enterprises. Next year is still a year of diversified development of “Hundred Flowersâ€.
At the same time, Zhang Chuanxi, president of the Chamber of Commerce and Industry of the National Federation of Industry and Commerce, said: "This year's consumption is only temporarily suppressed. Because of the lack of confidence in consumers' fear of the economic prospects, the gap in consumption will be restored. At the same time, enterprises must grasp the precision. Marketing, integrated marketing, try to avoid the marketing of the Red Sea, do the innovators do not follow. The key to innovation is to establish differentiation from the source, with a unique supply chain system as a support, on this basis, research and development can avoid the same product Qualitative. Overall, 2019 is a structural transition period for the home industry to high-quality development."