Analysis of Six Major Marketing Trends in 2010 Home Improvement Industry

In 2010, China's home decoration industry marketing will enter the development bottleneck and urgently need to break through the stage. On the one hand, it is faced with the change and innovation of marketing perspectives; on the other hand, it aims to promote marketing technology, marketing innovation and new media and digital network environment. Breakthroughs will inevitably become the goal pursued by home furnishing companies. In response to this problem, Mr. Liu Dongming, Director of the Network Integration Marketing Research Center of the China Electronic Commerce Association and General Manager of the DM Network Integrated Marketing Agency, was invited by Yuanzhou Decoration Group to participate in the 2010 Yuen Chau Group Planning Marketing Manager Summit. Leading Machines' keynote speech released six major marketing trends in the home improvement industry in 2010.

First, home improvement companies from the Luo network

With the increase of Internet users and the Web2.0 era, online marketing has become a trend. According to statistics, in 2008, the proportion of home furnishings was 14.1%, and online advertising efforts were greatly increased. Beijing Home Furnishings entered the TOP10 list of online advertising in the real estate industry, while other home furnishing companies, including Jimei Furniture, Huanimei and Lanjinglijia, increased their efforts in network promotion in 2009.

At the same time, the number of people required for home decoration network marketing has increased substantially. Most home decoration companies have begun to try online marketing services such as website construction, website promotion, and search engine promotion. Data shows that the use of the Internet instead of traditional marketing channels can save 10% to 20% of the cost, so that the huge temptation to make home improvement companies do not need other people's boost, no hesitation jumped into the river of online marketing.

Second, the brand gold shield

The excess profit created by a good brand to a company is huge. The manufacturing cost of Qingdao Double Star Shoes and American Nike Shoes is only 3 to 5 cents. However, the market price of the two brands differs by a full 5 times. This is the strength of the brand. Home improvement companies are also increasingly clear that the value-added points of commodity prices will mainly rely on brand building. Home improvement companies need to quickly find accelerators that suit their brand growth and build their own brands.

The home improvement industry has been playing a protracted price war. Which is the lowest price in the competition, and often the last two lose. In fact, as far as consumers are concerned, the requirements of the brand are better than the requirements of the price. The brand has become a guarantee in the minds of consumers. The brand symbolizes quality and after-sales service. Can stand invincible. For the current home decoration industry, what is lacking is the construction of the brand. How to better build the company's brand has also become a major issue for the home improvement industry.

Third, experiential marketing

In the IKEA store, the hot scenes of its instigation are difficult to appear in various stores under the current social and economic downturn. IKEA encourages its customers to “pull open drawers, open doors, and walk on carpets” in the store, or try to see if the bed and sofa are sturdy. On the third floor of the Beijing IKEA store, there are 58 model home design rooms with different specifications of 9 square meters, 14 square meters, and 20 square meters. They are different for single aristocrats, young couples, families of three and children. The living space proposes different options. This new style of marketing is experiential marketing. With the success of IKEA, this way of marketing will gradually spread.

In order to realize differentiated operations, the retrofitting company began to attach importance to the image packaging of the brand, opened a home experience hall and a living hall with unique brand culture, and arranged the mall storefronts and exhibition halls into simulated household halls to integrate the products into them, including related accessories. And accessories, so that consumers feel at the time of the visit, to understand the product's features, experience the comfort brought about by the product, thus promoting consumer demand for purchase. The three-dimensional space is used to display its own connotation and definition. In this display space, the interaction between consumers and businesses is more inclined to an emotional and lifestyle identity. Not only that, but experiential marketing also expands the consumer. For the trust of the company, it began to gradually establish its own brand.

Fourth, cross-border cooperation, mice married to cats

The home improvement industry is located between the cold industry and the hot industry, and the popularization of communication will be beneficial to the marketing effect. How can the cold become hot? The greatest benefit of cross-border cooperation for a brand is to allow elements that are irrelevant or even contradictory and opposed to each other to infiltrate each other and create new highlights. In recent years, the home improvement industry has also started to frequently attack and seek cooperation. Through cross-border, the cold industry will become a hot spread! At the same time as the “Wind Sound” movie was released, Dong Yi Risheng and Huayi Brothers joined forces to jointly attack each other and use advertising resources to form an advocacy alliance. Dongyi Risheng did not pay fees to Huayi, but provided Huayi with advertising resources including outdoor, various mainstream newspapers, networks, and community activities in multiple channels. Huayi saves a lot of money for promotion, and Dong Yi Risheng wins free stars and is known to consumers.

When co-marketing with other industries, companies get a platform, a multi-benefit marketing, no matter what kind of way, this kind of “cross-border” marketing will benefit the home improvement enterprises. The increase in sales volume, more importantly, is the growth and deepening of home improvement brands and corporate culture during the activities.

V. Marketing sinking, Nuggets second and third line market

According to estimates made by the McKinsey Global Institute, China's urbanization process is mainly decentralized. In 2005, 45% of city GDP was concentrated in the top 40 cities, and the remaining smaller cities created the remaining 55%. In the next 20 years, the impact of these "small cities" will not diminish. In fact, by 2025, about 900 small cities will create 54% of city GDP and contribute 55% of GDP growth. Liu Dongming, director of the China Electronic Commerce Association's PCEM Network Integrated Marketing Research Center, emphasized that this has provided a new opportunity for the home improvement industry. More and more second- and third-tier cities have become new marketing impetus for the home improvement industry. For the first-tier cities, the company has strengthened the in-depth development of the second and third tier cities, and has gradually become a new growth point for the efficiency improvement of our home improvement industry. The Nugget potential of small and medium-sized cities has increasingly attracted the attention of enterprises.

It should be noted that there are certain differences in the marketing ecology between second-tier cities and first-tier cities. They cannot use the first-tier cities’ marketing models to directly apply to second-tier and third-tier cities. First, they can identify the second-tier and third-tier cities’ consumer status, proceeding from actual needs, and The situation is adjusted.

Sixth, no innovation, no promotion, jump out of the bargaining war

Holiday promotions are very much a sales node for the home improvement industry. The annual sales of well-known brands can account for more than 10% of the company's annual sales, while the low-profile companies, holiday promotions can account for 30% or more of annual sales. “Adult 51, Qingdian, 30% discount in store” advertising can be seen everywhere, but most home improvement promotions have nothing new, as long as the promotion is to cut prices. Now that your price war is dead, this kind of promotion can no longer attract the attention of customers. Promotions are not necessarily price reductions. If you can grasp the customer's consumer psychology, you are good at breaking through conventional thinking, and at the right time, you can take the opportunity to make a positive and active practice. Innovation is not just about pushing products to the market, allowing customers to accept them passively, letting customers feel that they need it, and consciously generating buying behavior. This requires the installation industry to innovate new promotion methods in the later development, adopt a more abundant marketing model, and be creative and non-promotional.

Dongpeng Ceramics and five other well-known pan-home furniture brands: Europa, Nature, Midea, Red Apple and NVC formed a promotional alliance to advertise “Very Great 5+1 Champions League Concessions” during holiday promotions. Is to provide customers with a one-stop full range of purchasing experience, in order to drive sales. In the face of increasingly discerning tastes of consumers, brand-named joint promotion is undoubtedly a powerful sublimation version of holiday promotions, and a win-win situation through brand cooperation. The "signature" was first used by writers and stars in the performing arts for new book launches and new record releases. It can also be used in the home improvement industry. TATA used the “sign-up”, a novel and practical activity, in the wooden door industry to win a double harvest of sales and reputation. TATA Wooden Doors has innovatively developed the "Presidential Signature", launched the "Presidential Video Signing", and detonated the event site in a series of events such as the TATA Wooden Door 10th Anniversary celebration, which attracted the enthusiastic attention of the industry.