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Foshan Furniture: E-commerce started
Over the past 30 years, the furniture industry in China has been occupying more than 60% of the market share, becoming the most developed furniture manufacturing area in China and the largest furniture export base in the Asia Pacific region. However, with the vigorous development of the furniture industry in Beijing, Sichuan, Jiangsu, Zhejiang and Shanghai, the “Yuepai†furniture market has been continuously squeezed. On the other hand, the e-commerce has eroded the offline retail market, and the “Yuepai†furniture industry has also been A lot of boost. Under such double oppression, what kind of sentient beings will the “Yuepai†furniture enterprises show? Is the transformation and upgrading or focusing on the subdivision, forced to go online or stubborn? In September, the author took these questions to Foshan, the source of furniture in Guangzhou. A one-week visit was conducted. Looking at Guangdong in the country's furniture, Foshan in Guangdong furniture? "National furniture to see Guangdong" is a long-standing saying in the furniture industry, and Foshan is the distribution center of Guangdong furniture supply. Last year, the output value of Foshan furniture was close to 100 billion yuan. Mainly based on Shunde, it is divided into two concentrated areas of Longjiang and Lecong. Longjiang is a "China's furniture manufacturing town", mainly focusing on furniture manufacturing. Most of the furniture factories of various sizes are concentrated here. The famous traditional brands include the Louvre, etc.; Lecong is the "China Furniture Trade Capital", mainly for business. The sales distribution center of furniture brands is here, similar to Red Star Macalline, etc., mainly selling finished furniture. Foshan is the earliest development area of ​​the domestic furniture industry. After more than 30 years of development, it has formed a relatively complete industrial chain and industrial cluster, with strong supporting capacity, not only the distribution center of furniture in Guangdong Province, but also the raw materials, processing equipment and products of the national furniture industry. Production and procurement base. After years of competition in the market for survival of the fittest, many powerful furniture companies have also been established. These enterprises not only have the advantages of supply chain, but also attach importance to their own brand promotion, product design, production process and after-sales service. However, in recent years, the furniture industry in Beijing, Sichuan, Jiangsu, Zhejiang and other places has developed strongly and gradually grabbed the market share of Foshan furniture. On the other hand, the impact of e-commerce on offline retailing has made offline traditional enterprises “onlineâ€. Faced with such a situation, the Foshan furniture industry has also begun to pay attention to e-commerce. This year, Longjiang Furniture Fair set up an e-commerce zone for the first time. The government focused on building a nationwide sales platform for furniture e-commerce, forming a new model for the synchronization of physical stores and online sales. Many enterprises are gearing up. In 2007, Lin's wood industry was in Taobao, and in 2008, the furniture B2C platform, Merlot, went online. Later, there were more purchases, good weather, Zuofan, JF and other Foshan furniture companies. According to relevant data, there are already many pure furniture e-commerce companies in Foshan, and there are more than 300 in Longjiang alone. Longjiang Lecong’s furniture e-commerce transaction volume accounted for 50%. SMEs busy e-commerce, seize the new channels of sales at the hotel entrance to see such a recruitment notice "I am a hotel investor, now Longjiang development of the second industry - furniture Taobao shop, interested in cooperation, please contact me", see e-commerce in Longjiang Town has many fires! However, according to the author's observation, local small and medium-sized furniture companies and small workshops prefer e-commerce, and they are eager to try out e-commerce platforms such as Taobao and Tmall; while large furniture brands, especially traditional brands, Always maintain a wait-and-see attitude, not even a good attitude. According to Qian Jiang, dean of Guangdong Shunde Furniture Research Institute, furniture e-commerce is still not mainstream in Foshan, mostly for some unknown brands. The reason is that for large furniture brand enterprises, the logistics distribution and service of furniture is a very important link. These links can be completed online and the whole process system is also very complete. If you move to the online, there will be Many uncertainties. On the other hand, due to the high brand awareness, online has occupied a stable market share. If online sales channels are opened again, online and offline channel conflicts will cause conflicts of interest between enterprises and dealers, breaking long-term cooperation. System, many brand companies are not willing to take such risks. But for SMEs, the situation is the opposite. Large brand companies are strong enough to afford high rentals and expenses for offline furniture stores. The offline sales model also allows them to occupy a large offline market share. SMEs, because of limited funds, resources, and expensive rents, make it difficult for them to profit from the traditional sales model. Therefore, they prefer online resources and use the online as a new sales channel and base. The Taobao furniture TOP seller, Foshan furniture brand Lin's wood industry, established less than ten years, has achieved annual sales of several hundred million yuan, ranking first in the furniture industry. The myth of a company from a company to a big company has become a local benchmark, allowing many small and medium-sized sellers to see hope from it, and even more want to get a piece of it. Furniture e-commerce watershed, transformation and subdivision of the Foshan furniture e-commerce, Lin's wood industry due to the early entry into Taobao and Tmall, relying on the local furniture supply advantages, when the furniture market is at 50% profit, Lin's wood The industry has played 10% of the meager slogan, and it has quickly occupied the position of TOP1 seller in the Taobao furniture category. This has brought hope and encouragement to Foshan furniture e-commerce to a certain extent, but in recent years, with the traditional enterprise With the continuous entry and the launch of large-scale furniture platforms such as Melaleuca, Qumei and Hongxing Meikailong, the competition in the entire online furniture market is also becoming more and more intense. Under such circumstances, Foshan furniture sellers began to face the urgent need to cater to the market, carry out store transformation, and take the road of subdivision, focus on the creation of superior products, and become the attempt of small and medium-sized sellers to break the dilemma. For example, in the Tmall JF home flagship store, in order to avoid the confrontation with strong brands such as Lin's wood industry, in the second half of this year, the shopkeeper Yan Xin began a drastic transformation of the store, specializing in the furniture industry subdivision. The shopkeeper cut off most of the furniture such as sofas and sofa beds, focused on modern style leather beds, and positioned the store as the “first brand of online modern leather bedsâ€. From the design of the leather bed, materials and other aspects to the consumer to spread a fashionable, modern and comfortable life concept, in order to shape the leather bed brand, enhance the brand's visibility, and ultimately achieve product premium. Focusing on “small and beautifulâ€, on the one hand, it can highlight the superior products of the store, on the other hand, it can also reduce the cost line and reduce the inventory pressure. It is a better way for small and medium-sized sellers to break through and build a brand. In addition to the JF home flagship store, many furniture sellers in Foshan are trying to take the subdivision route. Tmall and the flagship store specialize in European and Korean furniture, taking a differentiated, low-cost route; good weather home flagship store is advocated modern minimalist style, the main designer brand; and small workshop-style C-type shop, such as a The Zuo Fan creative shop of the Crown specializes in creative and multi-functional furniture such as folding side-turning beds, invisible beds and combination beds. Foshan furniture "Electricity", the insurmountable e-commerce is constantly developing and mature, allowing furniture e-commerce to understand its own situation more thoroughly, and to make more reasonable positioning and development decisions for the store. At the same time, on the basis of familiarity with e-commerce operations, we will better understand the marketing and promotion methods of e-commerce and new media. For example, the old brother Lin's wood industry, Lin's wood industry is the self-timer drama "Xiao Haohao 11 days of crazy stripping tour", in the forums, post bar caused a concern boom, and then on the eve of the 2012 Singles Day, launched a promotional film " Lin's wood industry Jiangnan style of the small Haohao Wang return, combined with Taobao drills, through train, Amoy, double eleven main venues, gather cost-effective brand group, etc., integrated marketing, double eleven day sales reached 60 million yuan. However, for most of the furniture sellers in Foshan, most of them are doing OEM and offline. Although they have a strong awareness of e-commerce and sales channels, the understanding of the Internet and e-commerce is still relatively advanced. Stage. Some furniture e-commerce companies used the advantages of Foshan furniture supply to participate in many activities of Taobao, but the result was that the shop was very hurt. A Tmall home flagship store with annual sales of tens of millions of yuan has been developing smoothly, but due to frequent participation in the cost-effective activities, 80% of the store traffic comes from activity traffic, 20% natural traffic, and the flow constitutes extremely unhealthy. Sales have been stagnant, and there are even signs of retrogression. In Lecong Town of Foshan, there is also a saying that “the director is not a yearâ€. The shortage of talents, especially the shortage of electric merchants, has always been a serious embarrassment for the development of Foshan furniture e-commerce. The common problem of furniture e-commerce industry is also an insurmountable hurdle for Foshan furniture e-commerce. Taobao has done research on furniture categories. Buyers are most concerned with logistics, followed by environmental protection, and the most is price. Furniture belongs to large-scale goods. To change from the traditional sales model to e-commerce, the primary solution is logistics and distribution. For example, in Linshi Wood, it is a relatively effective solution to establish a warehouse in other parts of the country and cooperate with installation and distribution service companies or logistics companies. As for the environmental protection of furniture, because the furniture belongs to non-standard products, some formaldehyde and other odors lead to unqualified quality, and the local detection mechanism for this is not perfect. It is understood that the environmental protection of furniture has always been a concern of Taobao, especially children's furniture, environmental certificates, third-party sampling and other modes will work, Taobao will make a unified promotion of the concept of furniture environmental protection through the vertical market, the vertical market will Will become the industry's vane. [Interview after the interview] In Foshan, the relatively mature furniture e-commerce like Lin's wood industry is still rare. The homogenization of the entire Foshan furniture e-commerce industry is more serious. The taste of selling goods is relatively strong, and the lack of The tonality of the brand's vitality. Fortunately, in the e-commerce environment focusing on personalized labeling, Foshan furniture e-commerce is also accelerating the reshuffle, sellers began to emphasize the subdivision positioning, pay more attention to product design and packaging, giving their own brand unique label and taste. .