In recent years, the awareness of the furniture industry on the Internet has greatly increased, and more and more furniture companies have begun to use the Internet for brand promotion and online marketing. Online brand advertising is also increasingly accepted by companies, while furniture companies' investment in online online stores continues to increase, and furniture e-commerce is on the rise.
According to the "26th Statistical Report on Internet Development in China" released by the China Internet Information Center (CNNIC) on July 15, as of the end of June 2010, the number of Chinese Internet users has reached 420 million, with an annual growth rate of 31.8% . The report also shows that the user scale of business transaction applications has grown the fastest. As of the end of June 2010, the online shopping, online payment and online banking user scale growth rates were 31.4%, 36.2% and 29.9% respectively, with growth rates on various networks The top three in the app.
1. The development trajectory of online marketing in the furniture industry
In the history of online marketing in the furniture industry, the earliest development of the B2B business represented by "Huicong Network", many small and medium-sized enterprises embarked on the road of online sales, opened small shops on large network platforms, looking for overseas Buyers. Many professional furniture platforms for network furniture similar to the "Huicong Network" model have also emerged. In addition, there are some furniture "gateway" websites developed for domestic demand, but there is no innovation in the model. Products are mainly displayed, only for the purpose of information communication, and product transactions are still realized offline.
Since then, larger or more innovative furniture companies have started to establish their official websites to promote their businesses and products through the websites. At the same time, furniture stores have also begun to establish similar official websites, introducing relevant information about their stores through the site, as well as brand information settled in them. However, these websites are only for publicity purposes, there is no online transaction of goods.
During this period, some websites tried the "online display + experience store sales" model, such as the "home easy station" that was rated as "China's top 50 most valuable investment companies", but this company was established in 2004 in 2009 In June 2015, he applied to the court for bankruptcy and liquidation due to the breakdown of the capital chain. Analyzing the reasons for its failure, the failure in the model may be the most important. Its "home improvement company + group purchase network + hedge shopping mall" model uses the experience center settlement center as the core category of operation, which is no different from the traditional store. Taking low prices as the only selling point deviates from the industry essence of low standardization of home building materials and the emphasis on space personal experience (touching texture, smelling smell, looking at color).
However, recently, with the maturity of online payment methods and tools, and the rapid rise of online shopping, some furniture companies and furniture stores have broken through the original online marketing model and achieved remarkable results around online sales and operation of websites. The following analyzes two cases of online stores and furniture network stores for readers' reference.
2. Two modes of furniture network marketing
2.1 From traditional stores to online shopping malls-a century of transformation
As a veteran furniture store founded in 1999, the Hundred Years Home Furnishing Chain Store (hereinafter referred to as "Hundred Years") owns two major home furnishing retail brands-HOBA, HOTEN, and brand new Home business model-Hobalife Online Mall (Hobalife). By the end of 2009, it had opened nearly 20 large-scale home furnishing chain stores in domestic large and medium-sized cities, and had resources of 1,600 manufacturers and 3,500 dealers.
Before the global financial crisis in 2008, the business model for hundreds of years was not essentially different from other furniture hypermarkets. The main profit came from the rental income of shops. But what is different from other selling places is that it has its own R & D department for hundreds of years. This department is responsible for the formulation of the company ’s furniture product development strategy, development plan, and annual R & D plan, and organizes and implements the overall work of the company ’s furniture product OEM / ODM . This also laid the foundation for product development and procurement for a hundred years of going to the online store.
The decline in consumer income brought about by the financial crisis has made Hundred Years pay more attention to attracting the attention of post-80s consumers through online means, because online shopping, a cost-effective and convenient means, is what these consumers value. At the end of 2008, the opening of the Shenzhen Luohu Network Experience Flagship Store was officially launched.
At present, there are tens of thousands of home goods sold online in the Hobalife online mall, which are coded according to their own systems for hundreds of years, and the scale is equivalent to a large physical mall of more than 100,000 square meters. The Hundred Years Online Mall Experience Center with an area of ​​15,000 square meters is an offline physical display platform for furniture, a special commodity.
The products of the Hundred Years Online Mall are mainly aimed at the post-80s consumer group between the ages of 25 and 35, and are mainly based on fashionable, simple and affordable modern style products. The products operated by the Hundred Years Home Furnishing Store are mainly French palace, Italian design, Scandinavian simplicity and other styles, aimed at middle and high-end consumers with purchasing power. Therefore, the two do not affect each other's overlap and are a complementary relationship.
Compared with physical stores, online shopping malls have a lower price advantage. For 30 years, 30% of the commodities in the online mall are produced by ODM and OEM, which can minimize the production cost; more than 60% of the commodities are purchased with massive orders, which squeezes out the profit bubble of the middleman and greatly reduces the procurement cost; It can effectively save expenses such as site rent, water, electricity and labor. Therefore, the prices of goods sold in online malls are 30% to 50% lower than those in the market, which is also the most attractive place for online shopping compared with physical stores. For example, the Nordic-style bedroom four-piece set launched for only 3699 yuan, including a 1.8-meter bed, a 1.82-meter wardrobe, a bedside table and a dressing table each. If customers order online, they can pay by interbank online payment, Alipay, and Tenpay, plus freight from Shenzhen to designated cities across the country, or pick up their own goods at the experience store. The website promises "three guarantees" for product quality within 90 days and free maintenance service within 180 days. But currently only provide on-site installation services in Shenzhen, Shanghai, Hangzhou and Zhengzhou.
According to Hang Yong, Marketing Director of Haobainian Home Furnishing Chain Co., Ltd., the sales of this channel are still in the exploratory stage. To make up for the existing channels, the second is to take the lead in the future e-commerce wave.
"Hundreds of years of value chains composed of seven major value loops, including research and development, procurement, distribution, e-commerce, brand franchise, logistics and investment promotion, through this value chain, you will find that we put traditional profit through investment The last one in the source of corporate profits. "Hang Yong said that the first six value links are aimed at own brands for hundreds of years. Hundreds of years of reconstruction of its value chain through an online mall is a worthy exploration in the furniture distribution industry.
2.2 Online shopping is also crazy-Qumei's online layout
Domestic high-end brand Qumei Furniture (hereinafter referred to as "Qumei") is always the first in the industry, as is Internet marketing. We can look at Qumei's footprint on the Internet: Qumei's corporate website-Qumei Mall-Qumei Taobao Mall Store. Like most furniture companies, the main function of Qumei's corporate website is the company's overall image and brand promotion, as well as the display of a full range of products, and does not have the ability to conduct real-time online transactions. For consumers, through this website can only have a preliminary impression of the brand, the actual product experience and consumption can only be completed in the physical store, so this kind of website is extremely limited for marketing.
Faced with the impact of the financial crisis on traditional channels, Qumei confirmed the channel collaborative e-commerce project in December 2008. After 7 months of investigation and demonstration, it was ready to be implemented. In June 2009, Qumei “eWorld†online mall was launched . According to the China B2B Research Center: Qumei "eWorld" online mall is the first online direct sales product sales platform established by an independent domestic furniture brand manufacturer, opening the road to innovation in the Chinese furniture industry brand online direct sales.
Qumei Online Mall completely broke the static promotion model of the company website "can only see but not buy", realized online real-time virtual shopping, and cooperated with traditional retail store channels to achieve a series of after-sales services such as product distribution, installation, and exchange . Qumei President Zhao Ruihai said: "This e-commerce platform is not the simple way to buy a shirt or book that we see now, and do it by mail; now we are cooperating with nearly 700 experience stores in 175 cities across the country. Business work. This is called 'mouse and cement'. "
Compared with the product series operated by brick-and-mortar stores mainly for middle-to-high-end groups, Qumei has specially developed products for young consumers in a fashion and simple style for online shopping malls, which has achieved product differentiation and enriched the entire Qumei. Product series; at the same time, adopt batch-type centralized production mode, reduce costs from the source of production and eliminate intermediate links, push the factory direct sales price to the network special price platform, and reasonably coordinate the interests between dealers, play "channels "Synergy" advantage, to achieve low prices on the Internet. The "low-priced brand" model is also the biggest advantage and highlight of online shopping to attract consumers. According to the statement of Qumei President Zhao Ruihai at the Shanghai Exhibition in September of the same year, the online store's turnover growth rate reached more than 30%.
3. Outlook
Furniture network marketing and furniture group purchase networking are still in their infancy, and as a sales platform, online furniture display malls are unlikely to replace the physical store's position overnight. Even IKEA, which has tried water marketing for many years abroad, has not dared to open an online shopping platform in China. Although there are many difficulties in online furniture marketing, online furniture marketing will become an inevitable trend in the near future.
When the post-80s and post-90s become the mainstream consumer groups, we will target consumers who grew up with computers and networks, and their consumption patterns will be different from those of older consumers. Although furniture is a product that attaches great importance to experience in sales and physical store sales are indispensable, how to expand the influence of the brand through the Internet is a must for furniture companies.
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