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Interpretation of the confusion of furniture e-commerce development model
Date:2020-12-01   Share:

Data shows that the annual sales of furniture category last year was 870 billion yuan, but even the leading enterprises ranked first accounted for less than 1% of the market share, and they did not form a monopoly like 3C stores. Facing the big cake of China's furniture industry with annual sales of 870 billion, not only many emerging e-commerce brands have emerged, but even traditional home furnishing companies like Red Star Macalline have begun to vigorously set foot in the blue ocean of e-commerce.


Especially this year, when the traditional furniture industry is worried about the channel situation of "closing, stopping, merging, and transferring", the furniture e-commerce is advancing all the way. From the current point of view, there are three forms of furniture e-commerce, one is the Tao brand in Taobao mall, the other is an independent mall with its own brand in the market segment, and the other is electric shock by traditional big-name furniture dealers. These three forces all exist in different forms, each with their own advantages and strengths, but they all face some of the same problems.


In the United States, the sales of furniture online has already accounted for 40% of the total sales, but in China, the proportion of sales in the online furniture market is not too high. With the widespread popularity of the Internet, online shopping has been recognized by a large number of consumers, and has gradually become the primary shopping method for the post-80s and 90s. However, there are still some consumers who are not optimistic about the way to buy furniture online. The reason why this part of consumers have reservations is because they buy furniture online, the most serious defects are difficult to experience the product in person, and the problem of installation and after-sales is solved.


Based on these concerns of consumers, furniture e-commerce companies also have corresponding solutions, that is, adopting the O2O model, combining online and offline, on the one hand, consumers can experience the products in person, and on the other hand, they can also use offline physical stores for consumption. Provide installation, after-sales and other services. However, the large-scale construction of offline physical stores will also increase various operating costs, such as store rent, labor costs, water and electricity costs, property management and other expenses. With the increase in operating costs of merchants, this investment is bound to be transferred to products, which is contrary to the purpose of e-commerce to provide customers with cost-effective furniture. At the same time, many experience centers are equivalent to a huge chain enterprise, which is also quite difficult to manage. There are also opinions that it is necessary to be an offline regionalized experience center to complete various services, but China has a vast territory and a large population, and regionalization cannot well cover many remote areas. Inevitably there will be a discount for the "national service".


The Internet is a fast-developing industry, and the furniture industry is relatively stable. The combination of one fast and one slow is bound to sparkle. The Internet will also stabilize this lucrative industry with complex intermediate links, and make the quality and service of each brand transparent. At present, there are many fighters competing for furniture e-commerce. I hope not to be deceived by the name. E-commerce is actually just a convenient tool. I hope that more brands can be down-to-earth and focus on how to make online furniture shopping more convenient and how to make products better. How to make the service more subtle, work together to create a good environment for online shopping furniture, and prepare for the spring of furniture e-commerce.

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