The layman does not understand the insider, the consumer is often in a weak position in the consumption process, especially the home decoration, right Owners who don’t understand the decoration can easily fall into the traps set by the decoration company or the decoration team. Compared with the mature market, this is closely related to China’s still chaotic and unregulated home ecosystem. Let us directly address the pain points of new home retail in the digital age and look forward to a better consumer environment!
The new home retail in the digital age, that is, consumer-centric, with the scene For the entrance, through the composite product service and the integration of contacts to drive the C2B supply chain, to meet consumer demand for the ideal family life, and extended to other related industries.
The current home new retail ecosystem has many pain points
China’s new home retail ecosystem has a large scale and a fast growth rate.
2016, the market size of new home retail brands and service providers in China It is close to 5 trillion yuan, and the growth rate in 2015-2016 is as high as 8%. It is far ahead of the European and American markets in terms of market size and growth rate. At the same time, the network penetration rate of the back-end of China’s new home retail sector is comparable to that of Europe and the United States. In 2016, the penetration rate of back-end home appliances has reached about 20%, slightly higher than the European market (14.9%), which is equivalent to the US market (19.2%). .
Online penetration of front-end home improvement and building materials is not high, currently only About 8%, compared with Europe (9.2%) and the United States (15.4%) have more room for development. However, compared with the mature market, the new home retail ecosystem in China is still chaotic and lacks norms. To avoid being cheated, consumers are forced to spend a lot of time learning about decoration.
For Chinese consumers who don’t love DIY, the biggest pain point is In the long process of consumption, I have to do it myself. For brand owners, one of the most difficult problems is to face the lack of knowledge, the identification of good and bad consumers with limited ability, how to stand out in the industry with low-frequency trading characteristics and mixed market.
The digital home China’s new home retail will show five major trends
Trend One: Standardize the Market – From Non-standard and Chaotic Markets
Going to the standard and quality assurance standards provided by the platform, the national installed service market is mixed, and in 120,000 renovation companies in 2016 Only half have relevant qualifications. The future is bound to move from a non-standard and chaotic market to a regulated market that provides standards and quality assurance by the platform.
As consumers become more concerned about health and environmental protection, brands and channels In addition, we are striving to provide more healthy and safe basic building materials, and home appliances such as air purifiers and fresh air systems that improve environmental quality are also popular. For example, in the environmentally-friendly eco-board of plates, sales in the plate category accounted for 2015. Less than 1% of the rapid increase to 23% in 2016.
We also noticed that many e-commerce platforms will set the threshold for decoration companies. If you have a Class C decoration decoration qualification. In addition, user comments, users askA, the designer’s work display and even the decoration forum, decoration diary and other UGC content and mechanism, making the decoration company’s service quality, price and other information more transparent, the whole process of monitoring and regulating the chaotic decoration service market.
Trend 2: Life Scenes – From Selling Items to Scenes Lifestyle infiltration
currently, building materials, home improvement, furniture, Local brands such as electrical appliances are still selling products, but the transition to lifestyle penetration has begun.
In the process, “lifestyle first” will become the key word for entry That is, brand owners influence consumers by creating and promoting a certain leading life concept, which in turn causes them to pay attention to related products. In terms of lifestyle communication, brand owners often use real and virtual scenes to bring consumers an intuitive experience, and experience becomes the main decision factor for purchase.
Some e-commerce platforms took the lead in doing a lot of useful exploration.
Based on the analysis of sales data, outline the user’s portrait, around Key information such as the type of households, in line with the lifestyle and appeals of the customer group, the online experience store launches scene matching, and embeds the low-frequency home consumption scene into the high-frequency retail scene. For example, the Life Aesthetics Museum jointly developed by Intime and Tmall creates an immersive shopping experience for consumers by setting up real-life scenes such as offline experience zones and scene display zones.
We also saw that some brands and channel vendors such as Red Star Macalline It has been added to the team that uses VR and 3D modeling technology to build virtualized home scenes.
Trend 3: Channel Convergence – From Cross-Channel to Omni-Channel Fusion
Chinese consumers are accustomed to active cross-channel .
In the home appliance industry, 93% of respondents are omni-channel consumers By. From the demand side, there are more and more consumers pursuing omni-channel non-sense shopping experience in 2017. The most fundamental technical support for achieving omnichannel is the Internet of Things and smart home.
We believe that smart home is about to enter the whole network interconnection stage, the Internet platform has the most It may become a unified interface to help achieve the realization of the entire network interconnection. At the same time, smart homes drive future contacts to the home, creating new consumer touches in non-traditional retail scenarios, absorbing all-round consumer life. The store’s Internet of Things technology will also promote the digital acquisition of offline behavior, thus achieving personalized marketing.
To achieve the omnichannel of all stores in the future, retailers need to do the following thing.
Online and offline users have only one ID; online and offline, Same price, unified inventory; whether you buy online or offline channels, you can choose to deliver goods to your door or store; help merchants to manage separate online and offline channel inventory management, reduce operating costs; through the Internet of Things and the cloud The technology concentrates on obtaining offline data, and it is connected with online data for unified processing and analysis.
Trend 4: Segmentation customization – from satisfying most people Basic needs to move toward meeting the improved and personalized needs of the segment
China’s disposable income continued to rise, and consumption upgrades boosted demand for improved demand. The new consumer retailers in the home, “post-80s” and “post-90s” have formed newThe segmentation group, they have certain unique needs, such as the addition of two treasures at home, resulting in the need to add a new set of children’s furniture in a limited home space.
Brands have begun to use digital means faster and more accurately Discover the unique needs of these market segments, launch new products in a timely manner, and work closely with e-commerce platforms to proactively study the most popular product features of the next season and provide timely and effective input for product design.
Today, custom services have extended from the furniture industry to the relatively standardized home appliance industry. For example, Haier has introduced a customized refrigerator that customizes the refrigerator volume, temperature adjustment method, door material and appearance pattern. However, for the niche but has certain common needs, the user asks for the demand on the platform, and the designer recognizes the idea and A number of samples were designed, and then voted by the user. After the technical feasibility verification, the pre-sales were released, and the products were iterated according to user feedback. The sales growth of Haier’s various customized products was as high as 57%.
Trend 5: Solution – From buying a product to a user Solution
Currently, home consumers in China are basically buying The single product, on the one hand, is because the brand and service providers provide consumers with a single category of household products, or simple services + limited products (such as decoration services + building materials); on the other hand, due to a large number of irregularities in the home market The operation, consumers do not dare to let the service provider provide a complete solution.
In the future, with the full range of services from design to softcover Providers of high-quality solutions are emerging, and consumers will enjoy a “what you see is what you get” consumer experience and user solutions. We believe that there are two general ideas for implementing user solutions.
First, upgrade from sales items to sales items + services. In the context of ecological integration, the boundaries of products are also blurred. Brands not only want to gain value from selling products, but also find breakthroughs in products and extensions, such as increasing contact with consumers and providing value-added services. In addition to selling paint, Nippon also provides door-to-door service, creating new value growth points.
Second, upgrade to a full solution. More and more brands are beginning to offer consumers a complete solution to cover multiple aspects of their needs or in a specific scenario. For example, home appliance manufacturers provide smart kitchen solutions to meet the needs of users in the specific scene of the kitchen. The smart kitchen has a range hood and stove ignition automatic association, the central control panel controls the oven switch, temperature and duration, and can realize refrigerator storage management and one-button ordering through the touch screen. It can also download recipes and even do it. When you see the dishes through the screen, whoever knocks on the door and talks remotely, gives an intelligent solution to what needs to be done in the kitchen and what may be encountered.
Brands offer better products for consumers to be more assured
The biggest change in China’s “home economy” in the future lies in consumers The buying experience will move from a multi-channel market that is disorderly and requires a lot of compromises to integrated scenario products and services. The five trends we observe, from the consumer scene experience and segmentation needs, to the purchasing habits of goods and services, the integration of channels and the integration of back-end supply chain, will affect the home market in all aspects. In order to seize the opportunities in the new era of home retail, brand owners need six aspects from their customer image capabilities, product marketing methods, channel delivery methods, product design and development process, supply chain assistance and consumer-oriented agile organization reconstruction. Thinking about it, and finally transforming the home market with customer experience as the first and value chain integration.
Source: Pan Home Headlines
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