NEWS CENTER

2021 is probably the most sad of domestic outfit industry for a year, if in a word this year industry now, no word than "volume" is more suitable for the outbreak continues, the influence of real estate regulation and oversight has "tough", under this big background, people's consumption confidence remains to be restored, coupled with the rising prices of raw materials, Once all the way home outfit industry became immediately "roll king".

"Raising prices is looking for death, not raising prices is waiting for death." A home decoration industry management believes that the price of raw materials is far higher than expected, if the price is not likely to do a single compensate a single, but if the price is likely to connect the single are less than, because "competitors will kill prices grab orders". This is how "inrolls" are created. Under the volume inside the industry, the industry is out in aggravation, according to CCTV financial and economic channel reports, the decoration company of Shanghai had dropped by the peak of more than 20,000 current hundreds, the future may continue to reduce.

The consolidation of the industry is intensifying. In July this year, Shell Zhaofang announced to spend 8 billion yuan to acquire 100% of the equity of Shengdu Home Decoration. Shell's cross-border is interpreted by the industry as the Internet giants to start the industry integration. Internet home outfit in 2021 another wave of capital movement is complementary material platform scale of financing, in the first half of the domestic outfit building materials B2B trading platform, "little bear" announced that total 400 million dollars and a half years to complete the C and C + chakras of financing, and in the second half of the same track "palm complementary material" also announced the finished led from unexpectedly the home of the strategy, industry at the smoke flavour is dye-in-the-wood.

Looking forward to 2022, the expansion of head decoration enterprises may increase, and the pressure of middle waist and below decoration enterprises to "survive" may increase, and the appeal of cost reduction and efficiency is becoming stronger and stronger. However, whether it is cross-regional expansion or cost reduction and profit protection, the digital trend of home decoration industry to improve the overall efficiency of the industry will increase. Judging from the trend of 2021, the auxiliary supply chain that can achieve large-scale expansion may tear open a gap in the industry's Internet.

Auxiliary platform, the Internet home decoration last puzzle?

Home decoration industry is a well-known big market, but from the perspective of industry development, it has always been in the embarrassing situation of "large industry, small company", that is to say, nearly 5 trillion home decoration market did not appear a company with revenue of over 10 billion, the whole industry is still in a scattered state. Capital return to home decoration track, perhaps is to the industry to convey two signals, one is that the industry has begun to show a trend of concentration, the other is that the conditions for integration may be ripe.

In fact, the intensive financing of the auxiliary platform was still in 2018, when five companies obtained institutional investment in that year, foreman Bang, Palm auxiliary, Little Fat Bear, soso auxiliary, etc. obtained ten million level of a-round financing, and Haokai.com was acquired by the Whole material network. Capital on complementary material platform, on the one hand, because the track is broad, the ceiling is high, that is to say 5 trillion domestic outfit building materials market, auxiliary material accounted for one over ten of the size of the market, fully 500 billion space, on the other hand is because although the complementary material category brand more complex, but on the whole can be standardization and large-scale replication, That is, through the purchase and marketing model + self-built supply chain and other heavy model to achieve integration.

Has always been, the home installs areas is cut into the lighter Internet mode, on the one hand, because of industry characteristics are determined, large consumption and low frequency, users are widespread information asymmetry, which determine the industry always stay for users on the marketing end stage, on the other hand, domestic outfit industry chain is too long, too partial service properties and industry, It is difficult to make products into standardized items like the retail industry. In the whole service process, people are the least controllable factor, which also leads to the industry has been unable to achieve standardization.

Only in the field of Internet home outfit is the mode of the platform and ready, the so-called platform as a set of users and decorate a company or brand bilateral platform, and provide the corresponding supporting services to users and merchants, pattern basically are comparatively light, and the model is given priority to with stocks listed company to put the net, Internet ready mode in fact main representative is love space, That is, the packaged products are mainly, and the way to get customers is the way of the Internet.

Advantages and disadvantages of each the above mode platform mode for lighter, high-speed and easy to copy, so you can quickly spread across the country, but officially because pattern is too light, so that the platform remains more in marketing and digital phase, the involvement of the industry is not thorough, but the Internet ready model but on the contrary, because the pattern is too heavy, its scale replica of the unusually slow pace, High marketing costs and low gross profit are also one of the factors that limit the rapid expansion of this model, so this model only stays in some cities of the first and second tier.

Formats, but regardless of the form of Internet home outfit from a backward, there is still a large room to improve, its core is the balance between standardization and scale of problem, that is to say, the platform model scale effect is strong, standardized high difficulty, but the Internet ready standardization degree is high, but unable to realize scale expansion. Is there a way to make standardization and scale balance, so that each can give full play to their own advantages, if so, it may be the standardization of home decoration supply chain integration, which may be the reason why the auxiliary platform has become the hottest track of Internet home decoration.

Supply chain integration: A War?

Domestic outfit building materials supply chain are often divided into hard and soft outfit, and hard to supply chain is divided into advocate material and auxiliary material, soft outfit because often and designer's design is closely related to the household, the designer's design layout and requirements from users, and is often to the user's demand, coupled with soft outfit is usually large, in order to realize the standardization of soft outfit supply chain integration is difficult, And the main material is often because of the larger volume, the general home decoration company will have a fixed supplier, want to put aside the difficulty of local dealer network is still very big. The auxiliary materials are often small materials with a large number, variety, small volume and most of them are standard products. It is indeed a track suitable for platform integration.

From the current development of auxiliary platform, there are mainly two models in the industry. One is self-operated platform, mainly with Little Fat Bear and palm auxiliary materials, and the other is platform mode, which is mainly with qiji.com's supply chain plate. Since this year, the completion of $400 million of financing unicorn enterprise Little Fat Bear, its self-run mode is mainly to decoration company, decoration team leader (foreman, contractor, etc.), through its own supply chain (procurement, storage and logistics) to provide sand, cement, paint, wire, ceramic tile and other auxiliary products.

That is To say, little bear more like jingdong model, through self-built warehousing logistics delivery directly To your clients, precisely To small B enterprise supply chain service platform, client online orders, can realize the integration of offline distribution delivery experience, the little bear has covered more than 20 cities, including guangzhou, north first-tier cities and into a new line of cities such as chongqing, wuhan, More than 10,000 SKUs, warehouse area of more than 100,000 square meters. With the expansion of the scale, the service scope of Little Fat Bear also began to broaden, from water and electricity, oil, wood, tile and other auxiliary materials supply, gradually expanded to the procurement and sales of main auxiliary materials, decoration design, logistics distribution and installation of the full category of services.

As is given priority to with bilateral assigned to domestic outfit platform to put the net is to take the "supply chain in + O2O model", its net originally is started with building materials group purchase mode and platform built up a line of building materials brand resources at home and abroad, after the transition to an outfit platform model, that is to put the net upstream has many building materials brand resources, downstream has a lot of decorate a company, On such a basis, Qijia network through building materials collection mode will get through between the brand side and the decoration company, according to the online platform to enter the decoration company's needs, targeted integration of matching demand material brands, the establishment of price, brand and other marketable supply chain, that is, supply chain collection mode. Because many domestic outfit building materials category and sku platform in model cannot fully decorate a company to meet the personalized needs, in this case, its network launched localization "qiqi raccoon dog" supply chain products, accurate says qiqi raccoon dog is a building materials supply chain O2O platform, the platform can integrate the local domestic outfit building materials stores resources, Connect local supply chains and decoration companies with platforms to complement the supply chain gathering model, which is more like a combination of Alibaba's 1688 platform and Ele. me.

Whether it is a kind of jingdong proprietary mode, or alibaba + hungry mode, the integration of the supply chain to the industry standardization and scale replication provides the underlying changes, in other words, when the supply chain platform gradually spread to the country, the standardization of all kinds of not only can decorate a company to its business to strengthen standardization management, also can realize rapid replication of the chain. This is why the home of the home store unexpectedly next battle to cast palm auxiliary materials, vertical platform integration of resources to build a supply chain platform, that is to say, only the standardization of the supply chain in the future, the standardization of the home decoration industry is not "rootless water".