Entering the golden season of decoration in March, the home market is heating up rapidly. Red Star Macalline, Real Home, Tmall Home Decoration, Melody and other businesses have taken advantage of 315 promotions to create the market. In the wave of honesty and volatility, some interesting phenomena about shopkeepers and e-commerce are quietly taking place.

Experience is king, the store "patent" has been broken

Che Jianxin, chairman of Red Star Macalline, once said in an interview with the media: “The experience of home business is king”, e-commerce will still not bring real experience to consumers in the future, and the physical store has an unparalleled advantage. "It is true that most of the home building materials, especially the large-scale furniture, its personalized and durable consumption characteristics make the live-action experience become very important for consumers. According to relevant survey data, household consumers who tend to enter the store experience account for nearly 70%.

The “experience” that is regarded as the competition authority by home store dealers seems to be in danger of Waterloo in the 315 promotion war with the fiercest firepower in the beginning of the year. In the field investigation, the reporter found that the experience wave not only appeared in hypermarkets and furniture distribution centers, but also in the offline experience hall of e-commerce. The most representative is the Merlot that currently occupies the first brand position of domestic furniture e-commerce.

In just three years, Melaleuca has opened nearly 300 offline home experience pavilions throughout the country for the display and experience of home building materials. Compared with the traditional hypermarkets, the most notable features of the Melaleus home experience are two points: one is to realize the national uniform price of the goods online store, and the other is to undertake certain after-sales service functions.

The booming of home e-commerce in recent years has made the pressure on traditional channel model sales continue to increase. On the one hand, the comprehensive platform vendors represented by Taobao Tmall and Jingdong Mall actively entered the home field. For example, Tmall's home decoration category covers three major areas: furniture, building materials, and home textiles. In terms of furniture, it is subdivided into 8 sub-categories under the categories of residential and commercial offices. On the other hand, specialized household e-commerce companies, such as Merlot, continue to divide the “experience” cake through deep integration of online and offline. Under the two-phase attack, the customer loyalty of the store will be affected.

Some people in the industry have analyzed that although the current home sales of traditional channels still dominate the market, with the rapid development of the Internet economy and the growth of the post-80s online shopping consumer army, the scale of home online shopping is likely to rapidly surpass the entity like other fast-moving consumer goods industries. Merchant sales. And when e-commerce forms a perfect e-commerce industry chain that can be digitized from procurement to marketing, logistics, and service, physical merchants may encounter the fate of making a wedding dress for others, becoming a “home experience store” or “offline porter”. ".

O2O warms up, "back" on the "front" line

"315, rights protection, promotion, O2O" From this buzzword, it is not difficult to imagine the current popularity of O2O. After entering March, O2O Baidu's overall search index and media index were above 688 and 200 respectively, a record high. Compared with last year's "Double Eleven" concept boom, this year's 315 is walking on the line and offline, with more substantial measures. Since the beginning of the "Drip" and "Fast" battles between Tencent and Ali, an O2O whirlwind swept the major retail industries.

In the home field, the shock caused by O2O is not small. According to Sohu's focus survey data, 70% of home furnishing companies in China currently have the willingness to do e-commerce. According to media reports, Jimei Home will test water and electricity companies this year, laying out the O2O model. Melaleuca, Qijia.com and Shangpin, which have been launched online, have also begun to speed up the layout. According to insiders, domestic home electronics giant Melody will launch the “big store” plan.

It can be said that whether it is the breakout of the store from the offline to the online, or the e-commerce from the online to the offline, O2O has become a fragrance for the transformation of the home business. In the O2O platform business model, offline business opportunities are bundled with Internet advantages. In an interview with People's Daily, Melaleuca CEO Gao Yang pointed out: "The O2O model combined with online and offline is that customers look at products online, while offline needs to experience and localize services. In this regard, I think, The Internet economy and the real economy must not be separated. How to find a way to achieve mutual integration is the key."

Gao Yang said that the interconnection and interoperability between the Internet and the entity is also a highlight of the O2O format in March. The specific performance is two aspects: First, the Internet has become the foreground of offline transactions. Merchants provide consumers with preferential information, shopping guides, online booking payments, map navigation, etc. through the Internet to guide consumers into store consumption. Specific examples include Yihua Wood and Tencent Home to carry out in-depth cooperation to conduct WeChat O2O marketing; Melaleuca launches mobile phone mall, WeChat navigation and other APP mobile terminals. Second, physical stores have become the service behind the extension of online consumption. The “limited time” that Melody recently pushed is a good illustration. More than 80 cities covered by limited time services are basically densely distributed cities.

O2O, the market imagination space caused by it is undoubtedly huge. Orient Securities analyzed this in the article "The Melody of Melody" - the third revolution in the sales model of furniture o2o. The main competitive advantage of O2O lies in the savings on the cost side, the higher the efficiency of the customer, and the experience. The advantage of the store's rental and sales ratio makes the terminal price reduce by an average of 25% or more. And this will initiate a chain reaction of consumers, and the scale growth trend is established.

In March, under the stirring of Ali, Baidu, Tencent and other giants, it was destined to be a season of promotion. The price war has set off a value war, and the contest between store and e-commerce has been upgraded. For those who are good at deep-seated in the traditional channels, the impact of various e-commerce B2B, B2C, C2C, O2O is coming. “Touching the net and getting an electric shock” even in the entrenched home industry of traditional consumer concepts, there is a big stone that stirs up the waves. New changes in the industry such as “Mele Le O2O” have caused widespread debates in the industry and the media. The third revolutionary e-commerce era following the factory era and the furniture sales model after the era of the store will come.

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