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With the arrival of the 11th Golden Week, the home store is also welcoming the sales season. Although the view on “consumption downgrade†has been rampant in recent times, many survey reports in the home furnishing industry show that they have become the main force of market consumption after 80 and 90, and they have put forward higher quality and personalization for building materials decoration and household products. Demand, even if purchasing power declines, prefers to lag behind consumption and is not willing to reduce tonality.
In response to this change in consumer demand, the home furnishing giants also responded quickly. The reporter visited large-scale home stores such as Jockey Club Home and JSWB, and found that the horizontal upgrade of the home industry and the package-wide discounts for the whole house were in full swing. The home industry is showing a downgrade in consumption? nonexistent!
Home industry growth slowed in the first half of the year
Since the beginning of this year, with the popularity of e-commerce platforms filled with low-priced goods in the cottage, as well as the rapid growth of sales of instant noodles and mustard, the “consumption downgrade†has begun to attract attention.
The development of the home industry market seems to be not optimistic. Due to the strengthening of real estate regulation and control, the slowdown in growth and shuffling have become the key words for the survival of 2018 home furnishing companies. For example, in the first half of this year, the sales growth rate of 8 customized home-listed companies including Sophia and Shangpin Home Furnishing exceeded 15%, and the net profit increased by a year-on-year. Both are over 25%, but obviously not as good as the average score of more than 30% in the first half of 2017. In fact, the custom home business has maintained a high growth rate of more than 30% in the past seven years, and the first half of this year is the first time that the growth rate has slowed down.
Along with the slowdown in growth is the price war and the impact on physical stores. Sophia said in the middle newspaper that the reasons for the slowdown in revenue growth are mainly: the price cut in the second quarter of this year compared with last year, and this problem will also occur in the third quarter; the number of new stores is less than other major brands; the industry is gradually entering maturity The competition is more intense.
80, 90 after the determination of the pursuit of quality home
"The slowdown in growth does not mean that the home industry has entered the consumer downgrade channel. On the contrary, with the post-85s and 90s becoming the main consumers of consumption, they have not lowered their consumption quality and tonality because of the bad environment. Personality and customized needs have become more and more intense.†Zhai Yuzhou, chairman of the home, said in an interview that this will give home manufacturers how to use “more cost-effective products and services to meet more quality and personalization. Market demand poses a higher challenge.
In the interview with reporters, Miss Zhou, who is preparing to marry after May 1st, will admit that although there is not enough money at present, she will never "will" on house decoration and household items. "I definitely don't buy goods that I don't want." If the money is not enough, you will choose to pay in installments or borrow money from your parents, or you can buy it without buying a big promotion or money." She said that she would not accept the "willing life" as her parents did.
From the recently released Jingdong home daily big data, it can be seen that Miss Zhao’s consumption concept is not a case, and the consumption concept and consumer demand of the 80s and 90s who have become the main consumers of absolute consumption have greatly improved, especially in In the consumption of household daily necessities, they are more "attentive" and require more detailed product requirements.
The data shows that in the past two years, the focus of consumer online furniture has shifted from the common features of cost performance and product function to aesthetic characteristics, value labels and other personality characteristics. After 80s and 90s, it became the core of online furniture consumption, paying more attention to it. Brand, smart, customized, environmentally friendly, quality. The data shows that in 2017, the new Chinese, American and Nordic style furniture increased by more than 100% higher than the industry growth rate, becoming the most popular style for consumers.
Enterprises in various forms cater to upgrade needs
On the one hand, the industry has already experienced rapid development of dividends, and the purchasing power of the market has declined. On the other hand, new consumer brands such as the post-90s have put forward higher quality and individualized demands for products and services. Faced with this change in consumption, How to deal with the home manufacturers without reducing the brand tonality?
In this regard, Zeng Yuzhou said that the home is to change the previous “vertical upgrade†to “horizontal upgrade†to meet the consumption needs of more categories. For example, consumers who spend more than 1,000 yuan last year can upgrade their ordinary toilets to smart toilets, and this year they can spend more than 1,000 yuan to get a bathroom cabinet, so that consumers can buy more things with the same money, satisfying more. More rigid demand.
The package is another mainstream marketing model for the home industry. According to the "White Paper on People's Wear in the Home Improvement Industry in 2018" released by Tencent Data Lab, the number of people who choose the whole house customization/packaging service has accounted for about 40%. In the promotion form, the package price has gradually become mainstream.
The reporter recently visited the home shopping malls such as Jockey Club and JSWB. The giants such as Europa, Sophia, Shangpin, and Shi Niman all launched a package discount for the whole house. Among them, Sofia's 1111 yuan / square meter whole house is free to cover the bedroom, study, home, living room, dining room, leisure room, cloakroom and other spaces, five series, nearly 10 models of styles to choose from, even the most small apartment Love tatami customization is also the same price.
Ou Pai’s “Full House 22m219800 Package†means that only 19,800 yuan can be used to customize the furniture of the whole house (living room, dining room, bedroom, balcony, multi-functional room, household) with a projected area of ​​22 square meters, such as TV cabinet and wine. Cabinets, wardrobes, cloakrooms, bookcases, desks, consoles, shoe cabinets, balcony cabinets, etc.
"These packages really bring benefits to consumers. We must know that the cost of customizing only one wardrobe can reach 10,000 yuan." Luo Bin, an observer of the home appliance industry, said that the whole house customization package replaces "a price" with "a price". "Floating price" not only bid farewell to the inherent pain points of "manual customization process, cumbersome pricing rules, price instability", but also make the industry more transparent, and consumers can see the budget at a glance. In addition, the custom package also means that the style is more harmonious and unified, and the design is suitable for the whole house space solution.
Consumer reminder, price is not the only standard, brand comprehensive strength is the key
The benefits of the whole house custom package are unquestionable, because the overall price of custom consumption has come down, no matter which brand of product you choose, it will be more cost-effective than in the past. In addition, differentiated brands, differentiated products, and differentiated packages mean a richer selection.
However, for the user, the package itself is no longer worrying, and can not change the essence of custom high participation. You must have a deep understanding of your needs, and let the solution designer give high-quality solutions based on understanding your needs, in order to gain true full customization, and not just want to be a shopkeeper.
In addition, the essence of the giant-type enterprise pushing the whole house package is to hope to increase the single value. When the overwhelming posters emphasize "I am cheaper" or "I am better", as a consumer, you should be aware of it. In fact, the price and quality gap of the first-line brands is not as big as the description of the “spoken warâ€.
The most important thing is to determine whether the effect of customized consumption is satisfactory or not. The most important thing is the service capability and service level of the front-end of the brand, and the intellectual ability of the back-end. Only a strong terminal service team can give you a truly satisfactory design and service; only the strong back-end production capacity can guarantee the quality is not lost before a large number of orders.
Therefore, a truly savvy consumer must first know what he needs, and secondly, he must look at the above two abilities.