"Down" is a big problem for the home channel of the e-commerce platform. Although Taobao Tmall took the lead in establishing a home improvement channel, and there are also many home furnishing brands in the "Double Eleven" shopping spree that are over 100 million or among the top brands, the development of home furnishing categories is always not smooth.
The online platform's efforts to seek offline physical experience seem to have an inseparable knot: due to the different operating cost structure of online and offline, it is difficult for online e-commerce platforms to find the "external" response of traditional offline channels.
Taking furniture commodities as an example, the online sales price may be 1.3-1.5 times the ex-factory price of goods, while the price of traditional home furnishing products is generally more than 4 times the ex-factory price, of which the online sales price may only be enough to pay for the mall rent. Under the conditions of this different cost structure, it is difficult for the dealers of offline malls to cooperate with online sales of household goods: if they are sold at online prices, offline dealers cannot afford the high rent of the venue; if they use offline At the price of the sale, the customer may have long escaped.
Furniture pictures
Since the path of "down" experience is not feasible, then the path of no experience is required. Ali's stake in Haier Rishun Logistics may be one of the important strategic considerations to solve the problem of how household goods come down.
At least for now, the O2O model of "online shopping, offline third-party distribution and installation services" may become a standard model for the development of home e-commerce, and online e-commerce platforms will also follow this already opened path . However, the "last mile" service of household goods requires special business skills. Haier Rishun Household Logistics relied on the logistics and online store resources of Haier's original home appliance services, and built a support for online sales of household appliances almost overnight. Offline home goods distribution installation service system.
This O2O model will also become a differentiated marketing model for the development of traditional purely online e-commerce home furnishing categories.
Today, the historical window for building a new independent furniture industry e-commerce platform has basically been closed, so it is unlikely. But vertical e-commerce platforms for household items, such as children's furniture and upholstered furniture, seem to be possible. A good example is the e-commerce platform of Kumanju Children's Home. Because of the exclusive authorization of Disney, the platform has room for survival and development.
It is worth pointing out that Kumanju is not a purely online e-commerce platform, but an O2O e-commerce model with offline experience outlets. We just listed the vertical home e-commerce platform as a pure e-commerce platform. Whether other vertical e-commerce platforms such as software furniture can survive, basically depends on whether the platform has an effective segmentation strategy to withstand the invasion of large e-commerce platforms in the future. The effective separation strategy mentioned here, of course, also includes the establishment of offline physical experience store system.
Article source: Furniture shopping guide
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