Furniture store, how to coexist with the platform e-commerce and win-win

The “Double 11” launched by Taobao is the fifth year of this year. From the self-entertainment of the year, it has formed a unique consumption phenomenon in China. All e-commerce companies are involved. Even Li Keqiang praised: “You create A time of consumption." Many businesses are also actively involved, lest they have fallen into this rush.

However, Red Star Macalline joined 19 home stores in November, and it took the attention of “Double 11”.

The bridge section of the story is familiar to everyone: 19 furniture stores such as Real Home and Red Star Macalline, and think that “the store has become an offline experience place for e-commerce in disguise”, so they have a regulation. Permitted, it is not allowed to use the trademarks and trade names of the stores for publicity. It is not allowed to transfer the business of the store to other places through the e-commerce mobile POS."

Although, it is not said that it is aimed at the home appliance dealer, but the discerning eye knows that it is aimed at the Tmall. For the boycott of offline home businesses, Tmall quickly showed its attitude, sent emails to all home appliance business groups, and stopped the relevant provisions on home improvement O2O. The email shows that Tmall's home O2O business will be terminated on November 20.

The grievances of Red Star Meikailong boss Che Jianxin on the platform e-commerce may have been for a long time. “We have always been the makers of industry standards, and we have always been competitors chasing us.” “China has given birth to my car and built a new marketing model for the Chinese furniture industry.” In the mouth.

The new foundation of the car construction is undoubtedly that high-end furniture products should be based on on-site shopping, and most people cannot trade on the Internet. Therefore, in April this year, Che Jianxin once said that he was willing to make a bet with Wang Jianlin and Ma Yun. After 10 years, if the share of e-commerce in the mid-to-high-end retail market exceeded 15%, he lost to Wang Jianlin and Ma Yun each. Che Jianxin believes that both sides have their own advantages in the online store and online game. The impact of e-commerce on traditional shops is the low-end market.

However, Che Jianxin is not unaware of the power of e-commerce. Red Star Macalline launched its online store in August last year, when it was called "Hongmei Mall." In February of this year, it was renamed as “Xing Yi Jia”. When you log in to the mall, you can also see the latest “10 City Linkage, 50% Off” double eleven promotion activities, which will last from October 29th to November 11th. In August of this year, Xingyijia is still preparing for its own living museum, which is undoubtedly the display area with the offline experience as the core.

However, when the furniture manufacturers in their own shopping malls have posted notices, guiding consumers to the manufacturers Tmall shop to order transactions, and even taking out the Alipay POS machine to allow consumers to swipe the card, Che Jianxin found that the model he relied on for survival, no doubt Suffer from the challenge of e-commerce. To this end, the "North and South Double Heroes", which have been fighting for two years in the two furniture stores of Red Star Macalline and Real Home, have been miraculously united.

In February of this year, they had an alliance, but the fierce competition did not bring about an improvement in the substantive relationship. In August, Che Jianxin took the initiative to go to Beijing to meet with Wang Linpeng, the president of the actual family. This was the real alliance between the two. On September 9th, Red Star Macalline held a national distributor conference in Shanghai. At the end of the conference of more than 3,000 people, Wang Linpeng, the president of the Real Home, suddenly appeared. As the organizer, Red Star Macalline Chairman and CEO Che Jianxin and Wang Linpeng’s passion for shaking hands and shaking caused the whole audience to shake.

With so much preparation and preparation, 19 home stores jointly boycotted the platform e-commerce, and broke out before the double eleven. In fact, this incident is just a manifestation of the dual contradiction between e-commerce and vertical e-commerce, online stores and physical stores in the furniture industry. Some of the problems are not unique to home sales. How to peacefully coexist, and even mutual benefit and win-win situation is a problem that needs to be explored, but we still use the red star Macalline.

To say the red star Mei Kailong, you must first say the Red Star Macalline model.

The early Red Star Macalline was also a self-operated and agent store, bringing the goods back and selling them again, earning the difference. Che Jianxin is an early discovery that this model is difficult to sustain. Subsequently, Red Star Macalline was designed as a “platform” by “channel”. Instead of thinking about directly operating specific furniture products, we will use the Shopping Mall model to build a shopping mall platform and introduce factories and regional distributors to do “direct sales”. Red Star Macalline only needs to provide “unified marketing, unified after-sales service, unified training” and other services for the settled brands, and make profits through the rent of “drought and drought”.

For manufacturers, this model is actually the same as Taobao's platform e-commerce model. The difference is that offline furniture stores need to pay rent, online platform e-commerce does not need, but as sellers on e-commerce platforms become more and more More, the competition is getting more and more fierce, and the corresponding traffic importing costs are also increasing. This is in line with the soaring selling prices, and the rents are rising year by year. In the past few years, the store has competed with the e-commerce, but it is also safe and sound. It is not like the bookstore industry. It is related to the particularity of the household category. Many consumers still feel that shopping at the physical furniture store is more assured.

However, with the change of people's consumption habits, for each home furnishing manufacturer, in order to achieve the best profit margin between the store and the e-commerce, we must fully consider the "two balances, one ratio": the store rents Whether the incremental and single store increased revenue balance; the balance between network promotion expenses and network order increment; and the ratio of physical store traffic to online store sales.

The “cake” of China's home e-commerce is expected to grow to RMB 205 billion in 2015, and the online shopping rate will reach 17.5%. At the same time, according to Tmall data statistics, in 2012, Tmall's home furnishings and home furnishings turnover reached more than 34 billion yuan, an increase of 300%. As a result, the transfer of people's traffic and volume began to work, becoming the lead in the conflict between stores and e-commerce.

When more and more people go shopping on the Internet, the same network promotion costs will attract more people, thus increasing the profit of online sales; while the physical stores in the store, the increase or decrease of people may not be obvious. However, rising rents will erode the reasonable profits of previous years. Manufacturers only increase the price of physical stores, and raising prices may not necessarily increase profits.

As a result, furniture stores naturally become a high-quality channel for sellers to attract online customers. First of all, the store can better capture the consumer's purchase intention, recommend consumers to their own online store transactions, although the price is low, but they get higher profit margins; secondly, the same product, consumers have seen the real thing in the store , determine the material, specifications, style; to the online store can get a lower price, for manufacturers and consumers are a win-win situation, why not do it.

In the end, the furniture store became an online store's display store and experience store became inevitable. Someone asked, saying that the rent of Red Star Macalline was also collected. Even if the merchants who settled in the store did not affect the rent, would the car construction be blocked? The most important point is that in the store model of Red Star Macalline, the actual transaction of the manufacturer is settled through the furniture store, which is an important source of cash flow for the store. If manufacturers are advocating online store transactions or even taking Alipay's POS machine to brush, the red cash flow of the US dollar will be cut off, which can be fatal to any company.

In the long run, because "two balances" are broken. With this development, manufacturers will naturally reduce physical stores, and online and offline resources will be reconfigured to increase profits. It should be known that in the past, the ground sales and online sales of a furniture factory were managed by two departments. There was not much synergy between the two, and there were even many contradictions. Now, with the turning of profit sources, the cooperation between the two is increasing. This made Che Jianxin see the crisis.

If the store is destined to become a part of the consumer experience store, then the process of obstructing this matter is undoubtedly announced to everyone: my store is more expensive than Taobao Tmall, you are not too expensive. Instead of this, it is better to cooperate directly with online and offline.

Therefore, the best mode is that consumers can choose online, offline experience, form a standard integrated process, and use the strong supply chain, warehousing, logistics and other service support of the physical store to supplement the online purchase user's distribution. This is actually a big advantage for home furnishing companies with offline resources.

There are always some products that rely heavily on physical store sales. Consumers need to repeatedly confirm the materials, specifications and styles, especially the durable goods such as furniture. Taobao is also fully aware of this point. In this year's Double Eleven, some arrangements were made, and more than 30,000 physical stores with more than 300 brands participated.

As a result, a number of offline retail channels began to display Tmall double eleven posters, two-dimensional code, and issued coupons; Alipay POS machines also began to infiltrate into retail stores. Consumers can experience in the store, then place an order online, and in the store to pay "Alipay POS machine" payment, pick up. It was also Taobao’s “first step” that eventually angered the big names in the home market.

This matter is obviously far from over. The next step of "Xing Yi Jia" may be grandly launched. The development of home e-commerce is a trend. Home stores such as Red Star Macalline must also adapt, otherwise it is like Taobao responded: "Any boycott is stupid." For Taobao, there may be areas for improvement. For example, the Alipay POS machine is still in some places.

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