Related media reports, according to market data, in 2017, the Internet home decoration market GMV is about 127 billion yuan, this figure will grow at a compound growth rate of more than 50% in the next five years, by 2022, the total GMV of the Internet home decoration market will reach 1265 billion yuan, Internet penetration rate of 38.1%, Internet home outfit will become veritable trillion market.
Such a large market has naturally spawned some influential platforms. Newly released in 2018 Internet home decoration brand ranking, decoration network rose together Internet home decoration industry TOP10. And Trustdata data shows that from January to April 2018, in the core revenue brands of China’s Internet home decoration industry, Together Decoration has risen to 12.8%. Beiguo network reported that recently in the “2018 second China Home Furnishing Brand Conference and 2017-2018 China Home furnishing Top Ten brand release conference”, together decoration network with excellent service ability, delivery ability, technology innovation ability and so on again won the “2017-2018 top ten Internet home furnishing platform”.
Founded in 2009, together decoration network is an e-commerce platform in the vertical field of building materials, decoration and furniture in China, committed to providing one-stop decoration services for owners. And together decoration network was listed on the New Third Board in February 2017, becoming the first Internet decoration service platform listed on the New Third Board.
However, the first half of 2018 was a dark half year for the Internet home decoration industry. In the past half year, more than hundreds of home decoration companies have closed down across the country. In the winter of capital, a large number of enterprises were withdrawn from the capital market in just two or three years. Many enterprises were even heavily in debt, and even the giants of the once glorious Internet home decoration industry, including No.1 Home Furnishing Network, were also overwhelmed by pressure and closed their stores one after another.
Decoration network is the Internet home decoration industry in a few listed enterprises, enterprises in the capital winter of the market environment can continue to operate, must have its own reason.
Two big advantages to support the decoration network
“Internet + decoration” is in the background of the Internet, with the help of Internet thinking and Internet tools to solve the problems existing in the traditional decoration. With the rapid development of the Internet, people’s consumption habits have also undergone obvious changes. The Internet has improved the efficiency of national life, and consumers can even see the whole process of decoration through the Internet, so many decoration owners are more willing to meet the various needs of decoration through the Internet platform.
It can be seen that consumers prefer comprehensive, efficient and convenient one-stop Internet decoration services. It is worth mentioning that the decoration network together with a number of related industry chain enterprises, and have their own construction team, through the “Internet + decoration” can provide one-stop service for the decoration owners.
First, decoration network using Internet thinking to solve the problem of owners. To decorate owner character, decorate budget is not enough, decorate a company to add much, the problem such as the decoration after paying first makes decorate owner headache. Decoration is low frequency and large consumption, so the decoration owners in the choice of decoration company will be very cautious. In view of these, focusing on the Internet thinking to solve the pain points of home decoration network, the pain points of the decoration owners were broken one by one.
Before decoration, decoration network “decoration calculator” and “free design” two functions for users to screen the need for decoration effect; In the process of decoration, the foreman will report the decoration process to the owners in the way of graphics and texts; Including the choice of later decoration materials, decoration owners can be together in the decoration network official website to choose their ideal effect package. In addition, the decoration of the network together payment is the decoration of the first payment, this point is very tempting to the owner of inclined benefit. From this look, decorate budget not enough, decorate a company to add much, decorate after paying first already did not seem to be a problem.
Second, decoration network and a number of Internet well-known industrial chain enterprises cooperation, reflects the advantages of its supply chain. The supply chain has a huge impact on the operating cost and efficiency of the whole home decoration. Together Decoration has reached a very stable cooperation with more than 100 well-known brands in the industry, such as Marco Polo tile, Opai Cabinet, Gree air conditioning, And Fansa Bath. In addition, the decoration network also issued public relations news through the Internet and held a partner commendation conference, the outstanding performance of partners in recognition, through the win-win cooperation between enterprises to attract more consumer attention, in order to spread the decoration network brand.
The Internet home decoration industry is a very specific industry, in order to maximize the display of supply chain advantages, decoration network through the official website and APP client release enterprise related activities information, such as group buying, convene interested people to participate in the decoration network held activities. In addition, Together decoration network also adopts the O2O model of online publicity activities and offline experience stores to help enterprises operate. It is worth mentioning that the combination of online and offline operation model to promote the decoration network with a monthly performance of 60%-80% rapid growth.
Of course, the development of enterprises is not all plain sailing. Undeniably, through the wind and frost blows these years, the road of development of decoration network enterprises is not smooth.
Decoration network with their own pain points difficult to disappear, before the road muddy
In recent years, the Internet home decoration company frequently broke the news of “running away”, so that consumers’ sense of trust in the industry is reduced, leading to a sharp decline in the honesty of the industry in the hearts of consumers, many consumers have doubts about the Internet home decoration industry. Although the decoration network is not “run away”, but also suffered a blow, business performance has declined, it can be seen that the road of Internet home decoration is not easy to go. Specifically, there are three aspects of the decoration network still to be improved.
First of all, the decoration network has not completely solved the pain point of traditional home decoration. Some media reports, decoration network decoration period is long, the foreman is not responsible for the construction, the designer professional level is uneven and other problems still exist. The reason may lie in the imperfection of offline construction teams and regulatory systems. Although the decoration network has its own construction team, to avoid a lot of “halfway” construction, but through the Internet supervision site construction system is not complete. In this way, the role of the Internet on the home decoration industry is not obvious. The Internet may only play the effect of network publicity, and the essence of the home decoration industry is still offline service.
Second, the evaluation system is not perfect. From the mobile end of the decoration network can be seen, the foreman not only to stare at the progress, to ensure the quality of decoration, but also need to send a daily every three days, graphic and text combined to report to the owner. And owner needs to undertake evaluation to stylist, foreman. However, the current evaluation system is not perfect. Although the management efficiency of the new system is higher and the owners’ evaluation will largely determine the income of designers and foreman, the “owners say” evaluation may not be very convincing, and the subjective comments of users can attract the attention of potential consumers more than the direct question and answer method.
Third, through the brand words of other enterprises for their own publicity, guide customers to pay for the decoration network. According to Shanghai people network and a number of Internet decoration companies reflect, decoration network with a snapshot of the way, through the optimization of the Internet decoration company brand keywords across the country, let the owners think that the web page is other so-and-so company’s official website, so as to intercept the flow of many decoration company brand.
This approach can indeed bring a certain amount of flow to the decoration network in the short term, but for the long-term development of enterprises is detrimental. This approach will inevitably cause harm to the user experience, easy to lead to users of the concept of each enterprise fuzzy understanding, not clear in the end into which decoration company’s official website. So instead of rushing to seize the market, together with the decoration network better to do their own, and haste makes waste.
In a word, together with the decoration network of these have occurred or potential problems should cause attention, and make long-term strategic plans, after all, the Internet home decoration market is a long-term development of the market, the short-term results can not guarantee that the enterprise can go far.
Challenges emerge in endlessly, how to decorate the network together?
As the Internet home decoration industry gradually mature, together with the decoration network in order to adapt to the market environment, the end of 2017 on the enterprise’s operation strategy to make adjustments.
First, together decoration network will step into the field of science and technology, through the layout of VR, 3D field to improve the conversion efficiency of designers, and improve the consumer experience. VR is a novel experience for consumers. In addition, together decoration network also led the strategic investment in home decoration VR leading brand – zhuanjia, trying to improve the layout of the ecological chain. According to a report by Building Materials, more than 400 designers have used the decorator tool to help owners decorate their designs in 2017. Obviously, the new field will help decorate a network to seize a higher market share.
Second, to further improve the ecological chain. Building materials network reported in November 2017, “in terms of ecological chain layout, decoration network will make further improvements to the ecological chain. In the related fields that can improve customer flow and high viscosity, in the decoration industry SaaS and warehousing, logistics and other professional third-party fields, decoration network will carry out strategic cooperation or related investment with the corresponding enterprises.
In view of the two points of the improvement of the decoration network strategy, the author believes that, with the shuffling of the Internet home decoration industry is increasingly fierce, so the adjustment of the strategy of the decoration network is effective. But there are challenges.
First of all, VR technology is an emerging technology for users, and there are different opinions on VR technology in the industry at present. Some media have even exposed that many VR technologies are “fake VR”, actually applying 3D panorama. In the face of VR, there is no standard specification, together with the future of the road of science and technology should be cautious.
Secondly, in terms of ecological chain layout, because the essence of decoration industry is offline construction, good construction quality is the key to improve user experience. Therefore, in the choice of partners related enterprises together with the decoration network should be good, from the source of materials as far as possible to identify the quality of the relevant brand, to prevent the interaction with the decoration owners because of poor material quality unpleasant.
In addition, there are media reports, a lot of smart users will seize the Internet decoration company to provide users with free design loopholes, through the designer to provide drawings for free this channel, taking free designer drawings to the line to find guerrilla construction, so as to save the cost of hiring designers. Over time, effective information can not be transformed, leading to the improvement of the contract cost of the Internet decoration company. Therefore, together with the decoration network should be vigilant, for this kind of phenomenon as soon as possible to come up with the corresponding solution.
As a set of word of mouth and service in a decoration network, in the face of the Internet home decoration this trillion market and the endless challenges, is the king or jedi survival? Decoration network together how the future trend? Is a mule a horse?
Look forward to the performance of the decoration network.
Article/Liu Kuang public account, ID: Liukuang110