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Ecological chain of home furnishing industry
Keywords: product segmentation, pan-home
Core idea: bigger and stronger
The house should not be a pile of reinforced concrete, but a carrier of home life; home life is not a simple furniture decoration, but a manifestation of life dreams. Convenience, comfort, beauty, fashion and warmth are different interpretations of home life from the public. It can be seen that quality is becoming the focus of attention in life.
Therefore, the home furnishing industry began to focus on the sculpting of life, starting from the consumer demand, consumer philosophy and consumer behavior, digging deeper into innovations, incorporating fashion, modern and intelligent elements, only to create a safe, intimate and comfortable quality life .
The one-stop shopping concept has completely activated the DNA of "Big Home", and major enterprises have gradually moved towards the development track of "Big Home" and actively upgraded the industrial ecological chain. Many businessmen make great contributions in the ecological chain of "raw materials-processing production-product circulation" to seek new profit growth points. It is understood that while some furniture companies are actively expanding their product lines, they are also developing to the downstream raw material industry and establishing their own fast-growing forests; at the same time, there are no shortage of enterprises that were originally engaged in the supply of raw materials to the upstream manufacturing industry. Some home improvement companies, while providing home improvement design and construction services, actively explore the main materials market and establish independent building materials decoration cities and home living halls.
If the above example is to expand horizontally along the ecological chain, then there is another type of enterprise that should dig deep in a certain ring. Such companies are often at the forefront of the industry, with a complete terminal network and a considerable brand base. Based on such advantages, they boldly expanded their product lines, and a “pan-home†model emerged. And this has become one of the important means for many enterprises to seek new economic growth points. Among them, the cabinet industry is considered to be the largest and most extensive industry involved in the "pan-home" industry, such as the well-known domestic brand Oupai cabinets. In recent years, it has vigorously entered the wooden door, wardrobe and other industries. "Home" development path.
Just as the merchants were drumming up and preparing to enter the "pan-family", there were also some people who stood by and looked at each other, thinking that the intersecting lines are like mountains and the two industries that seem to be related can really be equal. Some people also worriedly said, "If you want to be a pan-home, few companies have such strength and financial resources." If you end up with a "knowledge, all kinds of grievances" evaluation, it is undoubtedly a heavy blow to the brand.
One horizontal and one vertical, on the one hand, do fine and fine, on the one hand, bigger and stronger. No matter what kind of development ideas, we believe that all roads lead to Rome.
Home Industry Ecosystem
Representative: Foreign Industry Alliance
Core idea: coexistence, common prosperity, mutual benefit and win-win
"We operate not a point, nor a line, but a circle, a very large, long, very tiring and exciting circle. In popular terms, it is called the industry chain, and more visually, It should be called the “enterprise ecosphere.†Like the Olympic symbol, there are small circles in the large circle, the raw material circle, the capital circle, the manufacturing circle, the market circle, the brand circle, and the five rings. '.'—— Niu Gensheng
Some business elites said: The competition of future enterprises is not a competition between one enterprise and another enterprise, but a competition between one ecosystem and another ecosystem, and the main ecological chain. The "ecosphere" is a common problem faced by all walks of life, and the home furnishing industry is no exception. As far as home furnishing is concerned, it can be said that the "ecosphere" has taken shape. The different industry alliances are now playing well.
In 2009, the six major brands of European kitchen cabinets, Dongpeng, Nature, NVC, Red Apple, Midea and home central air conditioners were the first in the industry to form a "Champions League". One stone stirred up thousands of waves, and the "Gold Medal Alliance" and "5X5 Alliance" began to work together.
According to industry insiders, the brand heterogeneous alliance has opened a precedent for the home industry ecosystem. There is no intersection of products between brands. On the one hand, a rich product line can be quickly formed. On the other hand, there is no product conflict between them, which guarantees the interests of multiple parties. Secondly, everyone has a high flame to gather firewood, and multi-brands have joined forces to reduce the cost of publicity, accumulate brand effects, and jointly promote development.
However, as a new development model, the alliance of different industries is also at the stage of crossing the river by touching stones. How to operate to maximize the effect of the alliance and maximize the benefits are currently still being explored. But one thing is clear. The interest is the binder that connects the circle. Only achieving a win-win situation is the key to the long-term development of this ecosystem.
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