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The entanglement of traditional channels and e-commerce contests in the furniture industry
The “Double Eleven†just passed, once again created the miracle of red fruit e-commerce sales. Alipay's turnover for the whole day was 35 billion yuan, an increase of 83% over last year's 19.1 billion yuan. The data shows that on November 11 of the last three years, Alibaba's e-commerce platform has reached record highs. From the turnover of Alipay in the past three years, the turnover in 2010 was 1 billion yuan, and in 2011 it was 3.36 billion yuan. In 2012, it increased again to 19.1 billion yuan, showing an accelerating upward trend. This year's "Double Eleven", when businesses have discounted promotions, the home industry has quietly kicked off the battle between online and offline. 19 domestic home stores including Red Star Macalline, Real Home, Ouada, Yuexing Group, etc., on the "Opinions on Standardizing E-Commerce Work" (hereinafter referred to as opinions) published by the China Furniture Association Marketing Committee Signature endorsement, joint boycott of e-commerce platform. The opinion clearly pointed out that the store can not be disguised as an offline experience place for e-commerce. Without the permission of the store, it is not allowed to use the trademarks and trade names of the store to publicize, and it is not allowed to transfer the business of the store to other places through the e-commerce mobile POS. Red Star Macalline said that with the rapid development of e-commerce, it is inevitable that some irregular operations will occur. This is only the industry to regulate e-commerce sales, and has nothing to do with "Double Eleven". The reporter called the China Furniture Association Marketing Committee to verify the matter, but the phone was never answered. Yan Qiao, the head of Tmall's public relations, also publicly responded on Weibo. It doesn't make sense to keep Tmall out. Don't keep consumers and the Internet trend out. The store said that it was unfair. After the boycott of the store, Tmall issued the "Notice of Termination of Home O2O Business Termination Agreement", and the O2O Supplemental Agreement with the furniture category, which means that the merchants will not be able to conduct online e-commerce platform for Tmall in the future. Drainage and other similar marketing activities. O2O is Online To Offline, which combines the opportunity of offline business with the Internet to make the Internet a front-end for offline transactions. In other words, through the O2O model, the shops in the offline stores have become the experience hall of the online mall. The specific operation method of the Tmall home improvement O2O plan is: the consumer first purchases the coupon from the online, after the payment, the mobile phone will receive the verification code, the consumer chooses the goods from the physical store, and the Alipay POS machine is brushed by the verification code. However, Tmall's idea is only wishful thinking. The investment in the early stage of the home store is very large. The main income depends on the rent of the venue. At present, most of the home stores are unified in cash, and the money is distributed to the merchants after deducting the rent. Tmall wants to bypass the home store to pay for the practice, undoubtedly violated the bottom line of the store. On October 27th, Red Star Macalline Chairman Che Jianxin released WeChat, including “strictly prohibiting any merchant from spreading or promoting the “Double Eleven†activities on other e-commerce lines in any form in the storeâ€, “Strictly investigate and deal with merchants†Use Tmall POS machines to make sales online" and "Strictly prohibit merchants from installing and installing orders for factories on other e-commerce lines." On October 30th, the Real Home also issued a formal notice to the merchants, prohibiting merchants from conducting promotions on the “Double Eleven†e-commerce. Liu Wei, general manager of Hong Kong Dekele International Home Plaza, told the Rule of Law Weekend reporter: "I think this kind of boycott is necessary. Home stores are not against e-commerce, but cooperation with Tmall is almost impossible." Liu Wei seems that Tmall's home improvement O2O plan is tantamount to “grab the moneyâ€: “Tmall hopes to provide offline experience for our customers, but we can't get the money for customers to pay the bill. The home industry itself has requirements for the venue. Very high, plus staff salaries and utilities, who will come out?" Even though the reasons for the store are sufficient, Du Yanhong, a researcher in the retail industry of CIC, believes that this behavior is not sensible: "With the line The intensification of the integration of the upper and lower lines, the offline home store will gradually shift to the online integration will be the trend of the times." Distributors in the middle of the data show: the first half of this year, the national building materials home sales from January to June cumulative sales of 519.6 billion yuan, a year-on-year decline 6.19%. The prosperity of the “Golden September and Silver 10†in the home industry has not appeared. The most stressful is the dealer of the home brand. Xu Yu, a dealer of a domestic home brand, told the lawful weekend reporter: "We have no right to speak to the disadvantaged groups regardless of the manufacturer or the store. Coupled with the continued downturn in the market for two years, we are very upset in the peak season." Manufacturers' demand for sales is higher year by year, forcing us to continuously expand the market, the rent of the store is gradually increasing, and the dealers are sandwiched." Xu Yu said, "The homogenization of the home industry is serious." It is possible to grab customers to survive." Cooperation with e-commerce will undoubtedly expand the dealer's customer base and increase sales in a short period of time, but the decline in profits is what dealers do not want to see. Xu Yu told reporters: "I intended to cooperate with e-commerce. By the end of the year, the company will give rebates to dealers who have completed certain sales targets. In the past, we will increase inventory to rush sales. Cooperation with e-commerce can alleviate our inventory pressure. But cooperation means losing the pricing power, I am afraid it is not a long-term solution." "As an example of the brand I sell, the sales volume of e-commerce channels is less than 10% of the total sales. The main battlefield of the home industry is still the store. Xu Yu said that he will not focus on the e-commerce channel, nor will he offend the store in cooperation with e-commerce. Li Hua of a certain home plaza in Jiangsu told the rule of law weekend reporter: "The dealers I contacted did not strongly demand the willingness to cooperate with e-commerce. After all, the profits are too low, and the dealers are not willing to position themselves as 'transportation team'. If the distribution Businesses are really willing to cooperate with e-commerce, manufacturers and stores are simply unable to stop.†Traditional channels vs. e-commerce channel The home industry has its own characteristics, many large-scale goods are tens of thousands of yuan, consumers pay more attention to product experience, E-commerce channels are difficult to replace traditional channels in a short period of time. Du Yanhong told the rule of law weekend reporter: "Different from clothing, shoes, hats, 3C appliances, books and audio-visual products, the personalization and experience of home products is stronger. This is the advantage of offline stores, and it is difficult for online e-commerce to quickly impact. The important factors under the line.†From the current situation, traditional sales channels are still the mainstream, but the advantages of e-commerce channels are still obvious. Compared with offline stores, home e-commerce has in terms of customer source, cost and price. Advantage. There has been no standard in the home furnishing industry, and there is no standardized pricing system. This has been criticized. “The opaque price and long distribution chain are the key reasons for the high price of home products.†Du Yanhong said, “With the development of online home e-commerce, the price of household products will become more transparent, while consumers can More direct contact with brand merchants, the entire distribution system is more flat, the price of home products will become more rational." "The line is the important trend of e-commerce development, e-commerce with price and information advantages are not available Comparable advantages. Home stores, home brands should actively seek change, and actively cooperate with e-commerce. Only cooperation and integration can take the lead in the future market and competition." Du Yanhong said. In fact, home stores and home brands are also aware of the importance of e-commerce channels. Qumei Furniture, Lan Jingli, Red Star Macalline, and Real Home have “electric shockâ€, but so far no company has been able to Achieved unanimous recognition in the e-commerce field. The biggest difficulty in the “blackout†of the home industry is how to balance the price of online and offline. The traditional channel has formed a relatively complete supply chain. The factory and dealers have a long-term understanding of commodity pricing, sales area and profit ratio. To break this stable pattern, natural contradictions are enormous. Xu Yu told reporters: "As a dealer, we invested a huge amount of manpower and material resources in the early stage, and the online price is low, but for us, the service and after-sales obligations have not been reduced, so that the profit margin is less and less."