Guan Yongkang: The furniture industry that broke the border ushered in a subversive challenge

The house is the source of all trends in the home industry. With the gradual formation of China's “urban centralization” development pattern, there will be obvious polarization in the development of the first, second and third-tier cities in the future. As more and more young people flock to first- and second-tier cities, housing prices are becoming more expensive. The transportation network is becoming more and more perfect, and the centralization of the main units in the urban center is a foregone conclusion.

Then, according to the changes in the real estate industry, traditional furniture companies can adjust and match the furniture design. Is it feasible? In the short term, it is no problem, but the boundaries of the industry have already been broken, and the furniture industry has encountered an unprecedented subversive challenge.

Subversion: the furniture industry will lose most of its market share

First of all, the furniture industry is a very low-viscosity industry. Coupled with the impact of the Internet and emerging consumption habits, the traditional furniture retail channel has gradually lost its market entry position.

Secondly, the industrialization of residential hardcover industrialization is related to the entire industrial chain. In the era of hardcover, the fixed furniture such as cabinets and storage is completed by real estate developers, and some of the movable furniture that meets the acceptance criteria of hardcover houses is also established by real estate developers. The collection center is complete, and there are also cross-border robberies in the building materials, designers, custom, soft-clothing and other industries. The furniture industry will lose most of its market share.

Change: Do not want to be eaten, must actively transform

This is not an alarmist, but an existing situation in the big home industry. For example, ceramic tiles are almost extinct in the field of residential hardcover; for example, home appliances, many home appliance companies have entered custom channels, and sales performance is better than professional home appliances channels; for example, in the field of home improvement, in addition to secondary storage rooms, secondary renovation, but also Internet home improvement companies are fiercely competitive, and the list goes on.

According to the "eight big bags" theory proposed before, namely, design service package, construction service package, decorative main material package, solid furniture package, movable furniture package, soft decoration accessory bag, household appliance package and functional accessory package, in this industry chain In the middle, the back end of the industry is bound to be integrated forward to seize the entrance and market, and the front end will inevitably encroach on and integrate the downstream industrial chain.

For the time being, the development of custom furniture is still strong before the language of architecture, decoration and furniture design is unified. Traditional furniture, in addition to adjustment and transformation, has no other way.

Trend: the ultimate form of specialization and platformization

How to transform? There are two directions worthy of reference here.

First, platformization. The industry at the front end of the residential hardcover industry chain has comprehensively promoted the platformization strategy and transformed the large-scale industrialization model. For such companies, software and services will be the most important threshold.

Second, specialization. The industry that is located at the back end of the residential hardcover industrial chain, the more it is necessary to take the development model of single category and specialization. At the same time, the implementation of multi-channel innovation, online and offline integration, the integration of the upstream and downstream of the industry chain, or into the consumer side, to personally seize the market, to win by volume.

At the moment, the industry is changing faster and faster, and whose transformation is faster, who will win the market. Once the barriers to technology and brand are fully formed, even if the company wants to enter, it will be difficult. Therefore, only by breaking the border, seizing the entrance, and changing the mindset can we find the future in the turbulent industrial transformation.