Traditional home stores actively seek to change online and offline integration solutions

At present, despite the wave of e-commerce, the household goods category is relatively stable compared to the department store industry. However, this stability was broken at the end of last year, and the traditional stores have already felt the pressure from the online. However, how to change? Home stores are exploring.

After the traditional large-scale home store such as Red Star Macalline “touched the net”, the tens of billions of home furnishing stores in the line were actually on the “Online” platform on November 11, 2013. After more than two years of exploration, the home of the company has adopted the O2O banner of “online and offline integration” in the attitude of “self-reliance”, and wrapped up nearly 100 physical stores under the line to embrace the Internet in all directions.

Based on the special characteristics of heavy experience, heavy service, and multi-category, the e-commerce road of the home started late and was chaotic. So far, there are no mature samples to learn from. Should it be defense or attack? Can the combination of the O2O model and the home industry ignite this trillion-dollar market? Can an actual home become the "stone" of the stone between the peers?

Active change

Actually, online general manager Wang Xiaokang told reporters, “Even if we do not do e-commerce within three or five years, the impact on the company will not be too great.” Home as a non-standard product, the front-end brand is rich, but highly dispersed, especially the need for fine The high-end furniture of handicrafts is difficult to mass-produce, and there is no big brand to form a monopoly.

Based on the industry characteristics of consumers' re-experience and one-stop service, brand pressures are relatively high on-line or offline. Therefore, the one-stop landing service system and the full-scale hypermarket distribution channel still have a relatively strong voice.

Established in 1999, the home is located in the middle and high-end business. It is a large-scale home building theme shopping center integrating home decoration design, building materials supermarket, home shopping mall and other business forms. By the end of 2013, there were nearly 90 offline stores with a business area of ​​5 million square meters. In the next 3 to 5 years, the chain pace will continue to expand at a rate of 20 to 25 per year, and it is expected to reach 120 in 2015.

Zhuang Shuai, a senior expert at the E-Commerce Association, believes that the dependence of brand owners on home hypermarkets varies according to the stage of development. At present, most consumers have not yet formed the habit of buying home and building materials online. In addition, the home industry covers a wide range of categories, and each category needs to be resolved with different difficulties. Moreover, a set of houses from the hand to the decoration company out of the program, and then to the procurement, the entire process involves a lot of links.

As the e-commerce environment changes, the advantages of the store are facing threats. "If you don't do e-commerce for 3 to 5 years, you won't die, but it won't be necessary after 5 years." Zhuang Shuai said that commercial competition is to grab. Now all the platforms are not doing well enough, and everyone has the opportunity to do well.

Wang Xiaokang said, "Advance card is an initiative to change." From the point of view, it is not very urgent to touch the net, but from a strategic point of view, this has risen to the group level. "E-commerce has come to our side, Shunzhanchang, the counter-death. The offline store must be on-line and will become one of the conditions for the actual investment. The offline store will not charge for the online platform..." President Wang Linpeng said.

Online and offline integration

How to break the game? "Don't come online" and "Don't go offline" are the two major dilemmas of current home e-commerce.

Wang Xiaokang said, "A lot of traditional enterprises have gone awry when they are on the transition line." The e-commerce road of products and prices "dual-track system" has proved to be impracticable. Actually online as a platform-type electronic mall in the vertical field of home building materials, positioned as "B2B2C" platform. Actually online (B) as a bridge of services to connect merchants (B) and consumers (C), use the O2O model to cut through, through online and offline collaborative development, accelerate the integration of integrated resources, to meet the different channels, different preferences of consumers The demand for products and services maximizes the enjoyment of the consumer process.

The premise of online and offline integration is the uniform price. Wang Xiaokang introduced that in March 2012, the actual home asked the “real price” implemented by the merchants in Beijing, which paved the way for price uniformity. "As a platform provider, we must solve the problem of consumer information asymmetry." He told reporters that there are many home brands and professionalism, and many middle and high-end consumers are in a weak position.

In an open and transparent environment, one of the cores of O2O is to bridge the gap between online and offline. Through the opening of the membership system, payment system, promotion system and online and offline passenger flow mutual guidance system, online and offline seamless docking. The offline storefront speeds up the Internet of stores by improving software and hardware. Consumers can enjoy the convenience of the Internet in terms of payment, price comparison, evaluation and sharing while in the store experience, so that stores, computers and mobile terminals become the interface between goods and consumers. At present, the store has already installed free Wi-Fi in the stores of Beijing North Fourth Ring. The next step is to track and analyze user behavior.

Regional site operational thinking

To promote change must gain the trust, understanding and support of stakeholders, especially the support of the top and bottom, downstream manufacturers, businesses are the key role of this change. "The most difficult thing is to unify the internal and external understanding of e-commerce." Wang Xiaokang said that it is a consensus to do e-commerce, but how to do it can meet the future and grasp the present is difficult.

On November 11, 2013, it was online. However, the mall only opened the Beijing station, but the first batch of merchants stationed in the North Fourth Ring Store, the online store is directly named after the brand, consumers outside Beijing can not log in to the mall. Wang Xiaokang told reporters that there are only about 12,000 online SKUs, and the total number of offline SKUs in Beijing is nearly one million. It is planned to realize the launch of all businesses in Beijing in 2014.

With Beijing as the entry point, the regional site operation thinking that is gradually expanding into the outer region is aimed at mitigating conflicts between online and offline. Zhuang Shuai believes that the regional color of the home industry is strong, and the prices in different regions are still the mainstream. When the national unified price is still not realized, the form of regional sub-station is more reliable.

Wang Xiaokang also admitted that the dealership pattern of the industry cannot be ignored. As a unified business entity, the regional site model can alleviate the problem of right and left hands fighting to some extent. First concentrate on the main station to do the Beijing Railway Station, and then do the sub-station of Taiyuan, Wuhan and other cities, and when the business gradually realizes the national unified price, choose the appropriate time to start the national station.

A new thing from emergence to acceptance, the middle must be a process of competition, integration, and integration. Actually online is a new thing, whether it is an actual home or a business of all parties. The rest is trust, support and the balance of interests of all parties. “Businesses are more trustworthy.” Wang Xiaokang said that he has been innovating. Although every practice has been questioned by the industry, the results are all successful. Therefore, in the face of another innovation, businesses generally trust.

During the online period, the online five-door store in Beijing has launched the “Online and Offline Integration” joint special promotion campaign to interpret the O2O model through the online trading and offline experience. In 14 days, the transaction amount reached more than 14 million yuan, the price of building materials and home customers was more than 10,000 yuan, and the sales of offline stores increased by more than 60%.

Group Internet

"If we start to consider the profit, it means that our model is wrong." Wang Xiaokang told reporters that sales and traffic are not the most concerned about his online platform. Actually online as a non-profit platform, the most loaded is the service.

At present, the team has more than 80 members, nearly half of whom are outsourced personnel. More work needs to be fully coordinated online and offline. "The real thing to understand products and consumers is the first-line merchants." He said that at this stage, the business does not understand how to use the Internet. Therefore, in 2014, as a “online and offline integration year”, the training of merchants is a top priority. Actually, the top leaders and traders of all merchants will be trained online.

"The future consumers are coming online or offline. It is difficult for us to distinguish them, and we don't care too much." Wang Xiaokang said that online is more like a receiver, seamlessly connecting the needs of consumers from different channels, offline. Business is still the main body of development of the home. On the one hand, the home industry will be the king for a long time in the future; on the other hand, it can highlight the relatively complete offline chain coverage to ensure better compliance in logistics, after-sales service, personalized service, etc. Consumer expectations.

The final result that I want to achieve is that there is no online existence, and the entire group is actually Internet-based. This is the mission of actually online in the eyes of Wang Xiaokang. “As in the previous job search resume, I will fill in the computer level and level two. Now no one has asked if you will use a computer.” Now e-commerce is a department of many traditional enterprises, but with the development of society, e-commerce finally It will be throughout the company. The Internet is an infrastructure, and all businesses in the future will be armed by the Internet.

Whether the first mover can be king, still does not know. But the advance card position can at least win more exploration time for the tens of billions of elephants in the home.

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