With regard to the development of home channels, there are three types of news at the same time: First, the traditional home channel business is increasingly difficult; second, the new home shopping malls are still unbroken; third, the emerging home e-commerce offline channels have begun to expand rapidly. Obviously. These three kinds of information together represent a fairly complex competitive landscape of current home channel development.
Home channel competition in the 100 Mall era
In early 2012, Red Star Macalline first opened its 100th store in Tianjin. The traditional home shopping mall entered the 100-Mall era.
However, the environment for the development of the traditional home furnishing industry is very unfavorable: the first real estate development dividend is basically over; secondly, because of the driving of commercial real estate, the phenomenon of saturation of home shopping malls has already appeared on the market; thirdly, the e-commerce industry has pressed the border and exerted tremendous pressure on traditional channels. .
From time to time, bad news came out in the market: the international home fury family Depot quits the Chinese market; the local home chain Dongfang homeland is bankrupted; the home shopping mall has a wave of withdrawal; the home e-commerce has developed rapidly, Tmall double eleventh day, the company has sold over 100 million... ...
However, under the situation that this kind of home channel is in the middle of the day, there has been a rapid expansion of the two home channel giants of Red Star Macalline and Real Home. Recent figures show that Red Star Macalline has opened 150 stores, and the number of malls opened by its main rivals is close to 100.
At the beginning of September, Shanghai, the old rival of Red Star Macalline, also announced its development plan for the city.
At the same time, home e-commerce is also fierce. At the beginning of the year, Qijia.com announced that it would open 300 offline Internet stores by 2016, and joined the ranks of this 100-Mall competition. After more than 8 years of development and recent business model optimization, Qijia.com has the strength to compete face-to-face with traditional home giants online and become a more promising competitor.
Although more than 300 offline experience stores of Melody are not enough to participate in the competition of the mall, in July this year, the first offline store was opened, and the competition map of offline home channels began to enter.
The competition of offline home channels has entered the pattern of 100-Mall.
Where is the traditional home channel?
Whether it is a bleak operation or a high-speed expansion, everyone may know that there are serious problems in the traditional home channel, and this problem is particularly serious under the influence of home e-commerce.
In an article entitled "Where is the home channel?", I comprehensively analyzed the flaws of the traditional home channel. The traditional home shopping mall based on the development of commercial real estate is the root cause of the lack of concentration in the home industry, the lack of concentration of home brands and the high price of household goods.
Driven by the interests of commercial real estate, the construction of home shopping malls does not consider the market size and the needs of home consumers, no matter the number of shopping malls or the size of a single shopping mall exceeds the needs of the market. The number of shopping malls is increasing and the size of shopping malls is growing. And a large number of shopping malls need more brands to fill, and large-scale shopping malls need more brand support, so dealers who can afford rents represent brands that far exceed market demand.
There are many brands, the scale of the brand is difficult to develop, and the home brands compete on a lower efficiency level. According to reports, the average efficiency of traditional household channels is only 2,000 yuan, which leads to a high proportion of household goods channel costs, so commodity prices remain high.
The development of the Internet has changed the consumption behaviors and habits of home consumers, which is the biggest change in the operating environment of the home channel. It is an indisputable trend that the traditional home channel business model cannot adapt to the future market development. However, how should traditional home channels change themselves?
E-commerce is a revolution in traditional channels! In the face of the embarrassment of e-commerce, traditional channels know that they either revolutionize themselves or are revolutionized by others. But how hard it is to reform your own life. Looking at the e-commerce development of the traditional channels of the home, there have been no successes so far, but there are countless others.
Home 100 Mall competition, where is the traditional channel?
Species evolution in home channels
We understand the future direction of the home channel from the perspective of species evolution.
The rapid development of the Internet has caused a fundamental change in the operating environment of the home industry. The business model of traditional home channels no longer meets the needs of market development. Traditional home channels only rely on evolution to adapt to changes in the business environment, and the survival of the fittest.
On the other hand, new species are also emerging. Home e-commerce originating from the Internet has also become a powerful challenger for offline home channel competition with rapid development.
The Internet store of Suzhou GO Jiaju showed us a new way of home channel. Of course, the changes include the capacity of Internet stores compared to traditional home channels, which are no longer 100,000 or 200,000 or even 300,000 square meters, but only 6,000 to 10,000 square meters. At the same time, merchants staying in Internet stores are not as large as hundreds or even thousands of traditional home channels, but only about 100 brands.
In the article "Six Characteristics of the Future Development of Home Channels", I outline some of the characteristics that should be demonstrated in the competition of home channels in the Internet era. They are: 1) online and offline integration; 2) virtual and real interactive display; 3) transparent product information; 4) user experience first; 5) smaller and more efficient; 6) differentiated operation.
We believe that the traditional home channel will gradually lose its past scenery. The home shopping malls that refused to evolve will gradually disappear, and other home channels that will be transformed by the Internet will evolve into new species in the Internet age. They may not be the same as the home channel evolved from e-commerce, such as Qijia.com or Melaleuca, but they also have several characteristics of the home channel described above.
The competition of future home channels will present a diversified and differentiated business structure.
Who is the leader in the home channel competition in the 100-Mall era? The answer is: channel evolution, survival of the fittest.
This article is edited by Suzhou Home Network.
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