Home> Blog> Furniture companies "electric shock" optimistic about "O2O" mode

Furniture companies "electric shock" optimistic about "O2O" mode

February 18, 2022

The author was informed yesterday at the 30th International Famous Furniture (Dongguan) Exhibition that the famous furniture exhibition attracted 895 exhibitors from mainland China, Hong Kong and Taiwan and the United States, Singapore, Italy, Canada, Malaysia and other countries to show on the same stage. Many furniture e-commerce companies have vigorously promoted the "O2O" project, attracting the attention of many manufacturers and furniture dealers. At the same time, many domestic furniture business owners have said that the future of furniture shocks is bound to revolve around the "O2O" model.

It is not easy for the furniture industry to be an e-commerce provider to be recognized by the industry. Compared with the highly competitive categories of clothing, 3C and other e-commerce companies, the current furniture e-commerce field shows a lot of attractive "blue sea characteristics", which also attracts more and more entrepreneurs to enter the gold market. For the domestic furniture brands, with the exploration of the e-commerce model in recent years, it is gradually realized that the “O2O” (Online To Offline) model combining online and offline is expected to become the ice-breaking method for furniture e-commerce.

"O2O" concept won the furniture industry

Furniture products generally have the characteristics of high price, difficult transportation, complicated installation and high requirements for experience. These characteristics are things that furniture companies must solve when they do e-commerce. At present, the furniture industry generally believes that the current domestic furniture e-commerce is only in the "starting stage." Therefore, the "blue ocean" of furniture e-commerce has also attracted the attention of entrepreneurs. At this year's famous furniture exhibition, the author found that many furniture e-commerce entrepreneurs unanimously selected the breakthrough point as the "O2O" model.

At this year's famous furniture exhibition, Haier Rishun introduced the furniture designer. “As long as you are creative and understand the needs of users, you can start your business here.” Haier Electric Group Co., Ltd. Strategy Minister Lin Biao said that consumers need to design a new home, and designers hope to get rewards through their professional skills. Under the guarantee of this platform, designers and consumers can achieve a win-win situation. According to the Lin Biao Committee, Haier Group's Sun Rishun Home Network is expected to go online before the end of this year. The website tries to integrate elements such as home appliances, furniture, home decoration, home furnishings, design ideas, and the platform and Haier's offline. The store forms an interactive system in accordance with the “O2O” model. The Lin Biao Committee is confident that although Haier is not the main business of Haier, Haier has rich experience and advantages in large-scale product logistics distribution and installation and after-sales. With this advantage, and then cooperate with the furniture industry giants such as Dongguan Famous Furniture Club, it is bound to gain an advantage in the competition of home e-commerce.

Compared with the ambitious goal of Haier to establish an online home e-commerce system, the slogan proposed by Lemeiju Information Technology Co., Ltd. is more “inciting”: “use the terminal store flow and directly grab the Taobao business.” The author is in the company. A device called "Multimedia Terminal Sales Platform" was seen at the booth. The device is about 1.5 meters high and most of the space on the front is covered by the touch screen. According to the design, such equipment will be installed in the physical store of each franchisee. If the consumer does not find a suitable product in the physical store, then a more abundant product can be purchased in the terminal.

The author's experience has found that consumers can complete product viewing and ordering operations through the device, and the inquiry and payment are completed directly at the terminal store. Gong Zhijun, the person in charge of the company, said that they believe that after the terminal platform is put on the market, it will cause the "e-commerce" to seize the "storer" order. In addition, a company held a press conference at the famous furniture exhibition and announced that the “Furniture Review Network” was officially launched. The business idea of ​​the website is similar to the well-known “O2O” website “Popular Review Network” in China, aiming to accumulate user sales and drive product sales.

Furniture companies aim at "O2O" e-commerce model

“Many furniture brands are trying to do e-commerce, but there are very few successes.” Fang Hui, secretary general of Dongguan Ming Furniture Club, said that especially the high-end furniture market relies heavily on the actual experience of consumers on products, and the bottleneck faced by furniture e-commerce. Not small. Fu Kai, chairman of Guangdong Jushang Internet Technology Co., Ltd., believes that furniture e-commerce currently faces six obstacles such as “end product sales management system” and “consumer offline experience and online convergence”.

In fact, these obstacles are an important reason for the furniture companies to turn to the "O2O" model. Lin Guorong, vice chairman of the China Home Brand Alliance and general manager of Dongguan Chuangyu Industrial Co., Ltd., said that a few years ago he held a near-hatred attitude towards e-commerce, not only resisting the suppression of dealers' electric shock. On the one hand, it is impossible to suppress. On the one hand, it is to see the development of e-commerce. He realizes that it should not be counter-trend and must accept and participate in e-commerce. To carry out product marketing activities, the two fronts on the line and offline should start at the same time.

Wang Xiaokang, the general manager of the home appliance business, also said that the current furniture e-commerce is mainly based on the B2C (business-to-guest) model. According to the statistics of the Taobao Tmall Mall, such furniture e-commerce, the price of furniture customers generally does not exceed 3,000 yuan. Wang Xiaokang said that the traditional furniture industry has to “reluctantly” transform itself when it enters e-commerce. This transformation is from B2B to "O2O" mode.

Realizing that "O2O" is more important than traditional furniture companies. Pan Shouzheng, director of the well-known vertical e-commerce Melaleuca furniture brand, also admitted that furniture brands can not blindly pursue online traffic, but also put resources into sales terminal stores. In fact, Melaleuca has begun to increase its physical composition in recent years, opening an offline experience store in several cities in China.

According to industry analysts, the “O2O” model of furniture e-commerce is conducive to giving play to the advantages of furniture brand terminal stores and alleviating the contradiction between online and offline conflicts. At present, many furniture brands such as Dongguan Novartis Furniture have begun the "O2O" attempt. However, the current "O2O" model of furniture is also in the early stage of development, and has not yet formed a mature model. Furniture companies still need to invest cautiously when trying "O2O" mode. Stones cross the river.

Glossary

"O2O" e-commerce model

O2O (Online To Offline) refers to the combination of offline business opportunities with the Internet, online channels for offline services, and consumers can easily screen services and online settlement online. With the rapid development of e-commerce, the O2O model is regarded as an important e-commerce model other than B2B (business-to-business), B2C (business-to-customer), and C2B (customer-to-business).

The price of mahogany furniture is not "high on the top"

At the exhibition, the author found that the exhibitors of this famous furniture exhibition all came up with the attention of the professional audience. Among them, many exhibitors have become the highlights of the exhibition by playing the "People's Card", "Technology Card" and "Custom Card".

The author saw in the "Exhibition Exhibition" of the 30th International Famous Furniture (Dongguan) Exhibition - China Redwood Furniture Exhibition that most of the mahogany furniture exhibitors did not blindly display the "high price" mahogany products, but instead placed the products at a price close to the people. position. There are even mahogany furniture companies that indicate that their target consumer group is ordinary urban white-collar workers.

At this year's famous furniture exhibition, the first China Redwood Furniture Exhibition was held, attracting nearly 30 mahogany furniture companies to participate.

In the eyes of ordinary citizens, mahogany furniture can be described as "high-end atmosphere grade", which is not affordable for ordinary consumers. However, in the view of the mahogany furniture business owners, the outside world has misunderstandings about mahogany furniture. In fact, mahogany furniture is a "national furniture" with a lot of product structure.

The author saw at the China Redwood Furniture Exhibition yesterday that there were nearly 30 mahogany enterprises that had booths on the exhibition site. The booths highlighted the antique charm in the decoration. Many booths have a sense of history that guqin and other redwood products are set off. Even the booths have invited models to wear the costumes of the past to attract the attention of the audience.

Xiao Zhaoxing, chairman of Hongfa Furniture, who has been engaged in the mahogany furniture industry for 30 years, said that mahogany furniture is a different kind of furniture category, because many mahogany furniture has the function of collection and value-added. But that doesn't mean that all mahogany furniture is amazingly expensive. In fact, mahogany furniture products are diversified in structure, with high-priced products belonging to luxury goods, and practical products with low and medium prices. Xiao Zhaoxing said that many mahogany furniture companies now produce low-end and mid-range mahogany products, and the prices of these products are generally affordable to consumers. For example, the two-piece set of Angola rosewood desk in Hongfa Furniture booth is priced at 15,000 yuan.

Lu Wei, manager of Daqing Royal Redwood Furniture Marketing Department, said that the target consumers of the brand's products are ordinary white-collar workers. He said that the Indonesian broad-leaved yellow sandalwood furniture exhibited by the brand yesterday used silk-tank carving technology, and the price of the 6-piece sofa set was about 50,000 yuan.

According to industry insiders, mahogany furniture is also divided into high, medium and low grades. Relatively speaking, the mahogany furniture products at this year's famous home show have few low-end products. In fact, some small and medium-sized mahogany furniture on the market is priced at only a few hundred yuan, and not all mahogany furniture is as expensive as the outside world.

Smart furniture products are coming out of the limelight

Furniture is not all "wooden enamel." Yesterday, many furniture brands made their debut in the high-tech show at the famous furniture exhibition.

Man Wah Holdings has launched an innovative “shakeable” Chivas space capsule sofa. According to reports, in addition to the unique comfort features of the Chivas space capsule sofa, the product can also automatically swing back and forth. The left and right furniture brings a smart sofa that integrates heating, massage, music and many other functions. The company also made an IOS platform APP for this sofa. After the user installs it, it can be remotely controlled by Apple products such as Iphone.

In addition, smart furniture such as sonic hypnotic mattresses and cabinets with voice-activated door closures also made their debut at the show. Although these smart homes are expensive, they still attract large numbers of buyers to compete for orders.

Custom furniture companies enter the civilian market

It has been unveiled at the famous furniture exhibition for several years, and the custom-made furniture museum has become increasingly mature. The museum has attracted excellent custom furniture companies such as housing companies, Tianyimeijia, Haiheming, Mingshu, and Chuangyu. At this year's famous furniture exhibition, the number of exhibitors in the custom furniture hall increased to more than 20.

In the past, custom furniture companies were mainly for designers, home improvement companies, and hotel projects. With the recent shift to the civilian market, custom furniture companies have achieved unexpected growth. Many custom furniture companies that participated in the exhibition told reporters that as consumers demand more and more personalized home customization, traditional decoration companies can not fully meet the needs of consumers.

Relatively speaking, furniture custom companies can use a price-performance price to create a complete set of household products according to consumer demand. In addition, the individualized needs of consumers have also prompted dealers and store operators to create a desire to cooperate with custom furniture companies. Therefore, in this exhibition, many custom furniture companies have become the "focus" of the exhibition.

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