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Home improvement digitization enters the deep water area, the industry needs new kinetic energy

Categories:Company News
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Time of issue:2021-04-12
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(Summary description)Home improvement digitization enters the deep water area, the industry needs new kinetic energy

After entering 2021, the designer group has become the new focus of the home improvement industry.

During the Tmall Home Furnishing Festival in March, Liping Designer and Tmall Home Furnishing jointly built an exclusive floor composed of 11 young and middle-aged designers who won domestic and foreign awards in the "Tmall Home Furnishing City 3D Mall";

Almost at the same time, they frequently sought cross-border Kuaishou, and launched the Kuaishou Home Improvement Festival in Foshan. They wanted to use the "Star Project" to let the designer group join the wave of live streaming;

Going back for a while, Suning is also cooperating with home improvement brands to conduct designer live broadcasts, and plans to recruit 1,000 designers and home furnishing experts through live broadcasts, tweets, goods and other platforms...

After the digital transformation of the home furnishing industry has progressed to a certain stage, all kinds of players collectively set their sights on the designer group in the industry chain, and try to tap the designer's IP value in the form of virtual model rooms, live broadcast and delivery, etc. I am afraid it is not What a coincidence.

Home industry

(Image source: Tencent Home, invaded and deleted)

01

The Fast and the Slow of Digitization

The digital transformation of the home improvement and home furnishing industry is no longer a new topic, and it is even said that it has formed a prairie prairie in the entire upstream and downstream industry chain.

For example, Ali has shown its muscles in the field of home improvement and home furnishing many times. In 2020, it has set the goal of "increasing the digitalization rate of home improvement to 20% in the next three years, and the transaction scale will reach 1 trillion yuan".

Another example is the digital transformation of offline business formats such as Red Star Macalline and Easyhome. The boundary between online and offline is gradually melting, and the integrated operation of online and offline has become a new normal.

In traditional home stores, smart terminals and SaaS services such as large screens, tablets, and small programs can be seen everywhere. The responsibility of shopping guides is no longer just to lead customers to experience offline, but also to provide customers with "light design" services. Online marketing is also advancing with the times, allowing the production of short videos to be efficiently mass-produced and streamlined. Many businesses have used 3D short videos and 3D sample rooms to create immersive scene experience combinations to replace the original 2D graphic recommendations.

Behind a series of actions, home improvement retail has taken a new path outside the traditional model:

When products, experience, stores, supply chain, contract performance and other links are digitized, it is no longer a dream for users to “go home” online. Check the digital products in the merchant's online store, and check the placement status of the products at home through AR and 3D technology;

When a user places an order for a certain product, merchants such as Easyhome can arrange delivery from the nearest store or warehouse, and can track the delivery and installation of the product in real time. Green screen technology is broadcast live in a three-dimensional virtual model room.

But these are just the "fast" side of the digitalization process in the home improvement industry. Technology has an irreversible trend in the reconstruction of the industrial chain, but technology has not changed the low-dimensional melee in the home improvement industry in a short period of time, and the long-tail market is still in an outdated traditional format.

At present, the number of domestic home improvement related companies exceeds 100,000, but the market share of the top 50 in the industry is less than 2%. Even if the digital transformation of leading companies such as Red Star Macalline, Easyhome, and IKEA is thorough, if the digitalization process stops at small companies, small workshops, and self-employed individuals, the industrial status quo with poor user experience and high transaction costs will continue for a long time. For a period of time, the transformation of the entire industry will be impossible to talk about.

The digitalization of the home improvement industry is entering the deep-water area. What is lacking is not tools and solutions, but a "prescription" to drive the transformation and upgrading of the long-tail market. If you want to reconstruct the industry ecology of home improvement, you also need to find the source of living water to accelerate the upgrading of the entire industry.

02

designer in focus

The pattern of "big industry, small business" in the home improvement industry is destined to be subverted in a short period of time, but it is not that there is no "shortcut" to speed up digitali

Home improvement digitization enters the deep water area, the industry needs new kinetic energy

Categories:Company News
Author:
Origin:
Time of issue:2021-04-12
Views:0

Information

After entering 2021, the designer group has become the new focus of the home improvement industry.

During the Tmall Home Furnishing Festival in March, Liping Designer and Tmall Home Furnishing jointly built an exclusive floor composed of 11 young and middle-aged designers who won domestic and foreign awards in the "Tmall Home Furnishing City 3D Mall";

Almost at the same time, they frequently sought cross-border Kuaishou, and launched the Kuaishou Home Improvement Festival in Foshan. They wanted to use the "Star Project" to let the designer group join the wave of live streaming;

Going back for a while, Suning is also cooperating with home improvement brands to conduct designer live broadcasts, and plans to recruit 1,000 designers and home furnishing experts through live broadcasts, tweets, goods and other platforms...

After the digital transformation of the home furnishing industry has progressed to a certain stage, all kinds of players collectively set their sights on the designer group in the industry chain, and try to tap the designer's IP value in the form of virtual model rooms, live broadcast and delivery, etc. I am afraid it is not What a coincidence.

Home industry

(Image source: Tencent Home, invaded and deleted)

The Fast and the Slow of Digitization

The digital transformation of the home improvement and home furnishing industry is no longer a new topic, and it is even said that it has formed a prairie prairie in the entire upstream and downstream industry chain.

For example, Ali has shown its muscles in the field of home improvement and home furnishing many times. In 2020, it has set the goal of "increasing the digitalization rate of home improvement to 20% in the next three years, and the transaction scale will reach 1 trillion yuan".

Another example is the digital transformation of offline business formats such as Red Star Macalline and Easyhome. The boundary between online and offline is gradually melting, and the integrated operation of online and offline has become a new normal.

In traditional home stores, smart terminals and SaaS services such as large screens, tablets, and small programs can be seen everywhere. The responsibility of shopping guides is no longer just to lead customers to experience offline, but also to provide customers with "light design" services. Online marketing is also advancing with the times, allowing the production of short videos to be efficiently mass-produced and streamlined. Many businesses have used 3D short videos and 3D sample rooms to create immersive scene experience combinations to replace the original 2D graphic recommendations.

Behind a series of actions, home improvement retail has taken a new path outside the traditional model:

When products, experience, stores, supply chain, contract performance and other links are digitized, it is no longer a dream for users to “go home” online. Check the digital products in the merchant's online store, and check the placement status of the products at home through AR and 3D technology;

When a user places an order for a certain product, merchants such as Easyhome can arrange delivery from the nearest store or warehouse, and can track the delivery and installation of the product in real time. Green screen technology is broadcast live in a three-dimensional virtual model room.

But these are just the "fast" side of the digitalization process in the home improvement industry. Technology has an irreversible trend in the reconstruction of the industrial chain, but technology has not changed the low-dimensional melee in the home improvement industry in a short period of time, and the long-tail market is still in an outdated traditional format.

At present, the number of domestic home improvement related companies exceeds 100,000, but the market share of the top 50 in the industry is less than 2%. Even if the digital transformation of leading companies such as Red Star Macalline, Easyhome, and IKEA is thorough, if the digitalization process stops at small companies, small workshops, and self-employed individuals, the industrial status quo with poor user experience and high transaction costs will continue for a long time. For a period of time, the transformation of the entire industry will be impossible to talk about.

The digitalization of the home improvement industry is entering the deep-water area. What is lacking is not tools and solutions, but a "prescription" to drive the transformation and upgrading of the long-tail market. If you want to reconstruct the industry ecology of home improvement, you also need to find the source of living water to accelerate the upgrading of the entire industry.

designer in focus

The pattern of "big industry, small business" in the home improvement industry is destined to be subverted in a short period of time, but it is not that there is no "shortcut" to speed up digitalization.

According to the "2021 New Consumer Home Furnishing Observation and Trend Report" released by "Fashion Home Furnishing", the post-80s, post-90s and post-95s have formed the mainstream group of household consumption; 62% of the respondents live in units below 90㎡ Among them, they are eager to improve the quality of life through good design; the main consumers of the post-90s generation have increasingly obvious characteristics of product differentiation and individualization, and 65% of the respondents said they would choose to buy designer products.

It is not difficult to understand the reasons why designers such as Laiping, Kuaishou, and Suning set their sights on the designer crowd. On the one hand, there are younger and younger consumer groups, and on the other hand, designers have the right to speak in the industry. When a channel of dialogue is established between groups, new drivers of growth can be found.

What's more, there are currently two paths in the market:

One is to build bridges between designers, consumers and brands.

As mentioned earlier, Tmall Home Improvement, Suning, Kuaishou, etc. are promoting the participation of designer groups in live broadcast delivery, and enhancing consumers' trust in products through the professional ability of designers. If we dig further, live broadcast is not the only channel for dialogue. Weibo, Xiaohongshu, etc. have all intended to support home furnishing content bloggers. There are also many designers on short video platforms such as Douyin and Kuaishou. The KOLization of the crowd has become commonplace.

One is to accelerate the digitization of design through SaaS-based tools.

Three-dimensional home, flat design home, etc. aim at the pain point of productivity, try to improve the work efficiency of designers through SaaS tools, and bring home decoration design from the handicraft era to the industrial era. It can be seen that after the implementation of technologies such as 3D cloud rendering and AI smart model room, designers can get their own high-definition renderings in as little as 8 seconds, which further reduces the need for designers to deeply participate in the home improvement industry chain. threshold.

If you think from the perspective of the industry, the designer plays a linking role in the industry chain: upwards are a variety of products and businesses, especially in the field of home improvement and whole house design, designers need to be familiar with the characteristics and characteristics of each material. Price; consumers with different needs, consumers from different regions, different ages, and different budgets have different demands on the design scheme.

In the previous digitization process of home decoration, the focus was on the delivery link of the supply chain, and the value of the design link was selectively ignored. When more and more players began to introduce designers into the track, trying to activate the downstream market from the initial design link, although some attempts were still rough, they pointed the industry in the right direction.

Industry's "Super Connectivity"

"Whoever has the dominance of design is likely to take the lead in growth." It is good news that designers have become the object of competition.

It's just that the value of designers in the home furnishing industry chain should not be framed in live streaming. Simply and rudely treating designers as anchors with goods, there is no doubt that there is a suspicion of excessive consumption of "designers". After all, the core value of designers lies in design, which is to solve the pain points in the consumption experience with design.

Digitizing the capabilities of designers, thereby leveling the cost and efficiency of design, has greatly improved the value of designers, but it has not been able to jump out of the thinking limit of designers serving businesses. In the whole chain of home furnishing, design is the starting point of the entire value chain. The value presentation should not be just the renderings that are recognized by consumers, but gradually extend to various processes such as product selection, contract performance, and delivery.

To put it simply, if the digitalization of the home improvement industry wants to go out of the deep water area, in addition to the innovation in technology and channels, the most important starting point is the designer and the consumer, that is, by changing the user's consumption habits and the role of the designer, aiming at different According to the individual needs of consumer groups, a design network from design to product selection to construction contract performance is established, which in turn forces the digital transformation of the upstream and downstream of the industrial chain.

At least for now, there have been some useful attempts in the industry:

The first is the gradual improvement of the digital infrastructure in the home improvement industry. The home improvement and home furnishing brands and products commonly used by designers are formed into a coherent online and offline selection pool, so that each link of product performance and delivery is operated under a transparent, reasonable and professional system. Designers do not need to worry about brand cooperation or Commercial relations have narrowed the imagination space and selection range of design, and further increased the "rights" of designers.

The second is that the connection entrances created around the design begin to go out of circles. The 3D model room that refreshed the screen during Double 11 and 618 is the most direct example. The connection between merchants and consumers is no longer a single product, but a design solution that can be delivered and implemented, which not only highlights the value of the design, reduces the It reduces the decision-making cost of users and improves the matching efficiency between people and goods, and ultimately benefits designers, consumers, service providers and merchants in the entire home improvement ecological chain.

To make a summary, in the home improvement industry with high customer unit price, low frequency, and complex links, design will most likely be the "key man" for the secondary acceleration of digitalization, starting from design and running through the entire life cycle of "super connection". , will be the next match point for a different player.

At the just-concluded Tmall Home Improvement Festival, Taobao launched a designer-exclusive floor to enhance the influence of designers from multiple dimensions; Shell, which started out in real estate trading, launched the home service platform "Quilt Home Improvement", shouting "Let the design The slogan of "More Pure, Smarter Delivery"; the home improvement service brand Zhuxiaobang began to take designers as its position and intervene in the lengthy decoration chain...

A new wave is brewing.

write at the end

When the digital transformation of an industry enters the deep-water area, it is often "people who understand pedestrians" who bring new kinetic energy.

For a long time in the past, the digitization of the home improvement industry has tended to industrial empowerment, and has achieved visible results: traditional home stores are undergoing large-scale digital transformation, and the digital marketing of merchants has long been a norm, which has further improved the business efficiency.

When the Internet giants set their sights on the designer group at the starting point of the industry chain, it indicates that a large number of "understanders" who are familiar with the doorway of the home improvement industry will enter the market, injecting new design service capabilities and commercial momentum into the industry. Digitization is entering a new stage.

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