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Ten years ago, once the concept of whole house customization appeared, it was criticized by major brands. At that time, the whole house customization was far less popular. Stimulated by the one-stop shopping experience, consumers’ perception of the whole house customization is deepening and the recognition is getting higher and higher. Moreover, the whole house customization can meet the individualized consumer demand and can be flexible. Production has achieved large-scale manufacturing, and has been optimistic about home furnishing and capital markets. In 2017, with the capital boom of customized home furnishing companies, the concept of whole house customization has also moved to the peak of concept heat.
We often use a 10 year as a time unit to observe an industry concept. After more than ten years of rapid popularity, by 2018, today’s whole house customization has stood at the crossroads of development.
From the time of entering 2018, the story of the influx of capital in 2017 is still warm, but on the other hand, the fact that the growth rate of custom enterprise revenue and profit growth has declined has also caused the entire industry to Calm, from instigation to contemplation & mdash; & mdash; the whole house custom traffic dividend era is over, the inflection point has come.
The battle of the crowds
After visiting a number of whole-house custom-made companies, many European companies learned that many companies are forced to attract profits and transform into the whole house customization field. Production-oriented enterprises also have a “light asset model” that is directly taken from the investment team. Although many large and small companies have erected the banner of the whole house, in fact, more is notorious.
Conceptually, there is no unified statement to define “all-room customization, so the answers given by each family are not the same. If the company itself has a different understanding of the concept of whole-house customization, then the strategy and direction of the future will be different.
Regarding the types of house-wide customization, there are companies that advertise that the cabinets + wardrobes are “all the houses are customized; some companies think that they are wardrobes + cabinets + wooden doors + wall panels; there are also companies that believe that they are custom cabinets. + Finished furniture + soft furniture… The products provided by the enterprise cannot be interpreted. “The whole house customization includes the standardization of the categories. On the consumer side, it cannot fully satisfy the real needs of consumers for one-stop shopping, even if it is listed. It is also difficult for the company to realize the true provision of whole-house furniture products.
What’s more, in order to catch up with the custom-made air outlets, we have added a category to the previous production items and we have labeled the whole house. There are countless examples; companies that have come across the border are flocking. In addition, the related exhibitions have also accelerated the development of the whole house customization. Many exhibitions have added “all the custom-made pavilions…. ..
The increasingly crowded track is always conveying a message that the entire house is not in the blue ocean. Capital has led to a sharp expansion of production capacity, which has forced the whole house to enter the stage of price shopping. The most fear is that this price war is initiated by leading enterprises; in addition to capacity expansion, the channels of first-line brands are sinking and constantly Squeezing the second and third-line brand market, the price competition in the third- and fourth-tier cities is also continuing…
A price war from the industry’s giant hair is still burning, and SMEs will be like this. The price bombing continues to be squeezed, the market share is further shrinking, and the industry concentration may be improved. However, the competition between the giants is still intensifying and difficult to compete.
Is the crushing bubble still casual?
In a short period of time, the situation of melee in the industry will continue, and the pattern needs to be further clarified, and it will continue to be consumed as the whole house is customized. It is recognized that the contradiction of the imperfect development of this model has gradually been amplified. The lack of industry standards is an important reason why the problem of the enterprise cannot be restrained and “the whole house chaos cannot be restricted.
This year’s 3·15, the first “house-wide custom wood (made) furniture” group standard began to implement, for the first time in the whole house customization industry, the phenomenon of chaos, the standard missing, material identification Six major problems, such as non-standardization, cost settlement loopholes, chaotic pricing methods, unmatched custom processes, and total control of the release of harmful substances, are on the table.
At present, it seems that the problems exposed by the whole house customization are far more than these. If you don’t pay attention to it, these kinds of problems are enough to become a fatal factor in the whole house customization:
Chaos 1: Is it really customized or custom-made illusion? Standardized products?
Mass customization can become a favorite for companies, and the two factors involved are The key, namely customization and mass production, and the balance between the two has become a key point that companies are always looking for.
Customization and scale seems to have a necessary but unclear boundary. Outside the boundary is scale, customization within the boundaries, and on top of the border, companies can achieve brand and The benefits of both have a “match point.”
In terms of customization, the company has a lot of links in sales, measurement, design, production, installation, after-sales service, etc. The situation is that each of them is camping, and they have not achieved a good connection. The customer experience has been discounted, and there will be continuous delivery problems.
From a single category, cabinets are easier to standardize, and wardrobes are relativelyCustomized demand will be more. In the large-scale whole-house custom enterprise that Yiou Home has learned, the ratio of standardized products to non-standard products is basically between 8:1 or 9:1, and the proportion of customized products is quite small; Since the customized products will be relatively more labor-intensive and time-consuming from design to production, installation, and after-sales, reducing the non-standard rate is an important reference for the whole house to improve efficiency and reduce costs.
Customized products account for such small cases. How can you clearly define a product in a consumer’s home is a customized product? The result is that consumers pay a higher price than a standardized product.
Chaos 2: The design level is questioned, is it a designer or a signing artifact?
Moving the time forward, there is no custom design before the whole house customization concept The concept of the division, and with the popularity of the whole house customization market, the professional competitiveness of the whole house custom designer is also growing. The conventional idea is that the designer must rely on the design level to determine the pros and cons, but in fact Most designers have become an important source of signing, and whether they can get a rich commission from them has become an important factor in attracting designers.
The level of design cannot be guaranteed. Consumers have certain blind spots in the design or the aesthetics of the overall home space. It is difficult to judge the true level of the designer and it is easy to enter the pit.
Chaos III: Industry 4.0 in the tail of Industry 2.0, but shouted for a long time?
Industry 4.0 was actually proposed by Germany, with the aim of thinking about the next one. Taking the lead in the industrial revolution, the emphasis on resource efficiency, smart factories and adaptability has created a wave in the transformation of global manufacturing enterprises. And what should be the real industry 4.0 of the custom home industry?
There are related reports saying: “Customized furniture factory industry” is mainly based on unmanned production plants, creating industry “ The production of the panel furniture of 4.0 integrates the processes of material cutting, edge sealing, drilling, sorting and packing to realize the unmanned factory production mode. In this case, the entire set of custom furniture industry 4.0, covering warehousing, gantry grabbers, cutting equipment, multi-axis handling robots, edge-turning rotary line systems, power transmission lines, six-face drilling and punching equipment, automatic sorting systems, etc., The master control system and intelligent software automate the production process.
At present, in addition to the fact that a large number of large enterprises are gradually realizing the process of Industry 4.0, in the mixed market, the standard of Industry 4.0 is far from being realized, and even some business owners and Yiou Home revealed. Many companies are still in the industrial 2.0 stage. For many cross-border enterprise problems, it is more obvious. From the actual design and production system, it is difficult to modify from the general finished furniture assembly line. It is necessary to re-create a new flexible production line. Humanization, wisdom, and efficient use of resources require more investment and huge challenges.
Q3 quarter: The growth rate of the whole house custom enterprise continues to slow down
In the high-speed development stage, each industry will inevitably face all kinds of chaos caused by excessive competition, but change From a point of view, when the industry’s rapid growth has turned into a turning point, “the chaos will be valued, and it may become a chance point for the company to break out.
From the perspective of the high-growth revenue and net profit of custom home furnishing companies, both inside and outside the industry have been very optimistic about the whole house customization, but with the disclosure from the companies in the mid-year report. According to the data, the growth rate of the customized home industry has been questioned. Of course, the voice of this question has become more prominent after the Q3 quarterly financial reports have been released.
Billion Euro Home has compiled two sets of data, regardless of the revenue growth rate in Q3 2017. The growth rate of revenue in the third quarter was higher than the corresponding growth in 2018. Of course, in addition to the impact of the one-stop shopping consumption environment brought about by the consumption upgrade, the growth of customized enterprise revenue is largely due to the company’s “employment & mdash;— expansion category and brand, which is very important. On the one hand, in order to cater to the needs of the whole house customization, the growth rate and the growth of the company are overweight.
And as this development model enters a certain stage, under the result of the crazy expansion of production capacity of various companies, it will inevitably lead to overcapacity, oversupply, we see some listed companies, such as Shangpin home delivery, Europe The company has made a large amount of capacity investment, and after the next five years, this investment will be truly transformed into products, but a large amount of product supply will bring down the price. In addition, a large amount of production capacity also needs front-end marketing. Matching support, a ring and a ring, will the giant enterprise enter a new stage of competition? The results are not good yet.
In the book “Marketing”, McCarthy first proposed the product 4p theory —— that is, the enterprise needs to be stronger in quality, the brand is bigger, and it is inseparable from its products. Channels, sales, and prices have always been regarded as classics by entrepreneurs. However, in the face of the phenomenon of homogenization of product design, product homogenization, channel homogenization, promotion of homogenization, and capital homogenization in the whole house, we seem to have lost accurate judgment. Who will be in the next 5 years? Highlighting the encirclement?
The whole house customization is not a patchwork between various household products, but based on consumer needs, starting from this, more efforts in product and after-sales service, perhaps the current industry In the face of chaos, more recognition from consumers is the only way to add value to the brand. Whole house customization seems to be experiencing a special period. In the long run, even the competitive pressure brought to listed companies is not small, and the whole house customization is going through highThe smooth transition period after the rapid growth period is also a crucial period for the reshaping of the industry pattern in the future.
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