See O2O hit the home improvement industry pain points

"Millet will not be home improvement, nor will it be real estate. I have been pitted by Xiaomi's home decoration!" Lei Jun's rumor has caused a sensation in the industry.

Lei Jun was eager to make peace with the love of space. The love of space CEO Chen Wei also shouted: "We were devastated by the cottage's millet home decoration." But in the process of arguing and shouting, the love of space really got Lei Junshun as ** Investment in Internet home improvement companies has become increasingly famous.

In 2014, O2O was known as home improvement O2O. From the very beginning, O2O was given the hope of solving the pain of home improvement. This war has been burned until this year, and the smell of gunpowder is increasing.

Earlier this year, Love Space's main "20 days from rough room to hardcover room, 699 yuan per square meter" did not make a sensation for two days, Haier investment "live network" to more attractive decoration price package: 599 yuan / square meter Spike everyone, SouFun's "extremely hardcover" price of 666 yuan / square meter although the price is inferior, but claimed to be "the first real home improvement APP." In this year's “**” report on the work of the government, Premier Li Keqiang mentioned for the first time that “taking the Internet as the carrier, and creating new and vibrant consumer interactions both online and offline”, it is giving the practitioners a boost.

The home improvement industry was once considered the last area that was not touched by the Internet. The reason is that the home improvement industry has long nodes, long value chains, many product chains, and relatively long service cycles. Nowadays, bosses of this industry have said that O2O is precisely because the Internet is regarded as a pain point in cracking the industry and save the industry from the last straw of chaos.

Subvert the traditional model

In April 2014, Jinyi Building Decoration Co., Ltd. (hereinafter referred to as “Jinyu”) and “home improvement e station” “marriage”, the use of e-commerce model to achieve the real separation of the design, product, construction of traditional home improvement, subvert the traditional home improvement profit model .

The company was the first traditional decoration company to seek an O2O solution. It announced on April 28, 2014 that it officially established Jinhao (Suzhou) E-commerce Co., Ltd. on June 6 of that year. This is a joint venture between Jinyu and Jiazhuang e. s company. The former accounted for 51% of the shares and the latter 49%. In the development strategy of Jinrong 2015, home improvement O2O is regarded as one of the key points.

When asked why Jinling, who is a tooling designer, will rely more and more on home improvement, Yang Zhen, president of Jinsheng, said: “The tooling cycle is relatively long, and the home improvement cash flow is relatively good, plus the home improvement policy has little influence on the real estate market.” At the same time, he stressed that the use of the Internet to upgrade the traditional home improvement model.

At present, home improvement companies refer to the Internet model, which is nothing more than the hot O2O model in these two years. What is the core of this model? The deputy general manager of home improvement e-station Bo Hu made concise: First, to the intermediary; Second, online and offline information all open. This kind of Internet thinking is seen as a way to solve the pain points of users.

To abbreviate F2C, products directly from manufacturers to consumers, is to save the middle ring in the field of home improvement, the overall price will be reduced by more than 30%. In the field of traditional home improvement, the intermediary, that is, the dealer, has always played a pivotal role. They are agents at various levels, earning intermediate interests, and shifting the intermediate cost to consumers. The O2O model needs to be disintermediated, which is to cut down the cost of this part. However, stakeholders will stand up and thwart. Last year, there was an outbreak of home-store sales boycott of Tmall's collective behavior.

However, it is difficult to stop the O2O process. Among the traditional home-listed companies in Guangdong Province, Yihua Wood has been married to the US-based Lele. It has expanded the channels of the inspection channels through the platform of the US-based Lele. The Seagull Sanitary has introduced Qijia.com as a strategic investor. Its overseas customers provide e-commerce services and platforms while building O2O models with Qijia. Sophia chose to enter the Tmall O2O platform and launched the O2O concept promotion brand.

The other reason why the traditional home improvement model is criticized is its business model of "relying on a package". The contractors will set up various minefields and do various N additions. In the final settlement, customers can only compromise.

The reason that Love Space proposes the mode of price determination and time determination is that the company itself is a large general package and owns industrial workers, instead of subcontracting the project to contractors. Industrial workers have more work and more enthusiasm.

In order to ensure the completion of 20 days, Love Space has developed dozens of standard cabinets of various sizes to be ready for production in advance. At any time, the doors are assembled. The wooden doors are produced in advance according to the standard size. The workers adjust the door frames to the wooden doors and solve the time in a standardized manner. problem.

Li Shuguang is the first customer to love space. Like ordinary homebuyers, it was very tangled up on which decoration company to choose. Before friends chose a well-known decoration company, settled more than 70,000 yuan experience, make her more confused. When attending training at Tsinghua University, a teacher recommended her love space.

What she deeply impressed by the love of space is that it will not be added, and the decoration will be transparent. Holding the psychology of trying, she finally chose this company. Li Shuguang's community is located in the beautiful east and west bank of Huilongguan East Street. During the renovation process, Love Space has sent more than 10 people to communicate with her. We use WeChat to communicate with her every day. The week before the renovation, she went to the construction site for the entire renovation process. In total, only five or six site sites were run. After the renovation was completed, she did not think it was okay.

Grab the entrance "Yangmou"

The consensus in the industry is that the road to O2O needs a large amount of money and heavy investment. In the end, it is all about the ability to burn money and the ability to integrate resources. Berghuo said: "We have already made more than 100 million yuan, and we are still continuing to embarrass ourselves. We must either not do it in this area or we must do our best."

Online and offline information is fully open and the entrance is an issue that needs to be considered in the O2O model. Berger explained that direct login to the site, or through Tmall, Baidu search can open the traffic entrance. However, with the development of mobile Internet, the entrance of information has become more diversified, micro-channel scans, mobile phone APP, etc. will become the future trend.

However, in the concept of home-installed e-stations, the entrance concept of traffic is often used in the front-end of marketing, which is to solve the problem of where the customers come from, but the O2O of the entire home improvement is not just a marketing problem. From the beginning of 2010, the home improvement e-station has spent four years to solve the problem of the industrial chain, build a good platform, and put marketing to the last. Starting in 2015, marketing will be emphasized while optimizing the industry chain.

Unlike traditional decoration companies that use the Internet as an upgrade method, Love Space has been thinking about the Internet from the very beginning. In layman's terms, the slogan that loves space is actually the way of Internet marketing. Chen Wei said: "In contrast to traditional Internet marketing, we want customers to participate and then make products."

User-centeredness has always been the slogan and goal of Internet companies. In the Internet era, whoever grabs users will win the market. Therefore, Tesla succeeded and Xiaomi succeeded. For the profit model of Internet home improvement, relying on home-made equipment to make money is actually secondary, and it is the key to expanding other products through home improvement. “You think about it. In addition to the home improvement company, will the owner give the house key to a stranger for a long time? Through this period of time, you can touch their lifestyle so much that you can also say that Home improvement, we can promote a family life cycle product."

At present, the home improvement e-station and the love space are both showing strength in integrating the industrial chain, and therefore have an advantage in terms of cost performance, and both are using standardized ways to meet customer requirements. Berger mentioned that there is not much standardization in the home improvement industry. Home improvement e-stations use standard terminology to solve home improvement products and services. Therefore, the business of home improvement has been split, and the design, construction, and main materials have been standardized for construction and interpretation. The purpose of standardization is to be simple. Just like buying a TV or a refrigerator, if you enter a model, the prices in the world are the same. Standardization is to make sure that goods, services and transactions are determined.

So far, the O2O home war is still very anxious, under the slogan of "breaking down the drawbacks of home furnishings, saving money for users, and achieving transparent transactions." In the end, who wins, they have to let the market answer. Home improvement companies say O2O, precisely because the Internet is seen as a pain point in cracking the industry and save the industry from the last straw of confusion.