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Custom furniture industry research: whole house customization, assembly and information technology become the industry’s strength point (8)



(3) Major business of the project: the hardcover housing policy promotes the development of large-scale business, and the financial strength of the enterprise may become a test
In recent years, after the release of the hardcover housing policy, the proportion of fine decoration of residential commercial housing has been continuously improved, and the refined decoration of residential buildings has gradually become an important profit growth point for the overall home furnishing industry. Customized home enterprises carry out bulk business, generally based on customer credit and financial strength, etc., and sign contracts with customers. Because the project amount is large, generally a certain proportion of the purchase price will be charged first, then the measurement, design, production, delivery, and installation will be arranged. Etc. However, due to factors such as the construction conditions, the progress of the bulk business and the time of installation and acceptance of the products, the general collection period is relatively long, and the company’s capital occupation is relatively high.

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Under the consideration of the gradual increase of the proportion of hardcover rooms and the long return period and various factors of capital occupation, each customized home enterprise has different enthusiasm for the bulk business, and the larger European home, Sofia, Zhibang home, gold medal In recent years, the development of large-scale business such as cabinets and Piano has accelerated significantly, while the relatively small-scale Hao Laike, I Le Home, and Dinggu Jichuang’s large-scale business have experienced slow growth and even reduced. business.
In the bulk business sales model, there are mainly two modes: First, the engineering agent or the dealer is responsible for the bulk business development and product installation, and the European-style homes adopt this model; the second is the company’s internal engineering or large customer sales. The center directly provides direct sales models for furniture products to large-scale customers such as real estate developers or engineering distributors. Piano and Dingchuangjichuang all adopt this model.
Judging from the large-scale Ou Pai homes with the largest volume of business, Ou Pai’s large-scale business revenues are far ahead. According to the company’s announcement, the company’s large-scale business revenue accounted for about 13% in 2018, and the revenue scale was about 1.4 billion yuan. The growth rate was 47%. The bulk business has experienced rapid growth in revenue in recent years. The bulk business is geared towards large-scale projects for real estate developers. The gross profit margin is relatively low relative to the direct channel, with a gross margin of 49.48%. In 2003, Oupai Home expanded its large-scale user market. The distributors were responsible for business development and product installation. After the company signed business orders with distributors and large customers, in addition to the large-scale business customers paying a certain percentage of the company’s payment, the distribution The merchants need to pay the deposit to the company according to the difference between the sales payment and the pre-receipt of the large customer’s purchase price. Therefore, the actual payment has been received when the large-scale customer business order is arranged for production.
(4) Assembly channels: the bulk of the market is a new bright spot for custom homes
The home improvement market is an important component of the building decoration market. The market size is huge. According to the China Building Decoration Association, the output value of the home improvement market increased from 0.85 trillion yuan in 2008 to 1.91 trillion yuan in 2017, with an average annual growth rate of 9.41%. However, because the building decoration industry does not need technical expertise, the entry threshold is relatively low, the industry is engaged in more enterprises, the homogenization of product services is more serious, and the industry competition is fierce. According to the China Building Decoration Association, there were 130,000 enterprises in China’s building decoration industry in 2017, of which the top five Jinyu, Ningbo Jiangong, Guangtian Group, Quanzhu and Yaxia shares have a market share of only 1.44. %, the industry concentration is low, lacking absolute leading enterprises.
At present, there are two different ways to customize the home furnishing company into the whole assembly field: one is to empower the home improvement enterprise represented by Shangpin home delivery, and the home improvement company introduces the traffic into the Shangpin home delivery; the second is to represent the European home. Through the company headquarters or distributors to cooperate with home improvement companies, direct contact with the end consumers for drainage. Currently two models are still being explored.

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Shangpin Home Delivery In 2017, the whole cloud platform was launched, and the B-end equipment company was fully upgraded in terms of procurement, informationization, design, etc. The equipment company introduced the traffic into the Shangpin homestead and formed a deep cooperation relationship. By the end of 2018, the company had more than 1,200 installed cloud members, and the market began to take shape. Secondly, Shangpin Home is also equipped in Guangzhou, Foshan, Chengdu and other places to carry out the self-operated self-installation business directly to the C-end customers. The actual experience of the hard-working members is difficult, and the targeted cloud project is adjusted and optimized. At the end of 2018, the number of self-operated self-contained construction sites was 849. In 2019, the company stated that it will continue to accelerate and fully develop the company’s second battlefield – complete assembly, creating new industrial value.
In 2018, Oupai Home began to promote the whole house business. Through the company headquarters and dealers, it cooperated with local head furniture/packaging companies such as living homes and home furnishing products, and empowered the home improvement company with product brand to expand brand drainage. . The company has formulated four basic principles, namely, benefit sharing, performance sharing, channel separation, and category separation. It is a good balance between the interests of the whole house dealer and the 2C dealer. In 2018, the company’s performance in order-to-order orders exceeded 350 million yuan. The whole house has already blossomed in 22 cities, and the successful home decoration case of Yibin and Changsha models has emerged. The company also said that it has a large home business. It is expected to be one of the main engines of the Group’s performance growth in the next 3-5 years. With the industry’s leading European-style home, Shangpin home delivery, etc., the first test in the installation channel, Sophia and so on have also followed suit, major companies also recognize the importance of the installation channel to the company, the future of the installation channel or become One of the main performance contributions.

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