Can the traditional home decoration companies transform from "half package" to "full package" break through?
In 2022, Internet home decoration will still be in full swing, and the accompanying "whole package" mode will turn the whole home decoration market upside down as expected three years ago. In 2022, the rocket like development speed of the "full decoration" companies represented by Shichuang, Tiantianhe, PINGO International, Liangjia, and Orange Family will make the traditional decoration companies that stick to the "half package" no longer be able to settle down. The traditional decoration companies represented by Jiuyi and Huaxun have been rubbing their fists and palms to plan to move to the "full decoration" market. How much pain and expectation does the traditional home decoration company have from adhering to "half package" to transforming into "full package"? What are the transformation challenges facing traditional home decoration companies? Can a traditional home decoration company that missed the first bus of "Full Decoration" get on the last bus of "Full Decoration" by becoming a monk halfway? Everything is suspense, only wait and see! The status quo scanning of "full package" has made great strides, forcing "half package" companies to seek transformation. In 2022, Internet home decoration will still be in full swing, and the accompanying "full package" mode, as expected three years ago, will turn the entire home decoration market upside down. The rocket like development speed of the "packaged" companies represented by Shichuang, Tiantianhe, PIN GO International, Liangjia, Orange Family, Huimei Zhujia, etc. has not only shaken the hearts of the old "semi packaged" companies, but also focused on the admiration of countless capitals. Specifically, in the Guangzhou market, Liangjia has stepped out of Guangdong and into the country with the help of Liangmeike; Huimei Zhujia, which has been established for only 2 years, has now developed 6 direct stores and more than 10 franchise stores; The performance of Country Garden Orange House in May 2022 is more than five times that of last year, and plans to recruit 100 city partners nationwide in the second half of the year... The Internet home decoration industry has not arrived as scheduled in 2022, but the "whole package" wave led by it has become increasingly mainstream in Yangcheng. The once cold old "half package" home decoration companies are not calm. After hesitating for some time, the old "half package" companies, represented by Star Art Decoration, Nine Art Decoration, Famous Craftsman Decoration and Huaxun Taste Decoration, are ready to switch to "full package". A few days ago, the reporter visited the Jiuyi "Full Decoration" Museum located in Linjiang Avenue, Tianhe District, and found that, as the transformation pilot of the entire Xingyi Decoration Group, the decoration and display of the museum is nearing the end and has officially opened its doors to welcome guests. The museum is divided into two floors. In addition to the brand building materials (floors, tiles, wooden doors, household appliances, wardrobes, cabinets, lamps) that have reached strategic cooperation with Jiuyi, Jiuyi also boasts of its construction technology and auxiliary material supply system. At the same time, two hard pack packages of 988 yuan/m2 and 1288 yuan/m2 were launched. The former is targeted at investment and economic users, while the latter is targeted at high-end users with higher requirements for home decoration. The person in charge of Jiuyi Decoration disclosed that the platform construction of Jiuyi Decoration is still in the trial stage. In the future, in addition to developing more packages, it is not ruled out that other soft decoration products will be further integrated on the basis of hard decoration to truly realize one-stop consumption of home decoration. In addition to Xingyi, Jiuyi, Huaxun and famous craftsmen, South Sculpture is also actively planning to enter the "full decoration" market. However, South Sculpture Decoration is not aimed at the mass "packaged" market, but at the high-end "packaged" market. Ou Bing, general manager of Nandiao Decoration, revealed that Nandiao plans to integrate first-line imported auxiliary materials and main material brands and launch a high-end "packaged" product with high-end furniture worth more than 3000 yuan/m2. In this "whole decoration" system, in addition to integrating the famous designer teams in Hong Kong, Taiwan and the mainland, high-end household elements such as smart home and soft decoration art bags will also be integrated, so that high-end people at the top of the pyramid can also enjoy the whole decoration service with ease and effort. In depth analysis of the traditional "half package" companies why they want to transform into "full package"? 1. Before the emergence of the "full decoration" model due to the change in demand, consumers often chose two consumption modes: "half package" decoration and "full package" decoration. Most traditional home decoration companies mainly provide "half package" decoration. "Half package" decoration means that the construction party is responsible for the construction and the purchase of sand, cement and other auxiliary materials, while the main materials such as floors, tiles, coatings, sanitary wares, kitchenware and so on are purchased by the owner. For consumers, "half package" can have more autonomy, but it is hard to travel around. For newcomers to decoration, it will not only cause waste of materials, but also affect the final decoration effect. For home decoration companies, the profit of "half package" decoration will also be small. In the opinion of Zheng Weiran, the general manager of Huimei Zhujia, the reason why traditional companies are making efforts to "pack" is mainly due to the change of consumer demand. With the rise of post-80s, post-90s and post-00s consumer groups, in the era of "laziness" and "homestay", in the era of accelerating pace of life and work, and in the era of increasingly mature mobile Internet technology, home decoration consumers have undergone significant changes. The new generation of consumers hope to solve the decoration problem in a more worry free and simple way, which also indicates that the "half package" era is about to pass. The one-stop decoration service covering design, materials, construction, soft decoration and other links can truly solve all problems encountered in the decoration in a one-stop manner. The so-called "full decoration" mode will become the mainstream consumption pattern of the future home decoration industry. Demand determines the market. In the face of the transformation of consumer groups and consumer demand, the traditional "half package" home decoration companies should either transform into "full package" or become a pure engineering service provider, or transform into a pure design organization, focusing on the high-end market. For the traditional "half package" companies that are unwilling to give up the mass market, the transformation of "full package" is undoubtedly a relatively more positive and rational choice. 2. In the view of many insiders due to the competitive environment, in addition to the demand change forcing traditional "half package" decoration companies to transform into "full package", another important factor forcing traditional home decoration companies to transform into "full package" is the intense market competition. On the one hand, due to the recession of the real economy, consumers' consumption ability is weak, and their willingness to decorate is weak. On the other hand, the traditional "half package" companies, in addition to dealing with other "half package" companies such as market enemies, also have to fight against emerging new market forces, such as "full package" companies, such as the customized army holding high the banner of big household. At the same time, in the past two years, more than one foreign home decoration brand has attacked the Guangzhou market on a large scale, which is undoubtedly worse for the already depressed home decoration market. In addition, with the rise of "full decoration", the price of decoration has become more transparent. In addition, the price war has intensified, with an average profit margin of 8% - 10%, forcing many traditional "half package" decoration companies to take the initiative to find another way out. In the face of less than ideal market environment, the transformation of "whole package" can not only conform to the trend of demand transformation, but also avoid the highly saturated "half package" market. In addition, through "full decoration", we can hold the initiative of decoration design, engineering construction, material supply and soft decoration supporting in our own hands, which can not only create more profit points, but also grasp the market opportunities in advance in the era of "ports and traffic" as the king, so as to avoid the fate of integration and cannibalization. The transformation of reporter's notes cannot be accomplished overnight from "half package" to "full package". It seems easy, but it is actually difficult to implement. An old brand "half package" company, in the process of transformation to "full package", once encountered the collective rebound of designers, which is one of the evidences. In the opinion of Zheng Weiran, the chairman of Huimei Zhujia, the traditional "half package" company and "full package" company have different platform architecture and application mode, so the transformation cannot be achieved overnight. Industry insiders pointed out that, for traditional "semi contracting" companies, if they want to rely on themselves to make transformation, they must first solve the problem of product supply chain. At present, most companies are integrating building materials and home furnishing dealers to solve the supply chain problem in the local area. This way is simple, but it does not have the price advantage directly adopted by the factories of large chain "full packaging" institutions. If you want to play bigger and do F2C mode, you will have higher requirements for the supply chain. Logistics, warehousing, distribution, installation, after-sales, etc. should all be responsible. In addition, it is necessary to solve the problem of information system to do a good job of "whole package". Because there are many product categories involved, the number of SKUs is very large. In addition, the process is complex and there are many links. If there is no perfect information system, the delivery of "whole package" will be trouble, and financial accounting will also be a mess. However, it is impossible to realize a truly closed-loop information system without nearly ten million yuan of investment. In addition to the supply chain and IT system, the delivery system of the decoration company should be perfect, and the R&D system should also be well done. These have greatly raised the threshold for decoration companies to transform themselves, and only a handful of companies are truly capable of doing so. In addition to self transformation, there is also a transformation way, which is to rely on home decoration platform companies to do transformation. Most of the packaged platforms, such as Lehouse, Sumei, Youzhu and so on, recruit city partners for offline expansion. The packaged platforms are responsible for the product supply chain system, closed-loop information system, packaged product R&D system and other back-end systems. These platform companies have established a larger back-end advantage with their strong strength and larger purchase scale of major home products. The city partners are responsible for landing marketing, basic decoration, F2C product delivery, etc., which can greatly reduce the transformation threshold for most traditional "half package" home decoration enterprises. (Source: Southern Metropolis Daily) Related reading recommendation: five major development trends of home decoration industry. There are also skills in home decoration market
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