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Luban quietly expands in the big home furnishing market under the blue ocean of 600 billion yuan

Eugenics horizon 2023-05-18 15:42:22

The era of comprehensive player competition is coming.

 

In the past few decades, China's Internet industry has been in a golden period of development. Under the wind of the Internet spring, many industries have ushered in revolutionary opportunities, but only the big home furnishing industry has stumbled and been difficult to transform.

 

The reason is that the big home furnishing industry has a long industrial chain, from upstream raw material manufacturers to large home furnishing enterprises with rich product categories, to the layout of different sales channels, and to the market service sector where everyone stays behind. Every chain and link has a high degree of specialization. Although the Internet has its own involvement, there are not many enterprises that can really run out, and the characteristics of small companies in large industries are very obvious.

 

But in recent years, the big home market is quietly changing. In the past three years, home life has become more and more important. Consumers have invested more household items in their homes to increase comfort and pay more attention to the use experience of household products.

 

Secondly, the enterprise's sales model has changed, moving from offline to online and offline, and the introduction of online mode has made the enterprise face the problem of follow-up service again. It needs to pay more attention to after-sales service than in the past, while facing the problem of labor costs.

 

Therefore, for the big home furnishing industry, the renovation of stock houses and partial decoration will become the main source of future industry growth. The big home furnishing industry is facing changes in customer groups and needs, and more requirements for service quality and experience.

 

The big home furnishing industry also has more demand for the transformation of the Internet intervention industry than in the past.

 

At present, the post market service of big home is more concerned and valued by the industry. As the "last mile" of the home market, due to the large number of non-standard products in the industry, the service quality was not satisfactory in the past, whether it was logistics distribution, door-to-door installation or follow-up services. Every year, "315" complaints about the home industry are related to it.

 

The "last mile" of the big home furnishing post market is becoming more and more important in the era of industry service. The post market supply and demand organization form of the shared service platform has emerged in this segment of the track, such as the one-stop service platform Luban for the big home furnishing post market. At present, it has covered all kinds of services in the big home furnishing industry. The platform is digitally transformed through dismantling different links in the industry, The number of teachers has exceeded 2 million, with a compound growth rate of more than 100% for consecutive years.

 

Deng Wei, the founder and chairman of Luban Home, said that the enterprise's sales model was undergoing restructuring. When the sales radius became wider, the labor cost gradually increased, but the sales unit price did not rise, which led to the problem of labor costs faced by the enterprise.

 

According to the analysis of Research Report on China's Big Home Aftermarket Service Industry in 2023 released by iResearch, in the next three years, with the further repair of the post epidemic economic cycle and the recovery of the real estate market, the upstream retail market of big home products will rebound, driving the big home aftermarket to maintain a relatively rapid growth.

 

The big home furnishing industry has finally ushered in a good era of favorable weather, favorable location and harmonious people. Players will also receive generous rewards after deep plowing in the big home furnishing market in advance. As an emerging industry, 36 Krypton and Deng Wei, the founder of Luban, had in-depth communication recently, and also had a new understanding of the rising industry.

 

 

01     Post market service for large household: late start, difficult service, low matching

 

The big home market is changing significantly.

 

In the past, large household enterprises sold their products to C-end customers such as new house buyers or stock house renovation consumers, and B-end customers such as hardbound house developers through distribution or direct sales.

 

Nowadays, large household enterprises are generally shifting from offline channels to online channels, broadening sales boundaries and finding more potential customers. It has not only entered into traditional e-commerce platforms such as Tmall, JD, Pinduoduo, but also entered into emerging e-commerce platforms such as Tiaoyin and Fasthand.

 

Large household enterprises have indeed expanded more customers through online channels, but retail areas are more dispersed, and online channels have even penetrated cities where enterprises do not have stores.

 

"It is impossible for an enterprise to open stores in all corners of the country and comprehensively lay down an offline service system, which is unrealistic from the cost side. However, if the enterprise does not raise a batch of teachers offline, it cannot solve the local pre-sales and after-sales service and ensure the service reputation." Deng Wei said.

 

It should be mentioned that there is a problem of non-standard service for Chinese blue collar part-time workers, which is more prominent in the big household industry.

 

Xinhuanet's Survey of China's Household Users' Satisfaction in 2022 shows that in 2022, China's household users' dissatisfaction with after-sales installation and maintenance services ranks second among household products, accounting for 48% of the total dissatisfaction.

 

For large household enterprises, there is seasonal order explosion in the industry, and a large number of employment needs often break out in the short term. This kind of cyclical recruitment demand increases the cost of employment and management difficulty of enterprises. In order to transfer the cost control and management pressure to the third party, some employment enterprises choose to employ blue collar odd jobs to meet some employment demand gaps, which is likely to cause problems such as non-standard services and affect the corporate image.

 

At the same time, it is rare for the blue collar odd jobs industry to have "special personnel and special posts". The information asymmetry between the blue collar labor force and job recruitment seriously hinders the improvement of recruitment efficiency. How to achieve the accurate matching of personnel and posts is still a major problem in the industry. All the above problems will restrict the further development of the big home furnishing industry in the service era, and there is a lack of service chain in the big home furnishing post market.

 

On the other hand, in the broader blue collar employment market, there are still many subdivision scenarios in other life service fields that have not yet applied the digital employment model to be developed and penetrated, such as charging piles in residential quarters, face recognition machine installation/maintenance; Streaming rear-view mirror, driving recorder, vehicle navigation installation, etc. purchased by auto consumers alone.

 

Under this trend, the big home after market urgently needs a service platform to infiltrate into the broken chain for resource organization and matching of supply and demand, including home decoration design, delivery speed, logistics capability, installation capability, maintenance capability, etc.

The post household market will obviously usher in a major change, and the future development direction is the multi service matching and resource integration.

 

02     Post home service ushers in the digital era, solving the last mile problem

 

Driven by the rapid development of big data, SaaS and other technologies, the new digital era is accelerating to come. In this context, the blue collar casual economy has a strong Internet color.

 

Deng Wei mentioned that with the advent of digitalization and intelligence, blue collar workers are also constantly iterating. Now almost everyone has a smart phone, and they have learned to answer orders by mobile phone, which makes the delivery of digital skills a reality. As a result, the platform can also achieve full process digital service management and control through algorithms and digital management and control, bringing more accurate demand matching, more standardized services, lower transaction costs, more secure user privacy protection and higher employment efficiency to employment enterprises.

 

Under this background, skill delivery platforms focusing on on-demand services have already emerged in various industries, such as goods pulling and fast dog taxi in the field of logistics in the same city; Luban arrived home in the big home service market, swan arrived home in the household cleaning field, etc. The commonness of these platforms is that they have professional services, relatively standard skills delivery quality, and full process digital service management and control.

 

Based on the competitiveness of digital middle platform support capability, Luban independently developed big data management and control algorithm system to develop service delivery control for the industry and solve current pain points and problems. According to Deng Wei, at present, the compound growth rate of Luban has reached more than 100% for consecutive years. The platform has been online for 6 years, and the annual GTV scale has reached more than 2 billion yuan.

 

Specifically, Luban built a set of digital service management and control system at home. First, it realized the trusteeship order placement service for enterprise service outsourcing, including six automatic functions: batch one click order placement, LBS positioning matching, system automatic employment, process node tracking, completion system write off, and order quality assurance trusteeship, so as to simplify the service chain and improve service efficiency.

 

Secondly, Luban has realized visual service management and control for enterprise service management at home, including ten process nodes such as matching orders nearby, 2-hour reservation service, door-to-door positioning and clocking, completion photo acceptance, etc., using online data algorithm supervision and offline operation center control to ensure service quality.

 

Finally, Luban arrived home to realize standardized service delivery for enterprise service delivery, including standardized service training, standardized work processes, standardized construction operations, standardized service guarantee policies and a series of standardized delivery guarantees, so as to provide a more standard and reliable service system for industry after-sales service.

 

In Deng Wei's view, Lu Ban has established a set of standards through the digital service management and control system when he arrives home, so that the service providers can follow the standards and enterprises and consumers can accept the standards.

 

For example, in the past, in the big home furnishing industry, the installation cost was mainly based on the quotation mode. The price system was not transparent, and consumers or enterprise customers discussed the price. It was easy for the price to rise too much. At the same time, the transaction time line was lengthened, and the efficiency for third-party users became low.

 

In terms of transaction mode, Luban went home to break down and subdivide to establish new standards, and launched a variety of transaction modes, such as price comparison, buy it now, and quick order. Users can choose different transaction modes in different scenarios and without demand, to accurately help users match their service needs. At the same time, the master can complete service order transactions through multiple modes such as receiving orders, grabbing orders, bidding, bargaining, etc., so as to achieve two-way service delivery between large household enterprises and blue collar technicians.

 

In addition, Luban pays attention to training and improving the skills of teachers when they arrive home, and improves the professionalism and skill standards of teachers' users from service standards, skill improvement and skill expansion by combining online and offline methods. Thus, it attracted 2 million teachers to ensure the fair competition and price comparison of the platform and meet various demands. In addition, the methods of differential assessment exemption, advance compensation and insurance guarantee have established a sound service guarantee system for the users who place orders on the platform, which has also taken a big step in the development of the post market service industry of big home furnishing.

 

According to 36 kryptonite, the platform mode of Luban home matching three end user needs has reduced labor costs for large household enterprises by 30% - 40% in the past.

 

In fact, there are many non-standard products in the big home furnishing market, which attaches great importance to offline experience. In the past years of development, many enterprises have entered the industry to try to carry out Internet based transformation. The Internet based transformation used to be limited to a single link of the home furnishing industry, or online retail of home furnishing products, or Internet based marketing, which focuses on offline experience Restricted by the pain points of opaque price, non-standard delivery and complex service process, the transformation ended in failure.

 

Only the breakthrough of the industry pain points and the recognition and transformation of the industrial chain segmentation and disassembly can realize the development. This may also be the reason for Luban to achieve rapid growth in the industry.

 

"From the traditional offline home market to the e-commerce system, the industry still needs to solve the problem of the" last mile "sales radius of the post market. Luban has deconstructed the past employment model, improving efficiency and reducing costs at the same time." Deng Wei said.

 

03     Opportunities and challenges coexist, and the future is comprehensive players

 

The scale of the market for the services provided by the Chinese people in the aftermarket is constantly expanding.

 

According to the Research Report on China's Big Home Aftermarket Service Industry in 2023 released by iResearch, the market size of China's big home aftermarket will be about 626.6 billion in 2022, with an average growth of 4.9% in the next three years, and will reach 718.5 billion by 2025.

 

In addition, with the gradual increase of e-commerce penetration rate of furniture and household appliances, it has once again expanded a certain market space for the big home after service market. According to the report of iResearch, from 2020 to now, the e-commerce penetration rate of furniture and building materials categories in China's big home furnishing industry is 20%; From 2021 to now, the penetration rate of home appliance category e-commerce in China's big home furnishing industry is 40%.

 

IDC data also shows that the shipment of smart home devices in China will grow year after year from 2018 to 2022, reaching more than 220 million units. With the increase of smart home devices, consumers' demand for smart home appliances will further emerge. The technology content of smart home products is higher than that of traditional home products, and there are also higher requirements for response efficiency and service quality in terms of installation and maintenance. In order to better adapt to the growing post market service demand under this trend, the post market service platform for big home also faces new growth opportunities and challenges.

 

"When more and more large household enterprises choose to try to hand over some of their post service needs to the post market service platform, the blue collar technician service sharing model is gradually verified in the subdivision of large household, and the coverage of the platform's large household category is gradually improved. With the continuous growth of the scale of our aftermarket service platform and the gradual accumulation of service experience, this service model will further extend to more blue collar employment market segments, and ultimately achieve a win-win situation for blue collar technicians, enterprises and end consumers. " Deng Wei further explained.

 

As consumers and large household enterprises, they also expect a comprehensive platform covering multiple categories of services at this time.

 

Luban Home is a rare full category service platform in the industry. After six years of launch, it has expanded a number of categories including furniture, home appliances, bathroom, lighting, locks, clothes hangers, curtains, doors, etc., and has occupied a high market share in all categories, built its own strong scale advantage in the service supply side, and has strong ability to expand and replicate across categories, It is conducive to the long-term development of the post market service field in the future.

 

In addition, by defining a new standard of post market service for big home furnishing, Luban has a core competitive advantage in service supply. When he comes home, Luban has established strategic cooperation relationships with enterprises including Kaidishi, Goodwife, Oupai Home Furnishing, Aiguo Le, Lin's Wood Industry, Dongpeng Sanitary Ware, Oupu Lighting, etc; It has become the official designated service platform of Tiaoyin, Taobao, Jingdong, Pinduoduo, Shunfeng, Debang, and Kuayue Express.

 

In 2021, Luban will get a round A financing of nearly 100 million yuan at home, led by Binfu Capital, which is the largest single financing in the track of the rear market in recent years. In the rising stage of industry development, adequate capital support is crucial, which will help the head platform to accelerate its development and expand its advantages. Players lacking unique competitive advantages in the future may be gradually eliminated, and the industry pattern will continue to focus on the head comprehensive service platform.

 

This also indicates that in the future, Luban home mode will gain greater advantages in more tracks, and then enter more tracks in a large-scale way, and finally realize the transformation of digital services in each track. This may be the meaning of Internet reform.

 

Editor in charge: bathroom channel Source: Youju Vision
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