1. Internet home improvement is the integration and optimization of the home improvement industry chain.
2. The Internet home improvement industry has developed rapidly. In 2017, the market size reached 246.12 billion.
3. Service chain and supply chain are the key points of Internet home improvement competition.
4. Internet home improvement traffic is the foundation, quality is the core, technology is the future: the early Internet home improvement focus on marketing customers, the change to the home improvement industry is very limited. As the industry gradually returns to its essence, the following new changes have emerged:
1) Rebuilding the industry trust,
2) Enterprises gradually deepen into the industrial chain,
3) New technologies improve efficiency,
4) The home consumption scene has changed.
Internet home improvement is the integration and optimization of the industry chain
Internet home improvement: from the perspective of the industry chain, using Internet thinking and technology, through the process of de-intermediation, channelization and standardization, to improve industrial efficiency, reduce industrial costs, provide interior design, building materials, home and hard construction for home improvement consumers , soft assembly and other services.
China Internet home improvement industry development background
Real estate gold ten years of large housing stocks, laying the foundation for the output value of the home improvement industry
Stock + incremental two-wheel drive, second-hand housing decoration can greatly increase the market size of the Chinese national equipment industry, with a compound annual growth rate of 12.5%. According to the statistics of the China Building Decoration Association, the total output value of China's construction and decoration industry in 2016 reached 3.7 trillion yuan, of which The residential building decoration industry achieved a total output value of 1.8 trillion yuan, a year-on-year increase of 7.2%. Compared with the total output value of 1.0 trillion yuan in 2011, the compound annual growth rate is as high as 12.5%, and the home improvement industry has a broad development space.
The dilemma of the traditional home improvement industry: large industry small enterprises, backward technology, low efficiency
The home improvement industry is characterized by typical “big industries, small businesses”. According to the China Building Decoration Association, in 2016, the number of enterprises in the building decoration and decoration industry was about 132,000. The traditional home improvement enterprise Dongyi Risheng had a revenue of about 3 billion in 2016, accounting for only 0.2% of the entire home improvement market.
The home improvement industry standard is not systematic. The quality of service depends largely on the personal ability of designers and construction workers. The lack of systematic management and training of the workers' team, and the lack of standardized qualification licenses can be relied upon. The liquidity is very large and difficult to carry out. Scale management and replication. With the expansion of scale, many enterprises have not lowered their management costs, and there is a phenomenon of uneconomic scale.
The dilemma of the traditional home improvement industry: complicated process, opaque information, high decision-making cost, new demands of consumer entities, and forced innovation in the home improvement industry model. With the 80s and 90s, the age of marriage has gradually entered, and the generation that grew up with the Internet has become a generation. The main force to buy a house decoration. According to the survey report, among the Chinese household consumption groups in 2017, young people aged 20-40 are the main force in household consumption, accounting for 79%. The transformation of consumer subjects has brought about changes in consumer attitudes and habits. The consumption of online and offline integration has become mainstream. Consumers are more willing to try new technologies and services. The demand for personality, environmental protection and quality is increasing. The industry has put forward higher requirements.
Empowering the industry, providing a better user experience and higher business efficiency is the core
The development status of the Internet home improvement industry
Return to the essence, the industry enters the upgrade period
The traffic dividend of the early Internet has spawned a batch of platform-based home improvement enterprises. At this stage, the Internet has changed the connection between home improvement service providers and owners by solving the problem of information asymmetry. However, the high-growth information integration platform lacks control over construction and materials, and the user experience is poor. The platform gradually realized the importance of deepening the industrial chain, and began to strengthen the specifications of the decoration companies, workers and building materials suppliers on the platform through the decoration fund custody and third-party supervision services. Around 2014, a large number of vertical home improvement companies have emerged, and some traditional decoration companies have also joined the Internet home improvement tide, standardized home improvement ushered in the cusp, a large number of packaged products appeared on the market. There is a hidden chaos behind the buzz, and many companies with low-cost and short-term slogans are not strong in the control of supply chain and offline construction, and the user experience does not rise and fall. Beginning in the second half of 2015, capital began to turn to mature Internet home improvement enterprises, and the industry entered an adjustment and upgrading period. Low penetration rate and broad market prospects
The data shows that China's Internet home improvement industry is developing rapidly and the market scale is growing rapidly. In 2017, the overall market size of the industry reached 246.12 billion, an increase of 25.7% over the same period of last year, maintaining a high growth trend of more than 25% in recent years. However, compared with the output value of the entire home improvement industry, the penetration rate of Internet home improvement is still at a low level, and the development prospect is broad.
Industry chain map
There are many players, and the industry chain has fought in the upstream and downstream.
The industry's enthusiasm has attracted many different participants from the industry chain. The offline decoration enterprises, home building materials stores and real estate developers have crossed the border, using their own advantages to enter the Internet home improvement, and the entry methods and development strategies are also different. On the one hand, many incoming people have shown the development potential of the Internet home improvement industry, and on the other hand, they have intensified competition in the industry.
Service Chain: Construction Standard System Needs to Be Established
The most fundamental purpose of Internet home improvement is to provide users with a better decoration experience. If this problem cannot be solved, any concept will lose its meaning. Most of the enterprises adopting the self-owned industrial workers model in the market have been transformed. At present, the organization forms of workers in the Internet home furnishings mainly include both outsourcing and platform.
However, no matter which mode, the management of workers' construction quality can be divided into three major ways: First, establish a construction standard system, real-time monitoring of every link of construction through online system; second, industrialization training for workers The examination and certification can only be employed; the third is to establish a reward and punishment mechanism related to the income of workers and the quality of construction. The development of high-quality workers is a time-consuming and cumbersome process, but once the company can solve the problem of workers' training and retention mechanism, the personnel advantage will become the core advantage that enterprises cannot be copied.
Supply Chain: A strong and stable supply chain is the key to ensuring low product quality and quality
China's building materials industry has a high rate of increase in the circulation process, and the exploitation of distributors at all levels has greatly increased the supply chain.