Be vigilant! China's customized home furnishing industry is facing the "joint strangulation" of four major industries

Tech 2023-05-28 16:01:35 Source: Network

According to data from the China Association of Automobile Manufacturers, in the first quarter, China exported 994000 vehicles, a year-on-year increase of 70.6%

According to data from the China Association of Automobile Manufacturers, in the first quarter, China exported 994000 vehicles, a year-on-year increase of 70.6%. The export of new energy vehicles reached 248000 units, a year-on-year increase of 1.1 times. Last year, China's automobile export data was 3.111 million, ranking second in the world. Some institutions predict that this year's automobile export volume is expected to exceed 4 million units. It is expected to surpass Japan and become the world's largest automobile exporter.

History is repeating itself, and China's new energy vehicles are replicating the model of Chinese home appliances.

If you recall, more than a decade ago, Chinese home appliance brands continued to impact foreign brands. Siemens, Panasonic, Samsung, and others, which had a high market share, were scattered and abandoned by domestic brands led by Midea, Gree, and Haier, and they never recovered.

It can almost be said without controversy that the day when Chinese brands wash away foreign brands on the new energy vehicle track has finally arrived. Traditional foreign joint venture car companies, such as BMW, Mercedes Benz, Audi, are gradually losing their brand advantages, and these international brands are shaking in front of Chinese new energy car companies.

Just in line with that sentence,Advantages cannot withstand trends, brand advantages are vulnerable to industry trends!

In the customized home furnishing industry in China, I believe a similar scene is happening.

In the first quarter of 2023, nine listed companies in China's customized home furnishing industry released quarterly reports, and seven of them experienced rare negative growth in the first quarter. Oupai Yao Liangsong's "two unwillingness" (unwillingness to do home decoration, unwillingness to seize the profits of channel merchants) has also caused high discussions in the industry.

The Chinese custom home furnishing industry experienced a "Waterloo" in the first quarter of 2023, releasing an important signal of disadvantageousness.

After 20 years of vigorous development, especially in the past decade, China's customized home furnishings have slowly experienced a decline in growth.

The advanced business model of China's customized home service manufacturing industry, which once boasted of "front-end personalization and back-end flexibility" and featured large-scale flexible manufacturing and terminal services, is being jointly strangled and dismembered by four industries.

Using the strategic three trends theory of Guiren's assistance in strategic marketing consulting, the changes in industry trends are driven by the underlying laws of business evolution.

The law of business evolution is reflected in the fact that any iteration of a business model follows the business law of "highest efficiency, lowest cost, and shortest distance".

At present, the service attributes of China's customized home furnishings front-end are being replaced by home decoration companies, and the manufacturing attributes of the back-end are being fragmented by software companies, equipment manufacturing companies, and sheet metal companies.

Home decoration companies, as the first traffic entrance, are closest to customers and have the shortest distance. Home decoration companies place orders from local custom factories, and national sheet metal source enterprises supply to local custom factories. With the joint empowerment of software and equipment manufacturing enterprises, local custom factories can smoothly solve the problems of front-end and back-end connectivity and digitization. Local custom factories have higher manufacturing efficiency, stable quality, and lower prices for produced products.

When national customized home furnishing brands face the siege of these regional customized factories, their brand power is vulnerable in the face of the same materials, quality, appearance, lower prices, and better services. End consumers will vote with their feet.

The terminal stores that China is proud of for its customized home furnishings are becoming an awkward situation of "not reaching the village before" - far away from users, "not reaching the store after" - products without differentiation and prices without competitiveness.

This is a fatal blow to many customized brands of second and third tier boards with nationwide layout. It will also partially block the expansion and expansion of top custom home brands such as Europa and Sofia.

For most customized home panel customization brands with nationwide layout, the instantaneous market has turned into a red sea market. According to the three major strategies of strategic master Mike Porter: total cost leadership strategy, differentiation strategy, and focus strategy, if these national customized panel brands do not make breakthroughs and achievements in these three strategies (such as the total cost leadership of Daxin Home, the differentiation of Baide Sheng Water Paint, and the market focus of high-end brands), they can only watch the market be nibbled at step by step without any counterattack!

The custom home furnishing industry in China was once a young dragon slayer, rising in marginal markets. After about a decade of innovation and change, it has revolutionized the entire finished home furnishing industry in China. It has emerged as a new force, making rapid progress, and nine companies have successfully gone public.

But to this day,These customized home brand enterprises, under the joint strangulation of four major industries: sheet metal enterprises, equipment manufacturing enterprises, software enterprises, and home decoration companies, are like boiled frogs in warm water. The vast majority will fall into the "innovator's dilemma" - the once dragon slaying youth are slowly becoming "evil dragons"!

What's scary is not being in a crisis, what's scary is being in a crisis without realizing it!

The trend of business is overwhelming, and those who follow it will prosper and those who oppose it will perish.

The author is not intentionally criticizing the Chinese custom home furnishing industry, but is alerting the entire industry. The evolution and disruption of any industry is a process that can take three years, five years, or ten years, but what should come will definitely come.

In the face of crises, customized home furnishing enterprises that are well prepared and laid out in advance are bound to further develop and grow; And enterprises that are in the position of "boiling frogs in warm water" will inevitably fall and disappear.

Let's revisit the unforgettable scene when Nokia's acquisition came to an end and the alarm bells will ring:

When Nokia's current CEO Yoma Ollila announced at a press conference that he agreed to Microsoft's acquisition, he finally said, "We didn't do anything wrong, but for some reason we lost." After that, dozens of Nokia executives, including him, couldn't help but shed tears.

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