The real estate industry is in a downturn, and downstream furniture companies are still thriving

The Beijing News reported that in September, 70 large and medium-sized cities saw no increase in house prices. According to data released by the National Bureau of Statistics on October 24, in September, among the 70 large and medium-sized cities, except for the newly-built commercial housing prices in Xiamen, the prices of new commercial residential and second-hand residential buildings in other cities fell.

Of course, real estate is not an industry is suffering, and the ecology of the upstream and downstream industry chain is not optimistic. In this industry chain, real estate and related industries have been closely linked. As the downstream of the real estate industry, the furniture industry is naturally affected by the real estate industry.

However, some furniture companies have maintained rapid growth under the real estate industry downturn. Especially in the past, the double 11 promotion, the furniture industry performed well, Lin's wood industry as the e-commerce furniture sales champion, even with the world-class enterprises such as Xiaomi, Huawei, Haier, won the Tmall full category four. The amazing sales volume of e-commerce furniture companies has not only been affected by the property market, but has increased compared with last year. Last year, the sales of Double 11 Lin's Wood Industry was 160 million. This year, Double 11 broke through 330 million. At the same time, the number of furniture in the series was the first, which was 206% higher than last year. At the same time, in this year's Tmall category, in addition to Lin's wood industry, Quanyou home also entered the top ten. Under the current downturn in the real estate industry, why is the e-commerce furniture company headed by Lin's wood industry able to counterattack and even double its growth?

Turning "impossible" into reality, the furniture industry is holding hands on the Internet

In 2007, Taobao has developed for 4 years, with annual sales of 43.3 billion yuan, surpassing China Resources Vanguard and Carrefour, becoming the second largest integrated store in China after Bailian Group. At that time, the furniture overlord Zhihuashi sofa and the dynasty furniture have been listed, and the Foshan size furniture manufacturers are everywhere. In 2008, the US subprime mortgage crisis erupted into a global financial crisis. The domestic property market changed. From 2007, the number of rooms was robbed. In 2008, everyone worried that if they bought a house, they would lose money and lose their money. Everyone is in the room. "Sighing", when the property market sales fell into a deep downturn, furniture e-commerce is still sprouting in such a big environment.

At the time, it was impossible for others to sell furniture online. Furniture is a durable consumer goods, high prices, heavy transportation losses, logistics is not a force, many people are afraid to take risks. Lin Zuyi, the founder of Lin's wood industry, chose to "take the road that others have not walked at the time". Lin Zuoyi, from Foshan Lecon, China's largest furniture production base, decided to take advantage of local advantages and correspond to the current popular Internet e-commerce. Resource optimization and integration. Soon, Lin's wood industry was launched on Taobao, officially opening the road to furniture and e-commerce.

Solve the "pain point" of consumers

In 2011, it was considered to be the first year of home e-commerce. At that time, e-commerce came to the forefront, and many home furnishing companies “touched the net”. However, in the early stage of the development of furniture online shopping, consumers have many injuries in the online shopping process, and the shopping experience is poor. According to media reports, Mr. Wu’s online shopping experience almost reflected all the hardships of home e-commerce in 2011: he bought bathroom cabinets and dining tables online. In order to save money, he chooses logistics, logistics can not be delivered to the home, must go to the logistics point to pick up the goods, after the delivery, you need to pay hundreds of dollars to transport home; after arriving home, the bathroom cabinet alone to find the workers to install, the cost is not cheap, install There was a problem in the process. The position of the baffle and the hot and cold water pipes behind the bathroom cabinet did not match. Finally, the corner of the baffle was sawed off and the slab was successfully installed. The dining table, during the transportation process, touched a piece of paint, due to return. The transportation cost is expensive and the return process is troublesome, so it will be used. “The last mile” became the most painful thing for furniture e-commerce.

At the time, Lin's Wood, which had three years of experience in the development of furniture e-commerce, was the first to offer package logistics services. In 2010, Lin's wood industry made several “package logistics” promotion activities on Taobao, and gradually formed the practice of buying furniture and packaging logistics. Lin Zuoyi said: "The logistics cost of furniture is generally 8% of the product price. After Lin Bao has packaged the logistics fee, he will try to negotiate with the logistics company to lower the logistics fee by two points, and earn a few more points. Point profit is in exchange for a better shopping experience for customers, it is very worthwhile." Subsequently, while others are still calculating logistics costs, Lin's wood industry proposed "five packs" home service: long-distance transportation, package delivery, package After the installation of the building, package, and package, we will work hard to solve the "last mile" pain of furniture e-commerce and solve the needs of consumers.

Doing the big and full of tradition

After controlling the "last mile", Lin's Wood Industry decided in 2012 to develop a multi-brand operation strategy of all styles. Nowadays, its sub-brands have already covered the eight mainstream styles on the market. The products cover all the furniture needed in the residential home environment such as bedroom, living room, dining room and study room. However, in the traditional furniture industry, the possibility of achieving multiple styles and multiple categories of products is minimal. Because of the style of furniture, it means the increase in production costs and channel space costs. Traditional furniture stores have a small radius and a small number of people. Therefore, few brands will expand SKUs in order to meet the needs of more users.

The powerful supply chain management system and data analysis platform provide a guarantee for Lin's full-class multi-brand operation strategy. As early as 2009, Lin Zuoyi began to lay out the supply chain, built factories and warehousing with more than 1 million yuan accumulated in the previous two years, and began to recruit foundry factories as the sales volume of the products increased. In order to avoid waste, in the production process, Lin's wood industry pays great attention to the proofing process, requires small batch production of new products, and draws the labor price standard, material standard, packaging standard, etc., in order to grasp the cost of each sub-project. Founder Lin Zuoyi also likes to use accurate data to measure advance and retreat. In Lin's wood industry, from front-end marketing to back-end management, there is a lot of quantifiable data everywhere.

In 2008, the property market fluctuated. The Chinese real estate market was rapidly cooled from the “boiling point” of the previous year. Furniture e-commerce began to grow and grow at the time, and gradually led the development of the home industry. Real estate in 2014 showed signs of decline, but individual furniture companies are still doubling at a rate. The development of the real estate industry certainly affects the development of the downstream furniture industry, but the prosperity of individual furniture companies also warns that the current furniture enterprises need to cultivate their internal strengths and improve their core competitiveness in the face of fluctuations in the property market, thus resisting the external economic environment. The impact of change, but also against competition from peers.

Suzhou home network editor, the article comes from the Internet.

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