Schmidt, a brand of household products, is the own brand of Zhejiang Feijian Group and the leading enterprise in Zhejiang Yongkang cup and pot industry. He has been OEM for famous brands at home and abroad such as Starbucks, Supor and 55 degrees all the year round, which can be described as the "old respectful name" of this industry.
Foreign trade orders have always occupied a large share of Feijian Group's orders, but this year, due to the outbreak of the epidemic, we began to turn around and try to make efforts in the domestic market in March. However, limited by the differences of domestic consumers' habits, product prices and marketing models, the effect is not obvious.
After many unsuccessful attempts, Schmidt thought of the e-commerce platform. In August this year, Liu Weisheng, general manager of Schmidt, came to Pinduoduo for an interview with a huge bag on his back. It was not him who was interviewed, but the thermos cup in the bag. They were put on the table one by one, waiting for the "inspection" of the engineers in the new brand laboratory of Pinduo, but the answer was-"none".
Schmidt's Reverse Customization Production Line for Pinduoduo
In fact, this "interview" that Liu Shengwei experienced was the first in-depth communication after Schmidt joined Pinduoduo's "New Brand Plan". After cooperating with Pinduoduo, Schmidt adjusted the product development direction according to the user data and other information fed back by Pinduoduo. Taking "health, fashion and black technology" as the core development requirements of the new thermos, he customized an "intelligent temperature display" thermos. After this product goes online, it directly drives the store's monthly sales to exceed one million yuan (RMB, the same below).
In fact, the cooperation with Schmidt is only a microcosm of Pinduoduo's fancy to the home furnishing industry.
In June this year 165438+ 10, Pinduoduo's "New Brand Plan" was settled in his hometown of Nankang, Jiangxi. At the "New Brand Plan" conference, Tuanyuan Furniture and Huiming Ecology, two leading local enterprises in Nankang, announced that they would join hands to create new furniture brands, namely "Living in the future" and "Huiming Creator".
Prior to this, Pinduoduo and Nankang furniture industry had cooperated and achieved good results. According to the statistics of e-commerce association in Nankang District, Ganzhou City, the total turnover of Pinduo Nankang furniture enterprises exceeded 65.438+0 billion yuan in 2065.438+09.
At present, with the deepening of the whole industrial chain, Pinduoduo's home business has gradually matured, and furniture and home improvement have also become two noticeable channels on Pinduoduo APP. At the same time, Time Finance noticed that the sales volume of many household products in Pinduoduo has exceeded 1 10,000 pieces, even approaching 65,438+10,000 pieces.
In the future, Pinduoduo will make a big move in the home furnishing industry.
Qiu Chen, vice president of Pinduo, said that he would continue to support Nankang furniture enterprises. "In the next five years, the platform will help Nankang incubate 20 billion furniture brands, and at the same time focus on more than 50 furniture industry clusters across the country to help build 10 online IKEA."
At the same time, the "new brand plan" will also adhere to the concept of "reverse customization, product and sales integration", and go deep into many furniture industry belts such as Foshan in Guangdong, Ningjin in Shandong, Zhuanghe in Liaoning, Dongyang in Zhejiang, Chongzhou in Sichuan and Yuanyang in Henan, and blow the "assembly number" of brand building in China furniture industry.
At the end of last year, Dong Zao, co-founder of Pinduoduo, also revealed: "We plan to lead more than 500 industrial belt merchants to enter the' 100 million yuan club' and 10000 to enter the' 10 million club' in the next three years through the intelligent transformation of industrial belts and the guidance of consumption data. We hope that through this model, we will reduce the e-commerce operating costs of home brands, continuously promote high-quality production capacity to stand out, and continue to bring quality products and services at low prices to consumers. "
Household is a light industrial manufacturing industry with low technical barriers. Serious low-price competition, single products and sales channels, and lack of well-known brands are common problems faced by this industry.
Taking Nankang as an example, after more than 20 years of development, Nankang has become the largest solid wood furniture manufacturing base in China. In 20 19, the total output value of Nankang furniture industry exceeded18 billion yuan, making it the largest solid wood furniture production base in China.
However, with the continuous expansion of industrial scale, Nankang furniture industry has also fallen into the dilemma of homogenization and low-price competition. The product variety is too single, and more than ten kinds of general furniture products have created more than 70% of the local output value. The lack of brand also makes local enterprises can only tighten production costs and launch a cruel price war.
In addition, there are few furniture manufacturing enterprises above designated size in China, and most of them are family factories in the form of small factories and workshops, with low industry concentration and lack of well-known brands.
According to UBS data, in 20 18, the customized home market in China was 242.42 billion yuan, accounting for 4.34% of the top 9 listed companies in the customized home industry in China. In addition, the concentration of domestic home textiles, finished furniture and hardware materials is also at a low level. Under the huge market scale, there are only two companies with annual revenue of over 10 billion in each sub-industry, namely Oriental Yuhong and Oupai.
In this case, providing users' consumption data to help enterprises meet the service needs such as production has also become one of the means for Pinduo to promote the transformation of home furnishing enterprises in the "new brand plan".
"Through the new brand plan, we can accurately and efficiently obtain demand information, judge demand trends, quickly adjust the supply chain, have a clear purpose, and produce good goods that are more suitable for domestic demand." When talking about cooperation with e-commerce platforms such as Pinduoduo, Liu Shengwei thinks that foreign trade OEM has cultivated their manufacturing ability, and the new brand plan can train their aiming and shooting ability. The combination of the two can become a "sharpshooter."
After being selected for the "new brand plan", Schmidt solved the problem of product selection.
With the help of more than 700 million users and the "new brand plan" for domestic small and medium-sized manufacturing enterprises, many home furnishing enterprises have achieved good results on the platform.
Apt is a well-known enterprise that produces and sells LED bulbs in Yiwu. In recent years, relying on selling light bulbs to South America, Africa and the Middle East, the annual sales have exceeded 100 million yuan. However, the global epidemic broke out this year, and overseas sales almost went to zero overnight. Apt entered Pinduoduo in June 5438+10 last year. Unexpectedly, after the outbreak, Pinduoduo became the only sales channel of Apt. And thanks to a series of supporting policies in Pinduoduo, APT sales have increased steadily, and this year's "Double Eleven" has set a record of sales exceeding one million yuan.
Last July and June, 5438+00, Baodi Group and Southern Life, two other well-known enterprises in the home furnishing industry, also joined the "New Brand Plan" of Pinduo. Through cooperation, Pinduoduo provided services such as consumer big data docking, R&D advice and price guidance to the two companies, which enabled the sales of brand flagship stores opened by the two companies to exceed 65,438+10,000 in a very short time.
In addition, with the deepening of cooperation with Pinduoduo, the branding process of many household enterprises has gradually shown results. In nankang region, a number of furniture enterprises have made brands on the platform of Pinduoduo, such as Lianyuan Shi Jia, Carlson and Ma Junsheng.
The deep "linkage" between many products and the home furnishing industry will continue.
According to Qiu Chen, the platform will carry out three major measures to promote the development of furniture e-commerce business, besides developing new brand plans to help enterprises develop new products and cultivate new brands.
"On the one hand, businesses will be further encouraged to break through category restrictions and drive the sales of low-frequency furniture products with high-frequency home products; Secondly, the factory resources and constantly improving offline service capabilities will be open to all cooperative enterprises; In addition, it will also reduce the operational difficulty of excellent furniture manufacturing enterprises through traffic support and innovative marketing methods. " Qiu Chen pointed out.
In fact, Pinduo is not the only one who has taken a fancy to the e-commerce platform in the home industry. Ali and JD.COM are also active in this field. It is foreseeable that the home furnishing industry will become another battlefield for e-commerce platforms.
165438+1October 30th, the home furnishing giant Easyhome released a new plan for increasing the income, and the subscribers were all stars, except Huaxia Fund, Xingquan Fund, Taikang Asset Management and other well-known investors, and Ali also participated, with the subscription amount of 200 million yuan.
As early as 20 15, Ali released the Taobao one-stop building platform. 20 17 launched the "Taobao Heart Choice" pan-home retail experience store. In recent years, Ali's target population has gradually spread from Tmall and Taobao's home brand stores to the upstream and downstream of the entire home industry.
JD.COM, another e-commerce platform, is also extending its reach to the home furnishing industry.
20 17 is a year in JD.COM. Home improvement is accelerating independently. "In the 4 trillion market, the Internet share is less than 10%. Whoever can improve efficiency and experience will lead the development of the industry. " Xin Lijun, vice president of JD.COM Group, clearly put forward the five-year goal of core category home improvement at the JD.COM home improvement strategy conference held in March, 20 17. Since then, JD.COM has successively cooperated with Qumei to build the first "unbounded retail" experience store in the home industry, and started building materials business and smart home project incubation projects.
Why do the giants focus on the home industry?
Take Pinduoduo as an example, large-scale cooperation with home furnishing enterprises is not a loss-making business for Pinduoduo.
According to the data disclosed by Pinduoduo, the number of active buyers in Pinduoduo has greatly increased from 344 million two years ago to 73 1 10,000, and the daily average number of orders and parcels on the platform has increased by 200% from the previous 25 million to 70 million, accounting for one third of the national total. The annual turnover of Pinduoduo has also increased by 500% from 262 1 100 million yuan, reaching 1.46 trillion yuan.
More importantly, as a fast-growing industry, there is still a lot of incremental space in the home e-commerce market. This may also be the reason why e-commerce giants headed by Ali, JD.COM and Pinduoduo are so optimistic about the home improvement market.
According to the data of China Building Materials Circulation Association, the national building materials household prosperity index (BHI) in June 2020 was 1 10.77, up 2.5 1 point from the previous month. 5438+ 10 The sales of building materials and home furnishing stores above designated size reached 92.37 billion yuan, up 6.70% from the previous month. From June 1 to June 1 in 2020, the cumulative sales reached 594.38+0 billion yuan. Statistics from the Bureau of Statistics show that in the first half of this year, the national commercial housing sales area was 611000000 square meters.
Qiu Chen once said that according to the above data, only the domestic market has an incremental space of more than 700 billion yuan. "The huge newlyweds, college students' employment and urban residents have also created a steady stream of rigid demand for the home furnishing industry. "
At present, the incremental market of e-commerce has been exhausted. With the entry of Ali, JD.COM and Pinduoduo, the "Three Kingdoms Kill" in the household industry will also intensify.