The era of consumption upgrade Internet softcover "butterfly effect" highlights

In the home improvement industry, when it comes to the concept of “soft dressing” or “Internet soft dressing”, the phenomenon of “conformity is not unified” often occurs because practitioners always talk about it. Some people think that soft clothing is the collection of everything that you dump when you dump the whole house. Some people take "people" as an example in a popular way. They think that the difference between doing soft clothes and not doing soft clothes is whether "people" wear clothes. Others define soft and hard-wear products in the two categories of movable and non-movable furniture.

The home improvement industry has a long history of development. Why is it that in one of the branches, the software industry, there will be problems with inaccurate definitions and unclear classifications? Perhaps it is not unrelated to companies that have not had strong brand effects in this industry. In the past, the development of the Internet, which was slower and the brand replacement rate was too high, was slightly slower than that of the entire home improvement industry. The development of the soft-packing industry was indeed relatively slow. From the perspective of historical development, the development of the domestic home improvement industry has experienced at least two stages of development: first, focus on physical management, and home improvement enterprises use large-scale offline stores to lay the foundation for attracting passengers. Second, home improvement companies have begun to arrange e-commerce channels. The marketing model has gradually expanded from offline to online, which has led to a rapid increase in traffic for home improvement companies. In contrast, most soft-packing companies often lack the ability to open large-scale offline stores because of insufficient financial resources. At the same time, it is difficult to integrate the soft-packed supply chain for a long time, which is likely to cause excessive brand replacement rate. In addition, soft-packing companies are often not the first entry for renovation users to access home improvement, which makes them less advantageous in terms of access to traffic.

Why is there a lack of brand effect in Internet softcover?

Internet softcover has three essential reasons for the lack of branding in the past. If you want to use three words to summarize, it is "low market awareness," "lack of standards," and "more difficult to integrate."

First, in the past, because most people's aesthetic needs and economic levels have not yet reached the same level, this has led to a long-term market awareness of soft and soft-packed companies. For now, the home improvement industry only has two listed companies, Dongyi Risheng and Mingjiao. The soft-packed listed companies have not yet appeared. In addition, consumers in the soft-packing industry are also in the growth stage, and their market potential has not been fully stimulated in the past. Second, in the past, due to the low overall demand for the soft-packing industry and the lack of publicly recognized industry standards, the life cycle of soft-packed enterprises is relatively unstable. Third, compared to hardwear, the soft-packed supply chain is more difficult to integrate. This is one of the reasons why the industry generally believes that soft-packing is harder to do than hard-wearing. In the industry development for many years, hard-packed has formed a relatively mature or complete building materials business cooperation model, supporting supply chain system and sales channels, but the soft-packing industry is not as deep as the hard-wearing. In fact, they need to form a complete supply chain closed loop in sofa fabrics, home fabrics, home textile accessories, etc., which is very difficult. These three points are precisely the important reason why the soft-packing industry has not seen a company with great brand influence in the past. However, with the arrival of the wave of consumption upgrades, the Internet softcover has also ushered in a "new era" of development.

Consumption upgrades have changed consumers' perceptions of soft clothing, and the "butterfly effect" has begun to stand out.

Compared with Internet home improvement, the voice of Internet softcovers in the industry has been much smaller in recent years. However, the tide of consumption upgrades has prompted people to change their consumption patterns. This has resulted in new perceptions in the aesthetic and home living environment, which has triggered the “butterfly effect” of Internet softcover. . In the vast majority of cases, demand is undoubtedly the most direct force to promote consumption. “In 2013, many consumers’ ideas still stayed in the state of 'what is soft.' In 2017, many families and individuals with renovation needs have consciously rushed to our soft-packing companies.” Lin Zhouyong, founder of Daosoft, told Yiou in a chat. "This is the most obvious change in the industry in recent years, that is, consumers' awareness of the softwear industry has also been upgraded." The cognitive changes brought about by the good times have undoubtedly brought benefits to the development of the soft-packed company. In the view of Ni Jia, the founder of Santa Fe International Soft Pack, in addition to the obvious improvement of consumers' awareness, the tide of consumption upgrade has also given new requirements to the current product positioning of the soft-packing company.

First, the demand reverses the soft-packing company to invest more in design and development. Ni Jia believes that for a real soft-packing company, 60%-70% of its energy will be placed in the direction of design and R&D products, and the products should not only meet different living environments, but also pay attention to design. , functionality and practicality. Secondly, the current soft-packed products are about the overall effect, which can give the family an emotional sense of belonging, and make people more willing to go home instead of simple new products. Of course, this is inseparable from the design capabilities of the software company itself and the ability to control the aesthetic needs of customers. Third, in addition to having a strong sense of design, the soft-packing company needs to form a closed loop in sofa fabrics, home fabrics and products, which is provided for people who are getting more and more time-consuming and becoming lazy in their lives. convenient.

The key to this closed-loop is precisely the special ability of the soft-packing company itself: the ability to create a “dialogue” between curtains, sofas, lamps, wallpapers, paintings and carpets to achieve a uniform style of home. At present, there are several modes in the soft-packing industry: some are mainly soft-packed, some are designed for soft-packed flat meters, and some have advantages in soft-packing and soft-packing supply chains, and others have begun to be in the country. Layout intelligent factories and unmanned factories. Like the home improvement industry, the soft-packing enterprises that lack the branding effect need to achieve rapid development, and only rely on the scale effect to achieve standardized production of multiple products. Although the price of each item in the soft pack is not high, it is rich enough in the category. Therefore, if enterprises want to be big and must integrate large industrial chains and supply chains, they will need a lot of time and money. This is also an important reason why some hard-wear companies are often prone to losses when they cut into software companies. Many industry professionals believe that in the current policy to continue to strongly encourage the fine decoration, the market of home improvement companies is likely to shrink slowly in 10 years, especially the market of the whole company will shrink. However, as a traditional physical economy, soft-packing has the advantages of a wide customer base, a large income level, and easy management of products due to the large amount of movable furniture. Under the favorable effect of consumption upgrade, its market capacity is likely to gradually increase in the next 5 to 10 years, and will regain the capital's attention within 5 years. This is one of the reasons why the current home improvement company intends to cut into the soft-packing industry. Therefore, for the soft-packing enterprises, how to maintain their own business advantages in the next step, take advantage of the benefits of consumption upgrades to better grasp the aesthetic direction of consumers, and rely on the power of new technologies and the nationwide layout of factories to meet consumption in batches. The need for personalization will be the focus of their next move.

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