Home furnishing business into a new trend, home decoration, building materials, fabric enterprises will move towards integration

The assembly business has become the focus of customized home furnishing enterprises in the past two years.

As an early entrant in the assembly business, Opai Household achieved assembly revenue of more than 2 billion yuan last year, becoming the head enterprise in the assembly industry.

However, in the first half of this year, the industry heat declined, and the expansion of the assembly business fell into an "awkward" situation. Interface news has reported that only four enterprises disclosed the revenue of the assembly business in the 2022 semi-annual report. Among them, Sophia doubled its growth, achieving revenue of 361 million yuan; Shangpin home distribution income shrank by half, achieving revenue of 203 million yuan.

In contrast, Opie has made frequent moves in the assembly business this year. On June 6, Opai changed its brand "Star House" to "Platinis".

At the performance presentation meeting in August, Yao Liangsong, chairman and president of Opai Home, said that about 70 shops have been opened, and it is expected to grow to 100 by the end of this year.

However, under the changing market conditions, Opie has also adjusted its revenue expectations for this year's assembly business. Zhang Xiaofeng, general manager of OPai's home division, recently revealed that the revenue target of 4 billion yuan set at the beginning of the year may not be achieved, and the overall estimate is about 3.4 billion yuan.

What is outfit? Xu Rui, vice president of the housing Industry Branch of the China Building Decoration Association, mentioned the definition of the assembly, "We start from the point of view of materials and fabrics, there is no light packaging of auxiliary materials and main materials, including yellow sand particles, glue, pipelines, etc., called half package; Including ceramic tile, wood floor these main materials are called full package; Including furniture customization, soft decoration, etc., called the whole case; Including home, home textiles, home appliances, home textiles, etc., which is called the whole. "

Xu Rui said that at present, most of the companies that call themselves packaging companies, their business expansion is still at the level of half-package or full-package. In this regard, Xu Rui, for example, two companies that put household items into the whole business, "Put home textiles, towels, toothbrushes, slippers into the whole, this is the terrible whole."

Wang Yuwei, deputy general manager of Sundu home decoration, put forward a different explanation from the perspective of the enterprise, "The whole decoration is the decoration company according to the best overall needs of consumers, and then the elements of design, construction, auxiliary materials, main materials, custom furniture, soft decoration, and decoration are produced, priced in square meters, or the whole set of offers, and then as the main body of contract responsibility." Responsible for the overall service before, during and after sale."

Zhang Xiaofeng explained the key points of Opai's new home assembly strategy, "I call it a retail service model to meet the lifestyle of consumers' entire family through integrated design, one-stop product integration, and a package of construction services."

Wang Yuwei, who also mentioned the retail concept, explained that the whole package is the model of A plus B plus C, the standardization of A, the personalization of B and the new retail of C.

When these industry people mention the competitiveness of packaging enterprises, they have repeated keywords: supply chain, customer acquisition ability, digitalization.

"The competition for the whole package is a supply chain battle." Mr Hui says there are four main areas of competition in the supply chain. First, the circulation link in the FtoC model (a new business model in which goods are sent directly from manufacturers to consumers through the zero-purchase website); Second, the control and pricing power of the enterprise on the product; Third, the enterprise's delivery capacity and efficiency; Fourth, the whole house customization ability of the enterprise; Fifth, there are home, home decoration, soft decoration, home textiles, home appliances and so on.

In the story of customer channels, Chen Lei, chairman of Shenzhen Redwood Decoration Group, said that every time you open a shop in a new place, the company will put two to three times the size of the industry to solve the local customer problem.

At the digital level, Opai Zhang Xiaofeng mentioned the current establishment of the digital platform of OPAI. "After our renderings software is integrated with our custom products, there is no need to draw other renderings and construction drawings, and directly place orders with drawings."

Wang Yuwei also mentioned that the digital capabilities of Suntown home improvement also bring convenience to business leaders, "We signed 2,000 contracts this month, who sold custom, who sold home appliances, who sold furniture, who sold lamps, who sold curtains, we can open the mobile phone to see." That's very important."

In addition, Zhang Xiaofeng also said that the home improvement industry is about to enter a big reshuffle period, in the context of economic adjustment, consumers in the choice of home improvement companies will be more cautious, only cost-effective, high recovery to attract consumers.

Zhang Xiaofeng said that when the integrated channel can achieve a high degree of integration of the supply chain, it is more cost-effective for consumers.

In the future, Xu Rui believes that half-package and full-package enterprises will coexist with packaging enterprises for a long time, but the proportion of the former's output value will decline seriously. "Assembly is the future development trend of the industry, and the future dry big must be dry assembly."

Combined with the current consumer demand for one-stop service, enterprises need new profit growth points, home, home improvement industry may be a big integration in the future.

Xu Rui mentioned, "In the future, there will be no home improvement industry in China, and in the future, our home improvement, fabric, and building materials companies will slowly integrate together, and we will all go to the complete circuit." "

However, as the leader of the industry, how to cope with the adjustment of the upstream real estate industry in the second half of the year, and whether its assembly business can drive performance growth is still worthy of market attention