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Home furnishing industry hard work with live broadcast

Home furnishing industry hard work with live broadcast
The transcripts of listed home furnishing companies for the third quarter of 2020 have been announced.
Among them, the revenue of most home furnishing companies has gradually recovered, but at least half of the net profit growth of home furnishing companies are still in a state of decline, and even the phenomenon of net profit "halving" and increasing revenue without increasing profits.
Under the influence of the epidemic, home furnishing companies have rescued themselves one after another, and most companies have pulled the sales front online.
"The epidemic has blocked the most important offline transactions in the home furnishing industry, and brand showrooms and home furnishing stores have become deserted." On October 27, the relevant person in charge of Zhibang Home Furnishing (603801.SH) told Times Weekly reporters that after the epidemic, The company used 6 days to quickly set up a theme live broadcast hall, and launched daily broadcasts on platforms such as Douyin and Pinduoduo.
On October 30, the relevant person in charge of Sofia (002572.SZ) also told the Times Weekly reporter that in order to cope with the impact of the epidemic, Sofia increased online sales, moved the offline marketing model to online, and cooperated with many people. Artists start live broadcast cooperation.
The home furnishing industry is working hard enough on the online track, but the effect of driving performance growth remains to be discussed. How to use the wind to break the situation? It is a common proposition in front of home furnishing companies.
On the battlefield
At 11:30 in the evening on October 29, Li Cheng, who had just finished the live broadcast of the day, sat on the unsold dining table and chairs to resume the game. This is his 73rd live broadcast this year, and it is also his first time to participate in Double Eleven as a seller.
Li Cheng is regarded as the "old man" in the circle, and has been in the home furnishing industry for nearly ten years. He runs two direct furniture stores in Foshan, Guangdong, and his income mainly comes from offline. Although his business is not booming, his income is stable.
In the first half of this year, Li Cheng's ease was broken. "Because of the epidemic, the two stores lost at least 400,000 yuan." Li Cheng said frankly that this is the first time he has been in the furniture business for so many years.
The offline customer acquisition business was unable to develop, and Li Cheng set his sights on the online. From learning the operation of online stores to controlling live delivery of goods, Li Cheng, who has never had a deep understanding of the Internet, rushed to the online battlefield in less than a week.
Li Cheng is not alone. In the first half of the year, the layout line became the "theme song" of the home furnishing industry.
“Nature Floor’s first Taobao live broadcast successfully converted more than 7,000 orders and welcomes a good start in 2020. From May 13-15, the number of online views of the national joint live broadcast of Nature Floor × Mousse exceeded 10 million. "On October 30, the relevant person in charge of Nature Home (02083.HK) told the Times Weekly reporter.
The relevant person in charge of Sophia revealed that from February to June this year, Sophia had a total of nearly 600 live broadcasts, and for the first time moved a cloakroom product into the live broadcast room of "Anchor Sister" Wei Ya. There were 20 million live broadcasts that night. .
According to the "Good Home Life Trend Report" jointly released by Taobao Jiyoujia, Alimama, and Weibo Home Furnishing, during the epidemic, the number of live broadcast merchants in home furnishings has increased by 10 times, and the transaction has increased by 8 times. 3 times.
Only on the day of the 6‧18 shopping carnival, the live broadcast of the home furnishing industry reached new highs. Data shows that within 1 hour of the opening day on June 18, the overall transaction value of the home improvement industry on Tmall reached 16 times that of the same period last year; in the home improvement store on JD.com, the transaction volume of building materials category increased by 100% year-on-year in the first 30 minutes.
"The live broadcast of home furnishing companies became popular, mainly because of changes in consumer demand and customer acquisition channels, and the rapid migration of users online, which increased online penetration." On October 29, Internet home furnishing entrepreneur Chen Gang (pseudonym) Xiang Shidai The weekly reporter said.
Market rejuvenation
However, the performance of home furnishing companies brought by live broadcast is still limited.
Take the custom home furnishing listed company as an example. According to statistics compiled by Manager.com, from January to September this year, the average growth rates of revenue and net profit in the custom home furnishing industry were 1.48% and -19.01%, respectively; compared to 14.55% and 12.76% in the same period last year.
"The online model of the home furnishing industry is not easy to complete orders, mainly because customers have a weak online experience and difficult communication. Once consumers are dissatisfied with the offline consumption experience or products, they are likely to return the orders immediately. The series of drainage work will fall short.” On October 28, Peng Zhangke, executive director of the Huajiang Tesco Collective Procurement Platform of the Guangdong Decoration Association, told Times Weekly reporters.
However, online exploration is not without turning points.
The "Good Home Lifestyle Trend Report" mentioned above shows that for traditional offline consumer categories such as whole house customization and residential home furnishing, post-90s and post-95s are more inclined to complete online purchases. From the perspective of consumer age releases in different categories of home improvement and home furnishing on Taobao in 2019, post-90s and post-95s accounted for more than half.
"Generation Z" is becoming the backbone of household consumption. The "2019 Home Life and Consumption Trend Report" released by Yidoutang shows that the post-90s who prefer spiritual levels and experience have become the main force in decoration.
Chen Gang said that as the post-90s and post-95s have become the main sources of household consumption, online channels will continue to release greater potential, which will bring opportunities to the household industry and have great room for growth.
"The open attitude shown by young people in household consumption has also forced the reform and progress of the household industry." Chen Gang emphasized.
This can be seen from the "Guidelines for the Livable Trend of Tmall's Nest Home after 90s" released by Tmall in conjunction with IKEA and China Business Data Center. Compared with traditional home improvement consumers, the interests and needs of young home improvement consumers have shown significant intergenerational characteristics in terms of product selection and concepts.
The report summarizes the "Eight Trends of Nest Home" that most frequently appear in the home improvement needs of young people: trendy men's wall, trendy children's room, Wange cloakroom, 10 decibel silent sleep aid bedroom, sky island, Smart kitchen, private universal bathroom , Whole house intelligence.
"As the main force of future household consumption, the household consumption needs of post-90s and post-00s have been upgraded from satisfying functional needs to satisfying emotional needs and spiritual pursuits. In the process of household consumption, additional value other than commodities is increasingly valued, and Therefore, higher requirements are put forward for home furnishing enterprises." Sophia's relevant person in charge said.
The relevant person in charge of Zhibang Home Furnishing said that as young users become the mainstream group of home consumption, personalized consumption trends will be strengthened, which objectively will bring opportunities for the differentiated development of customized home furnishing enterprises. In the past few years, Zhibang has been highlighting the younger brand effect, laying the foundation for the company's future stable business development.

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