"Do the hard and right thing", this is a sentence that Lianjia and Beike House Finder founder Zuo Hui often said during his lifetime. Now his words come true. After the housing transaction service business, the home decoration business, known as "crossing the second mountain", is becoming the biggest driving force for the performance growth of Beike . On September 27, 2022, Liang Lei, the head of Beike Quilt Home Furnishing Beijing Region and general manager of Quilt Home Decoration, talked about the number of contracts signed since May and said calmly: "Since May this year, Quilt Home Decoration has increased by 150% year-on-year."
When the home decoration industry generally declined by 30%, Quilt Home Decoration can grow by 150% against the trend. What did you do right?
The number of signings increased by 150% or ranked among the top
According to Fastdata data, from 2016 to 2020, there were only 4,000 large decoration companies with revenue exceeding 100 million yuan, and there were very few decoration companies with revenue exceeding 1 billion yuan. The quilt home decoration, which has been established for only three years, may be among the latter. "Since May this year, the number of signing contracts for quilt home decoration has increased by 150%, and it is expected to exceed more than 1 billion yuan for the whole year." On September 27, Liang Lei mentioned at a media meeting.
The last time Liang Lei faced so many reporters was at the opening ceremony of the Century Jinyuan Store on September 12. This was the fourth store that the store has made in Beijing. Its opening marks that the layout of the store in the "southeast, northwest and northwest" four-way store in Beijing has been completed. The store area of Daiwo Home Decoration is more than 2,000 square meters, including 6,500 square meters of North Fourth Ring Road store located in Asian Games Village , Asian Games Village , 4,200 square meters of East Third Ring Road, 1,700 square meters of West Fourth Ring Road, which has just opened, and 2,500 square meters of South Fourth Ring Road, located in Dahongmen. The Denwo Home Decoration takes Beijing Sidian as its base and the whole decoration as its entrance, and the scale has grown rapidly.
There have been rumors in the home furnishing circle for the rapid development of quilt home decoration, and a set of numbers more intuitively shows the development momentum of quilt home decoration: in 2021, quilt home decoration delivered more than 3,500 home decoration projects to customers, and from May to September 2022, the performance of quilt home decoration hits a new high. Since June, the contract amount of contracts has exceeded 100 million yuan, of which 770-800 contracts were signed in September alone.
As a provider of standardized whole-packing products, it is not easy for quilt home decoration to increase customer order value, behind it is the expansion of product categories. After a walk around the Beijing CBD flagship store in Quilou Home Decoration, there are many big brands that catch your eye: cabinet has Opai , Sofia , Shangpin Home Decoration , Bologne , floor Holy Elephant , Life Home, Lusen , Feimei, Shiyou, ceramic tiles include Guanzhu, Marco Polo, Oshenno, doors and windows have TATA and Holtz, and even switches have big brands such as Siemens and Bulls, and the product categories are still being enriched.
quilt home decoration products are very rich
In 2021, the average customer order value of quilt home decoration is only about 120,000 yuan, and it will increase to 170,000-200,000 yuan by 2022. "Two years ago our ideal was to achieve a 'small goal', but now we can achieve ten 'small goals'." Liang Lei said proudly.
Establish a reputation and do not rush to expand
The rapid development of quilt home decoration has triggered questions in the home furnishing circle: Will quilt home decoration expand to other places while continuously occupying the market share in Beijing? Liang Lei’s answer is: No, no, home improvement will not rush to occupy the market, but will first establish a reputation and use digitalization to realize , what you see is what you get .
Beijing’s home decoration market is very large. According to relevant data, 277,700 commercial housing units were sold in Beijing in 2021, a year-on-year increase of 21.2%, and the transaction scale hit a five-year high. Based on the decoration amount of 200,000 yuan per set, it is more than 50 billion yuan. In 2021, the revenue of the leading home improvement companies in Beijing has just exceeded 2 billion yuan, accounting for less than 5%.
expansion and opening stores are indeed the fastest way to increase performance, but the case of over-expansion of national home decoration brands is right in front of you.In 2017, Shichuang Decoration closed some direct-operated companies. Under excessive expansion and operation, shortage of funds became the last straw that broke the camel's back; in 2018, Apple Decoration's branches exploded one after another, a large part of the reason was blind expansion in the case of losses in the Beijing market. Under the "federal system", the headquarters delegated power to the headquarters was unable to control the situation; in 2018, the home improvement chain "Midei" Decoration stores in various places closed due to tight capital chains, revealing the failure of the low-priced home improvement model under the bombardment of TV advertising.
Beike’s ideal of being a national home decoration brand has a long history. Five years ago in 2017, "Wanlian" jointly established by Vanke and Lianjia achieved a market share of 10% in Beijing, and expanded into foreign markets such as Shenyang, Taiyuan, Jinan, Yantai , Qingdao , Tianjin, Dalian , Changchun and other foreign markets. Then Wanlian split up, Beike took over, and the nationwide failure occurred.
In April 2022, as Beike completed the acquisition of Shengdu Home Decoration, the development path of home decoration business, one of the "two wings" in the "one body and two wings" strategy, has gradually become clear. Yan Weiyang, vice president of Beike and founder of Shengdu Home Decoration, once mentioned in an interview that "the national market is mainly Shengdu , because the Shengdu brand is relatively larger in the market; the quilt is currently in Beijing to become bigger and stronger."
As of the end of September 2022, there were 900 service teams in the Beijing area, including 600-700 decoration designer teams and more than 10,000 industrial workers. They jointly undertake the design and construction of more than 2,000 construction sites in Beijing, ensuring the smooth completion of 500 construction sites each month.
Relying on digitalization to strengthen system construction
As the upstream growth rate of real estate slows down, as a home decoration brand that has deeply rooted in the Beijing market, Qunwo Home Decoration has brought the genes of the Beike Industrial Internet from the very beginning, and has continuously relied on digitalization to continuously strengthen system construction. Zhu Xuwei, head of the HOME Technology Center of
, said that in 2021, Quinwo Home Decoration achieved modularization, standardization and digitalization of key steps of the home decoration process through the Home SaaS home decoration and home decoration system. On the real-time viewing of the construction site of the CBD flagship store in Quaiwo Home Decoration Beijing, the construction status of each construction site in Beijing is clearly displayed, including the number of start-up days, service team, and main materials progress.
quilt home decoration uses digital technology to view the construction site in real time
In order to overcome the pain points of the home decoration industry and meet the needs of consumers, quilt home decoration has also launched "five real advantages", including: real assessment of workers, 100 training and assessments to be certified, comprehensively improve professional literacy, and truly guarantee the quality of construction services; construction is truly visible, 360° full-process panoramic construction site live broadcast; acceptance and rectification, 20 quality items are not up to standard, smashed and redone; promise real compensation, and the ten major compensation standards are written into the contract; quotations are really transparent, and more than 140 pre-surveys of housing measurements are avoided from the source. At the same time, the "ten-hearted" safe service commitments including "malicious additions, double refunds", "private charges, double refunds", "material fidelity, one compensation of three", "product problems, take the initiative to bear", etc., will be written into the contract, creating a one-stop decoration platform for consumers with "no need to focus on decoration".
"Generally, customers have been fully renovated and will change after a period of time. The net recommended value (Net Promoter Score) of half a year after the completion of the quilt home decoration reaches more than 40%. " Liang Lei said, "Only when people abide by the rules and the system process is well built, can larger-scale collaboration be formed."
On August 23, 2022, Beike released its first performance report after acquiring Shengdu. During the reporting period, the home decoration and home furnishing business achieved proforma revenue (assuming that the performance of Shengdu home decoration was consolidated in the whole quarter) of 1.37 billion yuan, a year-on-year increase of more than 10%, and the contract amount completed was close to 1.7 billion yuan. It is not difficult to see that home improvement business has become an important track for Beike.
practices "doing difficult and right things", and shells are also "crossing the second mountain" and making efforts in the second growth curve, but the market will give the final answer whether it can finally see the sunrise on the top of the mountain.
Beijing Business Daily reporter Kong Wenxie/text and photograph
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