Buy auxiliary materials in the east market, buy main materials in the west market, buy furniture in the south market, buy accessories in the north market... After all, you have to argue with the decoration company endlessly...
As the saying goes, "Buying a house is easy and difficult to decorate." Decoration is such a big deal when you think about it. I bought a house with joy, but was decorated. I hoped to live in the new home on the day I lived in. "I spent all my money, I was exhausted, and the relationship between husband and wife was basically broken."
is 0202. The wave of consumption upgrading is unstoppable, and the industrial Internet is in full swing. How can the home decoration industry continue to be a fish that misses the net?
At the end of 2019, the Internet home decoration platform Tubatu released the "Ladder Support Plan", saying that 2 billion yuan of resources will be invested in 2020 to support decoration companies that have settled in the platform, improve their service capabilities, make up for shortcomings, improve the owner's experience, and drive the industry to move forward as a whole.
In fact, since its establishment in 2008, Tubatu has never stopped promoting the industry's "network" transformation. has been integrated from the consumer Internet to the industrial Internet and the future. With the emergence of Tubatu, the traditional home decoration industry is gradually changing.
Text: Binbin (Please note if you come out of the shadow)
Undercurrent surging
The surface is calm, but in fact, undercurrent surging.
Facing the new era and new background, multiple external and internal incentives are superimposed. For home improvement companies, challenges and opportunities coexist. As industry expert Tang Ren said, the home decoration industry is facing an unprecedented change, which is guided by Internet home decoration .
First look at the impact of external factors:
As people's living standards improve and consumption concepts change, consumption upgrades have invisibly penetrated into multiple industries, and the home decoration industry is no exception.
One of the specific manifestations is that consumers’ call for quality is becoming increasingly strong. Tencent advertising "2019 Home Furnishing Industry Insight White Paper " (hereinafter referred to as the "White Paper") released by Tencent advertising shows that the factors such as good reputation, after-sales guarantee, environmental protection and safety of materials used, and high cost-effectiveness are the core elements of consumers when choosing a home improvement company. The ranking of factors such as cheap prices and preferential promotions is low, which means that consumers are no longer simply impressed by low prices.
After becoming rational, consumers have also clearly grasped their demands. For example, the post-85s and post-90s groups pursue personalization and customization more than consumers in the past. The White Paper points out that the post-90s generation has higher requirements for smart technology and personal trends. They will collect relevant information about home smart devices before decoration, and will pay more attention to intelligent design and application when choosing a decoration company.
changes on the market side cannot be ignored. Lou Yang, vice president of iResearch, mentioned that in the past, home improvement was more to serve new home users, but as the dividends of the incremental real estate market faded, the service targets would shift to existing users. The market competition is becoming more intense, and the cost of acquiring customers of the installation company has increased, and the industry has changed from "dividend driven" to "efficiency driven" .
Look at the intensification of internal contradictions:
"too much content to be determined", "need to know a lot of information", "there are pitfalls everywhere". For a long time, consumers' negative feedback on the home decoration process has far exceeded positive feedback. The internal reason of is that the demand for multi-category integration is extremely inconsistent with the business model of traditional home decoration single category .
decoration is not considered a design. It requires 28 kinds of auxiliary materials, 35 basic projects, 8 main materials, 52 pieces of furniture and accessories. At least 80 stores, you have to bargain with 100 people. It takes at least 100 days to buy nearly 200 products, and consume 200 brain cells.
The jokes circulating on the Internet show the dispersion of the home decoration industry, which is actually an obstacle to the development and growth of decoration companies. The Chinese decoration industry has always been a state of "large industries and small enterprises". According to statistics from the China Building Decoration Association, the Chinese decoration market size exceeded 2 trillion yuan for the first time in 2017. If the consumption of main materials, soft decorations, furniture, home appliances and other consumption is included, the domestic decoration market size exceeds 4 trillion yuan, and it still maintains rapid growth. There are very few home improvement companies with revenue exceeding 10 billion yuan, and no more than 10 companies with revenue exceeding 5 billion yuan.
The new era of "efficiency-driven" has escalated internal contradictions in the home decoration industry again.Compared with traditional decoration companies with poor user experience and low operational efficiency, Internet home decoration platforms with advantages such as convenient procurement, high cost performance and complete types of decoration renderings have become users' new choice.
At the same time, as the main consumer groups, their consumption habits determine that the consumption decisions of the home decoration market in will gradually shift from offline to online in the future, which also forces traditional decoration companies to "go to the Internet" and provide a growth soil for Internet home decoration platforms.
In summary, the home decoration industry is about to usher in a round of reshuffle.
Juzhong Group Vice President Chen Zijian believes that "the reshuffle is because more professional people appear." Previously, Juzhong Group built its own online sales department and set up an Internet technology company to explore Internet home decoration, but the output effect was not ideal. After connecting with Tubatu, "a series of data in the past three months have risen sharply." Therefore, from the perspective of decoration companies, has to hand over professional matters to professional platforms to in the face of increasingly difficult market.
"Touch the Internet" three-step
Professional comes from concentration.
"Low frequency, high unit price, long operating cycles, the home decoration industry needs to achieve very good development, there are many pitfalls to go, and many problems to be solved," said Wang Guobin, founder and CEO of Tubatu, Wang Guobin, , "Tubatu has gone from a small-scale enterprise to a leading enterprise in a city, and hundreds of millions of enterprises have grown on the platform. The core is because everyone embraces the Internet."
Recently, the Ministry of Commerce issued the "Notice on Confirming the First Batch of Online and Offline Integration Development of Digital Business Enterprises". As a representative Internet home decoration company, Tubatu has been selected as the ultimate list with well-known companies such as Alibaba, JD , Pinduoduo , Meituan, Xiaomi , etc.
sorted out the development path of Tubatu embracing the Internet and integrating online and offline. Xiong Chumo summarized it into three steps:
The first step is to move home decoration consumption from offline to online on the consumer Internet side. During this period, Tubatu played the role of information platform and trading platform.
"Tubatu took the lead in positioning itself as a consumer Internet platform that helps users make decisions." To this end, Tubatu has focused on the content ecosystem and built a closed transaction loop with the other hand.
Decoration diary is a representative product of the content ecology. According to Wang Guobin, Tubatu has been continuously building decoration cases for each property since its inception, users’ real decoration diaries and evaluations. Open an article at will, and in chronological order, from the initial signing of a contract with the decoration company to the construction team entering the house, demolition and modification, water and electricity, mud, paint, and completion, users have made records of each link, including docking with the foreman, construction quality, inspection of the Tubatu quality inspection housekeeper and other details. In addition, each expenditure is marked in detail in the decoration list, and the quality inspection report provides the quality inspection results of various projects. Other consumers who have decoration needs can use this as a reference when choosing a decoration company.
transaction mechanism and the construction of the transaction closed loop, we mainly look at Tubatu’s first decoration and then payment model. In traditional decoration, industrial owners have already paid most of the decoration payment before the construction site is completed. At this time, if the decoration company runs away from the pipe and the project is sloppy, consumers will be passive and it will be difficult for them to protect their legitimate rights and interests.
is traded through Tubatu, and the decoration payment is specially managed by a third-party national bank. The decoration payment will be paid to the decoration company only after the user confirms it. If there is any dispute over construction delivery, consumers can also apply for suspension of payment process and make the dispute judgment by the Tubatu platform. In this way, the initiative is back to the hands of consumers.
From selection to trading and then to evaluation, Tubatu online the roles of both parties and suppliers, and transformed the traditional trading process with the Internet, breaking the pain points one by one. The platform has also gained market recognition. Data shows that the Tubatu platform has accumulated 31.5 million+ Chinese families, 100,000+ cooperative decoration companies, 1.2 million cooperative designers, 8,700+ auxiliary materials, main materials and customized furniture suppliers.
The second step is to adapt to the trend of the industrial Internet, and the resources and capabilities of the open platform are empowered to B-end decoration companies.At this stage, Tubatu transformed into an empowerment platform.
allows C-end consumers to complete decoration transactions like Taobao shopping, improving convenience while ensuring experience. This requires supply-side reform and enhancing the service capabilities of platform merchants, that is, shifting from consumer Internet to industrial Internet. Looking at the companies that are focusing on industrial Internet, Alibaba, Tencent, Meituan, etc., all have deep accumulation, including operational experience, technical capabilities, etc.
As mentioned earlier, Tubatu was successfully selected as the first batch of digital business enterprises of the Ministry of Commerce. Shenzhen originally selected Tubatu as a key enterprise for recommendation. One of the main reasons is that it attracted the attention of Tubatu's investment in technology.
data shows that Tubatu's R&D expenses invested more than 100 million yuan. In 2018, its scientific research investment accounted for more than 12% of its revenue that year. With continuous breakthroughs in the fields of big data, AI and artificial intelligence, Tubatu developed Tushiyi and SaaS and other systems have benefited the entire home decoration industry and continuously empowered decoration companies.
Take the industry-shared SaaS system as an example. Industrial onlineization is the cornerstone of industrial empowerment. According to Hu Peng, general manager of Tubatu Technology R&D Center, starting from the user entering Tubatu website or APP, the system will collect user demand information, accurately match order assignment, connection between decoration companies and users, house measurement and design, electronic signing, geography inspection, material distribution, customer service and other nodes will be moved online to help enterprises operate digitally and realize data sharing.
The third step is to promote the deep integration of industrial Internet and consumer Internet. At the launch of the "Ladder Support Plan", Wang Guobin said that industrial Internet is a very important means to improve efficiency, but the value of industrial Internet must be reflected in how to integrate with the consumer Internet and give the industry new value.
Based on the existing layout of consumer Internet and industrial Internet, Tubatu has digitized and online the production process. The essence of connecting on both sides is the comprehensive data connection, allowing users to see the entire process, enhance users' trust and reputation, and thus drive the selection of supply, that is, the growth of performance of installation companies.
"Ladder Support Plan" is prepared to accelerate the deep integration of consumer Internet and industrial Internet. Tubatu uses 2 billion platform resources to comprehensively improve the soft and hard power of decoration companies, allowing consumers to better understand the supply side and make the supply side better understand consumers.
The victory of long-termism
The more forward it moves, the deeper the transformation of the industry, the heavier the model, and it also means that the difficulty of the challenge continues to escalate.
At the beginning, if you choose a light mode for information matching, Tubatu can actually make quick money easily. But looking back at the past, from consumer Internet to industrial Internet, Tubatu has not been easy to go. According to Wang Guobin's plan, the work of promoting the integration of both sides in the next ten years will be equally difficult.
The reason for this is that is that Internet home decoration is a slow business . When the Internet platform transforms it, it must start with hard work, dirty work and tiring work. Haste will not be achieved.
subjective factor is the Tubatu team's persistence in long-termism . Wang Guobin said, "The core of building an ecosystem that is beneficial to the C-end and B-end is indeed whether we can find a group of like-minded partners. They are more concerned about the value created by Tubatu, the value of users, and the value created by us, which far exceeds revenue."
Amazon founder Bezos is also a believer of long-termism. On the eve of Amazon's listing in 1997, Bezos wrote in a letter to shareholders that "everything will revolve around the 'long-term'." There is also Meituan, which was established in 2010 and did not achieve overall profit for the first time until the second quarter of 2019. The losses lasted for nine years, which was supported by long-termism.
Tubatu has gone through the previous decade, and its value to merchants, users and industries has gradually been reflected.
Shenzhen Zhenxing Decoration began to cooperate with Tubatu in May 2012. At that time, there were only 5 people in the Zhenxing Decoration Company, with a performance of about 5 million yuan. Now it has increased by 20 times and entered the 100 million yuan club.Boss Li Shanjun described the cooperation with Tubatu as "standing on the shoulders of a giant", saying that "Zhenxing's way of survival is inseparable from Tubatu's traffic support and brand empowerment."
Tubatu’s three-step development strategy is actually a change in the industry. The first step is that consumers are most likely to perceive, and the second step is to go deep into the bottom of the water. More effort is spent in places that consumers cannot see. But only by completing one or two can you take the third step. By then, quantitative change will lead to qualitative change, consumer experience will be comprehensively improved, and the business of decoration companies will be easier to do.
Based on recognition of the value created by Tubatu, the only industry-leading association China Architectural Decoration Association named it the "Internet Decoration Leader" in 2015. In 2019, Tubatu won this title again.
So, in the long run, companies that adhere to long-termism gain long-term advantages and long-term leadership . Especially in industries closely related to daily life, such as food, clothing, housing and transportation, we have entered the market to transform traditions. This type of enterprise has the most hope to keep the clouds clear and see the moon bright and achieve long-term victory.
This article comes from "Please note Xiong Chumo", article: Binbin, please contact the original author for authorization for reprinting
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