New model of furniture development expands online brands to test e-commerce

On the evening of January 9, 2011, the Shenzhen Furniture Industry Association's three-dimensional media strategy was officially launched: from this year on, the mobile phone newspaper and industry website of the media center will be operating at the same time and will gradually expand the proportion, with a series of efforts to expand for furniture companies Network brand building channels and e-commerce platforms to open up new models of furniture development strategy.

Inscription: If there is no e-commerce in the 21st century, there will be no business.
-Bill Gates

On the evening of January 9, 2011, the Shenzhen Furniture Industry Association's three-dimensional media strategy was officially launched: from this year on, the mobile phone newspaper and industry website of the media center will be operating at the same time and will gradually expand the proportion, with a series of efforts to expand for furniture companies Network brand building channels and e-commerce platforms to open up new models of furniture development strategy.

At almost the same time, the Sichuan Furniture Import and Export Chamber of Commerce proposed at the 2010 meeting that "2011 will be determined as the e-commerce development year." In the new year, it will grasp the future development trend and actively guide furniture companies to carry out network marketing and develop electronic Business. To this end, it is planned to organize a network marketing summit in the near future, and invite network marketing experts to conduct online training for furniture companies.

The concerted action of the two largest furniture industry clusters in the country, one north and one north, shows the same determination: it is imperative that the furniture manufacturing industry collectively test e-commerce.

Online shopping soars, e-commerce is a new way of marketing

The data can tell everything.

First, the number of online shopping users in China has reached 142 million, and online shopping has risen one place in the ranking of major online applications. According to the latest statistical report released by the China Internet Network Information Center (CNNIC) for online shopping, as of June 2010, the number of online shopping users reached 142 million, the utilization rate increased to 33.8%, an increase of 5.7 percentage points, and the user growth rate reached 31.4% in six months. Online shopping ranks up one position in major online applications, and its usage rate exceeds that of forums / BBS. The report points out that while the duration of Internet access by Chinese netizens has increased, the Internet applications of netizens have also shown the characteristics of a rapid increase in commercialization, continued maintenance of entertainment trends, and deepening the value of communication and information tools. In the first half of 2010, most network applications became more popular among netizens, and the number of users of various network applications continued to expand. Among them, business applications performed particularly well. As of June 2010, the utilization rates of online shopping, online payment, and online banking were 33.8%, 30.5%, and 29.1%, respectively, and the half-year user scale increases were 31.4%, 36.2%, and 29.9 %, The growth rate ranks in the top three in various applications.

This shows that China has the world's largest group of netizens, online shopping habits are gradually taking shape, and a vast online distribution market has already begun to appear and cannot be ignored.

Second, according to statistics, home buyers under the age of 40 have become the absolute main force of home purchases, accounting for 85%. Of these people, 98% use the Internet, 63% have online shopping experience, and 85.2% agree with online consumption.

This shows that the main force of home consumption with purchasing ability has moved closer to the two generations of young people in the 70s and 80s who have the habit of online shopping, and has practically implemented the possibility of home e-commerce.

The third is that there is almost no successful furniture e-commerce platform in China. According to the survey, there is no furniture e-commerce platform among the top 50,000 websites of ALEX. At present, none of the existing furniture online stores has an annual turnover of 10 million yuan. In developed countries in Europe and America, online sales have accounted for 58% of non-store sales.

This shows that domestic e-commerce has just started and there is huge room for development, but it also implies that there are obstacles in the process of e-commerce of Chinese furniture that have not been eliminated. Otherwise, compared with other industries, such as clothing, footwear, and electronic products, it should be Have similar superior performance.

Fourth, unlike the home appliance industry, the furniture manufacturing industry and the distribution industry have not formed a relatively high market monopoly and brand influence. Even for the all-friends, Shuanghu or Red Star, and the actual home still cannot form a coverage brand in the furniture consumer terminal. According to the survey, when consumers buy furniture, the brand and manufacturer's attention on the furniture is ranked last, that is to say, when consumers buy furniture, what brand of furniture is made by which manufacturer, is not Very concerned.

This shows that for small and medium-sized furniture industry SMEs whose marketing channels are not yet perfect, e-commerce is undoubtedly a new way of marketing. More importantly, the current brand concentration in the furniture industry is still very low, and the company's market share Under the background of great achievements, network channels are a good breakthrough.

Website upgrade e-commerce enters Web2.0 era

Although it is a traditional manufacturing industry, the furniture industry is no stranger to the Internet. At present, basically every furniture company has its own official website. This official website is responsible for the external image display of the company's brand, the promulgation of the company's internal orders, and the announcement of dealer policies. Such a website has all the characteristics of the 1.0 era website: it is a one-way release of information, he did not do it. Communicate and trade with consumers.

And this company's collective deep network access again will be a subversive sublimation of the first wave of Internet access. It has the characteristics of the era of Web2.0, that is, the interactivity of propaganda and consumption: if the Internet is called for the first time If it is a network information project, the second time is a marketing project, that is, the first time to touch the network is to let more people know the information of the enterprise through the network, and the second is to let more people buy the enterprise production through the network The product.

The network upgrade project of the furniture industry should have the following purposes:

One is to show. Any company that wants to carry out network marketing first needs to have a display platform on the network, which can fully display the company's image and products. In this regard, enterprises can choose industry websites for corporate information release, because industry websites have a more thorough analysis of the industry than general comprehensive websites. Therefore, displaying on such a platform can easily establish the company's image in the industry and attract Enough attention to dealers.

The second is to spread. Through the industry website to publish their own product information at any time, the more they publish, the greater the chance of being searched on the Internet, and the greater the chance of closing the transaction, so that you can maximize customers. Secondly, it can also enhance the enterprise's network awareness. Now customers can investigate the information of an enterprise from the Internet anytime and anywhere. There are a lot of enterprise information published on the Internet. After the customer finds it, they must have a good understanding of the corresponding company.

The third is communication. It is required to strengthen the message system or online instant communication tool suggestions on industry websites and self-built official websites, which can give enterprises the first opportunity to obtain business opportunities. In a business society where money is money at this time, whoever has the first information means Who has more business opportunities. This is also becoming more and more respected by companies. Some companies are beginning to try SMS online customer service systems. As long as the mobile phone is in hand, they can grasp business opportunities within 24 hours.

The fourth is marketing. It is generally considered that industry websites (vertical websites) and comprehensive e-commerce websites (horizontal websites) are the doors for enterprises to enter the e-commerce market, from website construction to online communication, to some auxiliary applications of commercial software, industry websites, comprehensive electronic Business websites will increasingly reflect their strong marketing value. These can be clearly seen in the increase in the number of industry websites each year. On the other hand, companies can also build their own website marketing.

However, whether it is to enter the industry website, self-built website, or the most popular Taobao, Paipai, Jingdong Mall, Dangdang and other comprehensive e-commerce platforms, the core is still to establish an enterprise online marketing system-what Model, what kind of method is most suitable for their own enterprises, this is obviously a problem.

Channel expansion how to play online and offline games

The grafting of e-commerce in traditional industries is theoretically perfect: First, companies do not need to recruit channel dealers from all over the country, and can get rid of the retry dependence on large chain stores, thereby saving a lot of channel costs. Second, as long as the distribution and service system is improved, it can cooperate with online sales to achieve perfect coordination between offline and online transactions. Its online after-sales service is regionally managed and directly allocated to the service area of ​​the physical store in the corresponding area. Improve local sales performance. ——When Qumei Taobao flagship store “Quyi Troupe” is selling for 100 million yuan, Kebao Boloni has a professional network marketing team of 60 people, and annual sales of 400 million yuan annual performance report, I believe all traditional industries Businesses are tempted.

But even if the enterprise itself has a high brand awareness, a mature product and supply chain system, and ready-made offline store support and services, we still need to think about whether the online and offline channels can achieve "win-win"-if only Directing some offline companies online will not greatly increase the total sales volume, but may reduce the profit margin, and more importantly, may affect the interests of dealers everywhere.

In fact, the price conflicts between online and offline products, and the protection of the interests of local agents may be the first major difficulties encountered by traditional enterprises when they get involved in e-commerce.

In this regard, companies are also trying to solve this problem. Some companies began to realize product differentiation. Online and offline have relatively independent pricing power due to different products sold. However, this measure may still hurt the dealer's performance. As we all know, current customers have formed the habit of browsing and comparing various products on the Internet before buying, and then going to the physical store to experience the purchase. In this way, under the condition of the same quality and the same price, there will inevitably be a part of consumers who should be dealt with in physical stores will be diverted to online-for some companies that do well in traditional distribution channels, they are most afraid of implementing e-commerce The total amount of post-sales growth is not large, but there is a difference between online and offline, that is, only one basket of apples is divided into two baskets-for this, Sichuan enterprises with wider channel networks need to make more comprehensive trade-offs And the layout, and for Shenzhen furniture, it should be a better marketing platform to attack the inland market in addition to exhibitors.

For enterprises with a wide range of channels, in order to ensure the interests of distributors, offline services after online sales can be handed over to distributors for execution, and a certain percentage of sales will be granted. But the problem that followed was: We all know that e-commerce is actually doing subtraction, reducing the intermediate logistics and sales links through the Internet, thereby reducing costs and reflecting the price advantage. In this context, how to allocate benefits? Too few dealers are naturally unwilling to cooperate; if more is given, the channel cost will rise and the network's price advantage will be lost again.

At present, the traditional enterprises that do well in e-commerce in China are Li Ning and Galanz. They typically use product differentiation to balance online and offline channels, and occupy the online market through out-of-season products and low-end products. System and inventory. But they just solved the integration and management of online distribution, and the balance of interests between online and offline traditional channels is still a headache.

However, the more headache-prone issue is yet to come. Once online sales only sell seasonal and low-end products, it may have a negative impact on the reputation of well-known brands. The solution to this is to implement a sub-brand strategy, but if only a low-end and low-price strategy is implemented on the Internet, it will undoubtedly reject high-end customers who are accustomed to online shopping, which in turn is equivalent to self-deprivation of brand promotion and profit margins. After all, the Internet is not synonymous with cheap.

Despite the headache, it is gratifying that most enterprises still face the difficulties. The four words "market share" represent the thinking of the entire traditional enterprise: Obviously, the Internet is a major channel for marketing. Can get a cup of soup.

The word-of-mouth communication system is the key to success

At present, e-commerce has been applied in the sales of the Chinese furniture industry, but it accounts for less than 1%. Compared with European and American countries, there is still a big gap.

The main reason is that the enterprise sales system is not yet perfect. For example, there are many brand stores in Europe and America. Anything bought in any store can be returned to another store, and the "three guarantees" can be achieved. Second, the price can be unified. At present, the price of the furniture industry in China is too false. A sofa can be priced at more than 100,000 yuan, and the actual sales are tens of thousands of yuan, which cannot give consumers a sense of trust. The third is the issue of business reputation. The business reputation of furniture companies is generally not enough, and some brand influences are not enough to give consumers a sense of security.

In fact, the threshold of e-commerce in China is actually very low, but the process of "from scratch" is very easy, but it is difficult to "from scratch".

This gap is also enough to show how great the risk is if the sales system is not run-in: First, how large orders can the enterprise's back-end production and processes successfully support? The second is how to avoid problems such as product delays, cumbersome processes, and poor service experience, and allow consumers to pay smoothly? Third, if consumers who are familiar with the Internet are not satisfied with the purchase, they will quickly vent and spread their dissatisfaction through the Internet, which will affect the consumer's reputation for the brand and will also hurt traditional offline customers. Are you ready for crisis public relations?

Where is the key to running in? It is the landing service of online transactions.

Zhu Changling, chairman of the China Furniture Association, said: "Only when a part of people or an individual completes the buying process, and tastes the sweetness, he will pass word of mouth or secondary consumption, which will become the channel for online sales .Only when there is more such experience, online sales can develop, otherwise it cannot develop. If this experience is a failure or the frequency of failure is high, it will affect the development of online sales. In addition, if the business reputation is not resolved If it does, there will definitely be problems with online sales and the development of e-commerce will be affected. "

In fact, after entering the Web2.0 era, the network is no longer virtual. When consumers really call the merchants online for real money, what they want is real furniture that satisfies him. To this end, establishing a complete pre-sale and post-sale service system, and providing timely service items such as home delivery and free installation have become the only way for enterprises that want to enter e-commerce.

In general, due to opaque prices, uneven product quality, and insufficient market integrity in China ’s furniture market, China ’s furniture e-commerce model cannot replace the traditional furniture sales model in a short period of time. However, new types of electronics The business model is a model that subverts tradition. Furniture e-commerce companies can only have a place in this market if they rely on integrity and serve as a blueprint.
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