There are two important criteria for judging whether an industry can burst out with huge growth potential.One is scale, the other is value.
In terms of scale, the “Thirteenth Five-Year” Development Plan for the Building Decoration Industry pointed out that the average annual growth rate of the building decoration industry during the “13th Five-Year Plan” period will remain at about 7%, and the total output value of the industry will increase to 4.7 trillion yuan. . The Prospective Industry Research Institute predicts that by 2023, the market size of the home improvement industry will reach 3.2 trillion yuan.
On the one hand, scale is the foundation of value. On the other hand, with the transformation and change of the entire industry, the Internetization of the home improvement industry has become increasingly mature, and the value of the entire model is constantly being integrated.Compared with the traditional home improvement industry, which has a long chain and belongs to the “lemon market” with a high degree of unequal information, the home improvement industry empowered by new era technology can solve the pain points of this industry to a certain extent. On the basis of trust, it can gather industry reputation and shrink Marketing costs, thereby gradually reconstructing the value of the entire industry model.
It can be seen that scale and value, in the past few years, the home improvement track has fully demonstrated these two elements. As the entire industry gradually moves into the deep-water area of internetization, the future potential will be further released.
Home improvement track under the power of giants
With the increasingly prominent scale and value, the giants have also entered this track. However, with different genes, the giants also have certain differences in the strategy and layout of the Internetization of the home improvement industry. Such differences are mainly reflected in the gene drive. .
The platforms represented by Baidu’s “Zhuangxinjia” and Toutiao’s “Zhu Xiaobang” focus on solving front-end traffic, which is also closely related to the genes of Baidu and Toutiao. The former focuses on search, while the latter focuses on search. Algorithms are the core, and such technical advantages are naturally unique for providing solutions for front-end traffic.
Jingdong Home Improvement and Ali Liping are based on standard products such as building materials sales. It is also not difficult to understand that the e-commerce genes of JD.com and Ali have enabled the maturity of the entire ecosystem to rapidly incubate the full-link sales of standard products, which is destined to choose a more advantageous entry point for the track.
It is not difficult to see that the giants generally choose a point with their own advantages to cut into the track, and if other entrants want to take a share of the track, they must not touch the “rock” with “eggs” and need to differentiate themselves from the giants. The path can form its own moat.
It is because of this that Tubatu has risen rapidly. It is different from the front-end traffic and the sale of standard products. In the face of the pressure of the giants, how to gain a foothold in the home improvement track? The answer given by Tubatu is,Deploy full-link delivery, participate in the entire home improvement delivery process, and create its own model barriers through full-link Internet empowerment such as supply chain, construction control, and user services.
What are the needs of home improvement practitioners?One is to reduce customer acquisition costs, and the other is to re-aggregate fragmented industries.The e-commerce platform is actually solving the first point, and for the home improvement industry, the second point is actually more important.
Specifically, if new players enter the home improvement industry and want to break the game, they must no longer take the old road of merely acting as an information intermediary. Too much dependence on traffic will lead to a business cycle of “selling traffic” rather than “selling services”. Returning to the essence of the industry, starting from the perspective of re-splitting and integrating the entire home improvement industry chain is a good direction.
The home improvement industry has a typical fragmented pattern, and integration is difficult. On the one hand, the premise of making efforts is to deeply cultivate the industry and be immersed in the industry. On the other hand, as the Internet of the entire industry has entered the deep water area, digitalization has become a trend, and the pattern of home improvement is also quietly changing.
From a macro perspective, the transformation of the Internet on the decoration industry has gone through three stages of replacement, namely:Connection method – transaction method – production method.
At present, the entire industry is in the third stage, that is, the transformation of production methods. For a long time in the home improvement industry, there have been fundamental pain points such as a long industrial chain, cumbersome and unstandardized decoration process, and unequal information between buyers and sellers. From the point of view of these pain points, it is actually a strong “non-standard” in the traditional industry. .
Reducing the cost of customer acquisition is more like giving a “pain reliever” to one party in the industry, and the industrialization of home improvement is to turn “non-standard” home improvement services into “home improvement products” under the “standardized” process.
In this way, by deeply integrating the demand side and supply side of home improvement, the circulation cost and trust cost of the home improvement industry can be greatly reduced, thus empowering home improvement companies. Under the overall scale effect of the industry, the value of the industry has also been substantially improved.
The Industrial Internet Logic of Indigenous Home Improvement Giants
Compared with the traffic model of Internet giants, platforms such as indigenous home improvement giant Tubatu operate with the thinking of industrial Internet.
The moat is to solve the pain points of the traditional home improvement industry and reconstruct the ecological industry chain of the home improvement industry, which coincides with the essence of the Internet.
The essence of the Internet is nothing more than two points:The first is to break down the barriers of information and connect everything. The second is to reconstruct the industrial ecology and completely maximize efficiency.The home improvement industry cannot rely solely on the logic of consumer Internet, but also must have industrial Internet thinking.
This is mainly because the home improvement industry not only needs to be guided by online traffic thinking, but more importantly, offline delivery. Such a heavy model determines the strong dependence of word of mouth in the home improvement industry and the importance of industrial Internet thinking.
In this regard, the solution given by Tubatu is to build three infrastructures:The first infrastructure: a digital system covering the industrial chain; the second infrastructure: a multi-level supply chain system; the third infrastructure: an open financial platform. Reconstructing the industry from point to point, from light to reuse.
Through such a strategy and infrastructure concept, Tubatu has been able to fully develop the industrial Internet. For decoration companies, improving customer acquisition capabilities and reducing costs are often the most intuitive needs, which are reflected in the C-side.Word-of-mouth system construction and deliveryThis is the final verification standard, which is also the advantage of Tubatu.
Tubatu once proposed the “Entrepreneur Engine Plan”. From 2021 to 2023, the platform will continue to increase its support for decoration enterprises. In addition to traffic, technology and content support, it will focus on the building of supply chain and word of mouth.
The delivery capability of the home improvement industry is essentially efficiency. Intuitively, it is to ensure that the entire service system tends to be productized by building a supply chain, which greatly improves the user experience on the consumer side.To this end, Tubatu has opened up the entire supply chain, and through industrial restructuring and integration, it provides a series of services such as free design, free quotation, whole house customization, and full quality inspection. standardization.
If the home improvement industry wants to scale and achieve long-term and stable profits, it needs to set standards and services to empower industry participants. Implementing it in design means taking a reproducible and standardizable route, because only standardization can ensure quality, and it is easy to replicate and expand.
At the word-of-mouth level, digital home improvement is another subversion of the traditional industry to a certain extent, and it is a model innovation. After breaking the information barriers, the information asymmetry has been initially solved, and the foundation for building word-of-mouth has been established.
But in essence, to solve the previous dilemma of the “lemon market”, what the industry really needs is technological innovation to build a benign B2C ecosystem.After all, the platform economy wants to build word of mouth for merchants, especially for the home improvement industry, which relies on helping businesses improve traffic efficiency and delivery management capabilities. Only in this way can the establishment of industry word of mouth be targeted.
In the current era of big data, the cost of digitalization is significantly reduced and it is becoming more and more mature. Precise push is a good recipe. When Tubatu was launched, it established a data-driven market development strategy.
According to a survey report by Tubatu, nearly 60% of users are most worried about “engineering quality” when choosing a decoration company and during the decoration process, followed by decoration additions and post-decoration quality problems. Relying on the accurate analysis of big data, Tubatu’s “Building a Quality Decoration Enterprise” and “Entrepreneur Engine Plan” have been released, opening up word-of-mouth construction through the entire path of absorption, precipitation, and transformation, thus enabling the entire industry to develop better.
It can be seen that Tubatu uses the thinking of the industrial Internet to make home decoration, which is its basic plan for continuous growth. With the success of its industrial Internet model, the future will reflect the trend of “integration and innovation”.
Tomorrow of home improvement: the fusion of consumer Internet and industrial Internet
The Internet follows the development path of information-goods-services in the process of development. If home improvement wants to rely on the Internet to take the fast lane,In fact, it is necessary to achieve the digitization of information – the digitization of goods – the digitization of services, and finally realize the digital integration of information, goods and services.
At this time, the role of the tools and systems used by the Industrial Internet can be more reflected.
Wang Guobin, founder of Tubatu, once said, “When the industrial Internet digitizes and online the production process, if the industrial Internet and the consumer Internet can be connected, allowing users to see the entire production process, it will undoubtedly increase users’ trust. And word of mouth. When we further make the industry transparent and enhance the trust of users, the industry side will change its production methods and flow methods.”
The home improvement industry has moved from traditional to Internet iteration, and the consumer Internet model seems to be the first to arrive. The essence and original intention is to solve the original problem of user word-of-mouth.
With the continuous development of the industry, it is unicorn companies such as Tubatu that find that the consumption of the Internet cannot stop the near-thirst of the home improvement industry. If you want to have the most suitable home improvement consumption Internet model, you still need to take the industrial Internet transformation as the primary goal.
Looking at the entire home improvement industry, it is the road of “simplification to complexity”, and the road of complexity to simplicity. The industrial Internet will be used to productize and standardize industry services, and then the consumer Internet will be deeply rooted to achieve information. – The networked closed loop of the entire industry path of goods-services.
From the past to the present, with the gradual deepening of the Internet, the home improvement industry has undergone tremendous changes from the supply chain to the entire delivery model. In the future, the “dual network integration” model driven by the two-way industrial Internet and the consumer Internet will bring more new opportunities to the entire home improvement industry and realize the leap-forward development of the industry from quantity to quality.
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