The Big Integration Of The Home Industry Is The New Thinking Of Business Management

- May 25, 2019-

Around 2018, China's home furnishing industry entered a new development cycle: the industry opened up a big integration, the market has undergone major adjustments, and there has been a big split between companies. The common confusion that enterprises feel is that conventional marketing techniques fail, traditional channels are weak, and the usual business logic fails. All of this indicates that the home industry is welcoming the nodes of the transformation shift. The growth period of home furnishing enterprises relying on the market's “high rise” has come to an end, and it has entered a “new normal” stage that must rely on its own high-quality operation to achieve sustained growth.

This also means that there will be no more explosive growth demand in the market. Instead, it will continue to be in a stage of consolidation. The growth of the company's performance depends on the market and can only rely on itself.

From the personalized decoration before 2015, to 2015, new models such as Internet home improvement, self-assembly, custom hardcover, whole house soft decoration and home improvement supply chain have exploded, which has brought huge impact to the industry. By adding the ‘Internet’ label to the home improvement market, capital has subverted the traditional home improvement market, enabling companies to grow rapidly and expand their market share. However, by 2018, as the industry became more differentiated, companies began to realize that the so-called new model did not seem as powerful as it was originally imagined. The prevailing situation is that in the first quarter of last year, corporate performance did not grow much, or slightly increased.

From 2018 to 2020, the industry consolidation speed in these three years will be more intense than the development of the industry in the past 20 years. Enterprises that can break through the encirclement will achieve leapfrog development in these three years, and their mark is the breakthrough of enterprise scale. In the past three years, a number of enterprises in the home furnishing industry will enter the ranks of 10 billion, and the sub-sectors will be able to enter the first group and have to say 1 billion. If the scale of the enterprise cannot be achieved in the past three years, it is difficult to have great development opportunities. The 2019, which is about half of the past, is a key point in the integration period as the warm-up period after the cold weather in the home industry. Enterprises must either be stronger or bigger, or they can only be eliminated. The wise man takes the initiative to leave, the existing wealth can safely fall into the bag; and the strong nucleus may lose the light for many years of accumulation. There is an important magic weapon in this, that is, enterprises must form a differentiated competitive advantage.

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