Behind the trillion market: the overall soft wear leads the new trend of the home improvement market

Our reporter Zhang Yi reports

Homeowners have their own homes. This is the deep desire of the ancient Chinese for their homes. Even today, when the economy is developing rapidly, people’s desire for housing has never faded.

However, the difference is that in the past, people were concerned about the division of space structure, which satisfies the combination of kitchen, bedroom and living room, and can constitute a person's space residence; nowadays, the main force of middle-class consumption is rising, and their requirements for the home environment are significantly improved. Whether it is personalized or not, whether it can reflect the unique aesthetic taste has become their new focus.

As a result, the concept of “re-decoration, light decoration” began to penetrate the hearts of the people, and the soft-packing market also ushered in a new round of outbreaks. However, people who have experienced softwear know that there are many types of soft-packing. It is actually a “work” for consumers to carry out category assembly one by one. It is not only time-consuming and laborious, but also because some consumers have limited aesthetic and design levels. It is not easy to do what you think and see what you see is what you get.

In this context, the one-stop overall soft-package model has emerged and has grown rapidly into an emerging industry in the last two years.

New forces in the trillion market

The improvement of material conditions and the change of life concept have made more and more consumers pay more attention to their living environment and home style. Soft clothing, because of its easy to change and easy to replace features, has naturally been more favored by consumers.

Wang Wenxue, president of the Media Shopping Professional Committee of the China Business Federation, revealed that the annual consumption of the national soft decoration industry is as high as 200 billion to 300 billion yuan. Since 2000, the sales volume of household soft furnishings has increased by 30% per year. Industry experts predict that the future of the large soft-packing industry is expected to reach 10 trillion, China will become the world's largest soft-pack consumer market.

In the face of a market with huge potential, many people in the industry want to “get a piece of the pie”. Zhu Yonghong, chairman of Zhejiang Haining Fabric Artists Soft Packing Technology Co., Ltd., said in an interview with the reporter of China Sankei Shimbun that the soft pack actually involves eight categories: furniture, curtains, fabrics, wallpaper wall coverings, ornaments, lamps, carpets, paintings. . It is difficult for ordinary consumers to have a specific understanding of each category, and consumers have to pay attention to the cumbersome decorative details due to busy work, and their own aesthetic level is limited, etc., the decoration effect is not as normal as consumers think. The whole thing, the overall soft dress came into being.

It is worth mentioning that industry experts believe that the overall soft wear will become a new development trend of the soft-packing market, and it is a new force in the decoration field, which is a change from selling single items to selling lifestyles. “From the simple decoration to the development of the overall soft decoration of 'big home', it is not only a breakthrough in the sales model, but also a return to consumer demand.” Wei Qixiong, chief economist of China Household Textile Industry Association, in Haining, China in 2017 Presented at the Home Textiles (Autumn) Expo.

According to the reporter's understanding, under the overall trend of the overall soft-packing situation, the overall soft-packing enterprises such as cloth artists have actually blossomed everywhere. Although the cloth artist was only a short nine months ago, it has opened nearly 50 physical stores nationwide in the form of direct sales and franchise.

Solve market and consumer pain points

Some people say that this is an era of “big segmentation” and “big integration” in the decoration market. Zhu Yonghong believes: "The days of pure home textile enterprises and furniture enterprises in the soft-packing market will go away alone. This is the trend of the general trend. The development of soft-packed goods and enterprises is the future and the general trend."

Retrospectively, the overall softcover was officially presented as early as 2015. As China's modern home textile industry enters the third stage of development, the concept of “big home” has been promoted, and the slogan of “cross-border linkage and overall soft decoration” has also been proposed.

In Wei Qixiong's view, due to the lack of optimization of the home textile industry model, the inability to satisfy the needs of the masses, and the fierce international competition, the value of the fabric industry in China is insufficient, and the cost of the main business of many enterprises is constantly improving. However, after the emergence of the overall soft decoration, it is conducive to meeting the diversified needs of consumers, and can also optimize the relevant industrial structure.

Not only that, from the perspective of consumers, the overall soft furnishings actually have the characteristics of “saving time, effort and money”. The reporter was informed that the current business model of the overall soft-packaged company is mainly style-oriented, with furniture as the main body, with fabrics and home textiles as the core, providing consumers with diversified overall soft-packing services, which saves consumers. More time and effort, no need to pick one by one, nor worry about how the overall style is unified.

"In the past, one plus one was equal to two. Now it may be one plus one plus one equals two." Zhu Yonghong continued to explain that the overall soft-packing price advantage is obvious. At the same price, you can only buy two home products in the home store, but the overall soft suit may buy more.

“The overall soft decoration is mainly developed by mining the hidden profit space in the soft-packing industry, such as continuously expanding the business and compressing the upstream cost. Therefore, although the price is reduced, the operating cost can be guaranteed, and the matching furniture quality can be guaranteed. Zhu Yonghong said.

Vicious competition, development model to be tested

Despite relying on the trillion market, it has solved the pain points of many industries and consumers, but the overall soft decoration is still an emerging product in the soft-pack market. There are still many bottlenecks in order to achieve great development in the true sense.

It is reported that at present, many traditional soft-packing enterprises and dealers such as furniture, carpets, fabrics and wallpapers are exploring the overall soft-packing road, but because the overall soft-pack is still in the early stage of development, there are not many well-known brands that are relatively mature and can be landed. see. For this reason, after the transformation of many traditional soft-installed enterprises, in addition to expanding the scope of services, their core development model has not been updated, resulting in failure to achieve substantive breakthroughs. Coupled with the influence of Internet home improvement, the homogenization of enterprises in the overall soft-packing industry is becoming more and more obvious.

In the case of increased competition for homogenization of enterprises, many companies began to fight "price wars." Mr. Huang, a distributor of a whole soft-package brand from Ningbo, said in an interview with the reporter of China Sankei Shimbun that he used to do furniture monopoly, and later transformed into a whole soft suit. In order to "grab business" with the industry, we constantly carry out low-price strategies. Mr. Huang said that the business was not bad at first, but in the later stage, he wanted to improve the profitability, but local consumers did not pay. With the establishment of the overall soft-package store of Other brands, their stores are facing another transformation.

As analyzed above, the overall soft pack is more cost-effective than the traditional soft-installed model, but some companies have excessively “discounted sales” in order to seize market share. After viciously compressing profit margins, enterprises are increasingly unable to move and the development of the industry is hindered. .

On the other hand, Zhu Yonghong is analyzed from the perspective of enterprises, and there is still no problem of standardization and non-replication in the industry. Specifically, because the industry is still in its early stages, most companies need to establish standardization in terms of services, product output, teams, logistics supply chains, etc. At the same time, consumers are more advocating personalized design and because of the overall industry characteristics of soft clothing. Customization of the program, as a result, will result in the product being unable to mass-produce, resulting in limited service.

Industry-wide, channel, and enterprise linkage development

"To do the overall soft dress is not just a slogan, but to combine the 'eight big categories' and 'four latitudes' of the soft clothes." Zhu Yonghong told reporters that "four latitudes" refers to the whole Soft clothing should be clear in theme, uniform in style, echoed in elements, and coordinated with spatial structure.

From this point of view, the overall soft dress is not as simple as a home decoration program. The reporter learned that the overall soft decoration needs conceptual marketing, but it is more necessary to seek a practical development model. Considering that the overall soft-packing involves a large number of categories, the degree of development of several sub-sectors in which these categories are located is also different.

So from this point of view, even if some software companies have advantages in one or two categories, they do not necessarily have the ability to integrate perfectly in other areas. This is also one of the reasons why the overall soft-wearing industry is violent, but there are many such shackles as Mr. Huang mentioned above.

In this regard, some insiders suggest that relevant companies may learn from the development model of the home appliance industry, clothing and electronics industry. The home appliance industry is a relatively mature industry. In a certain sense, it practices the concept of “home appliance” or “whole appliance”, such as the two major brands of Haier and Midea. Their products cover washing machines, refrigerators, air conditioners, water heaters, kitchen appliances, small appliances, etc. All products are basically produced by themselves, taking the "full production" mode.

Another example: the “design + OEM” model of the clothing and electronics industry, which is also known as the “R&D Brand” model. Under this model, companies only set standards and provide design ideas. The products are mostly produced by foundries. Typical representatives include Adidas and Apple.

In the opinion of industry experts, the overall soft-packing enterprises can learn from the above model, or combine the two modes, such as the production of their own advantages, and adopt the integration or “design + OEM” mode in other fields to ensure the upstream and downstream integration of the enterprise. Ability to promote the sound development of the industry.

In addition, in response to the homogenization competition within the industry, related companies need to keep pace with the times and pursue innovative development paths. It is understood that relevant companies have begun to use the Internet, and even VR, AR technology to carry out innovative high-tech home improvement display.

For example, after the consumer uploads the blank house photo in the self-developed shopping guide display app, the consumer can pull the home accessory thumbnail on the right side of the screen to match the design, and present the consumer's mind. More industry-leading is that the company has also created a “virtual model room” through VR technology, which presents customers' needs in a virtual reality more realistically in front of consumers, which greatly enhances the consumer experience. .

The overall soft dress is an effective solution to crack the pain points of the home improvement industry. Wei Qixiong issued a proposal saying that in the future, the overall soft-packing and “big home” model should be promoted scientifically to promote the integration of multiple industries, distribution channels and consumer services; on the other hand, science and technology should be applied to strengthen the technical content of products. Strive to achieve a major breakthrough in technology, so that multidisciplinary linkage innovation to promote industry development.

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