Shulou(Shulou.com)06/01 Report--

In the past two years, the life of large and small decoration enterprises in China has not been so easy, which is clearly shown that the number of closure of decoration enterprises has increased exponentially, while profound changes have taken place in the home decoration market. a large number of traditional decoration enterprises lack a clear understanding of the market situation, slow response, can not keep up with the speed of market changes, do not match the current market demand products and services It was eventually eliminated by the market.

This kind of survival of the fittest is particularly prominent in first-and second-tier cities: with the implementation of the hardcover housing policy and the gradual saturation of the new housing market, the home decoration market in first-and second-tier cities has changed from increment-driven to stock-drived. the compression of incremental space makes the competition among home decoration enterprises tend to be white-hot, and the previous extensive "cake-sharing" competition mode has become a life-and-death "cake grab". Whether it can seize the stock housing market or will greatly affect the development of installation enterprises.

The stock housing market has become a new blue sea in the home decoration industry.

In recent years, no matter from the market transaction data or the signals released by the policy, China's upstream real estate market has entered the stock era. As the most direct impact on the real estate industry, the home decoration industry has also turned into the stock housing decoration era.

Numerous research data show that as early as 2016, the proportion of second-hand housing transactions nationwide reached 41 percent, and the transaction volume of second-hand housing in first-tier cities accounted for 2.1 times that of new houses. Li Ruixiang, deputy general manager of Prida Consulting, pointed out at the third National Home Decoration Industry Summit of Qijia. according to the statistics on the total amount of new and second-hand housing transactions in first-tier cities in the first half of 2018-2019, Prida Consulting found that the transaction volume of second-hand houses in Beijing and Shanghai accounted for about 80% of the total real estate transaction volume, while Guangzhou and Shenzhen were both about 60%. At the same time, the renovation needs of Internet users dominated by young people are close to 50%. Local decoration demand is close to 30%, which means that as young Internet users increasingly occupy the mainstream of real estate consumption, the stock-driven trend will be more obvious.

In addition, the "marketization of stock" is not limited to first-tier cities. Public data show that in 2018, the turnover of second-hand housing in 18 cities across the country exceeded that of new houses. In addition to first-tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen, there are also many second-and third-tier cities.

On the other hand, the release of relevant policies is an important driver of the stock housing market. In 2017, the Ministry of Housing and Construction issued the 13th five-year Plan for the Development of the Construction Industry, which clearly requires that the area of fully decorated finished housing (hardcover) will reach 30% by 2020. Since then, a number of documents have been issued to promote the implementation of the hardcover housing policy in various localities. Hardcover housing means that the houses purchased by consumers will be decorated directly by real estate developers, there is no need to find another decoration company to decorate, the new home market is "intercepted" by upstream real estate developers, and the market space is further compressed. The share of the stock housing market will continue to increase.

In 2019, the executive meeting of the State yuan directly put forward the transformation of old residential areas as a new topic, releasing an important signal of the development of the stock housing decoration market.

In fact, the entry of first-and second-tier cities into the stock housing market is driven by the contradiction between supply and demand. Especially for first-tier cities, the real estate market tends to be saturated, and with the changes in family and population structure, the market does not need surplus new houses; coupled with the fact that the new generation of consumers have higher acceptance of second-hand housing from the perspective of economic ability and concept of life, the transformation of second-hand housing may become the mainstream of the home decoration industry in the future.

However, although consumers' demand for stock housing decoration is high, and the market and policy have also released a sufficient signal, the response of the whole home decoration industry is not fast enough. At present, there is still a large gap in the stock housing competition market, and a large number of decoration enterprises have not invested in it, or just "incidentally" develop old house renovation, local decoration and other businesses on the basis of the original business, and still use the traditional business model. New business type is not developed according to the new characteristics of the stock housing market, which is far from meeting the needs of consumers. Throughout the stock housing market, very few enterprises have completely ploughed the renovation or partial decoration of old houses, and the market is still a new blue sea to be opened up.

To seize the stock market, it is necessary to change from extensive management to intensive cultivation.

Over the past 40 years, China's real estate industry has accounted for enough dividends. According to the data of the National Bureau of Statistics, before the reform and opening up, the per capita living space in urban and rural areas in China was only 6.7 and 8.1 square meters respectively. In order to improve the living conditions of residents, the state has issued a number of policies to promote the development of the real estate market. By 2016, these two figures have risen to 36.6 and 45.8 square meters. In the process of rapid development and expansion of the real estate market in the past 40 years, the cake of home decoration market is big enough, decoration enterprises generally take attacking the city and land as the main development strategy, and the business model is quite extensive.

In the extensive business model, consumer demand is hidden, installation enterprises do not need to fully consider the individual needs of consumers can develop rapidly, but obviously, this model is not applicable in the stock housing market with reduced dividends. If the incremental market is the logic of the barbaric growth of the installation enterprises alone, then the stock market is the logic of the cruel competition between the installation enterprises.

Prida consulting research data show that the mainstream consumers in the stock era are post-90s highly educated and highly educated consumers, who have higher requirements for housing quality and personalization, and consumption patterns have changed greatly. take online and offline integration of omni-channel shopping as the main mode of consumption, looking forward to anytime and anywhere scene-triggered shopping, get the best consumer experience, and prefer social media-centric consumer interaction. This puts forward a higher test to the digital operation ability, scene service ability and the quality of products and services of decoration enterprises.

In addition, there is a great difference in business characteristics between old house renovation, local renovation and new house decoration, the users of old house renovation are more scattered, the user needs are more complex, and it is more difficult to obtain customers and construction. The decoration of new houses is usually concentrated in a residential area, with similar household types, concentrated time and similar decoration needs, while the time, place and user needs of the renovation of old houses are scattered, not only to "install", but also to "demolish". Its difficulty can not be compared with the decoration of the new house.

Therefore, in order to seize the stock housing market, installation enterprises must change from extensive business model to intensive cultivation, upgrade product quality, improve supply chain efficiency, optimize organization and management, strengthen digital capabilities, and create word-of-mouth services. from the front end to meet the needs of the new generation of consumers for omni-channel consumption scenes and consumption patterns, and from the back end to meet the needs of consumers for decoration efficiency and decoration quality.

A manager of an installation enterprise in Chengdu, who specializes in the renovation of old houses, said that at a critical period when the home decoration market is turning into the stock era, the most important thing for installation enterprises is not to expand externally, but to train the team and do a good job of internal control. at the internal management level, all home decoration processes are streamlined and standardized, organizational structure is adjusted, internal posts are subdivided, dedicated personnel are dedicated, and the overall efficiency and quality of construction and services are improved.

Break through the development barrier with the help of the power of platform

The home decoration industry has always been known as "large industries, small enterprises". For a wide range of small decoration enterprises, it is not easy to seize the stock housing market from extensive expansion to meticulous operation. in fact, in this industry with relatively low Internet penetration, many small equipment enterprises are not even aware of the trend of the stock era, even if they do, on the basis of the lack of digital infrastructure construction. It is also difficult to grab dispersed users from the market.

At the end of the supply chain, industry insiders revealed that the refurbishment of second-hand houses requires higher efficiency than the decoration of new houses, because some consumers will still live in the houses under renovation or go out to rent temporarily when they choose local renovation, so as to shorten the transformation time as soon as possible. The weakness of small and scattered decoration enterprises in supply chain integration is a major obstacle to break through the stock housing market.

Many industry experts believe that the key for installation enterprises to break through this dilemma is to rely on the strength of the platform. "the competition pattern of the home decoration industry in the future must be platform competition, because many problems are not solved by platform Internet technology, it is difficult to take a step forward." Tang Ren, a well-known expert in the pan-home decoration industry, pointed out that small and scattered decoration enterprises with the help of information, digital and Internet platforms will be able to change the problem of poor user experience and reduce costs and efficiency at the operational level.

At present, Qijia net, as the leader of the Internet home decoration platform, has opened the support for decoration enterprises to open up the stock housing market. Recently, Qijia Network released 2020 "Torch upgrade Plan", which clearly will increase the support of installation enterprises, and give priority to screening and supporting 1000 installation enterprises, setting up industry benchmarking, in order to more quickly promote the transformation and upgrading of the vast number of small and scattered installation enterprises.

Qijia net said that in view of the fact that there are still many installation enterprises that do not have a clear understanding of the stock market, Qijia net will help installation enterprises clarify the current market situation through online and offline training, industry salons and summits, and enrich the types of services on the platform. new old house renovation and local decoration business.

In view of the difficulty of obtaining customers for installation enterprises, Qijia Network, as the largest platform for Internet home decoration, will not only provide traffic support, but also achieve information transparency between the supply side and the demand side through Internet information technology. accurately depict consumer portraits, grasp the corresponding advantages of each installation enterprise, and match the two accurately, so as to improve the success rate of signing orders. For example, for users who need to renovate old houses, Qijiawang will match and recommend to installation enterprises with strong strength in the field of old housing renovation, reducing the problem of low customer satisfaction caused by the mismatch between supply and demand, and making it easier for installation enterprises to get customers in the stock market.

After a clear understanding of the market situation and obtaining accurate customers, a more severe test for installation enterprises is how to fully meet consumers' demand for efficient, high-quality and personalized renovation of old houses.

Qijia net said that in the 2020 "Torch upgrade Plan", Qijia net will help installation enterprises to build an ecological supply chain system, help installation enterprises to build a strong back-end supply chain, and focus on purchasing high-quality building materials brands at the lowest cost. and complete the transportation of building materials from the back end to the front end with the highest efficiency to improve the overall decoration efficiency of the installation enterprises.

In addition, Qijia Network will help installation enterprises build digital infrastructure by comprehensively delivering marketing tools, design tools, information tools, operation tools, financial tools and other tools that have been selected in the "Torch upgrade Plan". Pull in the distance with the new generation of Internet consumers, achieve the improvement of organizational management efficiency, service quality and construction quality, and promote the fine operation of installation enterprises. In the highly competitive stock housing market, priority is given to occupying the minds of consumers.

Opportunities are always left to prepared enterprises. In the new blue sea of the stock housing market, the installation enterprises that are the first to join and have the ability of fine operation will have a bright future, giving priority to occupying the competitive highland and holding huge market resources. The key to solving the contradiction between supply and demand in the current stock housing decoration market lies in the actions of the Internet home decoration platform, which foresees market changes and supports the transformation of platform merchants early, can it quickly transport a number of competitive enterprises for this blue ocean? Something to look forward to!

Wen / Kuang Venture Capital, official account ID:liukuangtmt

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