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Internet home improvement is irreversible, branding has become a new trend in the building materials industry

Classification:
Industry News
Release time:
2020/01/17
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"Internet +" has risen to the national strategy, and Internet home improvement has also taken off, grabbing market share of traditional home building materials companies. The home building materials industry has also set off an Internet thinking storm. Many big brothers have begun to pay attention to the prospect of the development of Internet home improvement and have made cross-border layouts. However, whether home building materials companies can gain a firm foothold in this field depends on whether the enterprises have the ability of sustainable development.
The development trend of connected home improvement is irreversible.    

According to incomplete statistics, there were about 300 new Internet home improvement brands in two years, and 22 companies received financing during January-October 2016. Capital's attention has become a lubricant for the rapid development of Internet home improvement. In addition, the blue ocean of the home improvement market has also attracted real estate companies, public decoration companies, and business giants one after another. They have traveled through the Internet home improvement industry through various postures such as investment, mergers and acquisitions, or strategic cooperation, trying to get a share.

In addition to the above, recently the supply chain end of the upstream industry in the home improvement industry has also started to stir. After the Internet home improvement concept was launched, home building materials companies have added new channels on the basis of the original dealers and agents, and some building material brands have entered the market with heavy funds. Dongpeng joined hands with Yuanhe Holdings and David to participate in the round A financing of the home improvement E station; Huanai Home and Aopu jointly invested tens of millions of yuan in the market renovation field; Yihua Life Investment has built a “Y + Ecology”, etc. . Of course, there are also high-profile building material companies that are not attracted by the Internet and hold frequent press conferences.
Building materials home brand's self-hematopoiesis is strengthening

In fact, when the home building materials brand was attacked by the Internet, it actually had little impact on some enterprises. For example, custom cabinets have strong personalized design attributes and cannot produce large-scale production. The furniture and home appliance retail industry has already been on the marketing network. On the expansion of e-commerce channels, Internet home improvement can affect more companies with standardized product attributes, such as wooden doors, flooring, and sanitary ware. In the downturn of real estate in the upstream industry, the main income of Daya Shengxiang was reduced due to the divestiture of packaging and wheel business, and the original business such as doors, flooring and other decorative building materials industries continued to rise.

Of course, the growth of building materials and home furnishings also cannot be controlled by macro factors, including the promotion of urbanization and the rise of the number of hardcover houses; the increase of small and medium-sized houses in cities; the public's awareness of space utilization; and the impact of second-born policies. And the consumption upgrade promotes the users' awareness of the first-line brand of building materials, and the self-blood-making ability of building materials household brands is also strengthening.
Brand building has become a new trend in the building materials industry

It is not the Internet that is really subverting the home improvement industry, but the compression of its gross profit space. Compared with other industries, the gross profit of household building materials is relatively high. In line with market rules, the gross profit should be controlled within 20%, but the gross profit margin of the entire industry is between 30% -40%.

At this stage, a number of building material brands will still voice their voices in the industry to shape their own brand influence. For those dealers affected by the Internet, their profits have been compressed. Enterprises need to strengthen the control of the distribution system and actively change to service providers. Slowly boil instead of rushing for quick success, in addition to giving the dealers a buffer time, but also giving the company time to balance the interest relationship between the two.

But at least one thing is certain. With the expansion of Internet home improvement cities, the sales volume may far exceed the expectations of building material manufacturers. Under the condition that the interests of dealers are not infringed, building materials manufacturers will also rely on their own branding to appropriately increase Shipment price approach to the Internet home improvement market, brand building has become a new trend in the building materials industry. In addition, consumers are becoming more aware of the brand, and manufacturers are broader in their channels. The second and third tier building materials brands may face market obsolescence. What needs to be done now is to strengthen service awareness in the original business and to build reputation. Knowledge of regional consumption habits to innovate products, strengthen the sales capabilities of existing channels, and become a local snake. Rather than complaining in confusion, it is better to explode in wandering.

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Internet home improvement is irreversible, branding has become a new trend in the building materials industry
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