Trillion new market: digital reconstruction of home decoration industry

With the help of the Internet, home decoration players will harvest all possible traffic. Under this background, we need to inject new vitality and vigor into the home decoration industry to realize the rebirth of the home decoration industry. Digital technology is widely used as a designer tool in the home decoration industry. Recently, its application threshold has continued to sink, and it has become a home decoration design tool that consumers can use freely. When the leading players in the home decoration industry have taken steps to explore, the whole industry has undergone new changes.

The whole industry has entered the stage of systematic exploration

Subject to the characteristics of long chain, high customer unit price, low standardization and long delivery cycle, the overall digital transformation of the home furnishing industry lags behind. Many brands and merchants embrace the conventional operation of digital, and all of them are uniformly expanding the marketing channels to the online and conducting a single point like exploration.

This makes the digitization of the home decoration and home furnishing industry to a large extent only stay at the stage of online information matching. For brands and businesses in the upstream, online customer acquisition can increase the source of traffic, but it also causes the marketing cost, channel cost and customer acquisition cost to rise year by year. Moreover, due to the large number of connected systems, the configuration of other links is complicated, and the efficiency improvement is not ideal.

When digitization has become the core driving force for the benign and sustainable development of all walks of life, it is obvious that the home decoration industry can not only stay in a single point exploration.

As one of the industries "farthest from the Internet", the home decoration industry is actively exploring the path of digital transformation and upgrading with the changes of the external environment and the development of the industry ecology.

As a leading enterprise in China's home industry, the home has accelerated digital innovation to empower the home industry chain, organically integrate "big home" and "big consumption", actively layout the smart home circuit, and strive to create a high-quality smart home life for more and more families. Smart home is also a major category invested by the home. As early as 2017, the home began to build a professional area for electrical appliances and smart home integration systems. Wang Linpeng, chairman and executive officer of the surprisingly home group, believes that smart home is the trend. Social development has entered the era of artificial intelligence digitization with great strides. With everything connected, smart home will be a big outlet.

Red Star Macalline also mentioned in its annual report that it has independently developed the whole house full link ERP system, digital marketing tools and CRM system, and built the digital capability of home decoration business; Focus on creating a traffic operation platform, develop a docking interface with online delivery platforms such as mass engine, public comment, and zhuxiaobang according to the online delivery demand, and initially form a user dictionary and conversion suggestion report based on the big data, so as to improve the distribution and conversion success rate. Generally speaking, the digital construction of Red Star Macalline is no different from other traditional industries: operation data management, online and offline integration.

Alibaba's home furnishing home design platform and the official home furnishing home design platform of the new retail group are the designers of every flat. They also announced the completion of the overall business strategy upgrading. In the future, they will focus on the digital transformation of the home furnishing home industry and provide full link digital solutions for the upstream and downstream of the industrial chain, driven by the three major businesses of full life cycle product digitization, full domain marketing digitization and full process industrial service integration.

These fields are huge in scale, and each of them has a trillion level market. In the process of digital transformation, these fields have huge development space, waiting to be empowered by digital space application development. When the physical world is digitized, the business behavior in the real world can conduct deeper value research in the digital space, and help optimize the business strategy in a circular manner.

Trillion level market, digitalization is the trend

The fundamental reason why the digital road of home decoration and home furnishing industry has been developing point by point for a long time is the single pursuit of traffic. However, in fact, the online and offline integration of the home furnishing industry is not enough, and the pain point of online purchase and offline service separation exists for a long time.

The significance of digitization is to help merchants to conduct digital transformation in online and offline links such as design services, commodity supply, store management, construction performance, etc. in addition to attracting customers, so as to help them reduce costs and increase efficiency, improve business efficiency, and achieve standardized and large-scale replication.

Under this demand, digital + new technology has become a powerful driving weapon to promote brands and businesses to truly start digital upgrading. For example, in the e-commerce industry, when consumers buy products, they can only see the digital information of the goods, but they have no concrete perception of what the goods are like at home. In this case, there is an urgent need for new technologies to break the perceptual boundary between the virtual world and the physical world, and to "restore" the offline experience.

With the continuous improvement of 5g coverage rate, urbanization ratio, smartphone penetration rate and mobile Internet penetration rate, it is expected that the penetration rate of Internet home decoration services will show a rapid increase trend in the next 5 to 10 years. As the main population of home decoration consumption is younger, the consumption habits are more online. It is expected that the penetration rate of Internet home decoration will be further improved in the future.

In the future, with the continuous release of young people's home decoration demand, the number of users who choose Internet home decoration will continue to expand. It is expected that the scale of Internet home decoration market will exceed trillion in 2025.

Through the whole chain and throughout the whole process, only in this way can the deadlock of fragmentation and redundancy of enterprises be broken, and the service experience of consumers can be truly improved, and finally promote the upgrading and evolution of the entire industrial ecology and mutual integration, and enter the spring of sustainable development.

The advent of the digital age provides such a possibility for the rebirth of the home decoration industry. Whether it is the in-depth and thorough transformation of the internal elements of the home decoration industry, or the reconstruction and reconstruction of the internal processes of the home decoration industry, we can see the arrival of a new development era of the home decoration industry. It can be said that digitization is the starting point for the rebirth of the home decoration industry. With digitalization, the development of the home decoration industry can truly bid farewell to the traditional development routine of taking traffic as the lifeline and truly enter a new development stage.