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3 roles of home improvement industry : home improvement companies, home brand manufacturers, distributors
    August 10,2020



The home improvement industry has undergone irreversible changes, and the evidence is solid:

 

First, the urbanization rate in China exceeds 60%;

 

Second, the promotion of fine decoration policy;

 

Third, various categories of home improvement and home furnishings have appeared in the head camp, and the trend of head centralization has appeared.

 

How do we view the evolution of the home improvement market? This is about everyone's strategic choices.

 

The needs of living are basically met, the needs of living well are far from being met

 

Whether in the city or in the countryside, the phenomenon of living on the street is rare, indicating that basically everyone can live; is it possible to live well? Are you satisfied with your home environment? From "good living" to "good living", there is a huge market space here. In the development of real estate in the past three decades, the primary pain point to be solved is to increase the per capita living area; the future mission is not to blindly increase the per capita living area, but to focus on improving the average living quality.

 

China’s urbanization process is still continuing. Every year, many people continue to settle in cities. Assuming that China’s future urbanization rate remains at 75% (the urbanization rate in developed countries exceeds 80%), that means that more than 1 billion people live in cities. Medium (including town). The scale of China's wealthy and middle class continues to expand. It is expected that more than half of the Chinese people will reach the middle class or above, that is, more than 700 million people. The huge consumption power will give birth to a huge consumer market, and residential consumption is bound to occupy a larger share.

 

From the macro trend analysis, the competition in the home improvement and home furnishing industry has just begun.

 

Unbalanced and underdeveloped home improvement industry

 

The localization attributes of home improvement companies have been widely agreed. At the same time, we must recognize the uneven and inadequate characteristics of the development of the national clothing market. The largest installation company has an annual output value of more than 3 billion (directly operated), and the smallest installation company has an annual output value of less than 1 million (also regarded as a guerrilla). Leading equipment companies focus on management and information construction, and invest tens of millions in research and development; small and micro equipment companies are still operating in the most basic mode 20 years ago. This is the Chinese characteristic, the coexistence of sophisticated and backward industries.

 

Shanghai is one of the most competitive home improvement markets in the country. Huge advertising costs have been smashed into the media, and large stores have raised the barriers of the industry. At the same time, in every district, we have found the presence of small decoration companies. The vitality of the ant hero is still very tenacious. As the saying goes, elephants can't trample on ants, and the thing that can be trampled to death by elephants is the non-slippery waist.

 

By categorizing cities across the country as tier 1, 2, 3, 4, 5 and 6, we can find the imbalance and inadequacy of the home improvement market, which is very distinctive. Advanced productivity and backward productivity coexist, which means that the opportunity for the home improvement market to reshuffle is coming. What we need to wait is for the head power to grow bigger and stronger.

 

What the home improvement company does and does not do

 

Getting home improvement orders is not a simple matter. The time, energy, effort, resources, funds, etc. of the home improvement company were all sucked away by the client transaction. In the future, whether the home improvement company can survive depends on whether you can get enough home improvement orders. The owner of the decoration company needs to think about how to get the home improvement order.

 

Home improvement project general contracting and project management. The home improvement company is the chain of pearl necklaces. It is responsible for putting all the pearls on and delivering them to the owner completely, and is responsible for the overall quality and after-sales service.

 

So, every pearl in a pearl necklace cannot be covered by the home improvement company's own capabilities. It needs to be done with the help of home furnishing brand manufacturers and distributors. Here you need to classify the delivery packages composed of materials and labor. Standardized and simple delivery packages with low risk of sequelae and substantial profits are made by home improvement companies; home improvement companies tend to subcontract delivery packages for non-standard, complex, high risk of sequelae and moderate profits. . Home improvement companies tend to make product packages with simple professional expertise and simple business transactions; home improvement companies tend to subcontract to partners for product packages with high professional barriers and complex business transactions.

 

With the intervention of home furnishing brand manufacturers and distributors, there are obvious benefits for home improvement companies.

 

First, quality guarantee funds, entry fees, etc., can generate an income and deposit funds in the fund pool;

 

Second, the presence of top brands has enhanced the brand image of home improvement companies;

 

Third, business transactions can rely on the professional resources of manufacturers and distributors;

 

Fourth, the settlement cycle forms the account period, and the fund pool generates deposit funds;

 

Fifth, delivery landing and after-sales service joint guarantee.

 

Professionals do professional things, after all, each category has its own expertise and service advantages.

 

The boundary of the boss’s mental strength is the boundary of the size of the company

 

Owners of home improvement companies generally grow old quickly because they are too worried. The home improvement business is very time-consuming, energy-consuming, and effortless. Who knows who does it.

 

Home furnishing brand manufacturers are happy, essentially separating production and sales, and can develop into hundreds of agents and distributors. We have only heard that home improvement brands have thousands of stores, but we have not heard that home improvement companies have thousands of stores. Home furnishing brand manufacturers are the bosses, agents and dealers are also bosses, this model is quite good

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