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China: Home Furnishing Companies Facing Digital Transformation
    August 17,2020



For a long time, the home furnishing industry seems to be far away from the Internet, but the sudden epidemic has broken the traditional offline marketing model of the home furnishing industry, and major home furnishing companies are "forced" to reposition and begin to actively embrace the Internet

 

Recently, Zeng Xin, vice president of Power Dekor , said that due to the establishment of a digital operation system,Power Dekor effectively countered the overall downward trend of the home furnishing market through digital marketing methods such as online live broadcast, Tik Tok,and new media in the first half of this year.

 

According to the usual practice, after the Spring Festival is the peak sales period of the home furnishing market, major brands will launch new products and increase marketing efforts. However, due to the epidemic, many home furnishing stores and physical stores cannot be opened for business, and the entire industry chain is at a low point.

 

In order to turn the "crisis" into a turning point, Power Dekor  has increased online development and investment, adopted diversified cooperation with new media and online mainstream platforms, and strengthened the construction of online marketing infrastructure, opening up online and offline collaboration channels, and finally A new model of online drainage and offline service has been formed.

 

Zeng Xin said that Power Dekor  has created a mobile app "Dekor Community" through marketing models such as live broadcast, VR, and digital integration. Through the "Power Dekor Community", customers can find stores and their favorite products as quickly as possible, and companies can quickly obtain IP labels for people, goods, and places, and reconstruct the consumer's shopping experience.

 

It is through the digital upgrade of products, marketing and other aspects that in the first half of the year, the Power Dekor  still maintained its leading position despite the overall decline in the home furnishing industry. In the 2020 ranking of "China's 500 Most Valuable Brands" released by the World Brand Lab on August 5, the brand value of Dekor exceeds RMB 57.259 billion, and has entered the ranks of the Chinese brand national team for four consecutive years.

 

In fact, the outbreak of the epidemic has caused many home furnishing companies to quickly realize that the need for digital and online operations is imminent.

 

On March 10th, IKEA officially announced its entry into Tmall and the opening of an official flagship store. This is the first time that IKEA provides consumers with IKEA products and home solutions through a third-party platform. At the same time, the official IKEA shopping app is also online. Anna Pawlak Kuliga, President of IKEA China, said, “Expanding e-commerce has not only enriched sales channels, but also increased the frequency of interaction with consumers.”

 

The whole house custom furniture brand Sophia has integrated 3D R&D, customer management, employee online training, call center and other marketing platforms and tools through WeChat, and has embarked on a unique digital transformation road.

 

Digitalization to solve industry pain points

 

Actually, the home furnishing industry has begun to experiment with digital transformation as early as 2018.

 

In the same year, the upgrade and renovation of Easyhome completed the House of Experience Mall; in September of the same year, QM and JD teamed up to create the JD House of QM; Oppeim received more than 30,000 orders in 3 hours during the live broadcast this year. ...

 

 But digital transformation is not just about transferring sales online, it also shows the digital capabilities of companies' online and offline collaboration, remote services, and supply chain integration. As far as the home furnishing industry is concerned, not only is the market size huge and covers a wide range, its user experience also runs through the whole process. Only by connecting the faults, data, and terminals scattered in different links, can digital transformation be truly realized.

 

 At present, among the four industries of food, clothing, housing and transportation necessary for human survival and development, only "housing" has not been thoroughly baptized by digitalization. The various pain points that plague the industry, such as difficulty in acquiring customers, difficult transactions, inefficiency, and "what you see is not what you get", are all due to the relative lack of digitalization in the home furnishing industry.

 

 Based on this, Power Dekor  has accelerated the construction of the "Digital New Dekor" based on the "Dekor Community" from the three dimensions of users, numbers and culture.

 

It is understood that the "Dekor Community" is a comprehensive service and experience window provided by Power Dekor for consumers with rich content and 24 hours of interaction. There are all Power Dekor products, 10,000 digital customer service and digital engineers, and 1,700 With multiple designers, consumers can learn about products and place orders online without leaving home.

 

Not only that, the ever-improving "Power Dekor Community" digital marketing integration platform also integrates functions such as content marketing, product promotion, event benefits, product experience, after-sales service, and product payment. At the same time, the "Power Dekor Community" digital marketing integration platform has also formed a deep integration with offline activities.

 

"During this special period of this year,Power Dekor realized that new infrastructure is becoming an important measure to solve problems in the new economic cycle, and began to quickly build a'digital new icon'." Zeng Xin said, Power Dekor built a "digital new icon." "The purpose of launching a series of measures is to achieve steady growth of the company through product and service enhancement and digital transformation. This is a key issue that Power Dekor is most pressing to solve at the moment, and it is also the direction of future development.

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