The home space is so big, but from this it has spawned a hundreds of billions of customized markets and trillions of home improvement markets, which also attracted companies to compete for the market cake in various ways. Not long ago, major custom home furnishing companies were also fighting fiercely in the battle for the “complete installation” model and the battle for “clean aldehyde” in product functions. Nowadays, competition is spreading again.

On September 17, Oppein Wardrobe, a subsidiary of Oppein Home Furnishing Co., Ltd., released the "High-value Whole Home Customization" strategy, which is to move from a single cabinet to multi-category integration, and iterate from the traditional "whole house customization" to "whole home customization".

The reporter noticed that the custom home furnishing industry has long had the concept of "whole house customization", but the previous "customization" mainly focused on cabinets, extending from wardrobes to cabinets, TV cabinets, balcony cabinets, etc., while "whole home customization" is in addition to the cabinet category, it also includes wooden doors, background walls, and home accessories, which is similar to the "big home strategy" proposed at the level of the Oppein Home Furnishing Group.

In fact, multi-category integration is not a rough category patchwork, nor is it a simple enterprise integration. Therefore, the new concept of "customization" still needs to face the support of information software systems, supply chain support, etc. in the "big home" "integration" the old test that existed when "pretending" was explored.

The choice of custom wardrobe "new brother"

In the past two years, there has been no end to the dispute over the "closet one brother". The reporter noticed that in the first half of this year, the total revenue of Oppein Home Furnishings wardrobe and its supporting facilities reached 3.971 billion yuan, and Oppein Wardrobe has become a new "Closet No. 1 Brother" from this.

After gaining a leading edge in the wardrobe category, Oppein Wardrobe expanded its sights to household products outside of the wardrobe. On September 17, Oppein Wardrobe released the "High-value Whole Home Customization" strategy in Guangzhou, proposing the new concept of "Whole Home Customization".

The reporter learned on the spot that the so-called "customization of the whole house" means that on the basis of custom cabinets, other home decoration categories such as wooden doors, background walls, and accessories are also included to synthesize "cabinet-door-wall-distribution" integrated whole-house customization, according to Liu Shunping, General Manager of Marketing of the Oppein Integrated Home Furnishing Division, it also means that Oppein Wardrobe will be transformed from a product seller to a space solution service provider.

At the same time, the reporter also noticed that Oppein Home Furnishing has been advancing the "big home strategy" at the group level. In the 2020 annual report, Oppein Home Furnishing mentioned that the company is constantly exploring cabinets +, wardrobes high-end whole-house customization + home furnishings integrating sales business models for categories such as, bathroom +, and custom wooden door systems. From this point of view, Oppein Wardrobe proposes a whole-house customization strategy, which is quite meaningful as the executor of the group' s large-scale furniture strategy.

On the other hand, the custom home furnishing industry in the past two years has been fighting fiercely on the road to "complete decoration". Among the leading companies, Homekoo has proposed a comprehensive transformation of "looking at BIM for decoration". In-depth cooperation between the installation companies to cut into the whole installation, in addition, including Holike, ZBOM also put forward their own specific ideas about the installation, the whole installation trend is a foregone conclusion.

The reporter learned from the exchange with Liu Shunping after the meeting that the industry exploration of the whole outfit has not yet come to fruition. Therefore, as far as the Oppein wardrobe is concerned, it may be clearer to choose the direction of the whole home customization.

The problem of improving profitability remains

Simply understand the difference between "big home" and "complete decoration" in that "big home" focuses on the integration of multiple categories of household products, including customized furniture and finished furniture in different home spaces, while "complete decoration" emphasizes more decoration part, that is, proceed to the upstream decoration and construction links.

However, the reporter also learned from the interview that in the previous exploration of "big home" and "complete installation", informatization software systems, supply chain integration, and continuous service capabilities are the problems faced by companies who want to make breakthroughs in new attempts. The same is true for the "customization of the whole family" proposed by Oppein Wardrobe this time.

"The real package should be supply chain integration, not simple supplier integration. Only under the premise of digitalization, through supply chain integration, can we better control the quality of construction materials and construction schedules, and ensure the design effect and delivery effect. Consistency, truly what you see is what you get.” Homekoo said. It is understood that after proposing a comprehensive transformation and refurbishment, Homekoo introduced JD.com as a strategic investment. It also hopes to use JD.com' s supply chain, inventory management, centralized procurement and other advantages to provide support in front-end design and back-end delivery.

"Whole house customization can be done, but it does not mean that you have the ability to customize the whole house." Liu Shunping is also frank, just introducing brands and signing agreements on the basis of whole house customization cannot be regarded as real whole house customization. In the service chain, if the category is integrated into our system, there is still a big gap between the whole customization."

Although the direction of the model is different, whether it is "large home" or "complete decoration", on the one hand, it is to satisfy the consumption experience of "one-stop shop" for home decoration. On the other hand, companies also hope to become big customers on this basis. Single value, thereby improving profitability.

"For the same store, the customer unit price of (custom cabinets) used to be about 30,000 to 40,000 yuan, but if finished furniture and home appliances are added, the customer unit price may be 80 to 100,000 yuan. The store serves the same customers. Under the premise of the same fixed cost, the increase in output value may be several times that before, so the profit level will also be greatly improved." Liu Shunping said.