Integrating e-commerce in the home building materials market to create high value

Guangdong Home Network reported today: the home building materials industry integrated e-commerce, the future development of morale all the way up. China's residential decoration is trillions of dollars per year, but the penetration rate of e-commerce is significantly lower than the average value of e-commerce. China's new commercial housing sales area continues to grow every year. In 2013, the sales area of ​​new commercial housing reached 1.157 billion square meters, such as the industry average of 1,000 yuan / square. According to Milai, China's annual household building materials market demand is about one trillion. However, the sales of home building materials e-commerce accounted for only 2.9%, which is significantly lower than the proportion of e-commerce 10.48%. The potential of home building materials e-commerce development is huge.

The traditional home decoration process is cumbersome, the price transparency is low, and the decoration quality is difficult to guarantee. Due to the non-standardization of products, highly dispersed brands and strong regional characteristics in the home and building materials decoration industry, there are three major pain points in the traditional decoration process: The process is cumbersome and complicated, the price is opaque, and the quality of the decoration is difficult to guarantee. In the absence of Internet penetration, home improvement is still at the stage of the most traditional community-dependent advertising and familiar population.

The key to home e-commerce is to provide cost-effective products and convenient services, low-cost access to household e-commerce integration of various participants, subversion of traditional home building materials system needs to focus on: 1) reduce the cost of building materials procurement, channel circulation; 2) line Under the experience; 3) low-cost access to users, big data precision marketing; 4) decoration construction quality assurance, service efficient and convenient n home e-commerce needs to coordinate the interests of all parties to achieve online and offline integration due to e-commerce cost structure and The traditional distribution system is quite different. When the household e-commerce subverts the traditional distribution system, the following problems also arise: 1) the online low-price strategy disrupts the original price system of the building materials enterprise; 2) the traditional offline dealers are affected by the interests. Loss and formation of contradictions with building materials companies; 3) online sales are not supported by offline services. Due to the huge market space and strong regionality of the home building materials industry, various profit models will coexist in the future.

Mastering users and integrating third-party resources, the real estate portal is expected to become the mainstream home building materials O2O model compared with other home building materials e-commerce model, the home and building materials sector of the real estate portal has the advantages of large traffic import and high import accuracy. Quickly complete the import of users with large traffic; in the subsequent user experience, the user experience of the home portal and building materials of the real estate portal is more differentiated, and the online and offline integration is closer, so it is expected to become the most mainstream O2O model in the future.

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