In recent years, the home industry—particularly in sectors like wooden doors—has been caught in a fierce debate over e-commerce. Some say that if you don't embrace online platforms, you're heading for a dead end. As the "80s" and "90s" generations become the dominant consumer force, are they more comfortable with online shopping, and is there still value in traditional retail? Others argue that even those who do engage in e-commerce might be walking into another trap. A few years ago, we were asking when e-commerce would truly take off. Now, it's clear that e-commerce is already reshaping traditional marketing models, forcing companies to rethink their long-term strategies.
At the Guangdong Home Furnishing Industry Association’s annual meeting on December 16, Red Star Meikailong Chairman and CEO Che Jianxin delivered a speech titled “E-commerce Traps,†which sent shockwaves through the audience. The speech quickly went viral on Weibo and WeChat, sparking intense discussions across the industry. According to Che, e-commerce is not just a trend—it's a powerful force that can disrupt the entire supply chain, from manufacturers to dealers and even brick-and-mortar stores. He described it as a "hit tyrant" that could eventually lead to the decline of traditional business models.
Che pointed out that e-commerce has the potential to control the lifeblood of the home industry. During this year’s Tmall Double 11 event, 19 major home furniture brands, including Red Star Macalline, House of Home, and Yuexing Home Furnishings, collaborated to implement an O2O model. This move highlighted the growing influence of e-commerce in shaping how products are sold and distributed.
For traditional industries, entering the e-commerce space is both an opportunity and a challenge. Companies like Red Star Macalline have started to invest in online platforms, but the question remains: how should they approach e-commerce without losing control of their offline presence? The balance between online and offline operations requires careful planning and strategic thinking.
Che Jianxin openly declared that e-commerce is a trap for the home industry. He warned that it threatens the survival of small retailers first, then dealers, and finally manufacturers. His solution? To avoid e-commerce altogether. However, he acknowledged that this is not a realistic option. Instead, he proposed a policy where factories and retailers work together to reduce gross margins, enforce uniform pricing online and offline, fight against counterfeiting, and discourage manufacturers from selling directly on the internet. The goal is to limit the dominance of e-commerce platforms and protect the traditional retail ecosystem.
For wooden door companies, e-commerce should be a tool, not a lifeline. If platforms like Tmall become the only way for factories to reach consumers, they risk becoming mere pawns in the hands of these giant e-commerce giants. With thousands of factories moving their products online, the market becomes saturated, leading to lower sales conversion rates and thinner profit margins. In the worst case, the future of many businesses could be in jeopardy.
Despite the challenges, e-commerce is far from being a guaranteed success. Many well-known wooden door brands are experimenting, adapting, and finding ways to integrate online strategies without relying on them entirely. The key is to view e-commerce as one of many tools rather than the sole path to growth.
As the e-commerce wave continues to rise, many wooden door brands are eager to explore new opportunities. However, some are still struggling to find their footing. Ignoring e-commerce is clearly not an option. The digital age is here, and e-commerce is no longer a distant concept—it's a reality for every business. While it may not be the best channel, it's undeniably important. Traditional retail channels still play a significant role in sales, and it would be foolish to abandon established markets in favor of unproven online platforms.
In conclusion, the home industry must navigate the e-commerce landscape carefully, balancing innovation with tradition, and using online tools wisely without letting them dictate the future of the business.
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