With the slowdown in growth and pressure on performance, home furnishing companies have to break their original thinking, develop new businesses, develop new channels, and find new profit growth points. This is difficult for a single enterprise, but it is conducive to the overall progress and improvement of the industry
At present, nearly 100 listed home furnishing companies have released their 2018 financial reports. From the perspective of revenue and net profit growth, more than 70% of the companies have declined, not the absolute amount of decline, but the growth rate has slowed.
Let's look at a few representative companies and compare the situation in 2018 with 2017 and 2016 : Sofia's revenue growth rate is 18.66%, which is a decrease of one compared with 36% in 2017; Europa's revenue growth this year is 18.53%, compared with 36.11% last year.
The revenue growth of Shangpin Home Furnishing in 2018 was 24.83%, while the figure in 2017 was 32.23%. Dinggu Jichuang's revenue growth rate in 2018 was 2.86%, which was also a gap compared with the growth rate of 11.41% in 2017; Daya Sun Elephant's revenue growth rate was 3.02%, and net profit growth rate was 9.95%, a significant decline from 2017.
Of course, there are also some companies whose growth rate has not slowed down. For example, Sankeshu, the revenue growth rate in 2018 was 35.96% year-on-year, 34.45% in 2017, and 28.3% in 2016.
Regardless of whether the growth rate is slowing down or companies with strong performance, there is a common strategic choice, which is to find new growth points , which has become what many leading companies are doing.
Judging from the achievements of some brands, the growth rate of the new business may be better than the traditional advantage business, such as the immediate residence of the three trees, the wooden door and bathroom of the European school, the wooden door of Sofia, the wardrobe business of gold medals and Zhibang, etc. It ’s all a quick run.
01 To grow from new business
Head companies in different home furnishing industries have their own considerations when choosing new businesses. For example, by adding categories and developing new businesses, we strive to increase the number of increments; some may be through the development of new channels to expand new customers and achieve increments. There is no right or wrong path, only the difference between suitability and suitability.
Let's first look at the use of the increase in categories to try to break the ceiling. For example, a company that started with cabinets makes wooden doors and bathroom, and it does a good job; further expand the business of custom furniture, layout the whole house custom, complete decoration, one-stop distribution Qi; for the wall paint to enter the coating service, waterproof materials, etc.
There are several options for expanding the category. You can acquire potential companies through acquisitions or investments, enrich your business lines, complement each other with your original business, and increase your business.
The three trees started with wall paints and wood coatings have taken advantage of acquisition methods when cultivating new growth points, such as entering the field of waterproof materials. On the one hand, they are doing it themselves, and on the other hand, they bought Dayu Leakproof for 200 million yuan. Among the top 500 real estate preferred suppliers in 2018, Dayu ranked among the top 10 in the waterproof category, which shows that the brand endorsement and channel sharing value and operational ability brought by Sankeshu are very powerful.
Cooperating with the influence of Sankeshu Engineering Paint in the real estate circle, the room for growth of the waterproof business is optimistic.
Sofia, which started as a wardrobe, has also expanded its arms and prepared for new growth points in recent years. It acquired Huahe wooden doors in the first two years and completed the undertaking of the dealer system in 2017. It has launched two brands, one is Milana and the other is Huahe. . By the end of 2018, the former had 128 independent stores; the latter had more than 160 stores and 149 distributors.
In 2019, Sofia plans to open 100 new wooden stores. Judging from the revenue of wooden doors in 2018, 140 million, the volume is not large, but the year-on-year growth rate is very beautiful, up to 156.39%, and the prospects are promising.
The path of increasing the category is more of the company's own new business line than acquisition. For example, Sankeshu's new business "live immediately", which has gradually been explored, the order has grown rapidly, and 221 new service authorizations were added in the first half of 2018 There are about 800 outlets in total, with nearly 18,000 orders executed. The order volume in 2019 has the potential to match 100,000.
In the past two years, Oppai has been exploring the assembly business as a new growth engine. After more than two years of experimentation, the rapid development in 2018 has led to the exploration of different forms of exploration, including large-scale home furnishing, micro-large home furnishing, kitchen and clothing fusion stores, and clothing and wood fusion stores.
According to public information, the traditional big home pilot store achieved an excellent growth of 92%, which significantly increased the overall local performance growth and has the potential to become the future performance growth engine. There are also wooden doors and sanitary wares of Oupai. These two business lines belong to Oupai in recent years. They are regarded as the core business.
Taking 2018 as an example, wooden door revenue was 475 million yuan, an increase of 47.69% year-on-year; sanitary revenue was 453 million yuan, an increase of 49.5% year-on-year. Although the revenue volume of the two businesses is much smaller than the 5.765 billion yuan of cabinets and 4.148 billion yuan of wardrobes, the growth rate is much higher than that of cabinets and wardrobes.
Like Shangpin Home Furnishing, it is also looking for new growth points. For example, it has launched many new home furnishing accessories, continued to promote the national layout of Homkoo's cloud, and has not relaxed the business improvement of the three self-operated stores. It is possible to open the store later.
There are also many companies that make articles on category growth and demand revenue from new businesses. For example, Piano has set up a Shenzhen Acu smart home, which is likely to enter the smart home; it has been studying smart kitchens. Dinggu acquired 48% of the equity of Cadiz and entered the battlefield of smart locks.
Wrigley, a well-known in the sanitary ware industry, has never given up on the cultivation of ceramic tiles, drying racks, cabinets, wardrobes and other categories. Holocaust invests 40 million yuan to make metal doors and windows.
In the past two years, Dongpeng, a big coffee in the ceramics industry, has invested a lot in the whole bathroom business, which is regarded as a key component of the tens of billions of strategies; it also has wooden flooring, Yi Nai bathroom and other businesses, although the current volume is not large It cannot be compared with ceramics, but it is estimated that Dongpeng ’s efforts to achieve the tens of billions of goals are indispensable for these new categories.
02 Strengthen advantageous channels and develop new channels
The second direction is to optimize the channel structure. It is necessary to tap the potential in the traditional superior channels to make the strong channels stronger, but also to make up for the shortcomings of the channels, expand the channel boundaries, strengthen the weak channels, and make the weak channels stronger. Value activation.
To make the dominant channel stronger, the Three Trees is undoubtedly a typical representative. The engineering channel has always played the mainstay role, but this line has never been relaxed. It has been growing stronger and bigger. The top ten real estate companies have all reached strategic cooperation. Expand the share of cooperation; 57 of the top 100 housing companies have cooperated. From the perspective of the scale of cooperation, they have maintained steady expansion.
We look at the top pick rate of top 500 housing companies, and the three trees are rising step by step. In 2015, the preferred rate was 15%, ranking third with Ashe Paint. This year, this preferred rate has risen to 19%, approaching Nippon.
There are also Jiangshan Oupai who make wooden doors. Among the 1.283 billion yuan in revenue, the bulk business is up to 945 million yuan, a growth rate of 34.21%, which exceeds the company's overall revenue growth rate, and a dedicated engineering business and service team is formed. Cooperation with Evergrande, Vanke, Poly, etc.
In terms of the development of new channels, Sankeshu also did not relax, such as exploring O2O, the online shop connected with more than 10,000 offline sales outlets, promoting online orders, offline distribution and services; with the help of immediate service, open the painter ’s Cooperation scale, etc.
Unexpectedly, in the public information of the Three Trees, the beautiful rural business is regarded as a key point, providing one-stop products and standardized construction such as door-to-door measurement, design, interior and exterior walls and furniture paint for country villas and self-built houses. This is estimated to be a good move. Now the country is promoting the improvement of the rural residential environment, which is expected to drive the demand for wall paint.
The sales revenue and net profit growth rate of Daya Shengxiang in 2018 have declined, but its engineering floor sales have grown well, exceeding 40%. This is the return of expanding real estate channels in the past two years.
An obvious phenomenon is that many long-term retail companies are now devoting a lot of energy to develop bulk business, mainly in the hardcover market of the real estate industry, such as Wo Le Home Furnishing. The bulk business income in 2018 was 89.07 million yuan, which was listed In the company, this volume is indeed not large, but the growth rate is very cattle, 151.42%, a good start.
Shangpin's home delivery with extremely strong online drainage capabilities is still strengthening online customer acquisition channels. The public account has been very successful in the past. Its large size, tens of millions of fans, 60% of e-commerce orders come from The WeChat channel is now grabbing the air of short videos, and it is stated in the financial report that it will create a tens of millions of short video matrices.
In the past two days, Qijia.com, which has attracted much attention, has formed an alliance with Holocaust. The two parties cross-shared shares to form a joint venture company, and then purchase custom home products from Holocaust. The two companies are also looking for the growth points they need.
Holocaust needs more channels to sell goods, and Zijia.com holds a lot of traffic in its hands and needs reliable products to monetize.
In the exploration of this wave of new growth points, there will definitely be many dealers, stores, and even manufacturers becoming martyrs, but as long as it is steadily promoted, the pace will be smaller, to avoid adding too many categories at the same time, do a good experiment, summarize the model , And then select some cities to gradually copy and expand, the risk is still controllable.
What is more imaginative is that some leading companies are expected to successfully identify growth points, create new growth poles, and double or even increase revenues. The pan-family industry will see more tens of billions of Hundreds of billions of companies close together.
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