The e-commerce carnival season "double eleven" has not arrived yet, e-commerce has been gearing up, many business promotion activities date is earlier than in previous years, the promotion is also very attractive. However, Zeng Lizhi built the first brand of Chinese furniture e-commerce, and the cow's nest network, which claims to have 300 million yuan of funds, went bankrupt, and poured a cold water on the tide of furniture e-commerce that was in full swing. Furniture e-commerce is recognized as the last blue ocean of domestic e-commerce. Furniture manufacturers and emerging furniture online shopping platforms that are “electric shock†have faced many difficulties. The O2O model represented by Merlot is worthy of reference.
The traditional manufacturer's "electric shock" is constrained, and the pure e-commerce model is inherently insufficient.
2013 is not a good year for traditional furniture manufacturers. Due to the accumulation of the effects of the regulation of the property market in the past three years, traditional furniture retailing has fallen into a downturn, and the performance of many home building materials brands has hit a new low in recent years. To add insult to injury, the traditional furniture manufacturers that have “electric shock†have been constrained and cannot develop the online market of the Blue Ocean.
The prices of similar products sold on e-commerce platforms tend to be lower, directly impacting traditional channels. Traditional furniture manufacturers that rely on offline retail channels to develop e-commerce will inevitably harm the interests of dealers and home stores across the country. Therefore, in the case of dilemma, the traditional e-commerce road of furniture manufacturers is struggling. In 2012, the sales of a “Double Eleven†furniture brand exceeded 100 million, and it was squeezed into the top 3 of Tmall’s sales, but the outcome was the departure of a large number of dealers. The unfavorable situation of traditional manufacturers developing e-commerce can be seen!
Although there is no burden of traditional channel constraints, the pure online model of furniture e-commerce from the mother's womb with a lack of offline experience of "congenital ills." Due to the non-standardization of products and high unit prices, the furniture industry has a very high demand for user experience. Because of the lack of on-site experience, it is difficult to measure the quality and style of products. In addition, it is necessary to bear the expensive logistics costs. Many consumers still take a wait-and-see attitude. They often do not dare to buy them without seeing the physical money. This means that the pure e-commerce platform needs a large amount of money to purchase traffic from Baidu and Taobao. However, the purchase conversion rate of these traffic is very low, and companies often do “losing the business of making moneyâ€. If the company starts late and does not have a large amount of funds to accumulate, once the investment is "burned out", there is a possibility of bankruptcy.
Merlot has a first-mover advantage and its O2O model has taken shape
However, furniture and electric commerce is not a sorrow, and Melody is a unique alien. In the 7th National Day, Melody became more than 23,000, with total sales breaking 300 million, three times the same period last year.
Melaleuca was born in 2008, in the embryonic period of home e-commerce. As the earliest furniture e-commerce company that has successfully transformed from B2C to O2O in China, Melaleuca has occupied the first-mover advantage in the industry, and has taken the lead in establishing the dual-platform O2O marketing combining the online and offline of Melaleuca Home Network + Melody Experience Hall. mode. At present, Melaleus Furniture Network has become a veritable "first vertical electricity supplier of furniture". There are also 259 experience halls in more than 30 provinces and cities nationwide. When the experience hall was opened, Melody chose a store with convenient transportation but low rent. Because of the stripping of the national, provincial, and municipal levels, and the high store rental fees, Melaleuca customers can enjoy the fun of offline shopping and the benefits of “online purchase priceâ€. Based on this, Melaleuca's “dual-platform O2O†business model is the first to take the lead in the competition in the furniture industry. It is not surprising to create a sales myth during the National Day.
Of course, there is still a lot of controversy about the Melaleuca O2O model industry. The mainstream view is that in the model of Melaleuca's “online drainage and offline experienceâ€, the customer purchase rate is high and the marketing cost is low, which is very suitable for the furniture e-commerce industry. Some insiders believe that Melaleuca should be alert to possible problems in the rapid development of e-commerce, such as the profit problems that plague the e-commerce industry and the risk of capital chain scission caused by rapid expansion. The two-phase trade-off, the author believes that the advantages of the Melody model are relatively obvious. After the transformation of Melody's O2O model, the sales volume has soared. The popularity of the experience hall is in stark contrast with some traditional home stores, and the actual sales data and passenger flow can fully prove the advantages of this model.
According to statistics, in 2012 domestic domestic e-commerce sales reached 49 billion yuan, and it is expected to reach 70 billion yuan by 2013. Furniture e-commerce is the trend of the times. Although it is difficult to find a business model that suits itself as soon as possible, it may become the ending of Ma Yun's so-called "no e-commerce will be unprofitable after ten years." Melaleuca's online and offline benign interaction, the “dual-platform O2O†business model of both consumers and businesses, is worth learning during the exploration period.
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