Yangzhou traditional home improvement enterprises to embrace the transformation of decoration prices or a drop of 30%.

China Paint Network:
:
next year to decorate the house, the cost may be reduced by about 30%. Not long ago, more than 20 decoration enterprises in Yangzhou city held a meeting to discuss the integration of downstream suppliers to meet the challenge of low-cost Internet decoration. It is understood that since the second half of this year, a small number of Internet decoration has entered Yangzhou city, 30%-40% of the price concessions although not into the mainstream of the market, has made the market feel the price war.
home improvement enterprises to transform next year decoration prices or drop 30% of the people who have experienced, decoration is very laborious, there are many Yangzhou citizens will inexorablely receive the decoration enterprise phone calls to promote decoration business. "Revenue in the decoration industry is down about 40 per cent year-on-year this year." Ye Sihua, executive vice president of the city decoration industry, said that many decoration companies frequently make harassing phone calls, but also by the pressure of shrinking business. On October 20, more than 20 decoration companies in Yangzhou city held a meeting to discuss the transformation of the group, taking the lead of a large-scale enterprise, integrating upstream and downstream resources, reducing the price of home furnishings market. According to reports, the industry alliance plans to integrate Yangzhou city by June next year 100 peer enterprises, decoration prices will be reduced by about 30%. Internet decoration soldiers under the pressure of the traditional home improvement industry earlier this year, Internet decoration enterprises - Xiaomi decoration out of the sky, playing a "699 yuan / square meters" ultra-low price, according to the building area, 62 square meters about 43,000 yuan, 78 square meters about 54,000 yuan, 125 square meters about 87,000 yuan. As soon as the news was released, the first reaction of many traditional decoration enterprises was that it might be crude. In July this year, a well-known website Yangzhou station in the city began to set up stores trial operation. According to the person in charge of the store, consumers can directly choose their favorite foreman after entering the site, please decorate it. "Directly remove the decoration company this intermediate link, customers and foremen directly face-to-face, the cost of direct savings of 30%-40%. " The person in charge told reporters that decoration owners can also choose different star-rated forework for free. Owners in a number of foreworking, multi-set decoration program to make a choice, will sign a three-way agreement with the foreman, platform, and then in the decoration process, the platform is responsible for decoration, project progress and quality supervision, foreman and owner can communicate in real time through mobile phone software, after the completion of the decoration, the platform to participate in acceptance. "Customer feedback also shows that the vast majority of customers to simple decoration-based, value for money, personalized customer proportion is very small." Ye Sihua introduced, "home improvement industry on the offline after-sales service requirements are very high, but any customer, see the price of less than a thousand yuan online, compared with the current price, will not hesitate to choose Xiaomi decoration." "How to meet the challenge?" Integrated materials vendors, with scale to reduce costs" offline home wear services can only be strengthened, can not be weakened, which is our traditional home wear enterprises advantages. "The next step is to integrate downstream materials vendors and use scale to reduce homeware costs. "For the challenge of Internet decoration, Ye Sihua analysis that within two or three years, Yangzhou city will eliminate more than 500 home improvement enterprises, leaving only 10-20 large-scale enterprises. It is understood that at present, Yangzhou city has about 600 home-clothing enterprises, Yangzhou region has a total of 1200 home-clothing enterprises. According to reports, some traditional enterprises are learning the practices of Internet enterprises, research and development management software and marketing software. In the future, the public home decoration does not have to be the same as in the past, to the various companies price, sample selection, as long as the use of relevant software, you can achieve online from the decoration before consulting to the decoration after-sales service. Extended Reading: What is the profit of Internet decoration? Yangzhou city decoration industry veteran Cai Rongchun introduced, Internet decoration enterprises and traditional decoration enterprises are two different models. Internet decoration enterprises can achieve low prices, because through the integration of resources, to find new profit points, the traditional model of the profit part into almost free. "Traditional decoration enterprises rely on earning labor difference, main materials, accessories difference, Internet decoration through standard parts production, shorten the duration, at any time door-to-door combination, through the advantages of group purchase squeeze main materials, accessories false price, so that the traditional decoration industry profit space damaged." Cai Rongchun introduced, the Internet decoration of course also want to make money, which through furniture and soft-packed ancillary products sales to achieve. "If the home decoration adopts the all-inclusive model, the profit is about 40%, specific to each enterprise due to management differences, there will be some up and down fluctuations." Cai Rongchun introduced that traditional decoration enterprises can not solve the pain point, such as long duration, high labor costs, quality supervision, the main accessories price is inflated and other issues, for internet decoration enterprises, with the advantages of information technology, information opacity brought about by the false price is impeachable.