The furniture e-commerce network has recently been rumored to be closed down. The day before, Liu Yang, CEO of Niuwo.com, confirmed to the reporter of the Business Daily that there was a problem with the investors’ funds and they could not fulfill the investment. This also officially announced the end of the life of the cattle network. Many insiders analyzed that behind the collapse of Niuwo.com, the whole furniture e-commerce encountered difficulties. At present, domestic furniture and building materials e-commerce, it can be said that there is no real success, furniture e-commerce still needs time to do market training.
dynamic
Furniture e-commerce cattle nest network closed down
The furniture e-commerce company, Niuwo.com, which was once reported to have invested hundreds of millions of dollars, was rumored to be shut down in early October. On October 8, the website of Niuwo.com was no longer accessible. On the same day, its founder and CEO Liu Yang said on Weibo: There will always be a statement about the cause and effect of the cattle network, and we are waiting for the investor's final response.
Recently, the news that the cow's nest gateway stopped was confirmed. "At present, the project is suspended, and the investor has recovered all the assets of the company." Liu Yang confirmed in an interview with the reporter of the Business Daily the day before.
Niuwo.com has painted a very grand blueprint: within two years, it became the first platform for Chinese furniture e-commerce. In the past three years, it has become the top 5 of China's e-commerce platform. In 5 years, it has become China's home-based e-commerce leader. In the past 10 years, it has become the top 3 of China's comprehensive e-commerce.
However, as investors withdraw their funds, the dream of Niuwo.com is also broken. From the establishment of this year in June, until the end of October, the project was suspended, and the cattle network was only operated for 4 months. Liu Yang told the reporters that the progress of the project was actually smooth. "The achievements made by Niuwo people in three months are things that most traditional companies have spent tens of millions of things never done."
In Liu Wei’s recent Weibo and his announcement, it is not difficult to see that there has been a conflict between the entrepreneurial team and the capital side. "Until today, we are still recovering the social security, provident fund, and the last few wages and compensations of the employees who are owed to the investors through the labor bureau, public security, and lawyers."
Liu Yang also said in a statement that the total investment was tens of millions instead of 300 million yuan. In the first phase, 6 million were prepared, but in the second phase, the investor decided to suspend the project. This means that the life of the cattle network is over. In addition, Liu Yang also revealed in his statement that the traditional thinking of the furniture industry is difficult to integrate with e-commerce.
problem
Consumer trust and precision marketing
Behind the collapse of the cattle network, many people in the industry have already noticed that furniture e-commerce has fallen into the "dumbbell dilemma." On the one hand, driven by the tide of e-commerce, many furniture vertical e-commerce has sprung up, and on the other hand, it is a traditional furniture enterprise that sticks to the old model. It is difficult to get through online and offline.
Bai Xiaohua, head of Qumei Furniture E-commerce, said in an interview with the Commercial Daily that from the current situation, the development of e-commerce is in a deformed state. For example, a large number of foundries such as Guangdong and Fujian have begun to enter e-commerce channels, accounting for about a proportion of all About 50% of e-commerce, the success of these e-commerce is mainly based on price.
"This is contrary to the attributes of this special product of furniture." In Bai Xiaohua's view, furniture is for people. Therefore, it is not only the price of the e-commerce channel, but also the products that customers need and can experience, such as gorgeous, warm, small and fresh products. To understand the needs of customers and to meet the needs of customers.
Mao Xinyong, vice president of Qijia.com, also admitted to the business newspaper that there are many hidden dangers in furniture online shopping, such as the inconsistency between goods and photos, the difficulty in guaranteeing the quality of furniture, and the inability to guarantee after sale. How to gain the trust of consumers and precise marketing is two problems that furniture e-commerce needs to solve.
Internet retail expert Shen Hongbing analyzed in an interview with the business newspaper that on the one hand, the vertical website products are too single, the attraction is far less than the e-commerce platform like Taobao Tmall, and the specific furniture industry is too special. The difference is even more obvious. Shen Hongbing said that the driving force for driving furniture to generate sales is advertising, and it is continuous advertising; and the furniture e-commerce segment itself has a small capacity, which can not attract large traffic, in order to get traffic, only burn money. From the current point of view, no furniture e-commerce has been made by "free advertising" such as social media, so the traffic is basically equal to the funds. Take the cattle nest network as an example. It really collects 300 million yuan of funds, but it is really possible to maintain it. However, the first phase of 6 million yuan of funds to face a "700 merchants" furniture platform, it is indeed like a slap in the face, the investment side can not burn a few days, the investor also feels that this is a bottomless pit, and therefore retreat. The investment in toothpaste is also taboo for the e-commerce industry, and furniture e-commerce is even more.
On the other hand, Shen Hongbing analyzed that furniture is a durable product, not a fast-moving consumer. Consumers pay more attention to the user experience. Furniture e-commerce is often weaker than traditional furniture stores. Compared with the popular 3C, clothing, books and other products in online shopping, furniture is lack of standardized products. Consumers often do not know what kind of indicators to evaluate the good or bad of the furniture displayed on the website. . The solution to this problem lies in getting online and offline. But at present, the reality is that traditional businesses lack the genes of e-commerce, and vertical e-commerce has no offline resources.
breakthrough
Breaking from the O2O line under the line
In fact, the growth of the furniture e-commerce channel is traceable. Overall, according to industry statistics, China's furniture industry has exceeded the scale of one trillion, and it is expected that the output value of China's furniture will maintain an average annual growth rate of 15% in the next five years.
However, it is worth noting that the data of the Department of Circulation Industry Development of the Ministry of Commerce and the China Building Materials Circulation Association show that in 2012, the sales of furniture and home furniture stores above designated size of the country was 1,246.7 billion yuan, down 2.46% year-on-year; cumulative sales from January to March 2013 The amount was 213.6 billion yuan, down 2.43% year-on-year.
On the other hand, according to Taobao statistics, in 2012, Taobao's home brand products accounted for nearly 10% of online shopping products in 2011. Some Taobao sellers who specialize in furniture have gone deep into the line and built their own factories.
Even Liu Yang said frankly: "The furniture industry is the last blue sea of ​​e-commerce. Whoever starts with furniture, maybe who will be the next Jingdong."
"The reality is that the overall growth is, but the industry does not have a leader in the industry, everyone is watching." In Shen Hongbing's view, the furniture e-commerce industry is a blue ocean, but the "Jingdong" of furniture e-commerce has not shown signs.
In Shen Hongbing's view, furniture e-commerce must take the O2O model, and it is the process sequence of offline development, which means that it must rely on the strong physical store under the line to maintain stability. How to get the traffic from the line to the line and maximize the conversion is the lifeblood of O2O success. "After all, although building a website burns money, it is actually more difficult to revitalize a good furniture experience museum in reality." Shen Hongbing suggested that the home business that has the ability to do e-commerce should focus on Tmall. , Jingdong and other mature platforms; home business providers who have just entered the e-commerce, I am afraid that even the team has not pulled, so this road is very long.
Furniture e-commerce has extremely high requirements for traffic, and traffic is one of them. More importantly, it is accurate. Otherwise, the purchase cost of a single customer is very high, and even the profit is not enough to share the cost. The related sales of other industries did not work in the home e-commerce platform. “Furniture on the line must do two things in a down-to-earth manner.†Bai Xiaohua said that the first thing Qumei’s is to do quality and environmental protection, this is the value that will always be used by consumers; the second thing is to achieve precise marketing. . "On this basis, the e-commerce direction of Qumei Furniture is the O2O model. This goal needs to be implemented and achieved in stages, not in one step." Bai Xiaohua said that in the future, the company will increase the placement of customized products in e-commerce. .
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