Guangzhou Shangpin Home Furnishings Co., Ltd. (hereinafter referred to as Shangpin Home Furnishings) is already a star enterprise in the Chinese furniture industry. Premier Wen Jiabao and Vice Premier Zhang Dejiang visited the Shangpin home inspection; economist Wu Jinglian and the State Council Policy Research Office, The Ministry of Industry and Information Technology sent people to investigate the Shangpin housing allocation; Wang Yang, the former secretary of the Guangdong Provincial Party Committee, praised Shangpin’s home delivery as a “model for the transformation and upgrading of traditional industriesâ€.
Due to the unique C2B large-scale digital customized production model, in 2012, most furniture companies were struggling in the general economic recession. Some furniture companies even experienced a negative growth of 20%, while the growth rate of Shangpin's home delivery was as high as 60%. In the four years before this, the average annual growth rate of Shangpin's home delivery was as high as 100%.
Like the same dark horse , Shangpin home is subverting the furniture industry and even becoming a model for Chinese manufacturing companies. However, in the view of Li Lianzhu, the chairman of Shangpin's house, it is a matter of course that Shangpin's home is on the road to large-scale digital customization. He is not entangled in business model problems, and he is not willing to put stylized labels on Shangpin. He said: "Our team is a person who likes to study and likes to do things. What is the business model? That is what others have summarized."
To provide consumers with three-dimensional, all-round furniture solutions, and to manufacture in the spirit of service, upgrading the furniture manufacturing industry to the furniture service industry. In Li Lianzhu’s view, this is the biggest difference between Shangpin’s home delivery and other furniture companies. . At the beginning, Shangpin's home delivery has a stronger sense of service than other furniture companies. Moreover, Shangpin Home has a software company (Yuanfang Software), a network company (Xinju.com), a manufacturing company (Weishan Furniture), and a marketing company (Shangpin), which promotes the business model with its perfect organizational structure. .
Li Lianzhu said that in the past, furniture companies were very easy to survive. They could make a lot of money by launching several products a year. Therefore, some furniture companies do not want to provide more services and are not willing to innovate. However, as competition became more and more fierce and products became more homogeneous, some furniture companies chose price wars. They did not see the huge impact of the Internet on society and the furniture industry.
"We chose to embrace the Internet and embrace information technology very early on. We only explored the way we embraced." Li Lianzhu said.
Furniture C2B mode
“Shangpin Home is a Chinese sample of the C2B model.†Zeng Ming, a professor at Cheung Kong Graduate School of Business and Alibaba’s chief strategy officer, described the C2B model in the article “C2B, New Business Models in the Internet Ageâ€: based on the Internet and cloud computing platforms. Consumer-driven, creating unique values ​​in a customized way, networked and large-scale collaboration. He believes that the vendor-centric B2C model in the industrial era is being replaced by the consumer-centric C2B model in the information age.
In the past, traditional furniture manufacturers used a large number of standardized furniture production methods, styles, sizes, colors are fixed, consumers can only passively choose. Later, the emergence of customized furniture production, consumer autonomy has been met, but how to achieve scale customization has become a problem for furniture manufacturers. Now, in the words of Li Lianzhu, the concept of customization has not only landed, but also done very well.
Shangpin Homestead uses the Internet and advanced information technology to adopt flexible production methods to transform consumers' passive acceptance products into active design and manufacturing processes, providing full-scale digital services to meet the individual needs of consumers. Li Lianzhu said: "Our manufacturing and service methods are completely different from many enterprises. The Internet and information technology have changed the production environment of enterprises. Our production and services are directly driven by consumers."
The scene of Shangpin home purchase product and service is: the consumer is registered in the official direct sales website of Shangpin, and the new home network can be searched according to the layout of the floor plan, the length, the width, the door position, the window position, etc. according to the floor plan of the apartment. To tens of thousands of furniture solutions designed by professional designers. Because of the use of three-dimensional virtual live technology, consumers can see the placement of furniture, like "trying on" clothing, and then make a reservation by free phone, Shangpin home with a dedicated person to go to the free room. Shangpin Home Furnishing has built an offline service system consisting of more than 600 storefronts, providing consumers with a range of services such as free room, free design furniture solutions, free distribution and installation.
“There are nearly 10,000 real estates in the country, and there are hundreds of thousands of room types. There are countless corresponding plans for each type of room.†Li Lianzhu said that there are a large number of corresponding solutions in the Shangpin home cloud computing database, and consumers’ ideas are basically can satisfy. In the process of measuring the size of the laser range finder, the staff of the Shangpin home exchanges with the consumers to understand the consumers' ideas and needs, and even draw sketches on the mobile phone of the Android system on the spot to let the consumers participate in the process of furniture design. in.
After the refinement, consumers can see the effects of 3D animation, and even create a design solution, the service is free. Li Lianzhu said that in the past, many furniture companies had to pay a deposit for the design plan. If the consumer did not place an order, the deposit would not be refunded. Only the Shangpin home delivery is free. Before placing an order, consumers can look for furniture manufacturers with drawings.
In fact, the free size and free design are just a concrete manifestation of the awareness of the service. In Li Lianzhu's view, Shangpin's home furnishing from the furniture design software company is not satisfied with being a manufacturer, but is a full-house furniture customization and overall home solution service provider.
"Others are still studying how furniture is made. Is it necessary to expand the product category? When we divide the furniture industry, we are already studying how to make furniture more personalized and provide more value-added services." Li Lianzhu said.
It is the dream of many companies in the industrialized era. In the information age, this consumption-driven, "what customers need, what the company produces" model becomes a reality. Based on informatization, Shangpin Home Construction has built its core competitiveness.
After the front-end service forms an order, the back-end internal process management system sends the design drawings to the headquarters processing center. The requirements for custom furniture are split into various specifications and parts, and the manufacturing instructions are automatically generated. Production. Based on the network, Shangpin Home Furnishing will converge the scattered individualized requirements into large orders, and finally form a large-scale customized production capacity through the round furniture design system, online order management system, barcode application system, mixed scheduling and production process system.
It is understood that the use of customized flexible production technology has increased the daily production capacity of Shangpin's home delivery by 6-8 times, the material utilization rate has increased from 70% to 90%, and the error rate has dropped from 30% to 10%. 30 days shortened to about 10 days. Moreover, in the C2B mode, the digital process management is carried out, the consumer only produces after the order is placed, the inventory is zero, the capital turnover rate is greatly improved, and the annual capital turnover rate is more than 10 times.
Embrace the internet
Mentioning the predecessor of Shangpin Home Furnishing Yuanfang Software Co., Ltd., many people in the field of home building materials are familiar. Before entering the furniture manufacturing industry, Li Lianzhu and his team were developing, promoting and applying graphic graphics software and application software for interior decoration, furniture and building materials for more than ten years. It is the leader of domestic furniture software.
At that time, they developed a three-dimensional furniture terminal sales display software, and made a three-dimensional map of the decoration plan or furniture customization plan, which was sold to the decoration company and the furniture enterprise, and let the latter provide the decoration design effect picture for the consumer.
Li Lianzhu said that more than a dozen ceramic companies in Foshan purchased their software more than a decade ago, but these ceramic companies did not fully use the software, did not realize the value of the three-dimensional display software, or because the business is good, Not willing to invest in this .
The market education investment was huge, and Li Lianzhu and his team began to find ways to operate on their own. In 2004, Shangpin House was established, and its Yuanfang software became the hub of the overall operation of the company. Now Yuanfang Software has more than 200 people, developing process management software and display software. In addition to meeting the needs of Shangpin Home Delivery, it still exports to the outside world, occupying 80% of the market segment.
"You don't be a user, you never know what the user experience is." Li Lianzhu told a little story. In the past, a furniture factory purchased Yuanfang software, and the feedback was not used by designers. At that time, Li Lianzhu couldn't figure it out. When I made a home delivery, I used the software to design, and found that "it is not easy to use." Now, Yuanfang software development software emphasizes operability and even fool operation. “It used to be from the perspective of software development engineers. Now it is from the perspective of users and designers. This is a change of experience.â€
In 2007, Xinju.com, a subsidiary of Shangpin Homestead, was established. As part of the enterprise's holistic and group operation, Xinju.com is the online direct selling platform for Shangpin's home delivery. Its function of displaying, experiencing and attracting traffic on the Internet is very obvious, and the missing link in the closed-loop operation of Shangpin's home delivery is added.
“How to do Internet applications in the home industry, I started to explore in 2000.†Li Lianzhu said that the positioning of Xinju.com has been changing, from industry portals to group purchases, to cloud design and cloud display websites.
From the offline to the online and then the online and offline fusion interaction seems to be the O2O model, but Li Lianzhu does not care about this. He thinks the label is meaningless and the key is what he did. In his consciousness, the offline and online are closed and coordinated. The traffic is drawn on the line, and many individualized demands are gathered into a tower. More than 600 outlets under the line are distributed throughout the country. "We come up with this model, no matter two channels, we integrate it into a channel, not so complicated."
Shangpin Home has built a large data platform, “space computing cloud platform supported by cloud computingâ€, which is the first in China. Li Lianzhu is so imaginative about the future of data-based operation scenarios: on the one hand, in the development of internal space design solutions, group development, the future is open to the public, so that people who like home design are added, good design solutions can enter the database for Search calls and get paid; on the other hand, analyze and mine consumer data to more clearly understand consumer preferences and provide consumers with more and better home design solutions.
“I just like new things and like to try.†From IT to furniture manufacturing, Li Lianzhu and Shang Pinzong led the Chinese furniture industry into a new stage of development.
“The traditional B2Cs who are still hesitant to try e-commerce today, or the vertical B2Cs who are trying to move the retail link to the Internet, may be completely subverted. The depth of understanding, the speed of response, and the speed of this round of business transformation. The intensity of action will ultimately determine the fate of all enterprises in the information age." Zeng Ming said.
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