What trends will lead the new home retail era?
There are many pain points in the current new home retail ecosystem.
China’s new home retail ecosystem has a large scale and a fast growth rate. In 2016, the market size of China’s new home retail brand and service providers was close to RMB 5 trillion, and the growth rate in 2015-2016 was as high as 8%. Both in terms of market size and growth rate, it far exceeded the European and American markets. At the same time, the network penetration rate of the back-end of China’s new home retail sector is comparable to that of Europe and the United States. In 2016, the penetration rate of back-end home appliances has reached about 20%, slightly higher than the European market (14.9%), which is equivalent to the US market (19.2%). . The online penetration rate of front-end home improvement and building materials is not high, currently only about 8%, compared with Europe (9.2%) and the United States (15.4%) have more room for development.
Trend 1: Life Scenes – Infiltrating from sales items to scened lifestyles
At present, local brands such as building materials, home improvement, furniture, and electrical appliances are still selling products, but the transition to lifestyle penetration has begun. In the process, “lifestyle first” will become the key word for entry, that is, brand owners will influence consumers by creating and promoting a certain leading life concept, which will cause them to pay attention to related products. In terms of lifestyle communication, brands often use real and virtual scenes to bring intuitive feelings to consumers, and experience becomes the main decision factor for purchase.
Trend 2: Channel Convergence - From Cross-Channel to Omni-Channel Integration
Chinese consumers are accustomed to active cross-channel jumps. Take the home appliance industry as an example, 93% of respondents are omnichannel consumers. From the demand side, there are more and more consumers pursuing omni-channel non-sense shopping experience in 2017.
Trend 3: Segmentation customization – from meeting the basic needs of most people to meeting the improved and individual needs of the segment
The disposable income of Chinese residents continues to rise, and consumption upgrades have boosted demand for improved demand. The “post-80s” and “post-90s” of the main retail consumers in the new retail market have formed a new segment. They have certain unique needs. For example, due to the addition of two treasures at home, they have added another one in the limited home space. Set new requirements for children’s furniture.
Trend 4: Solutions - From buying a product to a user solution
At present, China’s home consumers are basically buying single products. On the one hand, brands and service providers provide consumers with a single category of household products, or simple services + limited products (such as decoration services + building materials); On the one hand, because of the large number of irregular operations in the home market, consumers are not willing to let service providers provide complete solutions. In the future, with the emergence of providers of high-quality solutions that provide consumers with everything from design to soft-package, consumers will enjoy a “what you see is what you get” consumer experience and user solutions.
Trend 5: Standardize the market – from non-standard and chaotic markets to a regulated market that provides standards and quality assurance by the platform
The Chinese national service market is mixed, and only half of the 120,000 renovation companies in 2016 have relevant qualifications. The future is bound to move from a non-standard and chaotic market to a regulated market that provides standards and quality assurance by the platform.
recommend