Pinduoduo "new brand program" layout of the household industry, e-commerce giants to accelerate the game incremental market

After the winter of the epidemic, more and more industries and enterprises are trying to join hands with e-commerce platforms to seek self-help and development.

Household goods brand Schmidt is Zhejiang Flying Sword Group's own brand, while the Flying Sword Group is Zhejiang Yongkang cups and pots industry's leading enterprises, perennial for Starbucks, Nepal, 55 degrees and other domestic and foreign brands OEM, can be said to be the industry in the "old line of respect".

All along, the foreign trade orders occupy the Flying Sword Group orders not a small share, but this year by the impact of the outbreak of the epidemic, from March onwards, they began to turn around, try to force the domestic market. However, constrained by domestic consumer habits, product prices and marketing model differences and other factors, the effect is not obvious.

After many unsuccessful attempts, Schmidt thought of the e-commerce platform. In August of this year, Schmidt general manager Liu Weisheng carried a huge bag to Jinduoduo "interview". He was not interviewed, but the bag of insulation cups. They were placed on the table one after another, waiting for Jindo new brand lab engineers "test", but the answer is - "no".

Schmidt's reverse customized production line exclusively for Pinduoduo

In fact, the "interview" experienced by Liu Shengwei is the first in-depth communication after Schmidt joined Pinduoduo's "new brand program". In cooperation with Pinduoduo, Schmidt according to Pinduoduo feedback user data and other information, adjust the direction of product development, "health, fashion, black technology" as the core development needs of the new insulation cup, customized a "smart temperature display" insulation cup. After this product on-line, directly pull the store monthly sales exceeded one million yuan (RMB, the same below).

In fact, the cooperation with Schmidt is just a microcosm of Jinduo's focus on the household industry.

In November of this year, Pinduoduo's "new brand program" settled in Nankang, Jiangxi Province, the capital of home furnishings. In the "new brand program" conference, Nankang two local leading enterprises group round furniture and Huiming ecological announced that it will join hands with Pinduoduo, respectively, to create a new brand of furniture "Youju future" and "Huiming home creation ".

And before that, Pinduoduo and Nankang furniture industry has also early cooperation, and achieved not bad results. According to Ganzhou Nankang District Electric Association statistics, only in 2019 a year, the turnover of Nankang furniture enterprises in Pinduoduo accumulated more than 10 billion yuan.

At present, with the continuous for the whole industry chain in depth, Pinduoduo for home business operation has gradually matured, furniture, home decoration has also become two eye-catching channels on the Pinduoduo APP. At the same time, the Times Finance noticed that the sales of many home products in Pinduoduo have exceeded 10,000 pieces, or even close to 100,000 pieces.

In the future, Pinduoduo in the home furnishing industry will also have "big action".

Chen Qiu, vice president of Pinduoduo, said that it will continue to support Nankang furniture enterprises, "In the next five years, the platform will be based on sales, to help Nankang incubate 20 billion furniture brands, but also focus on the country's more than 50 furniture industry clusters, to help create 10 online version of IKEA."

At the same time, the "new brand program" will also uphold the "reverse customization, quality and sales of one" concept, in-depth Foshan, Guangdong, Shandong, Ningjin, Liaoning Zhuanghe, Zhejiang Dongyang, Sichuan Chongzhou, Henan Yuanyang and other furniture industry belt, blowing China's brand building in the furniture industry. Furniture industry brand building "rallying cry".

At the end of last year, Pinduoduo co-founder Dong Zao had also revealed: "We plan to lead more than 500 industrial zone merchants into the '100 million yuan club' and 10,000 into the '10 million club' in the next three years through the intelligent transformation of industrial zones and consumer data guidance. Ten million club'. We hope that through this model, we can reduce the e-commerce operating costs of home furnishing brands, continue to promote high-quality production capacity to stand out, and continue to bring affordable and high-quality products and services to consumers."

Home belongs to the low technical barriers light manufacturing industry, low price competition is serious, single product and sales channels, the lack of well-known brands is a common problem faced by this industry.

In Nankang, for example, after more than 20 years of development, Nankang has become the country's largest production and manufacturing base of solid wood furniture.2019, the total output value of the furniture industry in Nankang exceeded 180 billion yuan, and it has become the country's largest production base of solid wood furniture.

However, with the expanding scale of the industry, the Nankang furniture industry has also fallen into the plight of homogenization and low price competition. Product variety is too single, more than ten general version of the furniture products to create more than 70% of the local output value. The lack of branding also makes the local enterprises can only tighten the production costs, the launch of a brutal price war.

In addition, China's furniture manufacturing enterprises above the scale of only a small number of more small factories, small workshops in the form of home furnishing factories, industry concentration is low, the lack of well-known brands.

According to UBS data, the size of China's customized home furnishing market in 2018 was 242.42 billion yuan, and the CR9 of China's customized home furnishing industry head 9 listed companies accounted for 14.34%. In addition, the concentration of our national textile, finished furniture, hardware materials and other categories are also at a low level. Under the huge market size, each sub-sector also appeared in the Oriental Rainbow and Opie only two companies with annual revenue of more than 10 billion.

In this case, the provision of user consumption data, to help enterprises to demand production and other services, has also become the "new brand program" to promote the transformation of one of the means of household enterprises.

"Through the New Brand Program, we can accurately and efficiently obtain demand information, judge demand trends, and quickly adjust the supply chain to target and produce good goods that are more suitable for domestic demand." When talking about cooperation with e-commerce platforms such as Pinduoduo, Liu Shengwei believes that foreign trade OEM has developed their manufacturing capabilities, and the new brand program can train them to aim and shoot, and the combination of the two, they can become a "sharpshooter".

Selected "after the new brand program", Schmidt solved the problem of product selection

With more than 700 million users of Jindoduo and the domestic small and medium-sized manufacturing enterprises for the "new brand program", many home furnishing enterprises have already made remarkable achievements on the platform. The company's success has been recognized by a number of companies on the platform.

Aiput is a well-known enterprise in Yiwu that produces and sells LED light bulbs. In recent years, relying on the bulbs sold to South America, Africa and the Middle East, annual sales of more than 100 million yuan. But this year, the global epidemic outbreak, overseas sales nearly overnight to zero. Aiput was stationed in Pinduoduo in October last year, and it was not expected that Pinduoduo would become the only sales channel for Aiput after the outbreak of the epidemic. Moreover, benefiting from a series of supportive policies of Pinduoduo, the sales of Aiput steadily increased, and this year's "Double Eleven" is to realize the sales of more than one million yuan record.

In July and October, two other well-known enterprises in the home furnishing industry, "Bao Aman Group" and "Southern Life", also joined Pinduoduo's "New Brand Program". Through the cooperation, Pinduoduo provided two enterprises with consumer big data docking, research and development suggestions and price guidance services, which made the two enterprises open the brand flagship store on the platform, and the sales volume exceeded 100,000 in a very short period of time.

In addition, with the deepening of cooperation with Jinduoduo, the branding process of many home furnishing enterprises has gradually shown results. In the Nankang area, there have been a number of furniture enterprises in the Pinduoduo platform to play the brand, such as Lianyuan Shijia, Caroson, Jun Shengma, and so on.

Pinduoduo and home furnishing industry in-depth "linkage" will continue.

According to Chen Qiu, the platform, in addition to in-depth development of new brand plans to help enterprises develop new products, cultivate new brands, but also will carry out three major initiatives to promote the development of furniture e-commerce business.

"On the one hand, merchants will be further encouraged to break through category limitations, with high-frequency household products to drive the sales of low-frequency furniture products; secondly, factory resources and the ever-improving offline service capabilities will be opened up to all the cooperative enterprises; in addition, it will also reduce the operational difficulties of outstanding furniture manufacturing enterprises through traffic support and the provision of innovative marketing tools. " Chen Qiu pointed out.

In fact, the home furnishing industry is more than just an e-commerce platform Jinduo, Ali, Jingdong in this field is also a lot of action. It is foreseeable that the home furnishing industry will become another battlefield for e-commerce platforms.

November 30, home furnishing giant actually released a new phase of the program, which subscribers starry, in addition to Huaxia Fund, Xingquan Fund, Taikang Capital Management and other well-known investors. Ali is also involved, the subscription amount of 200 million yuan.

And as early as 2015, Ali released the "Taobao extremely have home" one-stop home building platform; 2017 on-line "Taobao heart selection" pan-home retail experiential store. In recent years, Ali's target audience has gradually spread from Tmall and Taobao home brand stores to the entire upstream and downstream of the home furnishing industry.

Another e-commerce platform, Jingdong, is also extending its expansion tentacles to the home furnishing industry.

2017 is a year in which Jingdong's home furnishings became an independent bureau and accelerated its power. "4 trillion market, the Internet share is less than 10%, who can do efficiency + experience two enhancements, who can lead the industry." At the Jingdong home furnishing strategy conference held in March 2017, Xin Lijun, vice president of Jingdong Group, clearly put forward the five-year goal of the core category of home furnishing. Since then, Jingdong has cooperated with Qumei to create the first "borderless retail" experience store in the home furnishing industry, and at the same time online construction materials business and smart home project incubation project.

Why do the giants keep their eyes on the home furnishing industry?

In the case of Pinduoduo, for example, large-scale cooperation with home furnishing companies is not a money-losing deal for Pinduoduo.

According to the data disclosed by Pinduoduo, "the new brand program" has been implemented in two years, Pinduoduo active buyers from 344 million 2 years ago has grown significantly to 731 million, the platform average daily order parcel volume, from the previous 25 million single, a substantial increase of 200%, to reach a daily average of 70 million single, accounting for one-third of the national total. Pinduoduo annual turnover also increased 500% from 262.1 billion yuan to 1.46 trillion yuan.

What's more, as a fast-growing industry, the market for home e-commerce still has a lot of incremental space. This may also be the reason why the e-commerce giants led by Ali, Jingdong and Pinduoduo are so optimistic about the home building materials and home decoration market.

According to the data of China Building Materials Circulation Association, in October 2020, the national building materials and home furnishing boom index (BHI) was 110.77, up 2.51 points. National building materials and home furnishing stores above the size of the October sales of 92.370 billion yuan, up 6.70%. 2020 January-October cumulative sales reached 594.351 billion yuan. Data from the Bureau of Statistics, on the other hand, showed that in the first half of this year, China's commercial property sales area of 611 million square meters.

Chen Qiu had said that according to the above data projection, only the home furnishing market there is more than 700 billion yuan of incremental space. "The huge number of newly married people, college students employment city settlement crowd, etc. also for the home furnishing industry to create a steady stream of rigid demand."

Now, the incremental market of e-commerce digging out, with Ali, Jingdong, Pinduoduo's entry, the home furnishing industry, "Three Killers" will intensify.