Traditional Culture Encyclopedia - Traditional customs - Why can't the home improvement industry walk out of the giants?
Why can't the home improvement industry walk out of the giants?
The home improvement industry is recognized as a big market and a small industry. Why it is difficult to appear giant enterprises is mainly related to the characteristics of the industry itself and the inability to break through the business model.
First of all, home improvement is an industry of personalized consumption, most of which belongs to one-time consumption. An average consumer will experience 2-3 renovations in his life.
Secondly, the single value of home improvement consumption is large, and the concentrated consumption cycle is long, with an average of 2-3 months, involving many links and many consumer goods;
Another noteworthy thing is that the home improvement industry is very dependent on people. To complete the whole home improvement chain, designers, construction teams and material suppliers are needed. Many materials are personalized customized products and are typical service industries.
Typical service industry characteristics lead to low threshold of home improvement industry. According to incomplete statistics, 80% of the market share of China's home improvement is occupied by small and medium-sized companies, and many cities are local home improvement enterprises, with few national brands. The characteristics of the home improvement industry are very similar to those of the catering industry. The catering industry is also a big market and a small industry with a large market scale, but there are almost no giant catering enterprises, and the successful large-scale national catering chain enterprises are rare. Therefore, the "service-oriented business model" is the fundamental reason why the home improvement industry has not done much.
How to break through? Create a standardized product home improvement
The home improvement industry is a typical service-oriented business model, so is it doomed that no enterprise can enlarge its scale and become a giant? We take the catering industry as an example to study.
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