Just after the Spring Festival, the entire home furnishing industry can't wait to speed up.
Recently, Oppai said that in order to further enhance the market competitiveness of products, improve customer delivery satisfaction, and meet the delivery needs of installation enterprises, the new model of "10-day delivery" will be fully implemented for complete assembly channel orders in 2024.
At present, there are no customization companies or building materials companies to follow up and propose new delivery cycle standards.
Judging from the timeline, Oppai made a big move at the beginning of the year, and it is obvious that it has been planning for a long time, caught other companies off guard, and also earned enough heat.
But looking back, what does "10-day delivery" mean for the entire whole channel, what impact will this delivery standard bring to the entire home furnishing industry, and who can get the most benefit from it, which is a question that is more worthy of everyone's in-depth development.
From the first battle to the lead time
Oppai frequently "unbooked".
In September last year, Oppai launched a 699 yuan wardrobe and cabinet products, which directly dropped a depth bomb in the industry, although it attracted questions from peers, but some home furnishing companies chose to follow up on price reductions.
For example, after Oppai launched 699**, brands such as Hollywood and Sophia have launched posters in response, questioning "low prices are not good goods", although major brands have not publicly shouted about Oppai, but the reference is also very obvious.
But despite this, in the end, Sophia and Shangpin Home Delivery followed up with the "Pratt & Whitney Storm" and launched 799** and 699** respectively.
It can be seen that at the moment when the competition in the home furnishing industry is becoming more and more fierce, companies are eager to find meat to eat from the cracks in the bones.
In this era when everyone is grabbing speed, traffic, and promotion, the involution of the home furnishing industry has long been escalating.
This time, Oppai proposed to achieve "10-day delivery" for the whole channel order, which is equivalent to upgrading the focus of competition from product ** to delivery cycle, and there are more dimensions of "volume", but what does it mean behind shortening the delivery cycle?
How does Oppai define "10-day delivery", which means that the total time from order upload and payment to delivery is 10 days.
At present, the delivery bases of this model include Qingyuan, Wuxi, Tianjin, and Chengdu, and the categories involved include cabinets, wardrobes, wooden doors, and bathrooms.
It is worth mentioning that Oppai's "10-day delivery" is mainly for the whole assembly channel rather than the traditional terminal stores, that is to say, the main beneficiaries are the installation companies that cooperate with Oppai, rather than ordinary consumers who buy Oppai products from terminal stores.
In addition, "10 days" is from the time Oppai receives the account and successfully places the order, and ends with the company sending the product. These 10 days is the time for Oppai to process products internally, not including logistics and distribution time, if you add logistics and installation time, the whole delivery process will still take about 15 days.
So, how competitive is the "10-day delivery" proposed by Oppai?
Customized home furnishings of wood have always been the "pain points" delivered by decoration companies, because customized products are non-standard products, which increases the complexity of design and production, and is also prone to problems such as high error rate and after-sales problems.
Searching for relevant information on social platforms, it is also normal for consumers to complain that companies fail to deliver on time. At present, the normal lead time for customized products in the industry is generally 4-8 weeks.
However, as the industry becomes more and more competitive, many home furnishing companies have begun to compress the delivery cycle and optimize the process around the delivery cycle.
For some merchants with stores and factories in the same city, the lead time can even be shortened to about 5 days.
In addition, Oppai's "10-day delivery" is mainly aimed at the whole channel, compared with the scattered terminal consumer demand, the degree of product standardization of the whole channel is relatively high, according to this standard, Oppai's "10-day delivery" is not "unparalleled".
However, as a leading customization company, Oppai can take the lead in proposing the standard of "10-day delivery", which still brings a "stress test" to the entire large home furnishing industry.
For Oppai itself, standardizing the delivery cycle means that Oppai has made a commitment to its back-office service capabilities, and before that, the company must have sorted out and improved the efficiency of the entire production process, and will implement it in accordance with this standard in the future, which is also a manifestation of Oppai's competitiveness.
For other fixed companies, whether they can follow up with the delivery cycle of Oppai, or make their own standards transparent, has also become a test for them in the market.
In fact, there are not many home furnishing companies in the market that can realize the front-end and back-end integration of orders from stores to factories like Oppai, for example, Sophia, Zhibang, Shangpin Home Delivery and other companies have such capabilities, but whether they can ensure stability is another problem.
Therefore, Oppai's first "10-day delivery" may not be a very powerful indicator, but it also sets up a "banner", so that peer companies can improve efficiency towards this goal, and finally the benefits of improving the efficiency of the whole industry still fall on consumers.
The development of the whole tuyere is accelerating
The choice of installation enterprises is the key
But obviously, rolling oneself and rolling peers is not the main goal of "10-day delivery" proposed by Oppai, and the whole market is the core.
Judging from the semi-annual report and third quarterly report of the European faction last year, the European faction fell into the dilemma of "it is difficult for an elephant to run".
In the first quarter of last year, Oppai's revenue fell by 13 percent year-on-year85%, which is the only negative growth in the normal business hours of Oppai in many years, except during the epidemic period.
In the second and third quarters, although Oppai's revenue recovered, it only increased by 1 year-on-year in the second quarter55%；The third quarter increased by 222%。For the "big ship" of Oppai, this is not a good sign.
As a result, Oppai was also actively adjusting its channel strategy last year. On the one hand, last year, Oppai proposed 699**, which is actually promoting the transformation of dealers and entering the large home furnishing market;
On the other hand, in April last year, Oppai adjusted the original kitchen and bathroom, whole home, and whole home marketing division to three marketing divisions divided by region, and split the boundaries of the three major business segments of kitchen and bathroom, whole home, and whole decoration, which is also to improve the response efficiency within the enterprise.
Yao Liangsong, chairman of Oppai, once said, "If you don't build a big home, there will be no future."
While coveting the whole market, Oppai actively adjusts its internal business, but externally, Oppai also has to hold on to the strategic partner of the decoration company.
In the face of the outside world's belief that Oppai wants to seize the business of decoration companies through dealers, Yao Liangsong has made it clear that Oppai has no intention of doing decoration and has no intention of seizing the profits of channel dealers.
Obviously, in order to seize the "big cake" of the whole market, even a leading enterprise like Oppai does not dare to eat it by itself.
From the perspective of industry trends, the close cooperation between home furnishing companies and decoration companies is the "unified model" for everyone to enter the whole market.
In January this year alone, a number of companies have released the results of their channel cooperation in the installation of enterprises, in fact, the number of cooperative installation enterprises has become an "important indicator".
For example, Sophia said that last year, the direct assembly division had cooperated with 202 installation enterprises, covering 173 cities and regions across the country; Aopu Home Furnishing said that there are more than 600 decoration companies in depth cooperation, and the cooperation rate of TOP500 decoration companies is as high as 76%.
After the whole decoration has become the outlet for home furnishing enterprises, how to seize the channel resources of the decoration enterprises has become the key, at least there must be hundreds of substantive cooperation of key decoration enterprises, and the whole business of the enterprise can be regarded as laying a good foundation.
After all, having a cooperative installation enterprise means having a natural traffic entrance, which is the most precious incremental market at present.
Oppai preempted other companies to propose "10-day delivery", which is obviously also aimed at "rushing to install enterprises".
Oppai dares to clarify the delivery time, which is equivalent to a reassuring pill for the installation company, and in the case of choice, the installation company will naturally be inclined to deliver more advanced partners.
The European pie wants to "run with an elephant".
Whether it can grow and transform
In addition to "rushing to install enterprises", "10-day delivery" is also one of the measures taken by Oppai to alleviate the pressure on performance.
Judging from the performance of Oppai in recent years, although it still maintains stable growth, in addition to the slowdown in revenue growth, the growth rate of net profit is far less than that of the first development period in the early years.
Of course, there are macro impacts such as the slowdown in the growth of the home furnishing industry and the drag on the market in the real estate industry, but Oppai, as a 10 billion listed company, still needs to explain to investors and shareholders.
Although the whole market is the trend of the times, but the traffic entrance has been held in the decoration enterprise channel, designer channel, and even many small and medium-sized home building materials enterprises have spit badly, the whole channel is not to do no business, do not make money, the whole outfit for Europe, is just a "small profit but quick turnover" business.
To this end, Oppai through the "10-day delivery" model, on the one hand, can shorten the account period, because the "10-day delivery" is calculated from the receipt of the account and the order, and the installation company wants the product to land as soon as possible, so it is natural to settle the account as soon as possible;
On the other hand, the "10-day delivery" not only shortens the account period of Oppai, but also improves the company's cash flow turnover speed, and is also an effective way to improve the company's operating indicators and increase the company's valuation in the context that Oppai's future net profit may not increase significantly.
Therefore, even from the perspective of the average delivery cycle of the home furnishing industry, "10-day delivery" is not a very challenging indicator, but for a "huge" enterprise like Oppai, even if it is only to compress the construction period of 1 day, it is more difficult than many regional enterprises to compress the construction period of 2-3 days.
However, even if Oppai frequently "makes moves" in the formation of the decoration enterprise alliance, whether Opai can go further in the whole market, the bigger opponents are still Shell, Shengdu, and Temple of Heaven, which have a certain scale in the country, are more integrated in the business model and occupy the traffic entrance, not only Sophia, Gold Medal These old opponents of customized home furnishings.
This kind of Internet decoration platform and traditional home furnishing companies such as Oppai are not only cooperative with each other, but also competitive with each other.
For example, it is a good idea for consumers to purchase Oppai products through the whole platform, but if they place an order directly in Oppai, there will be more preferential activities and a richer selection of plates.
However, only through the advantages of ** and category, can it withstand the advantages of the Internet complete platform in terms of traffic and one-stop service?
To this end, Oppai also has to dig deeper into more of its own advantages, such as delivery cycle, delivery categories, and product innovation, in order to be expected to get a bigger "cake" in the whole market.
On the whole, Oppai took the lead in proposing the "10-day delivery" of the whole order, which has indeed raised the entry threshold of the large home furnishing industry to a certain extent.
However, from the subtleties, it will take some time to test whether it can ultimately have a greater impact on the whole assembly market, including the final landing situation and implementation efficiency of Oppai.
However, large-scale enterprises are a "way to live", and small and medium-sized enterprises also have their own "way to live", and for those regional enterprises, they can also give full play to the advantages of cheap and flexible delivery.
In the end, it is still unknown whether the future market pattern will be dominated by "elephants" or more flexible "monkeys" that can break through and succeed.
Author |Kaikai.
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