The national real estate regulation has made the midstream and downstream industries represented by decoration companies and building materials dealers complain a lot. The word "finely decorated houses" makes them even talk about it. As a famous ceramic capital in China, Foshan is the birthplace of many well-known building materials manufacturers. Any disturbance here will affect the trends of the entire industry chain. How to transform and make a living in the changing environment? How to allow dealers across the country to share dividends during the transformation process? This is an urgent problem faced by every brand manufacturer here.
Judging from the various commercial housing policies and data ratios issued by various places, more and more cities will achieve full coverage of finely decorated housing in the next two years. This shows that the market share of traditional decoration companies and traditional building materials manufacturers will become smaller and smaller. Especially first-tier cities such as Beijing, Shanghai and Guangzhou put forward the requirement of 100% coverage of furnished houses as early as 3 or 4 years ago. Other second- and third-tier cities are also following suit, and the proportion of furnished houses is getting higher and higher.
In the industrial chain where big fish eat small fish, the most serious impact is undoubtedly the building materials dealers at the end of the industrial chain.
In the past, there was the policy of finely decorated housing from real estate, and later there was the decoration service of decoration companies. Under the double attack, the living space left for building materials manufacturers became increasingly narrow.
Even though many well-known building materials companies have long established cooperation bridges with decoration companies and real estate companies, the actual cooperation methods are very single, without guarantees, with weak profits, and incorrect cooperation identities, so they have not gained much. Sweetness. Passive in attracting traffic and passive in closing transactions, this is their current situation in the cooperation process.
Moreover, with the strong alliance with real estate and decoration companies, those building materials manufacturers with large industrial scale and high brand awareness will directly kick out the building materials manufacturers with small industrial scale and low brand awareness, leaving small brands without The right to speak, worries about survival, and fighting on price alone to obtain a small number of customers.
Therefore, under the premise that all walks of life are exploring the "new retail" model, the less competitive building materials manufacturers are, the more they should be aware of the crisis: in the next few years, it will be increasingly difficult to find customers. The cost of acquiring customers will become higher and higher, and competing on low prices alone will only push you into a corner.
In fact, under the pressure of the general environment, the entire industry should understand that industrial innovation is the only way out. Whoever can take the lead in realizing transformation and upgrading and creating a new profit model is likely to get a piece of the pie in the new market environment.
So, how can building materials companies transform themselves?
The following picture can directly understand the transformation path of building materials manufacturers:
As shown in the figure above, building materials manufacturers can upgrade and transform in three stages from bottom to top:
Phase 1: Service upgrade.
From pure product sales to integrating product and design, it directly increases the transaction rate and total sales.
In the current building materials market, except for some big brandsIn addition, most of them do not yet have independent design capabilities. Therefore, when customers choose building materials products, most of them rely on the design drawings provided by decoration companies or design companies. This selection model directly raises the selection threshold, causing 98% of building materials manufacturers to lose opportunities.
If building materials manufacturers can have independent design capabilities, they can greatly reduce or directly eliminate customers' dependence on decoration companies or design companies, and the transaction rate will be significantly improved.
The second stage: category upgrade
From pure product sales to integrating products, design, and construction, we can increase the unit price and total sales, and increase the order rate.
Currently, there are three basic selection modes for customers on the market: 1. Choosing construction and building materials in one; 2. Choosing construction, with construction driving building materials; 3. Choosing construction and building materials separately.
No matter which method is used, individual building materials sales definitely do not have the active advantage of joint orders. Only by integrating design and construction and upgrading categories can we achieve active joint orders and increase unit price and total sales.
The third stage: industrial transformation.
Transform from a simple building materials dealer to an urban operator and realize the transformation of business model. The business identity has been improved, primary traffic has been obtained, service categories have been diversified, and marketing volume and profits have greatly exceeded.
This method breaks the original single business model of building materials manufacturers and obtains big data and large traffic by realizing the linkage of the industrial chain. It not only solves the problem of merchant drainage at the source, but also comprehensively opens up product sales channels and realizes a closed business loop from drainage to delivery.
Recently, Foshan Shengbang Building Materials Co., Ltd. has made a big move. Their cooperation with Youjiaku, a nationally renowned Internet fully digital home purchase trading platform, is an exploration of industrial transformation. Its subsidiary Bethea Ceramics has signed a strategic cooperation agreement with Youjiaku, and plans to lead dozens of dealers across the country to share the business dividends brought by Youjiaku's Internet technology.
It is understood that Youjiaku's powerful 3D display design system and transaction management system can simultaneously satisfy building materials manufacturers for service upgrades, category upgrades, and even industrial transformation.
It will solve the core issues of the transformation of building materials manufacturers from the following aspects.
1. Solve the traffic diversion problems existing in the traditional business model;
2. Solve the problems of dealers’ small exhibition halls, high costs, few display categories, and low efficiency;
3. Solve the sales problem;
4. Solve the problems of single profit model and high promotion costs.
The road of industrial transformation embarked on by Bethea Ceramics undoubtedly sounded a wake-up call to traditional building materials manufacturers. They rely on Youjiaku's Internet technology to connect real estate, decoration companies, and users as a whole, and share the big data and traffic brought by Internet technology. This not only breaks the space limitations of traditional dealer showrooms, but also reduces fees and increases efficiency. It also opened up the entire production and marketing chain to achieve salesThe amount increased exponentially.
From the perspective of the entire industry, Bethea Ceramics' industrial transformation path is not only a breakthrough in business models, but also reflects a brand's confidence and innovation capabilities. Only brands that are extremely confident in their products and services have the courage to challenge and innovate. The cruelty of the market is not the end, and the double-sided attack by real estate and decoration companies does not mean that they can only deal with it. How to turn crises into opportunities and how to challenge the traditional industrial model are issues that every building materials business must think about.
