Cross-border crocodile screaming, where is the home industry?

With the development of technology and the Internet, the home industry has gradually shown promising prospects for home integration in the next three years. In the meantime, many companies must compete with cross-border enterprises while they are strong. The outlook for the home furnishing industry is getting better and better. In addition to the industry consolidation in the next three years, the companies in the industry have to make themselves bigger and stronger, and at the same time, cross-border predators also come to the home market to share a piece of the pie.

The home industry has never been as concerned and favored as it is now!

At the end of 2017, Red Star Macalline became the first A+H share in China Home. Blue chip stocks; in early February 2018, a few days before the Lunar New Year, Alibaba and Taikang joined forces with a number of investment institutions to jointly invest 13 billion yuan.

There are 9 home furnishing companies listed in 2017. Up to now, more than 40 companies in the home furnishing industry have been listed, and well-known investment institutions and investors have all invested in this industry with enthusiasm. What is certain is that the boom in the home industry in 2018 will continue to be hot.

Powerful giants such as Ali and Tencent are also so concerned and heavily involved in the home industry. It seems that the home industry has become a mainstream industry with a bright future.

Along with the involvement of these external strong forces and resources, it also indicates that the large integration period of China’s home furnishing industry has arrived, and the speed of integration will be extremely fierce. On the other hand, judging from the development track and characteristics of China’s home furnishing industry in 2017, it is enough to confirm such judgment.

In this article, the author will make a few conclusions based on the view that China’s home integration period has come to this point, and will focus more on the development trend and characteristics of China’s home furnishing industry in 2018. Seeing the development trend and context of the industry, the industry’s colleagues are welcome to make bricks.

Conclusion 1: 2018-2020 These three years will be the window for large integration

From 2018 to 2020, the industry consolidation rate will be 20 years faster than the previous industry. The development is even more violent. Enterprises that can break through the encirclement will achieve leapfrog development in these three years, and their mark is the breakthrough of enterprise scale.

In the past three years, a number of companies in the home furnishing industry will enter the ranks of 10 billion, and the segmentation area will be able to enter the first group and say that it will also have 1 billion. If the scale of the enterprise cannot be achieved in the past three years, it is difficult to have great development opportunities.

The leading companies in all segments of the big integration have already reached a certain scale, and the corresponding capabilities and resources have accumulated to the time of the outbreak. And because capital, external resources and new technologies are the three main drivers, leading companies have great opportunities in the integration of capital and external resources.

But there is a premise that no matter whether it is in the enterprise or focusing on the main business, if the home business is listed, it will not help the capital to develop the main business, but is keen on financial and capital operation. There is no doubt that it has no long-term future.

It is necessary to add that in addition to the above, the power to promote the integration of the home industry has a great relationship with environmental policy upgrades, tax regulations and financial policy environment. In the future, only regulated enterprises can survive and develop, because only such enterprises are the enterprises needed for industrial upgrading and consumption upgrading, otherwise they will be shut down and eliminated.

Enterprises that are passive or actively eliminated will not be less in the next three years. In the case that the entire market demand has reached the ceiling, the market space released by these eliminated enterprises is a great opportunity for the surviving enterprises. The policies and markets have given the foundation of high-quality enterprises a bigger and stronger environment.

Conclusion 2: The logic of enterprise development is either stronger or bigger. Escape from the field

The typical characteristics of the home industry are large markets, small industries, numerous companies, and no brand concentration. high. But the three-year integration trend is that the number of companies will be rapidly reduced, and the concentration of brands will increase rapidly. Therefore, for many small and medium-sized home furnishing enterprises, these three years are especially crucial. If you can break through, you will not be able to break through. There is no hope!

We have seen the development of China’s economy over the past 30 years, like Appliances, 3C, fast-moving and other industries have formed today’s industry pattern in the stage of large integration. A typical feature is that the stronger the stronger, the weaker the weaker, the big fish eat small fish, the fast fish eat slow fish, and the weak are eventually eliminated.

In 2017, the home furnishing industry has also shown such characteristics. Objectively speaking, after the second half of 2017, the fatigue of the entire market has become very obvious. Many companies have lost their previous high growth. There has been a marked polarization.

The author has done a lot of research. The top 5 companies in each category have an average growth rate of 30% in 2017. For example, Gujia Home’s revenue and profit growth are nearly 40%, and TATA’s revenue growth is also More than 40%, but beyond the leader, more companies have not grown in 2017, and even have negative growth.

It can be said that in the next three years of industry consolidation, companies will either be stronger or bigger, or they will only be eliminated. If a wise person voluntarily withdraws from the game, he may put the accumulated wealth safely in the bag; but the enterprises that are strongly and passively eliminated may have lost their lives in the past 10 or 20 years.

The market is very cruel, and the industry development does not believe in tears. This is a big integration that is not transferred by human will. Some people may ask, is there no way to go without being big? Yes, unless you make a difference. Enterprises that are not differentiated are simply unable to compete with the strong.

Conclusion 3: The opponent may not be the industry, the foreign monk may be more powerful

& ldquo; Cross-border robbery is not an alarmist, the billion-dollar giant also has a share, this is already The reality that is happening. For home businessesIn terms of the fact that the opponent is not necessarily a company within the industry, the foreign monk may even have a chanting.

To be sure, the biggest cross-border force is real estate companies. Nowadays, Vanke, Evergrande and Country Garden have already laid out the downstream home furnishing industry. Vanke cooperates with the chain to build Wanjiao Internet home improvement. The acquisition of Vanke’s leading investment will also be strongly involved in the home improvement supply chain in addition to providing a joint procurement platform for housing developers.

Similarly, Evergrande is also accelerating the layout of the hardcover supply chain, which is developing in the field of hardcover and full decoration; the Orange House invested by Country Garden is eye-catching to the home improvement market, and its modern building beauty will also be supported from the inside. The company has entered the home improvement market and the Aijia Life, which was built by Henan Jianye Investment, has set off a lot of storms in the home improvement industry.

There is also a strong cross-border force —— typically represented by the Internet, technology, and intelligence. Xiaomi has entered the home furnishing industry in an all-round way. The ultimate single product thinking and powerful flow operation capability make Xiaomi’s expansion in the home field very fast; Haier, Midea, including Huawei and other home appliance technology giants are also in the home furnishing layout. Especially in the era of smart home in the future, these giants have some powerful resources and advantages.

To be sure, there will be cross-border predators entering the home industry in the future, but this also shows that the home industry is a good industry with huge opportunities. For a powerful home business, a dream entrepreneur, —— the opportunity is coming! “Do not bear the burden of the times, how to take the future in the next three years is particularly critical.



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