Internet bonus fall, increased financial pressure, how to break the Internet home improvement?

Text/Meng Yonghui

With the fall of the Internet era, home improvement companies that have grown up relying on the model and concept of Internet home improvement are beginning to have dilemmas and problems. The blind expansion of the Internet era has made them encounter unprecedented challenges when the business is sharply reduced, and the successive emergence of the home improvement industry, such as running and siege, is the concentration of this imagination. The emergence of these issues indicates that the home improvement industry has reached another stall where change is inevitable.

Rapid changes in the internal and external environment, the home improvement industry is in urgent need of a breakthrough

Undoubtedly, the internal and external environment of the home improvement industry is undergoing profound changes, and these changes have forced the participants in the home improvement industry to demand changes to crack the development problems of the moment. So, what exactly is changing in the internal environment of the home improvement industry?

First, externally, the waning Internet dividend has left the home improvement industry facing an increasing number of traffic woes. We all know that the combination of the Internet and the home improvement industry is largely due to the huge traffic dividend in the mobile Internet era, and the reason why so many home improvement companies will actively embrace the Internet is precisely because they see that the Internet can bring them a huge number of users.

With the depletion of traffic transfer, the home improvement industry through the Internet channels to obtain user traffic continues to decline, even if some channels still have traffic, these flows in the conversion process also began to face many challenges. Once the difficulty of traffic acquisition begins to increase, the cost of home improvement companies will begin to increase, and when the costs invested do not cover the profits recovered, home improvement companies simply rely on the Internet to obtain traffic will encounter difficulties. In a word, home improvement companies are increasingly encountering unprecedented challenges by embracing the Internet as a way to gain traffic and achieve self-growth.

Secondly, users' consumption patterns and consumer needs are changing in a subtle way.One of the most important reasons why the home improvement industry is suffering so much is that the users have changed. Thinking back to the mobile Internet era just pulled up the curtain of the moment, we can continue to gain users through subsidies, publicity and other ways, the user's needs are also very simple, as long as they can make their own simple and fast access to home improvement products and services.

With the user's habits from offline to online, relying on simple subsidies, brutal burning of money to get the user's way although there is still some room for survival, but with the ebb of capital, simply rely on the home improvement company's capital reserves to get the user's practice by burning money becomes increasingly unrealistic. In essence, the ebb of capital is the key to making the Internet home improvement company unsustainable, and if we then look deeper into the reasons for the ebb of capital, it is not difficult to find that the waning interest of capital for Internet investment is the reason for all this.

When relying on burning money does not continue to gain users, the home improvement industry needs to resort to new ways to win users and achieve conversion. Back to meet the actual needs of users, rather than just playing the concept of doing marketing has become the consensus of the development of the current home improvement industry. We are seeing more and more home improvement companies start to strengthen the attempts of new species to empower the home improvement industry, trying to keep gaining growth power by adding new technologies and concepts. This approach will not only have the opportunity to continue to gain capital attention, but also to find ways and means to crack the user consumption upgrade problem, so to speak.

Third, home improvement itself is undergoing profound changes.Some may say that what is changing in the home improvement industry itself? In fact, the home improvement industry has moved from a more traditional and unregulated stage of simple design and construction to a more industrialized and technically sophisticated stage.

In the traditional home improvement era, we were able to do home improvement as long as we could do design. Because design at that time requires a certain threshold, not everyone knows how to design, but the construction can be found in many renovation guerrillas to complete. As a result, we see a lot of designers at this stage throwing themselves into the wave of home improvement entrepreneurship.

With their own design, the decoration materials are provided by the owner in the case of semi-contracting, and in the case of full contracting, the decoration materials can be purchased through the building materials market, and the construction workers can be invited to complete the decoration guerrilla. This small workshop is the home improvement method can play a role in the era of low user demand, once the user demand increases, this small workshop home improvement company will encounter survival challenges. In addition, this approach can only be small, can not really achieve the scale of home improvement operations, once the number of renovation standards will increase, there will be many problems.

In fact, the home improvement industry is facing exactly such a state of affairs at the moment. User needs are beginning to emerge, and the home improvement industry simply following the traditional one-to-one approach to supply is no longer able to meet the needs of the market and must shift to a one-to-many direction. And this has led to the emergence of Internet home improvement companies, however, many Internet home improvement companies and the lack of control over the process, despite the verbal claim that they are Internet home improvement companies, but the thinking is still stuck in the small workshop stage.

At this point in time it is required that home improvement companies must change their way of thinking to truly meet the current developments in the industry. Simply small workshop-style approach can not really play a substantial effect and role, must be from the design, construction, supply chain and many other ways to intervene to ensure perfect control of the home furnishing process and procedures, in order to achieve the development of home furnishing in the new phase.

Fourth, elements within the home improvement industry are changing. The home improvement industry is currently facing changes not only in the user and external market, but also in its internal elements. Traditional home furnishing era and the Internet home furnishing era, home furnishing participants are basically based on traditional tools and traditional construction workers, this approach, although in the Internet era can still play a role, but with the new technology for the development of the industry's impact on the depth of purely rely on traditional tools and traditional construction workers have been unable to play a truly effective role.

For example, the current home improvement industry began to increasingly appear in the shadow of intelligent robots, construction workers began to change from the renovation guerrillas into industrialized home improvement workers, designers are no longer just a person who provides drawings as we understand it, but has become a key node that can connect the upstream and downstream of home improvement.

The new elements that began to emerge in the home improvement phase represented by construction, design, and production began to bring the home improvement industry to a whole new stage of development. With the Internet era of the external industry to support the home improvement industry is different, the current change is opened from within the home improvement industry, this change is more thorough, more able to change the nature of the home improvement industry.

This profound change in the internal and external environment of the home improvement industry is forcing us to find new ways of development and growth points to achieve a breakthrough. However, breaking the game is not easy, simply rely on technology without changing the home improvement industry itself is difficult to work, only the real change in the home itself to achieve a breakthrough.

Under the change, how to break the Internet home improvement?

Undoubtedly, the Internet home improvement industry is suffering from an unprecedented change. Being in the midst of this, what we feel is the practitioners' concern about the uncertainty of the future. But, perhaps it is at this moment in time that we need to keep experimenting in order to find new ways to truly meet the development of the home improvement industry. When it comes to changes in the Internet home improvement industry, breakthroughs should be sought from the following aspects.

Truly change the home improvement industry, not just shouting slogans and playing concepts. The whole Internet home improvement era is not a competition of who has changed how much the home improvement industry, but who can get the attention of how much user traffic. It is for this reason that we have seen the development of the home improvement industry has always been in a shallow and superficial state, lacking real change. It is for this reason that we see the inevitable re-evolution of Internet home improvement.

One of the more obvious momentum now is that people are beginning to actively embrace new retail, trying to achieve the same results as embracing the Internet by embracing new retail. If this is really the case, then the development of the home improvement industry is bound to fall back into the strange circle of Internet home improvement. The Internet home improvement search for a breakthrough has also become a slogan. Therefore, it is necessary to start from the bottom and put the home improvement industry by changing the elements of home improvement.

Many aspects of design, building materials, and construction are changing profoundly, with new design software, new production tools, new construction tools, and many other new elements. In the future, with the development and maturity of these new technologies, the composition of the home improvement industry will also change, thus, the home improvement industry will change its face, no longer like the Internet home improvement is simply adding two elements of the Internet and home improvement, but the home improvement elements that have changed are re-integrated. Only in this way can the Internet home improvement achieve a real breakthrough.

The home improvement industry should change from capital-driven to technology-driven and really make the user buy is the key. We see that the Internet home furnishing has been able to gain rapid development in a very short period of time, one of the very important reasons is that its development is not technology-driven, technology-driven need a process. The development of the Internet home furnishing is a capital-driven development approach, which will only make changes in the market surface, but can not change the inner home furnishing, and will ultimately allow owners to take into a greater trap.

To achieve a breakthrough in the home improvement industry, it is necessary to change the way the home improvement industry is driven, by developing technology for the home improvement industry. Because technology-driven can bring essential changes to the home furnishing industry, but also to eliminate the home furnishing industry pain points, this development is really able to bring changes to the home furnishing industry, this development can also promote the development of the home furnishing industry.

Home improvement industry as an industry chain derived from a long industry, in fact, it can produce integration and connection with many technologies, in this way, technology-driven can promote the development of the home improvement industry. Only with this development will users feel real change and will really allow the home improvement industry to grow even more.

Under the premise of profound changes in the internal and external environment, the home improvement industry is facing an unprecedented challenge. The ebb of capital has allowed Internet home furnishings to begin to face more and more pressure at the funding level. In this case, the Internet home improvement breakthrough has become a theme for some time to come. Although the current new retail-enabled home improvement industry is starting to be seen more and more, there is the same risk of falling into the Internet home improvement trap. Only by truly grasping the essence of home improvement and changing the way the home improvement industry is driven can the home improvement industry become more upgraded and dynamic.

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