Home improvement company breaks away from Beijing's foreign markets

It is not new for home improvement companies to enter the second and third tier cities. A few years ago, a number of home improvement companies in the capital began to arrange markets in Beijing. This year, due to the impact of the real estate market, the home improvement industry has encountered a development bottleneck period, which has also made the expansion of the market in other cities become the focus of their work.

At present, the economic development of real estate in second-tier cities is rapid, and people’s consumption concepts are increasingly close to first-tier cities. The differentiation of the home improvement industry in major cities is also being gradually reduced. On the contrary, it is the third and fourth tier cities that are more differentiated from the first-tier cities. Smaller market share, more rough houses, and relatively weak brand awareness have directly led to confusion in the prices of the home improvement industry in these cities. In the development of the external market, each home improvement company has encountered difficulties such as fewer talented people, consumers not accepting the brand, and large differences in consumption habits.

According to Wang Yun, general manager of Dongyi Risheng's National Packaging Division, the market for second-tier cities has entered a relatively stable and mature stage, and companies have already developed into third- and fourth-tier cities.

But Wang Hui, director of the Development Department of Real Creation and Decoration, and Li Qian, the senior manager of the Boloti Brand Promotion Department, said that this year they do not develop for first-tier cities, but instead decide which city development should be based on the city's development potential and market expansion space.

Today, this year, the decoration will focus on the branch companies in Xi'an, Changchun, Hefei and other cities as key development cities, focusing on the development of a large home based on the “designed salon-led boutique home culture development platform”.

Difficulty 1 Talent shortage

At present, many home improvement companies have encountered the greatest difficulty in developing the external market. Talent is the cornerstone of development, but due to regional cultural differences and other reasons, local talents are more willing to seek development from local government agencies and first-tier cities. This has directly led to the difficulty of finding talents.

Wang Yun, general manager of Dongyi Risheng's National Packaging Division, mentioned that the general manager of Dongyi Risheng’s current subsidiary is recruited from the headquarters in Beijing. After training, they are sent to local cities and directly controlled by the headquarters. Talent system. Dong Yi-Sheng is highly valued in the training of talents. It prefers newly graduated college students or social workers who have worked for two or three years when hiring recruiters. Make use of the competitive salary in the industry and the company's internal growth path to attract talents.

In the face of shortage of talents, Shichuang Decoration adopted the strategy of talent duplication, that is, the grassroots personnel in peripheral cities accepted the same training system as the headquarters. Wang Hui, Director of Real Estate Development and Outreach Development Department, told reporters that Chengchuang Decoration has long maintained a cooperative relationship with major universities and colleges. Every year, newly graduated college students come to the real creative learning work. At the same time, under the current market contrarian trend, the company also absorbed many excellent people in the industry to join in the actual creation and expand.

Difficulty 2 Brand awareness is weak

The Beijing home improvement market is like a rugby with the largest crowd in the middle. And has entered a very mature market state, consumers have enough economic capacity and rational consumption. However, in the foreign market, most of the brand image has not yet been implanted in consumer awareness. Because consumers do not understand the advantages of branded home improvement companies, coupled with the decoration of guerrillas, the preferential prices, leading people to brand home improvement company does not recognize, so that these cities are still in the chaos of the "price war" period.

The more small cities need more circle marketing. The conspiratorial psychology of consumers in small cities is more serious than the promotion of advertising. Wang Yun said that this is particularly evident in Jiangsu and Zhejiang. Therefore, in such a city, it will take more effort and step by step to start its own brand. In these areas, more emphasis is placed on word of mouth and satisfaction. First of all, it is necessary to break out of opinion leaders in the region so that there will naturally be more and more repeat customers.

Enterprises pursue civilianism and target ordinary audiences. However, consumers in the foreign market are more willing to choose guerrillas, and Citron is also facing such difficulties in developing foreign markets. “At present, we design and produce wood-based products that directly harmonize the cost of product control, environmental protection levels, and the overall style of the home. We have also established our own window logistics center to help customers pursue the lowest total renovation cost in terms of pricing in square meters. Under the premise of "service is not discounted," the use of a standardized system has reduced the price difference with non-brand home improvement companies," said Wang Hui.

Difficulties 3 There are big differences in consumer philosophy

Each city has its own unique cultural heritage and concept of consumption, which leads to different preferences of consumers in different regions. Therefore, the same marketing model often does not apply in different regions. For example, white paint cabinets are very popular in Beijing, but sales in Fujian are not optimistic. Some markets are irrelevant, and some market competition is not the same, so there are also changes in the measures. How to implant the brand into the hearts of local consumers is a problem that all home improvement companies need to solve.

Li Qiang, senior manager of Boloni’s brand promotion department, said that the staff of the company’s headquarters still needs to spend more time and effort on the external market. This is a difficult task at present. Now Boloni has set up a special team for the foreign market to study the difficulties encountered in the development of the foreign market. The current squad needs local heads to run on two sides and regularly share the problems it finds. Combined with the local market characteristics and the company's own successful experience, the concrete analysis of specific issues will be solved one by one.

"Differentiated competition" has become the best keyword for decoration in the foreign market. Wang Xiaobing, executive vice president of decoration at the present, mentioned that before the establishment of the Anhui branch, after a lot of market research, Hefei, as the birthplace of decoration, must have a large number of mature local decoration companies and other foreign companies, in order to form a differentiated competitive advantage, it will The Anhui branch locates in the high-end concept of leading home life with culture. The home culture center built in a heavy way is not only a space for display and effect simulation, but also a gathering place for a group of industry leading designers who lead the fashion trend to collide wisdom. Fashion has built a good platform and established a high-end design studio full of artistic atmosphere and sentiment. It is the fashion trend and popular rules that allow consumers to experience the latest wave, the latest and most authoritative design, and guide the overall eco-home consumption pattern. Home decoration design nowadays is not only limited to a single range, but from the functional style design, product design, software design and then to home design, the diversified application of various elements is a trend or trend, "big home" The model also came into being.

List of home improvement company's main business

Standardization Service

The business features of Shichuang Decoration can be summed up in four words: the whole industry chain, standard decoration, one-stop service, and cost-effective products. Shichuang has its own complete wood product design and production chain, home decoration design, global procurement and complete after-sales service, and completed the entire industry chain model. According to Wang Hui, director of the Development Department of Realism and Decoration, the wood products have formed their own standardized industrial chain, and at the same time, they have established their own window logistics center, so that the cost and quality of the products have a high degree of controllability.

Dongyi Risheng focuses on mid-high end market

Dongyi Risheng's national market position is mid-to-high end market. From the design concept, construction management and auxiliary materials as well as the most critical part of the product are unique. Dongyi Risheng currently designs and develops wood products and owns factories. At present, as long as the company can independently research and development of products, do not represent other brands.

The old house decoration

Since 2008, decoration has embarked on the characteristics of development and differentiation of the positioning - the old house decoration, development so far four years, regardless of the old house decoration design, engineering characteristics, construction materials, characteristics of the transformation case, customer service, etc. All aspects have accumulated rich experience. The market positioning of the old house decoration has become the cornerstone of the steady growth of the current decoration in the context of a sluggish industry.

Boloni takes products to promote home improvement

The current business characteristics of Boloni are mainly divided into two parts. One is the high-end cabinet products to drive the overall home service, and the other is that the first-tier and second-tier markets still continue to provide consumers with an overall home solution. Boloni is a provider of total home solution services, focusing on high-end apartments and villas. Turnkey projects for design, construction, products, and accessories are organized in 16 lifestyles throughout the roof, floor, wall, and all products.