Can e-commerce model impact traditional stores

As the operating costs continue to rise and the profit margin gradually narrows, many merchants have begun to withdraw stores. With the withdrawal of the store, the furniture price war also started again. This also promotes the development of the e-commerce industry in the home industry.

To describe the development of the home furnishing market with enthusiasm, the first was to introduce trade-in and price-marking, and then set off an e-commerce revolution in the furniture industry, and on August 1st, a new national standard for mahogany furniture and children's furniture was launched. At the same time, home furnishing stores have also shown the current situation of oversupply. The withdrawal of furniture stores and price wars took place. Due to the impact of domestic and foreign economic impacts and domestic real estate policy regulation, the downstream furniture industry has been in a cold winter period.

It is also for this reason that new paths have emerged in the industry, such as trade-in for furniture, explicit price, and furniture e-commerce. Therefore, furniture e-commerce can be said to be a major trend for the future development of the entire industry, and plays a positive role in promoting the entire pattern of the furniture industry.

Ma Yun once said that in the next 5 years, either e-commerce or no business is possible! This has also promoted the development of the e-commerce industry in the home furnishing industry. According to the "Twelfth Five-Year Development Plan" for e-commerce issued by the Ministry of Industry and Information Technology, by 2015, e-commerce transactions will exceed 18 trillion yuan, and SMEs that regularly apply e-commerce will account for more than 60% of the total . According to statistics from the China Internet Information Center, as of the end of December 2011, the number of Chinese netizens had reached 513 million, and 55.8 million netizens were added throughout the year. The Internet penetration rate increased by 4 percentage points from the end of last year, reaching 38.3%.

At the same time, in some markets, there has been news that home furnishing stores are being withdrawn and there are surplus stores. In fact, the topic of surplus home stores is not a whim, just as the sluggish furniture market is not a recent phenomenon. It is understood that because of the rising operating costs and the narrowing of the profit margin, many merchants have begun to withdraw stores. With the withdrawal of the store, the furniture price war also started again. The slump in the furniture market and rising rents in stores are no longer a day or two of news. Coupled with the impact of e-commerce, the market has become increasingly bleak. In order to drive the market, many businesses have resorted to various tricks. Various promotional methods are really more and more high-end, full of gunpowder smell. For example, according to the editor, I learned that there are different promotions in the home stores of Changsha, including the actual home, Jingwanzi, Red Star Macalline, and Wanjiali. This promotion has also become the hottest part of the furniture market in the hot summer.

At the same time, in August, the country launched a new national standard for the furniture industry, and made clear regulations on the construction of various parts of furniture, especially children's furniture. Therefore, the furniture market will most likely usher in a new round of reshuffle revolution. At the same time, the price war will start again. Since the new national standard has very strict requirements on the details of furniture production, this will result in those stocks being sold at a substantial price reduction, and the furniture produced after the new national standard will increase the price. The reason is very simple. The part of the non-compliant furniture produced before the introduction of the new national standard can only be spurred by cheap. And the furniture produced after the new regulations all adopt high standards and strict requirements, which is more in line with people's modern scientific and healthy concept of home life, so the price will inevitably be adjusted slightly.

Today's home market is undergoing a reshuffle. The impact of the e-commerce market will also pose a considerable threat to traditional home stores, resulting in a series of price wars in traditional home stores to attract consumers. In this kind of competition, the survival of the fittest will result in the withdrawal of traditional home stores with huge losses. Therefore, nowadays, major home furnishing stores and dealers must seize the sword of e-commerce in order to take the lead in the price war and the promotion war.


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