3G is the era of WeChat, 4G makes short video the biggest winner, who will be the protagonist of 5G? When global operators are accelerating the commercial deployment of 5G, “4G changes life, 5G changes society” has become the consensus, and 5G will bring technological innovation for the whole industry and the whole chain.
Hong Yaozhuang, CEO of GSM Association, has predicted that after 2025, 5G will cover 40% of the world”s population, and China may become the largest market for 5G. For the home industry, 5G will not only accelerate the formation of the smart home ecosystem, but also make a big difference in home design and home production, and home BIM and smart manufacturing will reap a big wave of dividends.
How to highlight the advantages of smart home in 5G era
Customized home industry to fight the battle of production capacity in 2019
When the home furnishing industry shifts from finished products to customization and from single products to whole house, production capacity becomes the top priority for enterprises to seize market share. Especially in the era of 5G intelligence, building factories and expanding production capacity is not only the need to expand production lines, but also the need to build intelligent production, technical personnel training and marketing service bases. With the gradual release of consumer potential in second- and third-tier cities, many companies began to build factories in the southwest, central China, northeast and other regions, jumping out of the traditional factory building areas, with multiple production bases as the center, better and faster radiation around the market.
Custom industry pioneer Shangpin home with the upcoming production capacity of the battle well in advance, in addition to having four production bases in Foshan, but also actively out of the Pearl River Delta rapid layout of the country. April 18, 2018, a total investment of 3 billion yuan, an area of 518 acres of Shangpin home with Industry 4.0 project East China production base officially started, is expected to start production in the second half of this year. After the East China base is put into operation, it can significantly shorten the delivery cycle to enhance customer experience and effectively save transportation and storage costs, which can not only support the company”s directly managed areas such as Shanghai and Nanjing, but also radiate the North China region, providing strong support for future channel expansion.
Model innovation casting industry barriers, forward-looking trends to promote system change
If production capacity and product innovation can be quickly learned and copied, business model innovation is slow and difficult, and is also a solid armor for enterprises to build core barriers. Behind the model change is the consideration of comprehensive strength of enterprise brand upgrade, resource accumulation, capacity expansion, supply system, channel layout and other aspects, which is a quantitative change to qualitative change, and can not be imitated overnight.
In 2019, when it is the 15th anniversary of the founding of the enterprise, Shangpinzhujia once again ignites the fire of innovation and launches the second generation of whole-house customization model, reinforcing its moat while also promoting the custom home furnishing industry to another level. When consumption upgrade, good life and other terms are no longer in the form, but specifically perceptible in all aspects of life, behind the need to rely on professional enterprises as the strength of support.
According to the National Bureau of Statistics, China”s GDP per capita approached the $10,000 mark in 2018, nearly two times more than 10 years ago, and has reached the level of upper-middle class countries. Wu Xiaobo, a famous financial writer, said that there are 250 million new middle-class people in China today, and it is expected to grow to 350 million in ten years, and these high-net-worth people will be the main force driving China”s endogenous consumption market, but at the same time, they are more discerning about product quality, aesthetics, design, service, experience and even culture and emotion, and have more demanding standards for “good life “They have more stringent standards and requirements.
Secondly, China”s current urbanization rate has reached 59%, a figure that means China is in a high-speed urbanization process. 2019 government work report data show that in 2018, China”s urban population added 14 million people and 14 million people were lifted out of poverty in rural areas, which is the huge demographic dividend latent under the urbanization process and poverty eradication policy, in addition to the new middle class.
The launch of the second-generation whole-house customization model of Shangpinzhujia is formally based on these forward-looking consumer trends to make the upgrade, not only the upgrade of the concept, and not only the superposition of product categories, but also the mode of substitution driven by technology based on the demand for consumer upgrade.
Shangpin home with the second generation of the whole house customization model has five characteristics: business positioning, from functional customization upgrade to life aesthetic customization; supply system, from cabinet customization to the whole house supporting, making the concept of “whole house customization” more veritable; business process, through the consumer side, service side and production side, supply chain flexibility, truly one-stop The front-end design, AI technology to empower designers, greatly improve the design efficiency and program quality; product attributes, the injection of the Internet of Things gene, so that home intelligence, so that the home life experience more comfortable and convenient.
The 5G era is coming, the future of custom enterprises to compete with three major strengths
Forward Industry Research Institute released data, the current domestic custom furniture market size of 202.7 billion yuan, the overall penetration rate of less than 25%, far below the developed countries 60%-70% penetration rate, which means that domestic custom home furnishing enterprises still have a huge growth space. Leju Finance believes that in the context of Industry 4.0 and 2025 policy, the future custom home furnishing enterprises will mainly face three levels of strength competition.
1. Technical strength: the application of big data and artificial intelligence technology in the overall operation of enterprises in the context of 5G era
Looking back at several major revolutions in history, from the agricultural era to the steam era, the electrical era, and then to the information era, what really pushed the era forward by leaps and bounds was the change driven by the underlying technology level.
In the 5G era, with the gradual rise of the new generation of “post-90s and post-00s” in the context of the new era, they have new ideas and aspirations to overturn the past, and as the aborigines of the Internet and the main force of digitalization, they are not only the new generation of consumers, but also the new generation of creators of enterprises. For the traditional home furnishing industry, the pace of technological innovation will be significantly accelerated in the next three years. In fact, many companies have been impacted by new technologies, aware of their own change is imperative, but due to the lack of foundation and accumulation force clueless, unable to do anything, missed the opportunity to transform.
In this regard, Shangpin home furnishings off the round square software, innate information, intelligent, flexible production multiple advantages, so that it stands out in the homogeneous custom home furnishings industry. The data of “2018 China”s Listed Home Furnishing Enterprises R&D Ranking” released by Leju Finance shows that Shangpinzhai ranked the top with R&D expenses of 150 million yuan in 2018. This, on the one hand, reflects that Shangpinzhujia insists on continuously consolidating its advantages and realizing the whole process of intelligence from front-end design to back-end manufacturing, and on the other hand, it also shows that the threshold of technological change is high for the same industry, which requires great human, material and financial resources.
2. Iteration and integration ability: the speed of core product updates and iteration and industry chain integration ability
The iteration speed of core products is a reflection of the hard strength of the company, followed by the strength to integrate the home industry chain and expand upstream. Wu believes that an industry or enterprise barrier ultimately lies in its own ability to iterate and strong execution, and the courage and vigor of self-revolution is needed behind each iteration. The speed of renewal in the custom home furnishing industry is accelerating, and enterprises are destined to be submerged under the tide of the times once the speed of their generation fails to keep pace.
In addition to the technical advantages, the second generation of the whole house customization Shangpin home with the original basis for the continuous introduction of new custom furniture products and new products supporting the home, to create more new middle-class lifestyle products of choice, on the basis of “more choice” to achieve the “more choice”.
In 2018, the revenue of household products exceeded 1.1 billion yuan, an increase of 42.47% compared with the same period of the previous year. 42.47%.
3. Personalization: meeting the demand for life aesthetics and lifestyle customization, highlighting the core concept of “people-oriented
Customized living is the most personalized and poetic living imagination for consumers, and its core concept is people-oriented. Each person”s definition of “custom” has subtle differences, children focus on health, safety; the elderly need to facilitate; young people focus on value, beauty, one-stop, cost-effective …… these are added to the “custom” from person to person The label under “customization”.
In the spirit of meeting the needs of consumers “quality consumption, good life” as the mission, to customize as a starting point, research consumer needs, Shangpin home furnishing created a lifestyle research center, aimed at exploring the contemporary lifestyle of Chinese families, designed with care to bring surprise to each consumer. Just as more than ten years ago, Shangpin Home Match opened up the trend of the first generation of whole house customization; more than ten years later, I believe this brave boy chasing the wind can bring a new metamorphosis again.