Internet home improvement "window": profit model to be tested

"The biggest advantage of Internet home improvement enterprises is that the price is low. Because the intermediate links of the decoration company are omitted, the owners can directly contact the decoration manager, so the price of the Internet home improvement platform is generally 30% cheaper than the traditional decoration company - 40% Yang Feng, an industry insider who is engaged in the home improvement industry, told reporters.

Obviously, the general price below 40% is not the bottom line of the home improvement industry. Recently, Sina's renovation of the "robbing the foreman" platform announced that it will jointly upgrade the service of Tmall's home improvement, and convene the 500-star five-star foreman in the country to challenge the minimum price of the decoration.

He Haoyu, CEO of Leju Holdings Co., Ltd. said that the current "grab the captain" platform has entered 50 cities across the country, with more than 10,000 contracted workers. His plan is to land in 100 cities this year, and will grab customers in the 4 trillion yuan home improvement market with traditional channels.

According to the traditional home improvement industry model, the owner usually finds a decoration company first, and the decoration company determines the decoration plan and the required building materials, and then the decoration company sends a foreman to lead several workers to carry out the decoration. In this mode of operation, most of the renovation costs paid by the owner are handed over to the decoration company, and only a small part can be given to the foreman.

On the Internet home improvement platform, the owner directly connects to the foreman, and the home improvement building materials can also be selected online. After the owner chooses among the multiple foremen and multiple sets of renovation plans, he will sign a tripartite agreement with the foreman and the platform. Then during the renovation process, the platform will be responsible for supervising the decoration gold, project progress and quality.

However, as early as last year, many Internet home improvement platforms have been completed, and many of them have already gained recognition in the capital market.

In July last year, the vertical home improvement e-commerce platform “Geekmeijia” won tens of millions of A round of financing; in February this year, the third-party “intermediary” platform Qijia.com raised $160 million; in March, the same The Tuba rabbit of the third-party “intermediary” platform received a joint investment of 200 million U.S. dollars from Sequoia, Jingwei and 58.

In addition, in the face of the impact of the Internet platform, competitors from traditional industries have also launched. Last year, Haier Home's “has live network” was launched, and then launched the first standardized home improvement e-commerce product “Baichang Plus”, positioned as a one-stop, standardized home improvement e-commerce product, the owner can carry out home improvement products through the network. Purchase.

However, at this stage, in addition to attracting investment, the profit model based solely on the home improvement platform remains to be solved.

He Yuyu said that so far, the "robbing the foreman" platform has not considered the profit, and it is necessary to set up a free platform between the foreman and the owner. When the number of the foreman, the number of owners, and the number of the single is high enough, the platform can pass the value-added service. Or combine the existing building materials e-commerce with Leju to make a profit.

"From the perspective of the industry, this is undoubtedly a slogan. Everyone has seen that the Internet will bring about tremendous changes to the decoration industry, but everyone adopts different methods." He Yuyu said that it is difficult to evaluate which one is currently Yes, it needs to be evaluated by the market. What Leju wants to do is “light mode”, that is, to do an online platform.

For the future industry pattern of the Internet home improvement field, Mu Feng, a veteran of home e-commerce, told the media that several well-known Internet decoration companies on the market are still accelerating the staking, and the supply chain management and construction management need to be solved in the future. The problem, the fastest time also takes a year, the Internet decoration can be a real vent.

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