The price war is just the "tip of the iceberg" where the whole house custom home industry shuffles!

Geography has an "iceberg principle": "The tip of the iceberg" floating on the sea is only one-eighth of an iceberg. Another "seven-eighths" that sinks below the sea is the most terrible of icebergs. section.


Since 3.15, the price wars of the whole family's customized home giants such as Europa, Sophia, Shang Pinzhuang & Vichy have attracted widespread attention from the industry. Although the Big Three did not think that they were fighting a price war, but they were snatching The price war that broke out in the market share was actually staged in the whole house custom home market.


Just like the home appliance industry has gone through the price war path, the custom home price war is a normal phenomenon of market competition, and it is an inevitable manifestation of this industry from decentralized to concentrated. My concern is that in the price war, “the tip of the iceberg”. Behind the "eight eighths" iceberg.


So, what is the "7/8" iceberg behind the price war "The tip of the iceberg?"


Is a channel battle


Channel battle, a fight channel scale.


Nearly 6,000 stores in Europe and its nearly 100 billion revenues match. Nearly 3,000 stores in Sofia and its 6.1 billion revenues are matched. In general, the stores have over a thousand brands. Sales will exceed or approach one billion, such as Canoa, Broadway, Shihneman, and so on.


Two spell channel features


Shangpin Delivery & Viviance achieved more than 5.3 billion in revenues from more than 1600 stores, relying on unique channels.


The first feature is a large number of direct-operated stores. Last year, Shang Pinzhai & Weiyi Direct Stores increased by 9 nets to 85, achieving a revenue of approximately 2.3 billion yuan, an increase of 21% over the same period of last year. Half of the country.


The second feature is the O2O+ shopping mall model of Shang Pinzhai & Weiyi. By 2017, Shang Pinzhai & Weiyi had 886 shopping malls (63 directly-operated stores and 823 franchised stores), among which, The shopping malls in the affiliated channels in the tier 1 to tier 5 cities accounted for 82%, 79%, 73%, 55%, and 32%, respectively. In 2017, the number of single-store shops in the franchise stores was approximately 6.6 million. Yuan, which is much higher than the 3.8 million yuan of non-shopping mall franchises, once again confirms that the company will continue to benefit from the mall shopping strategy. At the same time, Xinju.com cooperates with Tencent, Baidu, Alibaba, Jingdong, today’s headlines, and 360 companies. The dealers provided O2O drainage services and achieved revenue of RMB 109 million, an increase of 82.04% over the same period last year.” Vishon’s move was still quite fierce.


Canoa's "1=N" and Laoka's "1âž•N" are also characteristic channel models.


Three spells channel expansion.


In terms of last year, there were more than 300-400 channels for rapid expansion, 200-300 for general expansion, and 100-200 for slower expansion, according to the investment results of several large exhibitions in March. Since the beginning of this year, the difficulty of channel expansion has greatly increased and the speed has slowed down.



Is the brand battle


Last year's data showed that in terms of brand value, Europa sent a total of 23.955 billion euros, and still had 14.453 billion euros worth of home goods, 13.875 billion sofis, and 102.46 billion.


Now, homogeneity is a common problem faced by the custom home furnishing industry in the whole house. Design homogenization, product homogenization, channel homogenization, promotion homogenization, capital homogenization, etc., how to be increasingly homogenized Stand out from the serious market competition? What can best reflect the differentiation of enterprises?


I think it is a brand. Because, from the demand side perspective, in industries where homogeneity is very obvious, consumers’ brand awareness and reputation are the deciding factors when selecting products. Today, consumers are escalating. The transition from product consumption to brand consumption has taken place. New middle-class production, new consumption, and new retail have all focused on brand consumption.


From the perspective of the supply side, brand premium is an intangible driving force for the extraordinary development of the company. Since its listing last year, the market value of Oupai home has exceeded 60 billion once. Why does the market value of Oupai home rush to such a high level? The fact that Europa House's brand recognition and reputation are a lot of extra points. Why is the branding of an established home furnishing company's financing in an important direction? Because the brand has been set up, its competitive threshold for setting is hard to overstep.



There are also management battles, marketing battles, talent battles, capital battles, and so on. Because of the time, I wrote here today. I will discuss the rest of the next column. (from Pan Furniture Circle)

What is a custom home?

In a general sense, we define wood custom homes as: “Use wood materials such as wood and wood-based panels as main raw materials, and meet the individual needs of indoor homes through field measurement, design, factory production, on-site installation, and acceptance procedures” .

Then how do we define custom home? According to the two characteristics of customized home personalized needs and large-scale customization, it is a set of companies, customers, suppliers, employees and the environment in one, under the guidance of system thinking, use the whole The optimized viewpoint makes full use of various resources already existing in the company. With the support of standard technologies, modern design methods, information technology, and advanced manufacturing technologies, according to the individual needs of customers, mass production at low cost, high quality and Provides efficient production of custom products and services. Simply put, custom home is a manufacturing model that meets the individual needs of customers by means of mass production.

The range of custom homes mainly involves 6 spaces: living room, bedroom, kitchen, dining room, bathroom, study room, etc. The product chain involves mobile furniture, custom wardrobes, cabinets, floors, wooden doors, wooden stairs and so on.

China's custom home situation

According to the survey, with the ever-increasing competition in the industry, custom home development trends have gradually shifted from plate-type customization to full-house custom customization, and the product chain has been gradually improved and enriched. In 2017, the mainstream custom home companies basically completed the “all-house custom” brand strategy upgrade. The first “home customization” from Shang Pin’s home delivery is unique, and the later Europeans, Sophia, Hollywood, and Marg have all turned to “custom house customization”. According to relevant experts, the customization industry will maintain an annual growth rate of more than 20% in the next five years. By 2020, the market size will exceed 200 billion yuan, and the outlook is very optimistic.

At this stage, the custom home industry is very prosperous, but it is also mixed with many problems.

1, the standard issue

The overall performance of the custom home industry is a lack of standards and cannot meet the demand.

Experts explained that the current standards cannot adapt to the requirements of supply-side reforms, lack the rules for protecting the rights and interests of related parties, and lack systemic considerations for custom home furnishings. With the advancement of supply-side reforms, the content of custom home participants and services has undergone major changes. Among them, designers have added links to design plans and extended the time for product shipments. Product + service has become the main theme. At the same time, because custom home products belong to emerging products in recent years and belong to tailor-made products, there are no clear provisions in design schemes, contract contents, service timeliness, acceptance standards, warranty returns, etc., resulting in frequent occurrence of finished products. , deeply criticized by consumers. Not only that, there is also a big loophole in custom home products and product integration, product and building coordination, and there are often goods out of stock.

2, quality problems

According to the report on the quality of major domestic products in China in 2016, on the whole, the odor, formaldehyde, etc., are far from the consumer demand.

Quality is an important basis for consumers to buy furniture products. However, there is a problem of excessive formaldehyde content in both standard furniture and custom homes. According to statistics, there have been a number of incidents in which excessive levels of formaldehyde have caused poisoning during the three years from 2014 to 2016. At the same time, consumers are very sensitive to the problem of strong home odors. It is understood that customers have complained that the refurbished cloak room smells bad. In the morning, they enter the cloakroom to change clothes or sleep in the room at night. They often feel dizzy and disgusted. They suspect that the company’s product formaldehyde. Excessive standards require the removal of odors. The customer has used the fan for a month and the odor is still difficult to eliminate.

3, brand issues

First, the number of well-known brands is small, and brand quality has yet to be improved;

Second, brand cultivation and brand protection efforts have yet to be strengthened;

Third, the brand evaluation system and brand service system are still not perfect;

Fourth, the company's investment in brand building is not enough;

Fifth, the brand's intrinsic value needs to be strengthened, such as stable quality assurance, good after-sales service, and release of social responsibility reports.

4, service issues

First, there is not enough emphasis on services.

Second, the lack of service standards;

Third, the implementation of discounted;

Fourth, there is a phenomenon of arbitrary charges in services.

In short, at this stage, the gap between the service quality of the custom home industry and the demand of consumers is still relatively large.

Custom home opportunities and challenges

Judging from the national development process, the emergence of customized homes conforms to the national consumer product standards and quality improvement plans and meets the requirements of the “Made in China 2025” charter; from the perspective of industry development, customized homes meet the industry's transformation and upgrading and supply-side reform needs; From the perspective of consumers, customized homes satisfy consumers' increasing personalization and functional requirements, allowing them to maximize the use of indoor space, improve decorative effects, shorten the decoration cycle, reduce pollution, reduce energy consumption, and reduce costs.

However, the future is both an opportunity for custom homes and a challenge. At this stage, most customized brands launched on the market are “customized” in size at most. Some people in the industry believe that the current custom furniture is more of an extension of the concept of the previous home.

Summarize the current development of custom home furnishing industry. In the future, custom home furnishing will present two major development trends: green environmental protection and brand service. However, according to expert analysis, there are only a few companies that can do overall home customization. Most of them are still based on individual customization; some enterprises in the custom home industry are not standardized in operation, and consumer satisfaction is low; some enterprises and green (green design, Raw materials, manufacturing, products, etc.) The gap in the requirements of the home. It can be seen that custom home companies should also make persistent efforts.

Expert advice:

Custom home related companies need to pay attention to relevant national policies; Actively participate in the development of custom home related group standards, industry standards, national standards; Concerned about the new standards (such as GB 18580-2017, "green product evaluation panel and wood flooring") quality requirements Concerned about the problems of formaldehyde, VOC, odor, etc. in custom homes; Concerned about national cleaners' production and environmental protection requirements of the national environmental protection department; Concerned about the recycling, utilization, and disposal of discarded custom household products; Attention to the innovation and application of materials and their products; From the order, measurement, materials, design, manufacturing, packaging, transportation, installation, service of the entire system construction; spend effort to study the new needs of consumers!

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