The home furnishing industry is entering a new incremental era centred on users. Since the market changes constantly, how to create new growth momentum for the home industry through digital marketing has become a common challenge for home furnishing enterprises.
1, The commercialization of the consumption chain forced the digital transformation of the home furnishing industry
The household industry is entering a new incremental era.
China's real estate market has led to the growth of China's household industry in the past 20 years. According to the Research Report on the digital transformation of China's home decoration industry in 2021, the compound growth rates of China's commercial housing sales area from 2000 to 2007, 2009 to 2014 and 2016 to 2020 were 22.9%, 4.1% and 3.0% respectively, corresponding to the three stages of the rapid outbreak, comprehensive development and mature development of the home decoration industry. But now, under the new principles and policies, the era of real estate driven growth has ended. In the future, consumers' new demand and willingness to spend on decoration will become the core driving force for the growth of the home furnishing industry.
2, Short video empowerment to seize the incremental business opportunities of digital transformation of home furnishing industry
How to seize the incremental business opportunities of digital transformation of the home furnishing industry? For home furnishing enterprises, Kuaishou, Xiaohongshu, and Douyin are becoming an important position for them to win new users.
"All household enterprises should digitize their products by means of short videos." Cai Yue, founder and CEO of Youku, pointed out the core strategy for household enterprises to win customers at present. "In the past, the new functions of household products were transmitted to users through graphics and even instructions, which is difficult to understand, but short video can present new functions to users in a very visual way in a very short time, so as to stimulate users' purchase needs." in the past, all products started around everyone's desired needs, and the development of short video, It has stimulated the pain points of consumers and stimulated the emergence of new consumer demand. As a low-frequency and service-oriented industry, the demand for customers in the home furnishing industry has been increasing, and the emergence of short videos can make more home product consumers directly and quickly popularize.
3, Digital marketing upgrade helps household enterprises build a second growth curve
Home furnishing enterprises have used Xiaohongshu, Douyin, Kuaishou and fast hands to create multiple products. However, some household enterprises have failed to fully adapt to the new incremental era. Although they have also started online delivery and drainage, the effect is limited.
Industry insiders pointed out that the investment of household enterprises in marketing is rising every year, the budget is getting higher and higher, but the effect is not significantly improved, and the operating profit is decreasing, so that everyone thinks that the traffic has become expensive.
But in fact, the crux of the flow becoming expensive lies in the high loss rate and low conversion rate. Therefore, for home enterprises, the digital upgrading of marketing is imperative.
In the new incremental era of the home furnishing industry, the enterprises are facing new consumer groups, new consumer needs and new consumption scenarios, but they are also facing the problems of lack of consumer trust and low flow transformation. In this case, the traditional way of getting customers has failed. Only by realizing the digital upgrading of marketing, can we create the second growth curve at this critical moment, so as to seize the strategic commanding height of the future home industry development and win the initiative of competition.