This blog is the note and review about the podcast for 你会在网上买家具吗 in 疯投圈.
Rank GMV ( Gross merchandise volume)
- female clothing
2. furniture (unit price is very high)
markup — already in red ocean
The reason why purchasing furniture online?
If here is no offline stores (Ikea) nearby, which leads people to purchase furniture online.
features of furniture
- more customized preference than other items (prefer in online market)
- more care about concerning the sense of touch, smell and quality
Why not online:
- offline experience >> online experience
- low frequency -> recommendation hard
Future possibility for online furniture
offline: demo, experience the product
online: customer service + booking
- total experience and design the whole scenario experience and furnitures -> unlike market, which holds independent blocks -> super good supply chain integration
- the percentage of food is revenue is 10% -> customer for there not only for purchasing but experience and leisure
- no sales for furniture -> no push sales -> casual shopping experience
- not only 1 best unit but total product design, supply chain and sales are cooperate as well
- the suppliers only focus on specific very well -> bargaining power much less than Ikea -> save cost
in China, consumer of furniture ages are 28 above. Younger people prefer to spend money on clothing, make-up (outside) and then they will focus on (inside) furniture.
two dimension of furniture
the size of SKU -> small item or big item?
from product to service (designing service), for service : maybe designer to offline design or online light (website or online consulting)
online furniture? how to design
VR -> too early for business now
current stage -> image on website to let user to know the design of the furnitures
trend: image -> video
clothing: it is ok, just let a model to try the clothing for image
makeup: how to make up (teaching) -> video is better
furniture: video is better (install, organize the layout of house)
What is the best background of the cofounder for ?
cofounder: background come from supply china
cofounder: background come from network, operation, content-based
How to brand? furniture is customized, brand is important. How to build the brand?
E-business -> service
small item -> big item
usually people purchase 5–7 times and build the branch recognization -> it is hard to build the brand for product
However, there are product brand and channel brand
product brand: iPhone
channel brand: Amazon, Ikea ( channel provide the value and trust)
For furniture is better to build a channel brand. From small items to big items since small items for many times to build the trust.
How easy to build the brand for the furniture item?
The time of people use: bed, office chairs -> health issue (health brand)
The conflict between Distributor and furniture business
Distributor (offline) is afraid of the furniture business to sell online and they sign contract to avoid the furniture business cannot sell online.
If online platform only earn 33% from the furniture business, most of the furniture business will cooperate with the online platform.
What kind of online platform can be successful?
Scenario Design: from image or video to build the brand trust from purchasing small items and then gradually sell them big item (furniture)
Strong item brand: like bed, office,
From designers: help designers to build 3D, VR tool to improve design efficiency to make the entrance as designers and sell products.
USA: wayfair (furniture E-business), houzz (furniture design)
-> not only business model best but also operation
Why Ikea not do online?
In reality: distributing, store issue(delivery cost is too high if there are in different cities)
Delivery cost is too high -> online price > offline price
If consumers found online cost is higher than offline cost, people will start not to trust Ikea.
However, online platform even set no delivery cost in website but they already add the cost into the current price.
This podcast is very amazing!
I will give it 90 score!
I learned many things about supply chain for furniture and what is the concern between online furniture and offline furniture and what is the difference between furniture stuff and other small items