"Wolf" into the "sheep" group of weak meat
In the past three years, the average domestic household consumption market has increased by more than 30%, and the annual output value has reached 600 billion yuan. China's huge market has attracted various capital bets to “gambleâ€.
After the US Carlyle Group invested US$27.5 million in Shanghai Anxin Floor and Singapore Ruisheng 30 million US dollars to invest in Beijing Dongyi Risheng, Huaping Investment Group, one of the largest private equity investment funds in the United States, intends to invest in Red Star Macalline, Japan. Softbank invests in NVC and so on. The involvement of foreign capital will put forward higher requirements and suggestions for home furnishing enterprises from the perspective of international vision and globalization, and help home furnishing enterprises achieve updated norms and management levels in terms of company structure, personnel training, finance, and investment decision-making.
Although the current annual output value of the lighting industry is only more than 150 billion yuan, the development of the lighting industry continues to be fast and stable. The growth rate in the past five years is above 20%. It can be seen that the market potential of the lighting industry is huge, and it also has great investment value. With huge market space, however, in the current domestic financing environment, many lighting companies are experiencing growing troubles – a shortage of funds.
It is true that lighting companies only operate their own brands with their own funds. The difficulty is conceivable. Industry experts believe that China's lighting industry needs to be bigger and stronger. First, a group of enterprises must first become bigger and stronger. To stand out from the crowd, you must seek a way out of capitalization. At the beginning of this year, the newspaper determined to support 30 companies to enter the capital market within five years, which is based on the development trend of such industries.
In 2006, NVC first introduced the Japanese Softbank Venture Capital Fund, followed by Zhen Mingli successfully listed in Hong Kong and Snowlight listed in Shenzhen. In 2007, leading enterprises in China's Dengdu Ancient Town, such as Huayi, Op, and Shengqi, also responded to market demand and began to reorganize internal management and actively prepare for listing. Capital operation is beginning to show up in the lighting industry. However, according to experts' analysis, the technical content of lighting lighting products is too low, the management of enterprises is not standardized, the market is not mature, the profit model is not clear, and the investment income is unpredictable. This causes the investment cost of China's lighting industry to be high and the risk is high, so that a large amount of capital is still returned. Being on the sidelines. If lighting companies can make breakthroughs in profit model innovation, then they will have a better chance of gaining capital.
After the "network" era
For many years, products in the home industry have relied on traditional store channels for sales. Although this method is relatively straightforward, the shortcomings are obvious, that is, the cost is higher. In the past, when the profit rate of the home industry was high, the drawbacks of this sales method were not obvious. However, today, when the competition in the home industry is increasing and the average profit is declining, this problem is more serious. Therefore, finding a more effective and lower-cost product marketing method has become a topic of increasing concern for brand home furnishing dealers. Efficient, low-cost Internet brand home marketing has gradually surfaced, and the use of the network to seize the new marketing highland, this is the tacit understanding reached by everyone in the home industry.
In this context, Xingbang Industry Information Communication Co., Ltd. has created a “Home Improvement Vision†network (), aiming to provide a broad network direct sales platform for the majority of lighting companies, broaden the product sales channels of enterprises, and reduce overall The marketing cost of the enterprise improves the profitability of the enterprise. On September 28th, the “Home Improvement Vision†website was officially opened. Some people predicted that on September 28th, it will be included in the history of the lighting industry, because the “home improvement vision†network direct sales model will subvert the traditional marketing model of the lighting industry. “Home Improvement Vision†will also become one of the mainstream marketing channels and platforms for the future home field.
However, for lighting companies with vague network marketing concepts, how to make full use of the network to achieve product sales is undoubtedly extremely challenging.
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