Cross-Border E-Commerce Changes to the Office Furniture Industry

At each stage, new consumer groups will promote a major change, affecting consumption scenarios, channels, and all practitioners. The office industry is no exception, from failing to understand to failing to follow, and finally to failing to keep up. Disruptive innovation has never been generated from within a centralized large enterprise, because market segment monopolistic large companies, original successful business models, corporate culture, KPIs for departmental evaluation of profits, executive thinking models and mechanisms There is no limit to subversive innovative products and models that are more in line with the interests of consumers.

If you are a person in the traditional office furniture industry, who do engineering and receive foreign orders, are you sighing that it is difficult to do business from 2020? The impact of the economic downturn has caused many major offline customers to cancel overseas offices Orders, domestic engineering orders are also difficult to make?

I flew back and forth to the United States for 3 years, visiting offline sales scenarios and online marketing companies for office furniture in the United States, from office furniture stores in the city of Los Angeles, to stores such as Staples and officedepot, from Wayfair.com in Boston, to Seattle. The Amazon.com company, and then to Atlanta to visit the top Amazon online office furniture retail brand in the United States. I personally felt the “crisis” brought by the epidemic to everyone and every company, like two sides of a coin, while bringing the traditional office industry to the Danger is coming. On the one hand, it brings new opportunities to the new office retail industry. Most people feel the danger. The overseas epidemic has caused many people to work from home, and the demand for corporate scenarios has decreased, affecting every practitioner in the industry. That opportunity where do you start?

First of all, from the financial report of a listed company, the well-known office lift table company Lege shares: Since 2020, the housing economy has become popular, and home and office supplies have become rigid needs. Lege’s main products are smart homes such as lifting tables, lifting tables, various new office systems and equipment, functional furniture and components.

Recently, Lege released its 2020 annual performance report. In 2020, it realized operating income of 1.936 billion yuan, a year-on-year increase of 97.96%, of which the fourth quarter realized operating income of 717 million yuan, an increase of 162% year-on-year; the net profit attributable to shareholders of listed companies was 2.1- 230 million yuan, an increase of 233.44%-265.19% over the same period last year.

Lege analyzed that its annual performance achieved substantial growth, mainly due to several points:

1. The market share of linear drive products continues to increase.

2. The independent brand business continued to improve. In 2020, cross-border e-commerce sales accounted for 1.03 billion yuan, and sales accounted for 53.3%, a year-on-year increase of 197%; independent site sales accounted for 27% of cross-border e-commerce sales.

Analyze the changes in office furniture from the financial report:

1. Work habits have changed. Many companies in the United States require their employees to work from home, especially Internet and technology companies. They only need to be online to meet the needs of collaborative office. Some companies provide $1,000 for employees to purchase daily office products. Working habits, there are not many independent offices. With the outbreak of the epidemic, the demand for office furniture has increased a lot. It has become the norm to sell 1.5 to 1 container of products per style and color every day.

2. The consumption habits have changed. Previously, less than 20% of the people in the United States bought furniture products online. As soon as the epidemic came, the behavior was restricted by the home order, and the US government issued money to each household. In 2021, it was 2,000 US dollars per person. This behavior has spawned more consumption, and furniture accounted for a high proportion of consumption. Lifting desks, computer desks, standing desk converters, office chairs, can be described as selling crazy, the goods have not been sold enough, many people overcome The worry about buying large furniture products online for the first time, try to change, adapt to the habit of online shopping, these will not stop consumption after the epidemic.

3. Shopping thinking has changed. When buying things offline, you must see the real thing, feel and experience the actual product, and then consider the price to buy. When buying things online, starting from efficiency, first of all, it is a large number of styles, prices, pictures, and functions. You can only place an order when you look at the praise, and you can experience the product when you see the actual product. Therefore, the price competition is more intense and the style iteration is faster. Take the computer desk as an example. It used to be an ordinary computer desk, but now you have to buy a computer desk that is available everywhere. The price is very cheap before someone can buy it. Then the price of buying an ordinary computer desk offline has been replaced by a desk with a lifting function. For the same money, buy more tables with more functions and more beautiful appearance.

If you come into contact with factories that export office furniture, you will find that the orders for each office furniture factory are oversaturated, and they are planning to expand production capacity and expand their factories, but there are not enough workers. The current production plans for orders have been received in 2021. After May, there was no time for small orders. In previous years, traditional offline large customers placed orders for centralized procurement. Now they are also large customers, but they have become more online e-commerce customers. Many of them are big sellers in the e-commerce industry. Factory workers go to work 7 days a week. Because of the epidemic, many people are willing to accept subsidies for working overtime at the company. Many diligent blue-collar workers can earn nearly 20,000 yuan a month, which is higher than that of white-collar workers.

The epidemic has accelerated the migration of consumer users of ordinary offline products to online. Home office is a new scene. According to the income level of the United States, furniture under US$1,000 in the United States is a consumer product. Furniture at home will be renewed within 1-4 years. Buy it again, unlike in China, furniture is a long-term used product. If you visit furniture e-commerce sellers in Shenzhen, Guangzhou, and Ningbo again, the furniture in the non-office scene is sold out, and the stock is not enough, and the office furniture hong kong is often out of stock, then where do these businesses come from? This is undoubtedly the best evidence that offline consumers are moving up. It is said that if people change their habits, it is difficult to change back. Of course, luxury brands in the office furniture industry and the business model of engineering orders have nothing to do with this, and it is difficult to copy.

Looking forward to cross-border e-commerce in the office furniture scene in the future, there will be more practitioners, and we can work together like-minded to do more collaboration for this incremental market of home office, and unite more office furniture product development factories and designers, Work together to build Internet platforms like houzz and wayfair, improve industry efficiency, reduce marketing costs, and meet the needs of more new consumer groups pursuing the ultimate cost-effectiveness and aesthetics, and strive for another 10 years to witness the next golden decade of the industrial Internet.

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