2018 Home Supply Chain and Logistics Development Trends

The overall development trend of the home industry

1. The industry chain is long and the market scale is large

The home industry chain is long, and it gathers related enterprises from design, procurement, production to sales, delivery, maintenance and other aspects of the whole process. The market scale is huge. According to the data, the size of China's home building materials market in 2017 was 4.27 trillion yuan. Among them, the enterprises above designated size in the furniture industry realized the main business income of 905.6 billion yuan, a year-on-year increase of 10.1%; the total profit reached 56.52 billion yuan, an increase of 9.3%. By the end of 2017, China's furniture industry had reached 6,000 enterprises above designated size, an increase of 439 over the previous year, mainly concentrated in Guangdong, Zhejiang, Fujian and other places, forming the Pearl River Delta, the Yangtze River Delta, the Bohai Sea, the west and the Northeast. Five major furniture manufacturing areas. It is expected that the overall market of China's home improvement industry will maintain a high growth rate in the next few years.

2. Customized product demand is rising rapidly

In the context of consumption upgrades, consumer demand for personalized home products is on the rise. Customized furniture has a rising market share due to its aesthetic and practical appeal, as well as its outstanding personality. At the same time, as major home furnishing companies have landed in the capital market, advertising is heavily intensive, marketing activities are diversified and frequent, and the concept of customization is becoming more and more popular.

3. The sales model has changed, omnichannel

Emerging sales channels are gradually squeezing traditional sales channels. The proportion of online shopping for large items including furniture has risen rapidly, and it is predicted that by 2020, the proportion of e-commerce channels for large-sized goods will reach 40%. The data shows that more than 80% of furniture companies pay great attention to e-commerce, more than 60% of furniture companies are planning to implement, about 30% have been deeply involved, and 5% have achieved good economic benefits. With the advent of the new retail era, the online and offline omni-channel integration development business model has become the direction, prompting enterprises to achieve omni-channel resource interoperability, information interconnection, mutual appreciation.

In addition, some national chain decoration companies started from the design, construction, building materials, furniture and other links to carry out the entire industrial chain layout, embezzling the furniture market share. At the same time, with the gradual hardening of commercial housing sales, large real estate developers have begun to provide individualized home solutions for residents, and cooperation with developers has become an important channel for sales of household products.

4. Industry 4.0 helps mass customization

The proportion of personalized production of customized household products is relatively high, and the production mode has the characteristics of individualization, small batch size and multiple batches. In recent years, thanks to the acceleration of the process of industrialization 4.0, the application of artificial intelligence technology has realized the production process of component-directed machines by scanning the two-dimensional code containing processing information on the product parts, solving the problem of identification of non-standard parts, and mass customization has become Possibly, the efficiency of custom home production is greatly improved, and the cost performance advantage is highlighted.

5. The application of information technology is gradually wide

In terms of consumer experience, internal operations, and intelligent manufacturing, the information system gives home enterprises great support and boosts operational efficiency. The use of information technology in the custom furniture industry is more and more extensive, but the flexible production process and informatization level of customized furniture enterprises are still uneven. In order to realize the personalized design and large-scale production of customized furniture, custom furniture enterprises are in the customers. Computer technology, Internet technology, bar code technology and other modern information technologies are used in services such as service, product design, product production, logistics and distribution, and store sales management.

New trends in home supply chain and logistics development

Changes in commercial channels will trigger changes in supply chain logistics. In recent years, with the continuous changes in the sales channels of the domestic household building materials industry, brand owners, distributors, and service providers must integrate internal and external resources to establish a supply chain system that adapts to them.

1. Integrated supply chain construction

At present, the omni-channel trend of the national market as a unified market has begun to become more prominent. The home industry enterprises have truly felt the indispensable integrated supply chain in the new era. From the perspectives of informationization, collaboration and management, demand-driven, The flexible and agile, integrated and interconnected construction of the integrated supply chain began to be gradually built.

2. Smart logistics helps manufacturing

The era of change requires not only innovative ideas, but also advanced technology. With the creation of intelligent manufacturing and smart factories, smart logistics is receiving unprecedented attention from enterprises. Qumei Home, Ou Pai, Meikemeijia, Sophia Home, Boss Electric, Hao Laike, Gujia Home and many other well-known home furnishing brands are all Actively carry out manufacturing upgrades, build smart factories, and build a smart logistics system.

3. All logistics service providers are working together

With the rapid development of the home furnishing industry, the huge home furnishing market has attracted more and more service providers, and has gradually formed three camps of self-operated logistics service providers, third-party logistics service enterprises and platform-based service enterprises. Among them, Jingdong, Suning and other e-commerce giants rely on a strong self-built logistics system to provide integrated logistics service solutions for the home furnishing industry; third-party logistics companies such as Rishun and Debon are still the main force in the furniture logistics market. More and more logistics departments of large-scale home furnishing enterprises are also accelerating the transformation into third-party logistics companies, from the cost center of enterprises to profit centers; in recent years, the emergence of platform-based enterprises such as Hometown, Ant Anju and Yizhitong With scale, on the one hand, it provides B-end customers with a full-process integrated solution from the factory to the after-sales service; on the other hand, it provides a one-stop home supply chain service for professional design, delivery and after-sales maintenance for C-end consumers. . Overall, companies that offer a full-category, omni-channel, full-process, integrated logistics service solution will win in the fierce home logistics market.

4. Logistics service standards are introduced to regulate industry development

In May 2017, China National Standardization Association and Japan Rishun jointly issued the first domestic full-service service standard for large-scale smart logistics, and standardized the eight links of “cang, dry, match, install, recruit, review, repair and visit”. Covering the whole process of products from warehouse to distribution to return, it means that large-scale logistics services have officially entered the era of “standardization” that can be relied upon.

In July 2018, the first domestic shipping e-commerce industry's first delivery standard "Household E-commerce Delivery and Installation Service Specification" was officially released. The specification is jointly prepared by the National Federation of Industry and Commerce Furniture and Decoration Industry Association and Jingdong Logistics, and regulates eight aspects of personnel requirements, facilities and equipment, delivery, installation, acceptance, after-sales service and service quality evaluation to help promote long-term development of the industry. .

5. Logistics automation and intelligent upgrade to help transform and upgrade

Due to the large size, heavy weight and diverse packaging specifications of home furnishing, logistics automation is facing great challenges. Therefore, most of the warehousing operations have been done manually. With the increase of labor costs and the continuous development of technology, home automation and intelligent upgrading are imperative. For example, during the “618” promotion period in 2018, the Sunshine Logistics Hangzhou Smart Warehouse was put into operation and became the country's first large-scale product smart warehouse. It is reported that all the goods in the warehouse are carried out under the guidance of the algorithm from the process of storage, access and delivery. The AGV completes the automatic handling of the goods, effectively avoiding the damage of the goods, using the goods to the car, unmanned in the warehouse, and the goods are delivered. In the people sorting mode, the picking accuracy rate is almost 100%, and the warehouse space utilization rate is three times higher than that of the traditional warehouse.

Break through the bottleneck and win the future

The good development trend and market prospects of the home furnishing industry have brought great development opportunities to the home supply chain and logistics related enterprises, but the challenges are not to be underestimated.

Overall, the home furnishing industry has the typical characteristics of “big industry, small enterprise”, low industry concentration, and the majority of SMEs occupy the market. The investment in information technology and logistics system is insufficient, and the operational management ability cannot keep up. Enterprise Development. The home furnishing industry has great room for improvement from product design, auditing, production (involving to line-side logistics), to finished product storage, transportation, distribution, etc., especially the non-standard problem is serious, in the product packaging is not standard, product coding In addition, the level of enterprise informatization in the home industry chain is not high, the information is opaque and not timely, the logistics operations mainly rely on labor, and the logistics efficiency is low... These all bring trouble to the development of the enterprise.

In the critical period of transformation and upgrading of the home industry, whether it is home production enterprises, home stores, e-commerce platforms or logistics service providers, we should seize market opportunities, introduce advanced concepts and applicable technologies to solve logistics problems; logistics technology equipment and consulting services Enterprises should also grasp the characteristics of the home industry, understand the needs of enterprises, and use advanced technology and solutions to help transform and upgrade home enterprises.