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Economy has a new standard nowdays
Author:Tangshifu Furniture| release time:2020-08-18

E-commerce has been squeezing the real economy for many years, especially after the overall consumption growth began to slow down.

Three sets of data from the National Bureau of Statistics and the Ministry of Commerce:

In the first three quarters of this year, affected by the decline in the automobile industry, the growth rate of China's total retail sales of consumer goods fell to 8.2%, and only 6.4% after stripping the price factors. Excluding the car, the increase in social consumption is only 9% (without stripping price factors).


At the same time, the growth rate of e-commerce in the same period was nearly twice that of the overall consumption growth rate, and the online retail of physical goods increased by 20.5% year-on-year. The continued growth of consumption in China mainly occurs in e-commerce.

Affected by this, the sales area of shops (commercial premises) nationwide fell by 13.7% in the first three quarters.the living room furniture manufacturers in china have not had too many expectations for the future of offline business, and the amount of investment in commercial premises in the first 9 months of this year has decreased by 8%-this is the only real estate investment that has seen negative growth in investment By category, office buildings and residential buildings grew by 0.8% and 14.9% respectively.

The stock prices of the top three e-commerce companies rose by 37%, 95%, and 56% respectively from the beginning of the year. The lipstick economy has a new standard in the Internet age.

New concept

If we say that "new retail" was more of a "new concept" in the first two years, then this year we have seen a large number of practitioners and tangible results.

After decades of development, informatization seems to be being replaced by "digitalization". What is the difference between the two?

In the author's opinion, informatization is the management and optimization of business processes, while digitization is the reorganization of business models, or even breaking or subverting traditional business models. Therefore, it is not an exaggeration to regard digitalization as a kind of "rebirth".

Of course, before digital is reborn, there must be digital natives. IDC first proposed the concept of "digital native" in its report at the end of 2018. Simply put, digital-native companies refer to digital-native companies, mostly Internet companies and technology companies, and the corresponding traditional companies are non-digital-native companies.

living room furniture manufacturers in china

A consensus

There is a consensus that in the future, living room furniture manufacturers in china will become digital enterprises. If you are not a digital native enterprise, you must become a digital rebirth enterprise.

In fact, in the wave of digital transformation of traditional industries, it is especially like a lone boat floating in the ocean. To move towards digital "rebirth", you must make up your mind and find the right direction. For the traditional industry of home furnishing , How can we move towards digital rebirth?

The emergence of the Internet is a mixture of love and hatred for many traditional industries. The Internet has brought home furnishing companies more contact with users and more diversified customer acquisition channels, but home furnishing companies that are not good at using digital technology are also facing many challenges from the Internet.

The dining room furniture manufacturers in china, the understanding of digitalization is still quite limited. Taking the Internet as an example, some home furnishing companies think that e-commerce is the Internet, and that logging on to JD.com and Tmall or building their own e-commerce platform is the trend After Internet+, we entered the digital transformation.

But in fact, the key to the success of the Internet is not just moving products online, nor is it simply establishing new connections. The essence of the success of the Internet is the application of technologies such as big data, cloud computing and AI behind it to solve the information asymmetry of the industry chain from the next week to the next, the high cost of operation and the low efficiency of circulation.


We should also see that in today’s macro environment, the traditional operating model that the home furnishing industry relied on in the past is increasingly costly under the diversified and refined needs of users. At the same time, many digital native "species" Under the squeeze, profit margins have gradually become thinner.

Li Ka-shing has a famous saying: "Eggs, broken from the outside is food, broken from the inside is life." Indeed, for any industry, breaking the convention from the inside is innovation and transformation, while being broken by external forces is subversion.

Therefore, the only way to solve the current dilemma is to quickly move towards digitalization. Home furnishing companies do not need to be afraid of digitalization. The meaning of digitalization is not to subvert the existing business logic, but to empower us with digital native companies to compete on the same platform.

Objectively speaking, dining room furniture manufacturers in china really understand the industry and users. The only thing they lack is how to use digital technology to improve efficiency, optimize the supply chain, broaden the ecosystem, get closer to users, and even It is the distance between young groups.

So, what kind of digital partner do home furnishing companies need?