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Online Sales Of Household Products Are Low, And Online Shopping Is Not In The Mainstream.
- May 14, 2018 -

"New retail" is the enterprise, which is based on the Internet, through the use of big data, artificial intelligence and other advanced technology, production, circulation of commodities upgrading with the process of sales, and restore the structure of the formats and the ecosystem, and online services, offline experience and in-depth integration of modern logistics and retail new pattern.

The combination of online, offline and logistics leads to new retail. Ali cloud meeting in October 2016, alibaba's jack ma in his speech for the first time put forward the new retail, "the next ten years, twenty years, no such thing as a e-commerce, only the new retail."

Use "household new retail" to illustrate. Although the home e-commerce scale already very considerable, the household online sales proportion is still very low. Data show that in 2016 China's household decoration market size of the market in 4 trillion, the scale of furniture manufacturing in 900 billion level, profit total scale in 57 billion, among them, the Internet although maintained a steady growth of electricity accounted (about 2.5% per year), but only 10% of the total.

The reason why online shopping is not mainstream is mainly because of these contradictions:

1. Home is a heavy experiential product, and shopping on the Internet can't achieve what you see. Whether the size of the home is appropriate, how the different products match the effect, how the individual product materials look and feel... You need to see the real thing.

2. The quality of online household is generally lower. Chinese consumers are paying more and more attention to quality rather than price, and buying high-end homes tends to go down the line, because many people have formed the stereotype of low price and low quality of e-commerce.

3. The home e-commerce service cannot keep up. The home furnishs to the logistics and the installation link demand is higher, these two links often will bring to the home e-commerce buyer to bring greater inconvenience. From the Internet to buy household products, often can't delivery or installation services such as embarrassing scene, and to traditional stores to buy furniture, after talking about the price, the other party directly provide one-stop service, truly look easy.

What will happen in the future when household meets new retail?

The new retail is not an isolated concept, and ma introduced new technologies, new manufacturing, new finance and new energy at the same time when he proposed "new retail" for a year.

Application of new technology. After the Internet, the AI, AR and VR technologies are endless, and these new technologies will change the home e-commerce. Through AR/VR technology, users can realize the effect of home furnishing before the house in the experience session. It can reduce the cost by using big data analysis to prepare goods and choose goods. The most classic application scenario of iot technology is smart home...

New manufacturing applications. Let high costs come down, not by lowering quality and shrinking services, but by making them smarter. For example, machine artificial furniture, the application of robot sorting, automatic haste, intelligent logistics and other technologies realized efficient production; For example, we can predict the market demand through big data technology and then supply the smart supply chain, which will greatly reduce the inventory and better meet the personalized needs of users.

When household meets new retail, new technology, new manufacturing application will let household new retail change the game rule of household industry, hope to make home electric business to become mainstream eventually.