O2O embraces consumers to start the transformation of the furniture industry

In the past two years, the O2O marketing model seems to be somewhat unstoppable. For example, Suning’s online and offline commodity prices have been renamed as “Suning Cloud Business”, and “O2O Transformation War” has been launched; for example, Tmall has pulled over Yintai Mall O2O and so on. Melaleuca is currently the only furniture e-commerce company that has successfully transformed from B2C to O2O. The transformation has been more than three years and the results are very good.

According to the media description, the consumers who have been to the Melody's offline experience hall most agree with their two characteristics. One is that “the online display of goods and the offline physical objects are highly consistent”, and the other is “the online store, the national unified price”. The reporter believes that these two points objectively express the advantages of the Melaleuca O2O model, and also exposed the shortcomings of the national online e-commerce and offline stores.

In the context of the network era, the price of Merlot products online goods cannot be separated from the mainstream of furniture e-commerce. And the data of online products announced by Melaleuca must be able to withstand the inspection and inspection of offline customers. Online e-commerce is likely to play "fudge" on the data. To some extent, it takes advantage of the Chinese people's "good face" mentality. Most consumers will not be able to promote the furniture when they buy furniture that does not match the materials. Moreover, buying furniture is “a hammer sale”. Unlike the “consumer” goods e-commerce such as electronics and clothing, the e-commerce business needs to take into account the “returning customers” problem, so the “trust loss” cost is extremely low.

Consumers in the Melody offline experience hall are generally placed after the actual experience, and it is difficult to ensure that competitors will send people to the customer, according to the data published online to verify the authenticity of the material. Therefore, the Melaleuca O2O model objectively makes it "frustrated" costly. Once the furniture data published on the Internet does not conform to the practice, it may face potential customer loss or become the soft underbelly of the opponent's attack. Objectively, Melaleuca's “online display of goods and offline physical objects” is also reducing the cost of purchasing decisions for consumers to screen their furniture “terminal big data”.

Under the impact of the Internet, the two traditional consumer psychology of consumers are “fear of buying expensive” and “fear of buying more expensive than others”. Traditional furniture stores have a “price moisture” that is relatively familiar to consumers. The "price moisture" of traditional store furniture items is really deep. Except for the sellers themselves, I am afraid that even the insiders will not know. Often consumers are "selling prices" more than half, and they are also "slaughter." As a e-commerce provider, Melaleuca must first be connected to the Internet in terms of commodity pricing, and “in-store, national unified price” essentially brings the online price to the offline experience hall.

It is understood that Melody CEO Gao Yang said in an interview that "we have a very beautiful sofa, the factory is sold to dealers, the dealers sell to customers, and the set of sofas sells at least 100,000 yuan in Red Star Macalline. And Melaleuca only sells 20,000 yuan." This can at least explain the highlights: First, the traditional furniture store profiteering still exists; Second, in the context of price transparency in the Internet era, as the e-commerce Merlot product pricing can only accommodate on-line.

In the era of the Internet, the bottom line is to allow consumers to compare more data and discover more value at less cost. The screening of data is costly, and the O2O model just reduces this cost, and Melaleuca Furniture does just that.

In essence, the network is virtual, and the fundamental purpose of developing the network is to make the reality a better place, rather than using virtual reality to achieve virtual prosperity. Therefore, the online regression line is inevitable, and this return is also the root cause of O2O's development.


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