The home building materials supply chain is divided into three parts: the auxiliary material supply chain, the main material supply chain, and the furniture soft supply chain.

HengTen Networks Group, belongs to China Evergrande Real Estate Group, cutting into the main material with an open supply chain.

On May 8 this year, Evergrande held the “Evergrande Group Supply Chain Sharing Strategy and Hengten Network Assembly Product Launch Conference” in Shenzhen, and officially released the supply chain sharing strategy, which will open the Evergrande for home improvement enterprises for 22 years. The building material supply chain system, including the basic decoration main material package, the kitchen decoration main material package, and the bathroom decoration main material package.

According to the 2017 annual report released by Hengten Network in March, HengTen Network has signed a strategic cooperation agreement with hundreds of building materials suppliers based on the construction of a “one-stop” building materials supply platform. At the end of the year, 200 building materials brands will be introduced in the future, and the number of SKUs will be increased from 3,000 to 10,000.

Jingdong – With the smart community cutting into the home decoration market, is there a possibility of cutting into the supply chain?

On May 20th, Jingdong’s first project of “Jingdong Smart Community” landed in many cities across the country. The work of this offline community includes home appliance cleaning, water and electricity maintenance, housekeeping, clothing and shoe care, express delivery, mobile phone repair, and floor heating，installation, wall refresh, and more. Jingdong said that the project will provide residents with offline home improvement services in the form of “community butler”.

This is a breakthrough in Jingdong's access to home building materials e-commerce channels, which also reveals signs of JD's layout of home building materials supply chain.

At present, in China, the domestic main material supply chain market has a large development space, but the profit is not objective, because the profit space of the main material products is too transparent.

On the one hand, large enterprises opening up their supply chain systems need to establish a new price system with brand suppliers. It may be necessary to give up some of the benefits to other traditional sales channels, which will cause conflicts between the original sales channels and manufacturers.

On the other hand, users of the main material supply chain are often home decoration companies, but it is difficult for people to install their own supply chain system, and small home improvement companies have problems such as high bad debt rate, low profit margin, and low volume. This is also a problem that the future supply chain platform must be carefully weighed.

（Source: JJGLE.COM）