How can home furnishing companies embrace the digital wave?

Source:77° Global Furniture Media

Industry leaders share their thoughts on the future of enterprise digital transformation.

The grand transformation of the digital transformation of the home furnishing industry is accelerating.

Global economic growth is slowing down and market demand growth is sluggish. In the past, companies relying on capital expansion have become unsustainable. From the government to the enterprises, they are actively adapting to the new market environment and seeking development through reform and innovation.

Under the traction of national top-level design and the growth pressure of home furnishing enterprises themselves, digitalization will still be the key word of the home furnishing industry in the next 10 years. Realizing industrial upgrading through digital technology and connecting consumers and industries will create huge social and industrial value.

Full-link digitization accelerates the reconstruction of new home furnishing formats

Home furnishing companies should follow the trend and embrace the new era.

At present, post-95s have gradually become the main force of home improvement, and more and more consumers are easily moved by content; e-commerce platforms have gradually become the main channel for users to obtain home improvement products, and online channels are also the main path for product innovation and brand building; 3D cloud design and all-inclusive package are leading the service market, and home improvement service consumption has become a new growth engine; simplifying the cumbersome and complicated decoration process has become more and more popular with consumers... Various signs indicate that the digitalization of the home is urgent.

Mr. Shi said that digitization must be comprehensive, connecting online and offline, digital channels, digital marketing, digital design, digital production, and digital contract fulfillment through omni-domain, omni-channel, and omni-link methods. Going deep into the entire chain of operations, from customer acquisition, design, to production, and delivery, from store management to back-office operations, the entire process of digital construction can truly bring out the greatest value of digitalization.

As a home improvement and home design platform under Alibaba, will be driven by product technology to provide end-to-end full-link SaaS solutions from marketing, customer acquisition, design, production, and contract fulfillment to help designers and home furnishers brands, decoration companies, custom factories and other major carriers of the home improvement and home furnishing industry chain establish links to realize the digitalization of commodities, the digitalization of supply chains, and the digitalization of performance services, and open up the complete closed loop of the home improvement and home furnishing industry from design to production to trading, and help more many home furnishing companies embrace the new future of home improvement and home digitalization.

Alibaba' s digital practice helps the transformation and upgrading of the home furnishing industry

For home furnishing companies to carry out digital transformation, they need to grasp the "four transformations" and the "three steps".

The "four modernizations" are cloudization, dataization, IoT, and mobile. Cloudization means IT cloudification, computing power cloudification, and application cloudification; dataization means dataized stores, global intelligent decision-making, and intelligent supply chain; IoTization (cloud-integrated intelligent networking) means intelligent marketing, industrial intelligence, and smart retail ; Mobility (mobile collaboration anytime, anywhere) is the integration of precise service experience, mobile collaboration, and mobile R&D.

The "Three Steps" of Enterprise Digital Transformation: The first step is the cloud computing of IT infrastructure-hybrid cloud + appropriate applications. Build a hybrid cloud based on the existing IT architecture, make the Internet, business applications, and internal systems go to the cloud, improve IT resource utilization, operation and maintenance efficiency, and user experience, and adopt reasonable security strategies for applications to ensure information security.

The second step is to turn core technologies into the Internet and to turn all data into business. Build a business-to-data center, by extracting and connecting business data pairs to form a business-to-data system based on business-to-data, and assisting business development by providing data services; building a business-to-business center, comprehensively breaking information islands, accumulating shared business modules, and releasing enterprise IT Agile ability promotes business innovation and development.

The third step is to digitize and intelligentize applications and scenarios. AIot+ expands the cognitive boundary: through machine learning, artificial intelligence and big data, the value of data is deeply explored to solve problems that cannot be solved by humans in the past, and the cognitive boundary is expanded; through IoT technology, things are linked, people and people link, the Internet driven by the collaboration of traditional people, has been changed to the Internet of things and things, and systems between people and things.

Mr. Yu said that the full-link digitalization of supply-demand coordination should be oriented towards cost, efficiency, users, and innovation, with consumer operations as the core, and transform to multi-end full-link consumer operations.

How to transform a manufacturing company

The field of pan-home furnishing enterprises is in the explosive period of digital transformation.

Li Xusheng said that cloudification can no longer meet the needs of enterprise IT digital transformation, and current home furnishing enterprises are transforming to application-centric cloud-native service.

At the same time, data islands characterized by slow demand implementation, difficult business supervision, and poor user experience have severely restricted the digital development of enterprises. To solve these problems, the key lies in data. Home furnishing companies need to implement extensive data connections in the new architecture.

From cloud to cloud, collaboration and collaboration to sharing and win-win, the digital transformation of manufacturing enterprises pays attention to step by step, and is implemented in stages. Digital reform needs to be informatized first, then digitalized, and finally intelligent.

Exploration of digital transformation of DeRUCCI

In the next ten years, digitalization will be an "absolute" trend in the home improvement industry.

DeRUCCI is the first company in the industry to build an Industry 4.0 digital factory. As early as 2015, DeRUCCI took huge risks and invested huge sums of money to carry out infrastructure construction in accordance with the German Industry 4.0 standards, and spent a lot of energy to explore and practice against huge risks.

In 2020, the epidemic is raging. According to DeRUCCI, the epidemic is a disaster and an opportunity. Mr. Zhang believes that the epidemic has pushed the global digitalization process forward for at least 5 years. The epidemic has pushed all industries to undergo digital transformation, and digitalization has become the foundation of the modern economy. DeRUCCI caught up with this bus just before the outbreak and began to make strides towards digitalization. With the help of the digital factory, it successfully broke through and became an industry benchmark, and it has become one of the few companies in the country that have grown against the trend.

The success of DeRUCCI is attributable to its forward-looking strategy of keeping abreast of its brand and digital development. Mr. Zhang said that future data scenarios require a more lean strategy. In the second half of 2021, DeRUCCI will officially launch Digital Transformation 2.0, focusing on digitalization and experience improvement, revenue growth, and efficiency improvement.

Digital operation model and practical application

For traditional home furnishing manufacturers, digital transformation is the only way to go.

Before the data transformation, due to the low data processing and informatization capabilities, the lack of data analysis among the production systems, and the order-based production model, the military horse was relatively passive in planning and scheduling. In addition, the market demand was changing rapidly. Frequent changes to the plan caused the delivery date to be unable to keep up with the foreign trade orders, which once caused the company to fall into development difficulties.

After careful consideration, QiaXing Industrial decided to implement a digital transformation plan. In Mr. Gu’s view, the home furnishing industry has many pain points, with a long industrial chain, a low degree of informatization, and upstream and downstream information is not interoperable. From raw materials, parts, design, manufacturing, delivery to customers and after-sales service, different customers need to be faced. These demands require different technologies. If you want to form a closed loop, you must implement the technology in each loop, otherwise it will fail.

After arduous efforts, QiaXing Industrial has improved the company' s digital capabilities step by step, and the delivery cycle has been shortened from one month to one week. Achieve higher operational efficiency, better consumer experience, and stronger organizational capabilities.

At the same time, in response to the national double-cycle call and the opportunity of dataization, QiaXing Industrial development direction has also changed from the original foreign trade market to a parallel foreign trade and distribution.

General Gu believes that digital transformation requires the accumulation of time and experience. Organizational structure adjustments, system transformations, and market-forced changes in operating models can bring more intuitive results to the digital transformation of enterprises. This reform also strengthens QiaXing Industrial’ s efforts to take the determination about digital path.

Design power and digitalization

Home digitalization, industry first mover, first serve.

Internetization, digitization, pioneers and other companies have received precise feedback and dividends from digitalization, the first wave of digital dividends.

At the summit, Wang Jianguo pointed out that the essence of digital services is verticalization. Digitalization is a strategic base for industry and real estate. The home furnishing market has strong spatial attributes. Companies must use a grounded approach and a combination of unique characteristics of the industry to advance the digital process.

Mr. Wang revealed that he is building a nationwide chain base, and digitization is an important technical support for the construction of this base. He will take design and digitization as the first driving force, take advantage of the national policy, and continue to explore the connection between digital and design from top to bottom.

The digital world and the physical world are being closely integrated. Digitalization will bring huge opportunities to economic and social development. The digitalization of home furnishing enterprises is a concept that runs through the entire cycle of R&D, production, assembly, circulation, and service. 

Only all links have completed digital transformation. Only by opening up the value chain can we fundamentally improve efficiency and realize industrial evolution. This is destined to be a long-term battle. The change has just begun...

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