Phenomenon capital continues to inject home O2O From the end of last year to this year, capital has frequently injected capital into the home decoration industry, causing a lot of attention. The first batch of products favored by capital is the e-commerce platform in the home sector. In 2015, Tuba Rabbit received a C-round investment of 200 million US dollars from Sequoia Capital and Jingwei Venture Capital, which is the largest investment ever made in the field of decoration home e-commerce. As early as 2010, Qijia.com introduced CDH Investment and Baidu Investment. In March of this year, Qijia.com announced that it had received a 160-billion-dollar D round of financing. Tooling listed companies have also invested in the home improvement industry. For example, Jin Minfa announced that from 2015 onwards, it will invest 1 billion yuan for the home improvement E station for three consecutive years. In addition, Guangtian, Yasha and Hongtao have also entered the field of Internet home improvement. Internet home improvement companies also frequently receive capital investment. Take “Love Space†as an example. At the end of last year, it won 60 million yuan due to the acquisition of Lei Jun’s Shunwei Capital. Haier’s live network won 100 million A round of financing in June 2015, led by Yihua Wood. Investment, other investment institutions and investment. It is said that the current valuation is 500 million. The grapefruit decoration established in Shanghai claimed to have obtained the A-dollar financing of the international top venture capital IDG. The purple potato home improvement set up in Beijing last year, at the beginning of this year, got the investment of 10 million yuan angel of Tencent angel investor Liu Xiaosong. The founding of Yuejia Technology, also known as the angel investment, will be officially announced in the near future. From the point of view of time, the injection of capital is generally concentrated at the end of last year and the beginning of this year, and there is a continuing trend. The reason for the development of home improvement industry is full of imagination According to the official data of the China Construction Association, the output value of China's construction and decoration industry has reached 3 trillion yuan in 2014, and nearly 150,000 companies have been employed. By 2015, the total industry scale is expected to increase to 3.8 trillion. And this is a huge reason why many capitals are optimistic about the home improvement industry. Yu Liang, co-founder and CEO of Yuejia Technology, said that close to the 4 trillion yuan market, home improvement accounted for 50% of the share, but no one currently can account for 1% of the total share. “There are many possibilities in this industry.†He believes that capital is inherently gambling, the opportunity is an opportunity, and the home improvement industry is full of opportunities. In addition to the large home improvement market and great potential, Zhang Ren, deputy chairman and secretary general of the China Building Decoration Association's residential decoration and decoration branch, made a sharp impression: "The cash flow in the home improvement market is good. If you come in, you will not lack money, the return will be fast, everything is for profit. Zhang Ren believes that in China, small houses are changed to large houses, and the house is the theme of ordinary people's lives, and it is also a means of value-added property. Capital preference for home decoration also reflects the confidence of capital in the future. In addition, home improvement as an entrance is seen by many industries. Meng De, the founder of the home improvement e station, told the media that home improvement is a natural entrance for family consumption. Along this portal, there will be many nodes for value-added services, including construction materials, soft furnishings, furniture, household appliances, and housekeeping. Services, smart homes, health care and many other areas. Internet + timely Home improvement has always belonged to the heavy service industry. Li Wei, co-founder and president of the residential network, said that from the perspective of industry barriers, home improvement is the most extensive, most difficult to break, and the most difficult to standardize. It is the last one in the industry chain. Focused industry. The rapid development of the Internet + has given the possibility of transforming the home improvement industry. According to public information, Zou Jiajia, vice president of Sequoia Capital China Fund, once commented on investing in Tuba: "When the tide of the Internet surged, it just caught up with the tide and stood at the cusp, using the latest Internet technology and thinking. Work hard to help the people solve the pain of decoration." Zheng Yuxi, CEO of Purple Potato Home Improvement, said that the decoration is a serious industry with long tail effect, which is in line with the characteristics of Internet O2O to create an entrance and integrate idle process resources. Moreover, since 2013, Internet capital investment has gradually warmed up, and the high-frequency consumer industry has gradually penetrated into low-frequency consumption fields, such as real estate, weddings, and home improvement. The optimism of capital on the Internet O2O also led to the gradual penetration of capital into the home improvement sector. Yan Liang called it the window period of the industry. "Internet technology directly connects orders, resources, product information and consumers, and can reduce the cost structure by improving efficiency, and bring about large-scale expansion to achieve control over the service standards of the home improvement industry." Yan Liang believes that the Internet has subverted The existing business ideas have broken the barriers to scale. The status quo seeks to provide transparent services The reporter found that the capital investment O2O is divided into two categories: one is to provide information services, such as Tuba Rabbit, Qijiawang, etc., playing the role of “middlemanâ€, attracting decoration companies to settle in through large flow, membership services, etc. single. The other category focuses on Internet home improvement, such as home improvement E station, love space, a variety of live network, purple potato home improvement. These brands have introduced relatively standardized products and are also optimizing the cost structure to emphasize the user experience. If there is the 599 Variety Plus product launched by the network, the 699 package of love space, the purple potato home improvement is another way, the basic construction package of 216 yuan / square meter and the new house water and electricity package of 69 yuan / square meter. In addition, these brands are marked on the official website with the brand, model and even the craft of the products used. In order to enhance the customer experience, they are also adopting software to manage the process. But even if they are born in response to industry pains, they are still accused of being still "pseudo-Internet home improvement." "Do not tell the customer about the increase, the user can never believe you." Constant trial and error and innovation It is understood that in addition to Jin Hao announced that home improvement E station can bring revenue this year, other Internet home improvement companies are said to be doing money loss trading. Even if it is currently the most prosperous love space, Chen Hao also said that it is necessary to enter the thousand-dollar monthly to achieve profitability. Variety plus, purple potato home improvement are said to be "zero-profit products", operating expenses are still a loss. At present, the so-called innovative products of the Internet home improvement company, such as 699, are alleged to be imitations of traditional company packages, and the pursuit of construction time is also referred to as no practical significance. Zhang Ren said that consumers generally do not ask for fast, only require good quality. On the basis of existing conditions, it is feasible to complete one month and one and a half months in a reasonable arrangement. “Does the construction team and project manager only do one engineering reality in 20 days? It will be lost. Of course, if factory production is realized, on-site assembly can improve the construction period and speed.†Li Wei said that at present, each company is doing its own processes based on its previous accumulation, understanding of the industry, and understanding of customers, and standardization, such as system, background, operation, etc., to achieve the opening of the entire process, change the decoration Become a quick experience. He believes that each company's pain points are different, and the direction of resolution is different. Whether it is "Internet +" or "+ Internet", it is still trying to make mistakes and innovations. He revealed that there is a live network trying to use new materials, trying to subvert the existing process. “Is there a possibility that bricklayers are not needed? The ceilings are pre-installed? Everything is possible.†Future market test With so many new companies coming on stage, the home improvement industry can be lively. So what is the outlook for everyone? Some insiders said that the flowers bloomed, only between the day and night. "The damn will die in 2016." Zhang Ren also said that the market is the basis for testing everything. “If you don’t earn money, you will naturally quit.†Although he shouted "subversion" of traditional home decoration, Li Wei also admitted that the current energy is still integrating and opening up the entire industry chain. He said that by the end of this year, some companies may introduce new methods and ideas to bring about local competition. Zheng Yuxi is relatively calm. He believes that the diversity of home improvement groups is very different. The needs of different regions, different customer groups and different modes are different. Whether it is an Internet home improvement company or a traditional home improvement company, the possibility of short-term communication is not high. Zhang Ren said that home improvement is not a multiplication, nor an addition. It is not intended to be realized immediately. Specific to each home improvement project, the sparrow is small and complete, and it is necessary to respect the scientific laws of building decoration to do well. "Only companies that focus on products and experiences, truly understand user needs, and grasp the speed of expansion and user experience can come to the end." Industry insiders said. For the “subversion†of the Internet home improvement company with capital background, the traditional home improvement company seems very indifferent. Wang Xiaobing, vice president of the current decoration group, said that the capital market companies require online product standardization to achieve rapid scale, but the price, consumption and situation of different cities are different, and the competitiveness of standardized products is not necessarily strong enough. In addition, the hardest part of large-scale replication is talent. Although capital can be acquired through acquisition, corporate culture is difficult to unify. “The matching between internal human resources and external expansion is not necessarily compatible.†Wang Xiaobing admitted that the relatively low prices of these companies did have an impact on traditional companies in the short term, but in his view, the home improvement is fundamentally offline, and the home improvement O2Os are all concentrated online and difficult to last. "They want to go to heaven, we have to go to the ground." He said that traditional companies will take full advantage of the Internet and use the Internet for precise marketing. The point of view project can't be bought and sold online. Zhang Ren, Vice President and Secretary General of China Building Decoration Association Residential Decoration Branch The Internet is not a panacea, and the lack of the Internet is also impossible. After all, the decoration and decoration of the house is engineering. The project is not like a commodity. Just click on the Internet. It needs experience hall, consumers only feel the true feelings, satisfied with the design and after-sales service, dare to place an order. Nowadays, many Internet home improvement companies are a bit of a hype and do not understand traditional industries. Renovation is a derivative of architectural engineering and a creation. As long as it is a project, it is impossible to buy it online. 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