Yazhen furniture net sales circle money

At the beginning of July, the concentration of home furnishing companies that rushed to the IPO on the threshold of listing was "suspended". Yazhen Furniture is well-known in the industry and has become one of the most affected companies in this turmoil, not only required to complete the application documents In the prospectus, it was announced that it will use more than 60 million yuan to raise funds to enter the e-commerce market and is suspected of being naked. A reporter's investigation found that Yazhen Furniture's current online sales performance is zero. To establish an independent online platform for e-commerce, people in the industry believe that it is "unreliable", but it is just to increase gimmicks for listing.

Event: Zero sales of Yazhen's network leads to money conjecture

On July 4th, the "Information on Suspension Review and Termination of IPOs" issued by the China Securities Regulatory Commission showed that 589 companies were included in the "Suspend Review" list, which embarrassed the home furnishing industry. All 14 home furnishing companies that submitted IPO applications, such as furniture, Op Lighting, Fusenmei, and Douai Home Textiles, were included in the “suspended review” list, due to incomplete application documents, which caused the review process to fail.

Although "abort" does not mean "termination", this incident happened to Yazhen furniture but caused a butterfly effect. Industry insiders have noticed that the investment funds raised in its prospectus, among which e-commerce planning has become one of the focuses. According to the "Yazhen Furniture Co., Ltd. Initial Public Offering Prospectus", the planned public offering of 54.7495 million shares is planned to raise a total of 602 million yuan, of which 416 million yuan will be used for marketing network expansion projects and e-commerce platform construction. A total investment of 63.02 million yuan, including software and hardware equipment investment, technology development investment and marketing promotion.

It stands to reason that Yazhen furniture, which intends to invest more than 60 million yuan in e-commerce, should have a solid foundation in online sales, and it can be promoted with the help of listing opportunities. Surprisingly, Yazhen Furniture had no previous research on online marketing, and its online sales performance so far has been zero. The reporter inquired about Yazhen Furniture's official website and mainstream integrated e-commerce platforms such as Tmall and JD.com, but found no trace of Yazhen's online sales. Only Taobao had individual sellers selling Yazhen furniture products. "I have been engaged in e-commerce for so long, and I have never heard of Yazhen furniture doing online marketing." Pan Shouzheng, a senior e-commerce person, said that those online stores that sell Yazhen furniture on the Internet "is likely to be serial goods or directly fake. goods".

Pan Shouzheng's statement was endorsed by Gao Fei, general manager of Yazhen Furniture. On July 21, Gao Fei admitted to the Beijing Business Daily reporter that Yazhen has not conducted online marketing at present, "Taobao is counterfeit, not our products, our e-commerce has not yet started, and is in the planning stage."

Industry insiders believe that the zero-marketing Yazhen wants to raise huge amounts of money to do online marketing, either because the money is burnt, or because it has made up a name for the circle of money, which is quite "unreliable."

Status: European and American furniture is not suitable for e-commerce

Yazhen Furniture wants to use the raised funds for online marketing. In addition to zero online marketing performance, it must be started from scratch. It is difficult to make a difference immediately. Another "unreliable" is that European and American furniture is actually not suitable for e-commerce. .

"European and American furniture is more painful to do e-commerce." Qiao Mu, who specializes in European and American furniture, told reporters from Beijing Business Daily that European and American furniture have distinctive attributes, the overall price system is relatively high, the handicrafts and craftsmanship are complex, and the experience is strong. E-commerce is mainly an advertising effect, and sales are of little use, because customers ca n’t purchase without experience and without looking at the real thing. The bed of 10,000 yuan and the bed of 100,000 yuan have very different handicrafts, but the picture shows no difference. Therefore, European and American furniture rarely do e-commerce. "

Yazhen Furniture declares "always adhere to the positioning of mid-to-high-end consumers who pursue the taste of life and European classic life". The product category is civil all-solid wood and the main material is solid wood comprehensive furniture. The product design uses a lot of hand-carved and decorative elements to reflect European classical style, which includes three independent brands of Yazhen, Yazhen · Livia, Yazhen · Georgia, and the Italian top furniture brand Chelini authorized to distribute, four brands hit the high-end European furniture terminal consumer market, product prices are not The Philippines, for example, a Yazhen Athena series (type 36) wine cabinet sold for more than 30,000 yuan, a Yazhen Athena series (36 type) wardrobe price even exceeded 40,000 yuan.

The industry believes that as a typical representative of European and American furniture, it is not timely for Yazhen Furniture to enter the e-commerce with elaborately carved, elegant and luxurious art products inheriting European classics, because furniture e-commerce is still in the era of price competition. Among the top ten best-selling brands in Tmall's "Double 11" furniture category last year, whether it is Lin's Wood, Quanyou, Gujia, Zhihuashi, Yalan, Ou Rui, Hego, Suibao, or Dynasty and Disney, regardless of Whether selling mattresses, or selling sofas and furniture, the unit price is within 10,000 yuan, and the best-selling products are those with a price of two or three thousand yuan. For example, the current European-style garden double leather bed in Lin's Wood Industry is only 2799. Yuan, Quanyou's Korean-style bedroom furniture sets, mattresses, four-piece mattresses, and the mad price is only 3299 yuan. "Being an e-commerce company, European and American furniture do not have any advantages in terms of price." Qiao Mu asserted so.

Questioned: The establishment of an independent e-commerce platform was accused of "unreliable"

Pan Shouzheng divides the current development model of home e-commerce into four types: one is that the company makes an independent official website; the second is to open a shop on a comprehensive e-commerce platform such as Tmall and JD. The third is an online agent and a professional home e-commerce platform Cooperation; Fourth, online distribution, buy out online sales. At present, it seems that the best mode for Yazhen furniture to develop e-commerce is the first one, which is to establish an independent e-commerce platform. Gao Fei also revealed to the Beijing Business Daily reporter that for the future of e-commerce, "it must not be to open a store on Tmall or JD.com, but to build an independent e-commerce platform."

However, Yazhen's idea of ​​building an independent e-commerce platform was questioned, and was considered "unreliable" by people in the industry for three reasons: First, Yazhen furniture sells niche products, and the market adaptability is not strong. The operating income is 540 million yuan, and the biggest problem of e-commerce is to increase traffic. The cost of acquiring accurate customers for Yazhen furniture will be high, and it can be done without investing money. Second, even the top ten sales of Tmall furniture are rare There are money-earners, not to mention Yazhen furniture online sales are zero, without any experience, entering the e-commerce is to make money and cry; third, as of now, there is no precedent for a single brand in the home industry to be successful in e-commerce. An online marketing brand that once left its own platform such as Tmall and other self-built platforms is now facing a bottleneck. It has to transform from a furniture brand to a platform and recruit other brands to settle in to enrich its product types. How difficult.

In fact, in the tide of the Internet era, Yazhen Furniture has been sticking to its rules for a long time, and has not paid attention to e-commerce. Instead, it has made special efforts in community marketing. In Beijing, many communities have cars squatted with Yazhen brand names waiting for them. Yazhen wants to transform from such a traditional marketing method to e-commerce, it is difficult to reverse the ideas alone, not to mention the lack of an experienced team, its e-commerce road has been thorny before it has begun, even if it is finally listed, this It will be worth waiting to see what the money in the circle really hits.

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