Melaleu, a furniture brand that originally specialized in e-commerce on the Internet, suddenly became the strategic goal of opening an offline experience hall. In the more than one month from June to mid-July this year, there were more than 50 new experience halls nationwide. By the time of the press release on August 1, the total number of experience halls had reached 115, and it was only one year and four months before the opening of the first offline experience hall. From the online to the offline, Melody quickly expanded the experience hall and promoted the O2O model. The industry has also pointed out that its measures are almost crazy, and it is considered to be a strategic mistake. It is hard to be convinced that the offline experience halls are robbing the mainstream consumer groups. For a time, Melody fell into the "experience hall puzzle" that people could not understand.
Melody's madness offline experience hall
Founded in February 2008, Melody Furniture Network is the first B2C website in China to enter the e-commerce industry. It is the first to propose the concept of “furniture online shopping†and is regarded by the industry as a model for e-commerce. Give full play to the unique advantages of the Internet, and launch the trend brand furniture at the fastest speed, so that Melalore's turnover will soon exceed 100 million yuan. Unexpectedly, more than a year ago, Melaleuca's development strategy suddenly reversed, and the establishment of the offline experience hall became its most important and urgent strategic goal.
In April 2011, Melody’s first experience hall opened in Chengdu. Subsequently, Melaleuca's experience hall was springing up and blossoming throughout the country. From March to May 2012, an average of three people emerged every three days. In May of this year, after Melody completed the second round of financing totaling 40 million US dollars, the speed of expanding the experience hall was further accelerated. In July, it was close to frenzy, and only 4 were opened on July 4th. By the time of the press release on August 1, the total number of completed experience halls displayed by Melaleuca Sina's official Weibo reached 115. Melody CEO Gao Yang publicly declared to the media that by the end of 2012, the number of experience halls will reach 150.
Why has Melody, which has been focusing on e-commerce, suddenly develop large-scale entities offline? Gao Yang’s statement is that furniture is different from fast-moving consumer goods, and it is more convenient to buy. Nowadays, the development of e-commerce in the B2C mode has encountered bottlenecks. The development of the offline experience hall is to strive to combine the real economy with e-commerce to solve problems that B2C cannot solve for a long time. Gao Yang believes that customers who buy furniture online are non-mainstream consumers, and desperately opening a store is to transform the customer base from a non-mainstream consumer group into a mainstream consumer group.
However, many people in the industry have said that they can't understand the behavior of this madness offline experience hall. The large-scale experience hall has concealed the true face of its e-commerce, and its real purpose is more like a puzzle.
Transformation O2O model is referred to as strategic error
In 2012, for the furniture industry, e-commerce was extremely hot. Traditional furniture companies frequently test water and electricity suppliers, and established e-commerce companies are looking for new growth points. The O2O model, namely Online to Offline, has become an attempt by old e-commerce companies to seek new breakthroughs. Except for Melody, Tmall Online shopping malls such as “Love Bees†and Sina “Home†have opened the experience hall online.
Melaleuca's transformation of the O2O model is really the best way out for e-commerce. Pan Shouzheng, co-founder of Shouzheng Partner Investment Management Co., Ltd., is not optimistic about this, and points to this is a strategic mistake of Melaleuca. “The real core of the O2O model is offline interaction, but Melody clearly does not do this.†He pointed out that Melaleuca is willing to expand the offline experience library in a large amount, which requires a lot of money from renovation to operation. “Melile's experience hall can't be driven by the online line. At best, it is only a place for customer experience. It does not have the ability to compete with large-scale home stores such as Red Star Macalline and Real Home. This kind of rapid expansion of the offline experience hall, I think it is a very bad strategy, is a kind of 'O2O business model'.
On July 28th, the reporter visited the three experience centers of Shilihe, Chaoyang Road and Beiyuan Road, which Meller has opened in Beijing. Some customers are in the consultation, but the salesperson said that 98% of the customers are online. I saw the promotion of Melody and came to experience it. “The customers who came in after seeing our experience hall on the roadside were so poor that they could be neglected!†A salesperson at the Melody Experience Hall in Beijing’s Beiyuan Road was outspoken.
Traditional furniture companies have made great achievements in e-commerce. Whether the O2O model helps furniture companies to carry out e-commerce, Wu Nani, general manager of Qumeixin Home Business Co., Ltd. said that the O2O model is still a long way, and many links need to explore, innovate and build. “Qumei Furniture never thinks that it is The typical O2O business of China's furniture industry, we are constantly revising our progress with our peers."
Suspicion of robbing the mainstream consumer group
According to Gao Yang, Melaleuca opened an offline experience hall, an important purpose is to seize the mainstream consumer groups offline. For this, the industry has a lot of doubts.
Liu Chen, secretary-general of the Beijing Branch of the Beijing Market Association, said that the Melaleuca layout offline experience hall can not grab the mainstream consumer group. The mainstream consumer group of furniture consumes medium and high-end furniture. The offline experience hall has to do more than just experience, but more importantly, trading and after-sales guarantee. These need 3-5 years of running-in. “Usually the mainstream consumer group will definitely choose old stores with good reputation, such as the home of the real estate, Red Star Macalline, and will not be purchased in the newly opened experience hall.â€
The sales method used by Melaleuca is low price, which is also an important factor in its inability to attract mainstream consumers. Another person in the furniture industry who asked not to be named believes that Melaleuca's experience hall is about 1,000 square meters, and a store covers no more than 3 kilometers. This type of furniture store does not bring its own traffic. The function, and the location is located in a remote location rather than the mainstream furniture store, the mainstream consumer group will not patronize. More importantly, this type of consumer group would rather spend more money to go to the home of the real estate, Red Star Macalline to buy brand furniture, not a low price for low prices.
For Melaleuca's large-scale experience pavilion, there is another saying in the industry that it is under pressure from online sales and cannot achieve sufficient growth to supplement offline sales. The offline experience hall is just a place to look at the online store. It doesn't have much appeal to the mainstream consumer group, making it face the dilemma of more stores and higher costs, and loses its original e-commerce. Convenient and low cost advantages. What's more, the offline experience hall directly competes with the giants such as the Real House and the Red Star Macalline. There is no advantage at all. It is not known where the future road will go.
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