E-commerce into consumer power cabinet companies to reduce operating costs

Recent statistics show that the United States is relatively weak in the slow economic recovery, but the maturity of peripheral conditions such as mobile devices, social marketing, and express customer service has contributed to the blowout of online shopping for US holiday shopping at the end of 2013. In fact, this has no small inspiration for the Chinese consumer market and for cabinet companies.

The traditional business model is difficult to keep up with the trend

During the Thanksgiving Day in 2013, the online consumption of the United States increased by 21% compared with the same period of last year. It can be seen that the e-commerce has obvious crowding of traditional channels. According to the US Department of Commerce, e-commerce accounts for about 6% of the total retail sales in the United States. The US Retail Federation said that online shopping this Christmas shopping season accounted for nearly 14%.

As a country with relatively mature operation of e-commerce model, the United States has a positive enlightenment for the development of e-commerce in China. In the sales form of the downstream industry of the cabinet industry, the store model of professional stores still dominates. However, this traditional “sit-shopping model”, which relies on retail sales, has not kept up with the trend of the times.

E-commerce platform can reduce operating costs

In order to ensure the product's richness and market coverage, the storefronts of stores and direct stores have become bigger and bigger, the product inventory is more and more, the store staff is increasing, and the profits are getting thinner. Therefore, trying to transform e-commerce channels, from the high service cost of traditional business models, and directly facing consumers through low-cost e-commerce sales platform, is an important direction for the future development of the cabinet industry.

The combination of online and offline O2O mode is the future development trend of cabinet e-commerce, and as in the United States, e-commerce operations through mobile devices and social marketing can also become the development model of future cabinet enterprises. With the development of the e-commerce model, the price of cabinet products will be more transparent, and consumers can more directly contact brand agents. The entire distribution system is more flat, and cabinet dealers can actively use existing network platforms to explore. Develop an O2O model that suits you and establish a circulation system for “big warehouses + small stores”.

Of course, e-commerce is just a development idea. How to minimize operating costs and improve service levels is the fundamental way for cabinet companies to avoid being eliminated in the future competition.

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