date:2019-12-13
If you carefully analyze the most popular categories of cross-border export e-commerce in China, the major categories represented by Shenzhen Huaqiang North 3C Consumer Electronics, Yiwu Small Commodities, and Guangzhou Hangzhou Women's Wear must be at the forefront. According to the analysis of relevant cross-border e-commerce financial reports, the three categories of consumer electronics, clothing, and household goods are the best-selling overseas. According to the "2017 China Cross-border Export E-Commerce Financial Services White Paper" jointly published by WorldFirst and Yibang Power Research Institute, 3C electronics and clothing household products accounted for 23.4%, 21.9% and 20.9% of cross-border exports.
Since the second half of 2017, the large categories of goods represented by home furnishing have seen a relatively obvious growth trend.
Take the cross-border seller Aoji as an example. According to its 2017 annual report, the household category revenue was 1.51 billion, an increase of 124.72%. According to Aoji analysis, the company's household category accounted for 40.47%, which is due to the increasing demand for household products in foreign markets and the maturity of the company's household products.
In fact, it is not only a proud base, but also a cross-border export seller based on home. In 2017, sales have a good growth. The Eskimo home textiles in Hangzhou sold as much as 300 million yuan in Amazon for only one year, and maintained a growth rate of more than 80%.
In the cross-border export e-commerce field, home furniture is a relatively high threshold category, and the requirements for supply chain, logistics and service are relatively high, mainly reflected in the “two highs and two lows”:
High logistics costs
The volume and quality of home furniture are large, which leads to a very high logistics cost if domestic direct-traffic logistics is used. Therefore, in general, the goods are first shipped to overseas warehouses by sea, and orders are delivered from overseas warehouses to customers. . Although the shipping method has reduced the freight rate of the international section, the overseas distribution cost is very high due to the labor cost. In general, the logistics cost will account for more than 30% of the sales price, and some categories may even Up to 50%.
Localized service requirements are high
Subject to transportation requirements and cost considerations, since home furniture cannot be assembled and formed at the time of domestic shipment, most of them are split into many parts, which are assembled by the customer or installed and assembled by the delivery personnel.
This leads to very high requirements in both aspects. The first is that customers often need after-sales support when assembling and installing themselves. They need to include assembly instructions, spare parts damage replacement and other services. The second is the improvement of the service capacity of the dispatcher. Most of the dispatchers are only responsible for the delivery, and are not responsible for the installation. Facing the service demand of the home furniture, the service capacity of the distribution terminal can not meet the demand very well.
Low frequency of purchase
Home furnishing is mainly to meet the needs of the family space. It is a commodity with high wear resistance and high customer order. The frequency of replacement is low, and natural belonging to it has a low repurchase rate. From the logic of Internet operations, high-frequency categories can be brought to low-frequency categories, but low-frequency categories can not drive high-frequency categories, which leads to the flow of low-frequency categories depends on external diversion without strong brand influence.
Low capital turnover
Low capital turnover is mainly affected by logistics methods. In the shipping mode of shipping + overseas warehouse mode, the capital turnover days = stocking time + shipping time + overseas warehouse time + delivery time + platform payment time. It is understood that the turnover days of household furniture categories are generally 80-90 days, which is a category with a low turnover rate.
Despite the high barriers to entry for home furniture, we believe that this category is still worth trying based on the following three aspects:
1. The number of SKUs is low and the update requirements are low. Home furniture is a model of selected SKUs due to consumption habits and supply-side support. The number of SKUs in each segment (such as home textiles) is very low, and some sellers rely on 100SKU for annual sales of over 100 million. In addition, the life cycle of its products is relatively long, and a product can even be sold for more than 5 years. The low number of SKUs and low update requirements are conducive to the reduction of product scale cost and stable operation.
2, high gross profit, high net profit. According to industry statistics, the average gross profit margin of home furniture industry exceeds 50%, and the net profit margin can generally reach more than 8%. However, due to its high entry threshold, the industry is not easy to flood into too many competitors, high gross profit, High net profit can still be maintained for a relatively long time.
3. The support system continues to improve. Since home furniture can afford relatively high-cost logistics costs, logistics support systems such as direct shipping, overseas warehouse sales, repairs, and professional distribution will also be gradually improved. The problem of exporting large goods and strong service products will gradually solve.
