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Standardized Furniture Customization
Apr 24, 2018

In 2004, Li Jiacong and his friends developed a set of design software for the cabinet enterprises. The designers and consumers can directly use the software to see the three-dimensional furniture of the furniture. But cabinet owners have told Li Jiacong software that it is not very useful for them, because the time-consuming hand drawing is usually used as a reason to charge a "deposit" for the design of a furniture scheme for consumers, and the sale is not a refund, so the seller, even if it is not too satisfied, will not easily change the seller, and the electronic The design is very bad for binding consumers.

But while selling software, Li Jiacong observed that many consumers were actually willing to see the effect of furniture in advance by designing software, and the whole furniture industry was growing fast, "Maori is very high". In 2004, the total output value of furniture industry reached 270 billion yuan, an increase of 34% over 2003. At that time, there were only thousands of merchants who only made OEM OEM in Guangdong, and they didn't need to invest a lot in cost, they could sell as much as they could. Li Jiacong and several founders entered the cupboard industry with a trial mind. They only provided the cupboards for customers.

From the very beginning, Li Jiacong has positioned his customers as consumers who need to buy furniture for the hardcover room. He believes that the majority of the people have invested most of the money in the house, and there is not much money left for the decoration and purchase of furniture, but at any time they can burst out a variety of bizarre ideas and they have a great demand for individualization.

It's not easy to attract people in the store. Li Jiacong, in order to enhance consumer's attention and memory, deliberately create a more "design sense" environment. In the Hengsheng area of the 6 floor of Guangzhou Zheng Jia square, you can see a computer display on the door of the glass door at the doorway of Shang pin, and click on the next piece of material with a scanner to see the 3D effect on the display. In the working area of pure white space, besides salesmen and designers, they can also see designer's desks and chairs in the sample room. "This is not the same as the traditional furniture stores, consumers in the selection of furniture, there is no way to pay attention to the designer who is doing the design, which also increases the curiosity and trust of the consumer."

Luo Zhenyu, the designer of SHANG Jia Zheng Jia Plaza store, said that after visiting the sample, customers can exchange ideas and orders through the network at any time. "Like buying clothes on the Internet, buying furniture, what we need to produce what the customer needs." Luo Zhenyu's own computer stores millions of apartments in the country. Customers can also bring house plans directly to designers, and a simple solution will not exceed 20 minutes.

Many consumers can't refuse a designer's free door design after they have seen a simple effect map. After measuring the size, designers will match the accessories and appliances according to the consumers' preferences. From design to shipment, the time of promise is not more than 15 days.

"The acceptance of the market is better than we think. The furniture industry is indeed an industry that can earn money." Li Jiacong said. 4 months after the company was founded, Shang pin began to recruit franchisees.

The threshold of the franchisee is not high. Li Jiacong said that, at first, there was almost no charge for joining, and a number of fame began to charge 20 thousand yuan, and the franchisee could control the price of the final product itself.

Although the threshold is not high, but Shang pin's demand for franchisees is very tight. A staff member of Shang pin Investment Department said that every order required by franchisees should be paid in full or in a lump sum of tens of thousands of yuan. This makes Shang products rely on franchisees to expand their scale rapidly, and they can keep their cash flow relatively abundant. In 2006, Shang Shang's franchisees surpassed 200, and the business scope of Shang Shang gradually extended to wardrobe, bedside cupboard and other furniture.

But Li Jiacong did not expect that 2006 will occur out of stock. At that time, Shang products still used the OEM mode, and the cupboard vendors and wardrobe vendors who worked with them spread all over the towns of Guangdong, but there was always a shortage of demand. From Shenzhen to Foshan, even if there are more suppliers, there will be similar problems and even no suitable manufacturers can be found at all times. For a period of time, the delivery period of goods sold changed from 15 days to 30 days, or even 40 days.

Bar code reduces cost

Li Jiacong will build his own factory as the core of solving the problem. In 2006, Shang Shang's first factory started in the South China Sea of Foshan.

After the national furniture orders were collected by Guangzhou headquarters, the factory purchased raw materials according to inventory conditions. At the same time, the data center will classify the furniture in different orders according to white oak, apple wood, etc. according to the classification data, the machine in the factory will cut the purchased sheet into various specifications and spare parts by the principle of the highest utilization rate of material, and put the bar code on one by one.

Bar code is a difference between Shang and traditional furniture factories.  Every production machine in the factory is connected to computers. Workers can automatically adjust positions to punch holes by scanning barcode. From entering the factory to identifying the processing map of sheet metal, and then to sealing, drilling and other processes, such a process can be completed in 48 hours.

Compared with traditional furniture enterprises' dependence on advanced technology workers, most of the workers in Foshan Nanhai factory are ordinary skills workers. Highly automated production reduces technical requirements and reduces the cost of employing skilled workers. Li Jiacong said that Shang Pu had no need to invite more experienced high-tech workers.

After the completion of the automatic processing, the workers push the pieces of different shapes and shapes into the warehouse, according to the number on the bar code, corresponding to the different numbers. Then, according to the information in the computer, we can grab the plates with different numbers for each order in the warehouse, and send them to the whole country in the form of bulk delivery.

Li Jiacong said the headquarters factory purchased a raw material every two days, although it could not reach zero, but the stock was limited to one week's raw material demand. Bar code also plays a role of query, which is a bit like DHL's real-time information system. Franchisees and consumers can track product schedule according to barcode.

The automatic production of the self built factory has restored the supply cycle to 15 days, and the type of custom furniture has gradually expanded to the living room, the study, the kitchen, the bedroom, the dining room and so on.

But for this customized company, besides the cost and efficiency brought by the automation factory, it needs more competitiveness. In Shang Shang's 400 stores, the average number of full-time designers is 2. Generally, the designers of furniture should have the ability of drawing the draftsman, but in Li Jiacong's view, the designer still needs to master the overall layout ability and consciously guide the consumer to customize the simple "IKEA" furniture.

Li Jiacong plans to open the software platform of Shang, a large number of professional designers on the platform, and the designers themselves can develop customers. The drawings designed by the designers are produced and distributed by the factory.

From 2009, Shang pin began to step up home ornaments, such as curtains, bedding, sofa, table chair and wallpaper. "In the future, we will add floors and lights." Li Jiacong hopes to promote a way of life like IKEA.

With the expansion of scale, there will be more and more after-sale problems to provide personalized products. "Mass customization after-sales maintenance is difficult, such as consumer customized cabinets rotten a dedicated screw, how timely delivery is also a problem." DYRS & idealidea national brand center director Zhang Chunyun said. DYRS & idealidea do the main high-end custom, providing customized solutions of a dozen overall home improvement. At present, the product has set up a nationwide after-sales service phone, and there are 2 to 3 people's after-sales service teams in each store, but the installation staff is the same class.

For East China and North China, Li Jiacong is looking for more suitable franchisees rather than expanding franchisees.

Hangzhou PT Furniture Co.,ltd

Address:Dongzhou Industrial Area,Fuyang City,Hangzhou,China