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Amazon's entry into the furniture market because of the trend of the industry?

Amazon's entry into the furniture market because of the trend of the industry?

Amazon's entry into the furniture market because of the trend of the industry?

As a leader of Cross-Border Electronic Commerce, Amazon's every action attracted much attention. After May, foreign media rumored that "Amazon wants to try best to promote the furniture and home appliances", and stocks have been driven up several points. If the rumor is true, then what is the reason make Bezos to start develop furniture line? Let us analyze that logistics is always the biggest obstacle for e-commerce to enter the furniture market. Many people think that Amazon entered the furniture market because Amazon solved the logistics problem of furniture. Indeed, the head of investment promotion at Amazon has revealed that in the future, the furniture goods of third-party sellers will be distributed to Amazon for unified distribution, which will greatly improve efficiency and reduce costs. Holyck believes that the root cause of Amazon's entry into the furniture market is due to the general trend of the industry;

The family has become the main force of cross-border online shopping, and IKEA has begun to switch to e-commerce.

In January 2017, Amazon China released the 2016 cross-border online shopping trend report. The report pointed out that the family has become the main force of cross-border online shopping groups, of which households with children account for about 84%. It can be seen from the report that household consumption has occupied an important position in cross-border e-commerce. When it comes to household consumption, furniture products are naturally inseparable. When the furniture market is mentioned, it is inevitable that the furniture giant, IKEA, will be located on March 23, 2017. Beijing Wukesong IKEA Order Center (PUP) officially opened. This is the second ordering center opened in China after IKEA's 2016 water test ordering center model.

IKEA has tried PUP in China for an important reason – paving the way for the development of e-commerce. This business model of PUP store no longer needs to follow the traditional principle of IKEA's self-built land. It has fewer restrictions on site selection, directly renting the venue, and does not have to pay high rents. It can be renovated and opened in half a year. Accessing consumers in a lighter way helps brands move quickly into more domestic cities.

According to the IKEA financial report, IKEA Global has opened its e-commerce business in 14 markets. In fiscal 2016, online sales reached 1.4 billion euros, accounting for 4% of the total sales of 34.2 billion euros. Through this set of data, we can easily see that PUP is also good, big stores or not. At present, IKEA stores play a "warehouse" role in China. And to send the goods to a place without an IKEA store, it may not be that simple in the short term.

This time, Amazon has entered the home market in a big way, and it must be affected to some extent by the home appliance business. After all, for the e-commerce, the furniture market is still a blue ocean, and it is also one of the trends in the future development of e-commerce. IKEA and Amazon have their own strengths, but who can get a head start in this market, let us wait and see.

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