60 million RMB in Ai Space. At that time, the concept of "Internet standardized decoration" was detonated by the venture capital circle, and a large number of Internet standardized decoration explorers appeared one after another. According to incomplete statistics, as of now, there are at least 13 companies with the label of "Internet Standardized Decoration", including Ai Space, Zhu Faner, and inDeco Lingzhu Manufacturing. The current operation method of these companies is still "wet construction", which has been passed down in the decoration industry for a long time.
"Big industry, small company" has always been the most classic description of the decoration track - Gold Mantis (SZ: 002081), the largest telemarketing list listed decoration company in China, has a revenue of 25 billion a year (public decoration business accounts for 80%) , The overall market share is about 0.5% (compared to the 9 trillion e-commerce track, the GMV of Alibaba’s pure Taobao & Tmall has reached 5.7 trillion, and the GMV market share is 63%). The essential reason behind this is that the two supply elements of hard installation—design and construction are highly non-standard (especially construction). Non-standard means that the internal and external communication efficiency is very low.
When the business volume continues to increase, in addition to linearly increasing front-line operators, it is also necessary to add city managers, provincial managers, regional managers, operation VPs and other management personnel, and management costs continue to increase. , Under the condition that the customer unit price remains unchanged, the company's profit margin will inevitably be further reduced. In order to seek profit margins, the company tends to control the remuneration of grass-roots workers or the remuneration of managers. At this time, competent internal employees will jump out to start their own businesses and do decoration. The owner of the company, so the company's scale is stable at a certain level, it is difficult to continue to expand - this is a typical negative scale effect.