The new retail service of home building materials, Commercial and Residential Faner, recently completed 200 million yuan in Series B financing, which was jointly led by Jinshajiang Venture Capital and Qicheng Capital, and the old shareholders Innovative Works and Jiacheng Capital followed the investment. This round of financing funds will be mainly used for online e-commerce platform operations, the creation of new offline retail experience stores, and the deepening of supply chain capabilities.
In 2015, 4 Tsinghua graduates founded Zhufaner, adhering to the original intention of letting young people “live with care and live a healthy life”, cutting from home furnishings from the media operation to the decoration and furnishing business, and issued more than 1,700 articles in the past five years. Original decoration and dry goods content, accumulated 8 million own fans, visited more than 300 home building materials brand manufacturers, and served more than 6000 families in Beijing, Shanghai, and Chengdu. In April 2020, Zhufaner began to test the community group purchase of home building materials. As of the end of last year, the self-operated e-commerce platform (“Zhufaner Official Mall” applet) has achieved GMV 150 million in just 9 months, the conversion rate from UV to order is as high as 20%, and the per capita consumption exceeds 10,000 yuan. As of the end of May this year, Zhufaner’s three major businesses: one-stop decoration business, new media advertising business, and e-commerce business have increased by 300% year-on-year. Among them, the volume of the decoration business has doubled year-on-year, and the e-commerce business has achieved a four-fold increase.
Since 2021, Zhufaner has carried out a strategic upgrade and is committed to becoming a new type of retail service provider in the home building materials industry. Different from most traffic platforms that choose light operation and diversion to monetize, Zhufaner has been deeply involved in product definition, product sales and brand marketing with years of insight into decoration users and accumulation of supply chain, from mattress to floor , From bathroom to sink, select more than 60 categories and 150 cost-effective brands for users, which can provide “from the popularization of basic home furnishing knowledge, to the design and implementation of decoration plans, and to the purchase of cheap and easy-to-use materials” One-stop service.
Liu Xianran, founder and CEO of Zhufaner, believes that the home improvement industry has the attributes of heavy decision-making, weak branding, and ultra-low frequency. Tier dealers and extremely dispersed service providers, inefficient circulation links have led to a high terminal price increase rate. Zhufaner recognizes that the three- to four-trillion-yuan home improvement retail market corresponds to 15 million households. It is difficult to change the “manufacturing-based” industry pattern, and to make the industry’s influence and realism driven by home improvement services alone. Improve customer experience.
“As a home improvement consumer, I walked into a hypermarket and saw a sofa worth 40,000 yuan. The product is very good, but it is very expensive, and the price is not real. The cost of selection and shopping is high; back to the online integrated shelf electronics Search for a toilet, ranging from 300 yuan to 20,000 yuan, the picture looks similar, and I don’t know which one to buy after two hours; as a brand side, it is too difficult to obtain customers, and huge marketing budget can only be wasted on the airport high-speed rail The traffic of the station is spreading widely.” Liu Xianran said.
“Currently, online and offline retail stores are all under the second-landlord model, with traffic only selling shelves and not assuming the functions of the circulation link. Is there a new type of retail with unified management, control of goods, control of the market, control of prices, and control of services? The model can help users choose more suitable products and enable brands to reach users more efficiently, thereby improving transaction efficiency and reducing terminal price increase rates. This is what Zhufaner has been exploring in the past and the next few years Thing.”
Zhu Xiaohu, the managing partner of Jinshajiang Venture Capital, said: The scale of China’s home improvement market is as high as four to five trillion yuan, and users still have many pain points in the decoration process. The industry still has huge room for development and integration. This track will surely have a new generation Changer. The Zhufaner team is down-to-earth, enthusiastic, strategic, and capable of landing. Over the years, it has accumulated a deep understanding of the industry and comprehensive capabilities in customer acquisition, product, delivery and operation. We are very optimistic about the Zhufaner team and they will continue to work Create the best home retail experience and bring new retail opportunities for the Chinese home building materials market.
Zhufaner currently has a team of about 450 people, covering all-round capabilities such as content production, marketing, community operations, online e-commerce transactions, offline design and construction services, information construction, product development and supply chain management. Speaking of future development, Zhufaner said that in the future, he will try to set up a self-operated home building materials retail experience store, which will not only provide selected home building materials products, but also provide knowledge and lectures, as well as decoration-related services, which is truly one-stop satisfaction Consumers’ three major needs: buy inexpensive products, enjoy worry-free services, and obtain knowledge and inspiration.