Background:
Fuqing Home Furnishings was established in 2009 and mainly operates in two major businesses: "board producing and processing" and "customized home furnishings. “On August 8, 2022, Fuqing Home Furnishings entered into a strategic partnership with Hua & Hua. From the perspective of corporate strategy, Hua & Hua reorganized Fuqing's business and laid the foundation for Fuqing's brand strategy from scratch by using brand proverbs and Super Signs as the strategy's starting point, establishing Fuqing's brand assets from 0 to 1.
Strategic Insights
The customized home furnishings industry is a "big industry with small businesses," where regional miscellaneous brands occupy 79% of the market. Currently, Fuqing's opportunity lies not in competing with high-end full-house customized brands like Oppein and Sofia, nor in competing with similar board-to-customization brands like TubaoBao. Instead, it lies in competing with the regional miscellaneous brands that account for 79% (approximately 330.9 billion) of the entire market capacity. At this stage, Fuqing needs to adopt a concentrated strategy to seize the traditional carpentry furniture market and the market of miscellaneous brands in third-tier and below-tier cities, establishing a cost-effective full-house customized brand.
Fuqing's Enterprise Rhombus Model Strategy
Enterprise strategy is not just the strategy of the enterprise; the strategy should be formulated by the enterprise to solve a certain social problem.
Hua & Hua deeply understand the social problem of "expensive and troublesome full-house customization" and have proposed the "Fuqing Enterprise Rhombus Model Strategy" for Fuqing. Through the construction of the "Fuqing Enterprise Rhombus Model Strategy," Fuqing has formed its three major positioning elements:
1. Business mission: Enable ordinary people to have access to full-house customization.
2. Business strategy: Core products and customized services based on solid wood ecological boards.
3. Business activity: Through operational activities such as the "front-store, back-manufacturer business model," "fair pricing strategy," "focus on third-tier and below markets," and "advertisement centered around stores," it is difficult for other companies to imitate.
These three positioning elements help guide Fuqing's strategic operations.
Fuqing Brand Naming
Naming is cost, naming is summoning, naming is investment, and the first principle of naming is to keep costs low.
Fuqing Home Furnishings has two main businesses: board production and processing and customized home furnishings services. These two businesses correspond to two types of stores: "Fuqing Board" and "Fuqing Custom Home." During the research process, we found that the name "Fuqing Custom Home" incurred high understanding costs and was easily confused with businesses such as decoration companies, design companies, and general home furnishings. On the other hand, "full-house customization" has become a well-known public category with a clearer definition than "custom home," and it naturally attracts attention.
Therefore, we have renamed "Fuqing Custom Home" as "Fuqing Full-House Customization" to reduce the marketing communication costs for the company and the selection costs for consumers.
Fuqing Brand Proverbs
Fuqing has gained extensive acclaim in the industry, starting with its board materials. During the market research, we found that the most common evaluation from consumers and dealers about Fuqing is "Fuqing has excellent board materials." Even competitors say the same thing!
Based on the excellent resources of Fuqing's board materials, Hua & Hua further proposed the brand proverb for Fuqing: "Fuqing has excellent board materials; use Fuqing for your entire house."
"Fuqing has excellent board materials; use Fuqing for your entire house" not only strengthens the advantage of Fuqing's board materials but also promotes Fuqing's full-house customization business. The slogan repeats the brand name "Fuqing" twice, maximizing the spread of the Fuqing brand and expanding its visibility. Most importantly, it is an actionable statement that directly prompts consumers to choose Fuqing!
Fuqing's Super Sign
A great brand is a great symbol system, and establishing a super sign for a brand requires exploring the brand's inherent dramatic elements. The brand name of Fuqing itself is excellent. We leveraged the inherent dramatic elements of the Fuqing brand and, through research on the characters "Fu" and "Qing," discovered the cultural foundation of lanterns. Through proprietary creation, we designed the Fuqing Super Sign, the "Fuqing Lantern." With the Super Sign, Fuqing instantly possesses tangible brand assets that are easily recognizable and familiar.
Fuqing uses the super sign to unify its various business sectors and reduce the company's marketing communication costs. Currently, the Fuqing Super Sign has been featured in Asia's largest high-speed railway station, "Nanjing South Station," and the number one commercial area in China, "Nanjing Xinjiekou," continuously accumulating brand equity!
Fuqing Super Characters and Strategic Patterns
In addition to the Super Sign, we have also created the Super Character "Fuqing Lantern Man" and the Super Pattern, "Fuqing Lantern Pattern" for Fuqing.
The "Fuqing Lantern Man," with his big eyes, exudes affability and communication skills. He has been Fuqing's effective, free spokesperson for a century.
The "Fuqing Lantern Pattern" has extremely versatile applications and can enhance the brand's sense of discovery and quality at the point of sale, efficiently accumulating brand equity!
Fuqing Super Stores
"Products are information; stores are media." We have created Super Stores for Fuqing to reduce customers' selection costs and improve store operational efficiency.
First, we display wardrobe, cabinet, and other product categories on the storefront so that even consumers who have never experienced customization can instantly recognize our products and services.
In addition, we have placed signage at the store entrance for "Free Measurement, Free Design, Free Installation," which lowers the threshold for customers to enter the store.
In the display window area, we have specifically created a prop to showcase the board materials, highlighting the value of solid wood and attracting customers into the store.
Inside the store, the most crucial area is the material selection zone. Through the design of the full-house customization material selection area, we break down information asymmetry for consumers, allowing them to clearly understand the customization process.
Fuqing New Product Launch Event
On May 10, 2023, the "Fuqing 2023 Summer New Product Launch Event and ENF Maternity and Baby Board Promotion Conference," planned by Hua & Hua for Fuqing, was officially held in Shuyang.
The on-site orders for the Fuqing Maternity and Baby Board series exceeded 100,000 sheets!
