In the current stage of the building materials industry, e-commerce is no longer a question of "whether to go online," but rather "how to do it effectively." Taking the ceramic industry as an example, while some manufacturers have launched e-commerce initiatives, none have yet established a successful and replicable model. Meanwhile, terminal distributors often view e-commerce with skepticism, sometimes even seeing it as a potential threat that could disrupt the market.
This challenge is evident in the hardware and bathroom industry. Although the "Double 11" shopping festival brought strong sales this year, it also exposed several underlying issues. Warehouse and logistics inefficiencies, dissatisfaction among sales agents due to increased orders, and resistance from physical stores all point to the immaturity of current e-commerce strategies. Moreover, the inherent differences between ceramic tiles and sanitary ware further limit the scalability of existing business models.
For the e-commerce operations of Jian Tao, the key lies in ensuring that there is no conflict with the interests of existing agents. Ideally, the model should leverage the strength of the terminal distribution network. The O2O model—where customers order online and pick up in-store—seems to be the most suitable format for building ceramics. However, if manufacturers continue to dominate the process, they may struggle to gather real-time market data, leading to unnecessary delays in product distribution. This can also breed distrust among agents, who are already sensitive to shifts in market share. With high operational costs like store rent and decoration, agents are unlikely to welcome any external forces that might disrupt their existing position.
At the same time, the rise of large-scale building materials groups cannot be ignored. These groups not only have the financial power to influence manufacturers but also the ability to control certain channels. Their goal is to build a strong brand image, while also leveraging the pricing advantage of a "factory direct" model to expand their market reach.
Currently, these building materials groups are becoming a significant, albeit under-the-radar, force in the industry. The low visibility of ceramic products and the lack of mature branding at the upstream level have created a space for terminal groups to develop their own brand presence. For local consumers, companies like Huanai and Dongjian are far more recognizable than many ceramic or bathroom brands. Their influence on the retail market and the services they offer are now undeniable factors that must be taken into account.
Therefore, an O2O model led by terminal agents, with support from manufacturers, could be a viable solution. E-commerce has become a powerful channel, and those who don’t use it risk being left behind. Being the first to embrace change brings greater benefits. By decentralizing power and focusing on product systems and brand influence, manufacturers can let agents handle the channel operations, resulting in a more efficient division of labor and reduced burden.
This approach helps avoid suspicion and resistance from agents, while also motivating them to take initiative. Manufacturers, in turn, can focus on deepening their brand’s influence. As the saying goes, “It’s easier to govern when you delegate tasks, and fewer things mean more work.â€
An agent-driven O2O model doesn’t mean manufacturers lose control entirely. Instead, they should deepen their understanding of e-commerce operations, learn about group buying and promotional strategies, and integrate internet culture into their channel management. For agents, manufacturers should encourage innovation, provide support, and share their own experiences to ensure deeper marketing and cultural impact, keeping the terminal network under control.
Additionally, the big data generated through e-commerce operations offers another layer of value. If used effectively, it can help manufacturers better understand customer needs, giving them an edge in production and design decisions.
In the end, the retail sector will become fully open, allowing manufacturers to focus on high-level projects such as hotel developments and real estate partnerships.
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