[Member News] De Rucci (001323) × Jeno: Kicking Off a New Era of Digital Industrial Internet in the Home Furnishing Industry

01

Client Overview

Background of Channel Digitalization System Construction

De Rucci Health Sleep Co., Ltd. (Stock Code: 001323),A resource integrator for healthy sleep, providing users with customized healthy sleep solutions.It owns seven major brands under its umbrella: De Rucci, De Rucci International, De Rucci Sofa, De Rucci Home, V6 Home, TRECA, and Sliedai. Offline sleep experience stores cover over 20 countries and regions globally, with 2000+ franchise dealers nationwide and 7000+ offline stores, providing healthy sleep experiences for tens of millions of customers.

As the group's business scale expands,the original CRM system could no longer support existing operations, nor could it meet De Rucci'sheadquarters and dealer operational management needs,channel digital transformation was urgent.

In 2021, De Rucci conducted a dealer system procurement bid, comparing the products from multiple domestic and foreign manufacturers,and service teams,Jieno's product solution and the professionalism of its implementation team were recognized by De Rucci Group. De Rucci ultimately reached a strategic cooperation with Jieno,to jointly build an integrated dealer operation management platform. It is expected that through thisproject to achieve full coverage of dealer business scenarios, improve dealer operational efficiency; establish a 'digital operation manage-ment' system, enhance retail capabilities; through the accumulation of business data, achieve real-time analysis and decision-making of operational data, and improve operational analysis capabilities.

02

Industry Business Models and Challenges

Competition among home furnishing enterprises is competition along the industrial chain

With consumers' pursuit of a better home life and the overall youthfulness of consumers, the entire home furnishing industry has gradually trended towards providing one-stop service home living solutions for customers. Whole-house renovation, diversified channels, etc., have become common development trends for various enterprises, while also raising higher requirements for product richness, cost-performance ratio, delivery speed, service experience, etc. The home furnishing industry has long faced pain points such as poor consumer shopping experience, long industrial chains, and severe information barriers;Forbrand manufacturers, The existing problems are mainly reflected in the following aspects:

① Unable to reach end customers directly.Brand owners cannot directly grasp consumer user profiles and data; they cannot directly receive consumer feedback, lack user traffic entry points, and there is a communication gap between the brand and end users.

② Low efficiency in business synergy between headquarters and dealers.Brand headquarters and dealers have their own management systems and do not adopt a unified information platform; this leads to low business synergy efficiency between the two parties and high communication costs. For example: dealers cannot obtain order status in time; dealers find it difficult to quote non-standard products; when dealers make payments, they cannot know in time whether the headquarters has received the payment, etc.

③ Dealers vary in capability and find it difficult to improve their own management and operation capabilities.Mostdealers are influenced by factors such as scale, strength, quality, management level, and business awareness, making it relatively difficult to achieve self-empowerment.For example,single customer acquisition channels, lack of tools for traffic generation and customer acquisition; customer follow-up and sales invoicing rely on tools like WeChat for communication without system support, leading to low conversion rates; lack of professional designers, unable to complete design independently;Nocomprehensive sales guidetrainingsystem, sales guidesWeak sales capabilities; lack of an after-sales service system, inability to form a closed loop, etc.

④ The essence of competition among home furnishing enterprises lies in the competition of the industrial chain.For home furnishing enterprises to realize the business model iteration from selling furniture to selling life solutions, the key lies in end-to-end connectivity, integration, and collaboration across the industrial chain; therefore, establishing an efficient and competitive channel digitalization system is indispensable.

03

De Rucci Headquarters Digital Transformation Initiatives

Build a channel operation management cloud to enhance the overall operational capability of the industrial chain.

① Build a digital highway connecting with channels for more agile responsiveness.

Transform from traditional silo architecture to a business middle platform, resolving pain points such as unlinked business operations, difficult process integration, and data silos. Leveraging the business middle platform, construct a unified marketing service center comprising middle-platform services like the Product Center, Channel Partner Center, Sales Policy Center, Customer Center, Order Center, Service Center, and Settlement Center. This enables enterprises to establish unified product master data and unified customer profiles. Through holistic and unified order management, create an end-to-end scenario-based process closed loop covering order placement, shipping coordination, product delivery, and rapid settlement.

② Empower dealers through the operation management system, focusing on enhancing their operational capabilities.

Refine operating policies and rules, reconstruct business processes, and establish systematic operational standards across the entire workflow—from customer acquisition and service conversion to ordering, shipping/installation, and financial accounting. Simultaneously, build an integrated dealer operation management platform, leveraging information technologies like marketing lead-generation tools and mobile ordering to comprehensively empower dealers and foster mutual growth.

③ Build a channel operation big data platform to provide decision support.

Leveraging the data accumulated from the business middle platform, apply big data technologies to collect, store, cleanse, analyze, mine, and visualize massive datasets. Build a channel operation big data platform to enable precision marketing.

04

De Rucci Dealer Application Solution

Comprehensive Dealer Empowerment

In light of De Rucci Group's current business status, De Rucci Group and Jenovo Technology jointly developed the De Rucci Group Dealer Basic Operation Platform Construction Plan, centered around the Jenovo Easy Home New Retail Platform,KingdeeFinancial Cloud Platform, as a support,jointly builddealer basic operation platform.Leveraging the system's integration capabilities, enable data and information sharing, standardize and optimize management business processes, support intensive and lean dealer management, and drive management innovation among dealers.

Project Module Scope

Customer-centric, establish customer lifecycle management. Through the dealer basic operation platform mini-program, record customer consumption behavior, service records, and customer tags to form user profiles, achieving full-cycle, full-touchpoint behavior data analysis, supporting enterprises in customer insight and value mining. Sales associates can implement precise marketing based on customer tags and shopping paths, combined with limited-time activities, coupons, etc., to increase repurchase rates and average order value.

Standardize customer opportunity management, support defining stages for opportunities, different operations can be executed in different stages (such as appointment booking, case sharing, intent quotation, etc.). Conduct opportunity reporting and follow-up via the mini-program, mark customers at various stages, and reasonably allocate follow-up resources. Facilitate sales associates in flexibly following up with customers and maintaining follow-up information on the mini-program, accumulating customer profiles; leaders can view the overall follow-up stage of opportunities on the mini-program and desktop. Meanwhile, the system supports flexible configuration of opportunity recovery and warning rules, combined with warning recovery strategies, ensuring every opportunity is followed up in time, improving conversion rates.

Customer Opportunity Management Diagram

Products are the core competitive advantage of an enterprise. Based on existing product data standards, through component standardization, configurable feature standardization, data management standardization, and material standardization, construct a comprehensive product data standardization system; laying a digital foundation for future product R&D, large-scale customized production, BI data decision-making, etc.; meanwhile,By establishing product configuration standards,solve CRM product data issues, preparing for the future realization of the C2M business model.

In the past, if customers wanted to configure products, dealers needed to configure them in the system backend before frontend configuration operations could be performed;If it is a non-standard product, manual price modification is also required, the system cannot automatically calculate prices, operations are cumbersome, and timeliness and flexibility are poor.; ThroughThe Dealer Basic Operation Platform standardizes product configuration data to achieve parametric configuration. In the system,parameters such as configuration categories, ranges, pricing formulas, and constraints are pre-configured. Sales personnel,can perform product configuration and view quotes via the configuration function when placing orders on PC or mobile; the system supports standard, non-standard, and kit configurations to meet diverse consumer needs.

Product Configuration Function Diagram

The Dealer Basic Operation Platform supports PC and mobile invoicing. For scenarios where one order involves multiple guides, the system provides a merge invoicing function and allows setting staff commission ratios; meanwhile, the system supports cooperative order referrals, recording different cooperation channels (e.g., designers, design companies, etc.), and after contract completion, supports direct commission rebates to channels based on commission information.

When sales representatives visit customers outside, they can directly show product catalogs to customers for selection, and query product inventory information via mini-programs to place orders on-site; the system also supports offline checkout, mobile payment, POS machine payment, and other payment methods; it supports customer-based collection, solving the pain point where sales representatives need to handle fund transfers when customers need to convert advance payments to other order advance payments, greatly improving work efficiency.

After a customer places an order at a dealer store, if the customer's delivery address is beyond the dealer's delivery range or does not belong to the current dealer's authorized sales area, the dealer must submit an order transfer application to De Rucci Headquarters, which will allocate a dealer with an authorized sales area or the one closest to the customer's delivery address as the delivering dealer. The original CRM system's order transfer operation was cumbersome, and profit distribution settlement was difficult.Through the Dealer Basic Operation Platform,dealersorder followers only need to on the original order,check the order transfer option, select the products requiring transfer to apply for transfer, the system will automatically generate an order transfer application form, and the order follower will submit the application to headquarters,approved by headquartersand maintain the delivering dealer for the transfer, dealer contact person, dealer performance profit-sharing ratio, etc. Anddealers can directly settle transfer fees through the system, effectivelysolving dealers'benefit distribution for cross-region salesAllocation difficulties, heavy workload, etc.problems.

Sales Order Creation Diagram

Warehouse management fully utilizes the barcode system, covering procurement inbound, sales outbound, inventory transfer, and other inbound/outbound business scenarios, achieving refined inventory management and instant feedback tracking for all inbound and outbound transactions.

Inbound Process: After warehouse arrival, warehouse staff receive goods into the WMS based on arrival documents. Using the WMS mini-program, they scan the location barcode and inbound product barcode via mobile phone, then staff simply need to shelve items according to location. No missing packages, no lost packages, automatic accounting.

Inventory Counting Process: Via the WMS mini-program, scan location barcodes and product barcodes via mobile phone. No manual entry of counting data is required, improving counting efficiency by at least 60%. Relevant personnel can count and spot-check anytime, anywhere, shortening the counting cycle and greatly improving work efficiency and accuracy.

Outbound Process: Using the WMS mini-program, scan outbound product barcodes via mobile phone. The system automatically checks product barcode information based on preset rules and product completeness information, preventing wrong shipments and missed shipments.

Meanwhile, the system provides inventory alerts and global inventory analysis, supporting multi-dimensional statistical analysis of inventory quantities and turnover by time, region, organization, channel, and product; distributors can coordinate inventory scheduling and reasonably plan shipping schedules; they can query real-time inventory, as well as summaries and details of receipts and shipments; improving inventory turnover rates and saving costs.

WMS Mini-program Operation Diagram

Opportunity Assignment Diagram

Service OrderDiagram

Data Analysis Report Diagram

Business-Finance Integration

In the future, Jeno will form a strong alliance with De Rucci and advance together!

Promotion highlights of the De Rucci Distributor Basic Operation Platform: