The home store has entered the reshuffle year: there is no expansion here, and the face is unfortunately withdrawn.

Image from "Oriental IC

With the Times The development of consumer demand has forced home enterprises to actively explore a more complete development model. Traditional old home stores are no longer suitable for industry demand, and some are facing the choice of being adjusted and eliminated. The national chain home stores headed by Red Star Macalline and Real Home took the lead in making changes and began to actively explore smart new retail and diversified transformation.

Not long ago, the actual home was officially opened for operation in another new store in Xi’an. In the past two years, in the market terminal, on the one hand, the large-scale chain stores continue to expand, while on the other hand, the store attracts the merchants and regrets the withdrawal. The building materials and home furnishing industry is facing shuffling and adjustment, especially with the continuous development of the Internet in the building materials and home furnishing fields. The home building materials store has also been stunned by dealers, and some dealers bluntly said: the store will continue to decrease, and even gradually eliminated.

At present, the marketing power of the store and the channel development power have become important conditions for the dealer to decide whether to settle in.

The scale expansion of the store is blocked.

After 2012, the expansion of building materials and home stores entered the fast lane, and each store began to “smuggle the land”. For example, from a small building materials store in 1999, the chain store brand was actually home. In 2012, the total number of stores was 50. Since then, the pace of store expansion has actually accelerated. In 2014, more than 100 stores exceeded the end of 2017. 200 homes. As of June 2018, there have been more than 400 stores that have been opened or contracted.

In addition to chain stores, the number of new stores in local stores has continued to increase. Xi’an Daming Palace Building Materials Home City has completed the market layout of East, West, South and North in four years, becoming the preferred store brand in the local market, even The strong red star Macalline, the home of the big chain stores and other large chain stores are also slightly inferior. In recent years, under the influence of factors such as real estate regulation and control policies, the sales of national building materials and home stores have been declining as a whole, especially in 2017, which has dropped by 22.60%. When the cake is small, it means that someone who eats the cake will definitely be out.

In order to reduce the expansion cost, the chain store adopts two modes of self-operating and franchising. The self-operated store is responsible for the operation and property management. The franchise is managed by the franchisee and develops the franchise store to the store. In terms of cash flow and risk reduction, many chain stores are willing to adopt the franchise model to expand the scale to a certain stage, such as Red Star Macalline, Real Home, Fusenmei and so on.

However, the expansion of the store has undoubtedly increased the operating cost for the building materials and home furnishing enterprises. The dealer Mr. Le believes that the current stores have established long-term strategic partnerships with the brand owners, and the store has established new branches and brands. Merchants have to follow along and increase the cost of opening a lot of stores.

Although there will be some attractive preferential conditions in the initial development stage of the store, if the development of the store is insufficient, the new store will add a cost burden to the brand. In addition, with the increase in the concentration of building materials and home brands, the number and speed of brand new stores have also slowed down. Based on the above factors, the expansion of traditional stores has been hampered, and many stores have experienced weak investment or vacancy rates.

Stores & ldquo; 傍 large layout of new retail smart stores

There are data show that the size of China’s building materials home market has reached 5 trillion, 2018 began the national building materials home market transformation and upgrading pace Significantly accelerated. In addition, building materials home store companies launched smart stores, new retail store development model:

In early 2018, the actual home and Alibaba reached a cooperation, the store will be fully digital, to achieve the consumer choice of decoration materials scene Structure and experience upgrades. During the period of 6.18, the actual home was built with Beijing Century Golden Resources Store as a pilot, and together with Tmall to build a smart store, the two sides cooperated in customer drainage, data sharing, and supply chain grafting.

In June 2018, Qumei Home also joined forces with e-commerce giant Jingdong to enter new retail, repacking Qumei Home Asian Games Village as Qumei & middot; Jingdong Life Experience Museum, it is understood that after opening Average daily sales increased by 53% compared to the previous period.

In addition, the chain store Red Star Macalline cooperated with the artificial intelligence enterprise Keda Xunfei in 2017 to set up intelligent robots in major stores and arrange new retail. The role of smart products is to provide consumers with a full range of shopping experiences through features such as face recognition and voice interaction.

The cross-border integration of building materials home stores and e-commerce giants has led to the formation of a diversified business model for store outlets. For stores, based on traditional sales channels and business models, combined with data from e-commerce companies And technical support, it is bound to make the traditional building materials home store closer to consumers, will also bring consumers a richer shopping experience and services, some brands believe that this new store form will increase the sales of traditional home stores Efficiency, through accurate big data analysis to bring more accurate services to customers, but also to provide more possibilities for new business models.

Multi-store transformation of stores

As an important display sales platform for building materials and home products, the marketing power and channel expansion of the store are the key factors for the brand merchants to decide whether to settle in or not. The store’s business model is also becoming more and more passive, taking the initiative to bring traffic to merchants and find channels to become one of the transformation methods of most stores.

For example, some stores have established cooperation with real estate companies to facilitate the transaction between merchants and owners, and the stores have brought convenience to consumers through cooperation with financial institutions such as banks to stimulate consumption. Drive sales.

In fact,In addition to the transformation of marketing channels, in terms of formats, major supermarkets also expect to increase passenger flow through cross-border ways. Building materials and household products with decoration materials have low attention and low frequency of consumption. Some stores put lifestyle categories and building materials and household products. In the same store, attract consumers with products with high consumption frequency and improve brand awareness in the market.

However, in similar stores, the effect is not satisfactory. For example, Wanjiali Home Building Materials City in Hunan is such a model. The reporter observed that consumers will not go to the procurement of daily necessities. In the building materials area, it seems that the building materials store is somewhat deserted.

After the 80s and 90s, the group became the main force of consumption and the market environment for consumption upgrades. Some stores also actively changed their minds, made changes from channels, and expanded channels and increased customer acquisition rates through the Internet. For example, the store establishes its own e-commerce sales platform. Xi’an local store Daming Palace building materials home has its own online sales platform for displaying and selling the products of the brand owners in the store. For this reason, the store also specially organized relevant training.



Relevant recommended products

Pet Artificial Turf Environmentally Friendly Synthetic Grass China

Concrete Pump Truck Used 37m (SYG5502THB)

High-Density Polyethylene Geomembrane Environmental Engineering for Masonry and concrete dams

Knitted Civil Construction Composite Geomembrane

Green Landscaping artificial turf grass 20mm – 50mm , 11000dtex & 12800dtex

Leave a Reply

Your email address will not be published. Required fields are marked *