Traditional store model transformation, but it is not necessarily the best choice for home channels

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Home The industry’s low-frequency, just-needed and other consumption characteristics have limited the choice of its channel model. At present, the traditional large-scale home MALL light operation and heavy real estate model may not be the choice of home channels. Red Star Macalline, the home of the recent family has been moving frequently, mixing home Mall and integrated Mall, using low-frequency consumption to drive low-frequency consumption, but the supply chain path has not changed, and the consumption experience is not bound to have an essential improvement. The transformation of this model may make channel costs even worse.

Two days ago, several distributors from Guangxi Yulin were delighted to tell me that they won the high price in the gold shop bidding of the local Red Star Macalline new store, so that the home hotline customer service can give them docking. Brand. On the other hand, the protests of local merchants on the large-scale home MALL have also occurred.

The status quo is so pleasing and worrying that it is necessary for us to analyze the value of such large-scale home MALLs for our home furnishing industry and channels and brands?

Low-frequency home consumption brings low traffic to home Mall

When we walk into a large home mall like Red Star Macalline, we feel that there are very few consumers in the store, especially work. During the day, walking, you will have a star-like feeling, and the handsome men and women shopping guides along the way are greeting you, the number of shopping guides far exceeds a few sporadic consumers. What are the reasons that affect the traffic of such luxury home Mall?

Home decoration consumption itself is a low-frequency consumer category, some people will never go there once, some people only have a lifetime Need to go once or twice. Compared with the past, home sales now have more front-end interception methods, such as large-scale decoration companies directly sell all categories, direct sales between real estate models.

The direct result of low passenger flow is the increase in channel costs, making it difficult for general dealers to survive. In addition to various bundled terms, dealers and brand owners are even worse, leading to dealers. The incident of protests has occurred from time to time. Many dealers with good marketing are not relying on the natural flow of the mall. The store is more acting as the exhibition hall.

In summary, many of the brands that have settled in the large-scale home Mall are positioned to target high-end brands, targeting a group of consumers who are not bad, and obtain high-margin through consumer information asymmetry. . And those who really face the mass consumer groups, such as Shangpin home furnishing, now also focus on the main channel development and comprehensive self-operated stores.

There is no change in the supply chain path, and it is doomed that there will be no substantial improvement in the consumer experience.

The large-scale home MALLs such as Red Star Macalline and Real Home have always offered to provide platform services for the in-house brands. However, its service core is profitable by collecting site rent. The mode of taking the land in the model is “heavy mode.” In the sales and consumption segment, it is “light mode”, and there is no substantial participation in the optimization of the supply chain. It is undeniable that they have done a lot of trials and efforts in the past, but in the end, because the market needs big vested interests too much, the block of change is too big and so on.

It is necessary to see how IKEA, which also provides home services, optimizes its supply chain. IKEA first takes design as the forerunner, and the optimization of the supply chain begins with scientific design and is reflected in the aspects of vision, production, distribution and service. The product category design combines high-frequency, medium-frequency and low-frequency consumption frequencies, and the store layout is scened to enhance the frequency of customer visits.

More importantly, in the production process, the order is broken up and reorganized, the complexity of the manufacturer is reduced, the production scale is increased, and ultimately the production efficiency is greatly improved. And these ultimate beneficiaries are consumers, consumers will get more affordable products and a better consumer experience.

Although the platform model of Red Star Macalline and the brand model of IKEA are completely different business models, the combination of high and low frequency categories optimizes the high-frequency category and format, and participates in supply chain optimization. In the end, we think about the business efficiency of the merchants and the improvement of the consumer experience. The applicability of these marketing ideas is regardless of the mode type.

For platforms, brands, and resellers, it’s not long-lasting to look for customers at the top of the pyramid to profit from information asymmetry. But looking at the red star Meikailong’s earnings of more than 40% of the net interest rate, such a good money-making business, I am afraid that I do not know these problems, but do not have enough motivation to do those for merchants and consumers.

Dual MALL mode transformation will only make channel costs more and more

In recent years, Red Star Macalline and Real Home are also active, one of which is to take home Mall Mixed with the integrated Mall, using high-frequency consumption to drive low-frequency consumption. I saw this scene in the home of Century Jinyuan in Beijing. The whole shopping mall is a comprehensive consumption area, there are catering business super, the flow of people is relatively large, the other side of the shopping mall is peaceful, we see There is not much difference in the home market, and the flow of people is still not enough.

I think that using the comprehensive category to drive the household category is not the key way to solve the flow of home shopping, because these areas that can be integrated into Mall are also destined to be core locations, and the operating costs of home stores will not be low. However, household and home improvement consumption is a specific consumption rather than impulsive consumption. It is difficult for high-frequency products to bring to the home low-frequency category. The better traffic in the lot will not increase significantly. It will increase the cost of the home channel in disguise and need to be consumed at home. Design a combination of high frequency and low frequency within the scene. A few good home stores in GuangzhouFor example, Mahui Home and Wuzhou Home City basically explain this problem.

However, the dual-Mall model of companies such as Red Star Macalline may not be mainly to solve the efficiency problem of the home channel, but to enrich their real estate model and let their stocks linger, mainly not thinking about For home merchants and home improvement consumers. In short, doing real estate and doing home is two different businesses. If you are doing home or creating a scene suitable for home consumption, optimize the brand combination of home decoration and home, you must finally solve the efficiency problem of home channel.

The store platform and the head home brand are all required for investment, and the small and medium-sized brands are struggling to accompany them.

In the traditional large-scale home Mall system such as Red Star Macalline, there are indeed many brands willing to follow He went forward together and did benefit. However, these brands are mainly based on the big brands in the head, and they are bound by the interests and the conditions of entry through strategic investment and strategic alliances.

A small number of brands occupy relatively high-quality retail lots, occupying certain advantages in terms of brand image and traffic acquisition, and basically can achieve the value of entering the store, but for more non-first-line brands, it will inevitably be a bit Lose money to earn money.

For small and medium-sized brands, it is necessary to analyze the role of storefronts, mainly for customers or products and image display. It is not going to be long-term to enhance the brand image by entering the large-scale home Mall. The operator must think from the perspective of the consumer, open a community store near the home community, and provide convenience for the consumers. Have an advantage.

In addition, we choose to open a large non-first-line location with low rents, expand the brand to do deep service, let consumers get one-stop service as much as possible, and establish corporate management in management to get customers. Independent of the storefront, it can be obtained through team management and in-depth services.

The main characteristics of household consumption are low frequency, just need, decision making, high customer single value, and serial consumption. Red Star Macalline, Real Home and other traditional large-scale home MALL light operation real estate model is not necessarily the best choice for home channels, we should focus on the needs and pain points of consumers, establish a shorter consumption path, deeper service, and focus on customers The channel model of operation.

I also hope that companies such as Red Star Macalline and Real Home can use home consumption as the starting point, rely on the interests of merchants, optimize the scene and operation mode of the store, and upgrade the new home that is more suitable for home consumption scenarios. Mall.

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