Love Gu Mall's short-lived attempt: manufacturers to test the water of their own electric dealers in the setbacks

After less than 3 months of operation, Haier Group and the British multi-channel retailer, Home Retail Group, a joint venture to build a website-"Love Gu Mall" announced the dissolution.

The news by Love Gu Mall employees through micro-bo blasting material to the electrical industry experts Shangxiang after the outside world, then, Haier Group on the official website issued a statement confirming the news.

Haier Group stated: October 2011 Haier Electric and Home Retail Group (hereinafter referred to as "HRG") in China to set up a joint venture to HRG "Argos" brand development of multi-channel retail business. At present, because of HRG strategic adjustment, decided to withdraw from China business. Haier electronics respect each other's choice, and agree with each other, in accordance with the relevant provisions of the existing business parties voluntarily liquidation.

On the other hand, it also means that the Haier Group, which has entered the stage of strategic development from the global brand strategy, has suffered setbacks from the 2010 and HRG's attempts in the field of electrical business.

"Haier's electrical business layout will not be affected, Haier Mall and Haier in the days of the cat, Suning and other flagship stores are still in progress, Haier is still the domestic electrical appliances industry sales revenue the highest enterprises." However, the Haier 1169 operators concerned told the newspaper reporter.

One is the domestic home appliances industry's highest logistics and the full range of market channel layout of the manufacturer, one is rich in multi-channel operating experience of the British retailer, its cooperation was originally sent by both sides in high hopes, exactly what makes both sides finally parted?

A short-lived attempt

2010, Haier Group and HRG began to cooperate to try. September of that year, the two sides jointly launched the online home shopping platform-"Day shun Le Home" to "catalog + online shopping mall + entity shop" as the main mode.

Haier Group said that at that time HRG under the Argos is the UK's most successful electric business, operating mode will be "catalog sales +B2C++O2O" Three modes of integration, is also the British traditional retail involved in the most successful business enterprises, and its intention to enter the Chinese market, and Haier electric under the "Day Shun" As the largest three or four-tier market retailer, it also intends to expand the field of electrical business.

The two sides coincide.

For Haier, HRG not only can provide multi-channel operation of the successful experience, can also help day and day to expand in addition to household appliances outside the product range, the use of HRG original procurement system can be department stores, clothing and other areas of the extension. Haier's daily shun although the overall sales scale has reached 50 billion yuan, but 80% is Haier's own brand products sales, while the other 10 billion yuan is GE, Toshiba, Philips and other consignment of goods revenue, in other areas of basic not involved.

Because of this, even if the Japanese shun Le home two years before the establishment of the operation is not good, but October 2011 Haier electrical or HRG with the formation of a formal joint venture company, the initial investment of 29.5 million U.S. dollars. Among them, Haier electrical foreland agents and HRG Hong Kong company respectively has 51% and 49% rights and interests. The JV will be wholly owned by a Chinese company that will operate a multi-channel retail business in China with a "Argos" brand, with the specific operations being performed by the HRG team.

However, whether it is early day shun Le home or love gu Mall, from the establishment after the operation is very poor. The average daily IP traffic per week is about 3000, the average daily PV browsing volume is about 4800, it is difficult to support the electric business website.

Reporter learned that hrg under the Argos in Shanghai, Qingdao has 8 physical stores, and logistics, after-sales service by Haier's company under the daily Shun, but the two resources from the beginning of the integration has not been completed.

The source told the newspaper reporter, "Haier day Shun's advantage channel are three or four level market, it has nearly million home offline entity stores, and these stores are still the main sales of Haier's products, and did not become Love Gu mall's own point, and the daily logistics coverage is also a level three or four market, This is contrary to Argos's strategy of first-line city layout, and there are contradictions from the beginning. ”

Paller Consulting Senior Director Luo Qingxi said that China's one or two-line city of electric dealers competition is very fierce, whether from the Taobao department or Beijing-east, Tencent and Suning easy to buy competition is increasingly white-hot, to enhance the site traffic and visibility, you must carry out a large number of advertising promotions. This is obviously the two sides did not think before, and the three or four and rural market at present to the low acceptance of the electricity quotient, this is Love Gu Mall and day and day shun resources can not achieve synergy effect of the important reason.

The manufacturer's difficult electric trade routes

In addition to the contradictions between the joint venture with Haier, HRG headquarters operation problems are also important reasons.

According to British media reports, HRG's Argos and Homebase brands in the United Kingdom a total of 1100 stores, of which Argos stores up to 750. These very wide-spaced offline stores become the Argos of communication with end consumers, also is the consumer to take delivery of the important backing, but the model is currently in China's electricity business is still difficult to get through, Su Ning hope that the line of 1700 stores as Suning easy to purchase the plan in the implementation also met cold.

And in the overall negative growth of the European economy, HRG in the UK's domestic operations also problems, the first half of 2012 began its profits fell sharply, which also allowed HRG to slow down the expansion plan in China. This is similar to the closure of Best Buy and the city of Vantaa stores in China.

Obviously in this case, Haier hopes to learn from HRG experience to build a Chinese version of multi-channel retail mode of frustration.

In fact, Haier Group in 2000 on the formation of E-commerce Center, the end of 2012 also put forward to enter the network operation phase, and HRG joint venture company is only a part of its many electrical quotient, and the upfront investment only less than billion, so even love Gu mall liquidation on its impact is not big.

It is reported that, in addition to Love Gu Mall, 2012 has been Haier electrical receiver of the official website "Haier Mall" last year also achieved nearly 300 million yuan sales revenue, it can be through Haier Day Shun store to realize the sharing of resources on the line. At the same time, Haier also established the official flagship store in the sky, and through the Beijing-East, Suning and other independent Third-party platform sales, the scale exceeded 2 billion yuan last year.

Recently, Haier Group also with the Cat electronics on the signing of more than 1 billion yuan sales of large orders. Haier Group executive vice president Yunjie said, Haier electric dealers do not rely on price war, but through personalized customization to attract more consumers online shopping, this is also the C2B mode of the cat is trying, Haier commander of the custom LCD TV last year in the days of the cat to create a sales miracle.

January 2013, Haier also killed into the furniture market, with the furniture electric Shangmi lele Cooperation, out of a one-stop home experience shop, cooperation with the United States Lele Online Experience Museum will also be renamed as "Haier Beauty Lele Shop", the United States Lele all online experience Pavilion will display some Haier appliances, the United States Lele website will also add a large number of Haier products.

Luo Qingxi said, clearly in the network strategy under the guidance of Haier's electrical business layout is still continuing, but with the past to invest a lot of energy to build their own electric business model compared to Haier's electric dealers try to start to use the existing mature power channels to expand the way.

The closure of Love Gu Mall liquidation work, Haier Group statement also pointed out that the joint venture will be strictly in accordance with state regulations, properly solve the customer's after-sales service and staff related issues to protect the legitimate rights and interests of consumers and employees.