The era of electric business competition

Absrtact: In April 2013, a home forum, Red Star Mei Kai Dragon Home Group chairman Chei and Wang, Ma Yun played a bet: if 10 years after the simple electric dealer in the high-end retail market share of more than 15%, he lost to Wang and Ma 100 million. Nowadays

In April 2013, a home forum, Red Star Mei Kai Dragon Home Group chairman Chei and Wang, Ma Yun played a bet: if 10 years after the simple electric dealer in the high-end retail market share of more than 15%, he lost to Wang and Ma 100 million.

To this day, it seems hard to see the success or failure of the game: in the past "Double 11", Alibaba's Cat mall within one day to hand over more than 30 billion of the report card, and focus on the development of the line under the Red Star of the United States Kai Lung Home Plaza, launched in this year's seven-time poly-business promotional activities, Can also complete the total sales of 13.3 billion yuan merchant.

"Cheap is not the patent of the electric dealer, the shopping center also can produce the competitive power of low price," this is one of the core idea that Chei runs through in the Dragon House Square of Red Star us. In the past 4 years, through the integration of household industry chain, the accumulation of business resources, Red Star U.S. Kay Mirs merchants total sales continued to rise, 2009, 2010, 2011 total sales of merchants reached 31.3 billion yuan, 39.6 billion yuan, 43.6 billion yuan, 2012 is more than 50 billion yuan, The average growth rate of more than 18%, and this year, hongxing United States Kai Lung forecast, the total sales of its shopping malls are expected to break through 60 billion yuan.

Why can the Red Star Mei Kai Dragon from a local furniture franchise store grew up with hundreds of home mall the largest home business platform? Under the impact of the electric dealer, how can it remain competitive?

Product Replacement + Service Promotion

Constantly from the needs of consumers to change the red star of the United States Kai Lung business model, one of the most important changes in its rental from the mall to the establishment of the market changes.

As early as 1994, the Red Star of the United States and Kai Lung has been trying to build their own shopping malls to expand the way. "We do not do real estate, since the main consideration is to reduce costs, in order to do the hundred-year-old shop," Chei has explained that, with the rise in rents, shopping malls operating costs are rising, since the construction of the market, although the short-term cost may be higher, but "to a certain extent, it is equivalent to a fixed asset investment."

In fact, since the establishment of the mall is not only for the Red Star of the United States Kai Lung to reduce intermediate links, reduce transaction costs, with its home mall product upgrades, since the construction of the mall can also meet its professional home store design needs.

In order to ensure the platform on the merchant, the quality of the products, the Red Star in the United States Kai Lung in the merchant access, merchant supervision design a set of evaluation system, qualitative, quantitative and comprehensive evaluation of the merchant.

In the supervision of the merchant at the same time, in order to strengthen the merchants and home mall bonding, Red Star United States Kai Long also to the merchants, manufacturers to provide a variety of support services. "For adhering to the original, environmental protection, quality of enterprises, we will be from the operation and management, marketing support, including to help the brand in the new market to find excellent distributor cooperation, to recommend excellent designers at home and abroad, and its joint investment and promotion, etc., can even help it to do marketing planning and implementation," Zhang Shulin, assistant general manager of South China regional Red Star Mei Kai Lung.

And for the most important third party-consumers, Hongxing Mei Kai Dragon is to provide a more complete home shopping experience. Starting from 2012, the Red Star United States Kai Dragon launched home expert Services program, including the designer free consultation, home consultant The whole shopping guide, delivery on time, with the city three times times the difference, the first payment and so on, and strive to pre-sale, sale, after the sale of consumers all kinds of consumer solutions.

Electric dealers Try

Admittedly, the current traditional home mall still have natural passenger flow, scene display, advertising effects and leisure experience, but the price shocks in the face of the Electronic business era, Red Star, such as the United States, such as Kai Lung under the line home store pressure is still obvious.

October 23, the Chinese Furniture Association issued a "China Furniture Association Market Committee on the Standardization of E-commerce work," caused a stir. The comments clearly point out that when home manufacturers and merchants launch low price promotions online, to the store and other key partners to inform and the price of the store to be aligned with the line; without the permission of the store, you should not use the trade mark of the store to advertise, and not to transfer the store's business to other trades through the electric Trader's mobile POS.

The comments because of the Red Star United States Kai Lung, incredibly the home, Jimei and other 19 entities home store support and caused the industry concern, is considered to be home industry giant collective boycott of the electricity business.

In this respect, the Red Star of the United States and Kai Lung related officials to the "China Business newspaper," the reporter explained: "This is misreading, is not a boycott of electricity dealers, but because the rapid development of electricity, unavoidably some irregular operation, the Chinese Furniture Association issued a standard electricity business document is not improper." ”

In any case, the document to some extent still protects the red star, such as the United States Kai Lung, such as the bottom of the line store interests, to avoid the offline entity shop into the "experience shop" embarrassment, but also to many expectations through the electric business channel sales of merchants, manufacturers benefit damage.

In fact, for the electricity business Channel, the Red Star American Kai Lung is not completely repel, its oneself also started to enter the electric business channel to try. At present, its brand new electrical commodity licensing "star-Yi Home" has been on line, but in order to and offline positioning in the high-end products to differentiate, "Star-Yi Home" platform is currently selling more or lower household products.