2011 is not a good year for traditional home stores. As the regulation of real estate policies has had a negative effect on the downstream home market, traditional home stores such as the Real Home, Red Star Macalline and so on have felt a chill, and when the tremors are not only prepared for the winter, they frequently prepare strategies. Adjustment. The changes in macroeconomic policies and the economic environment have made it possible for Chinese traditional home furnishing stores that have been developed for more than 20 years to seriously consider how to take the next step.
Unlike most mid-range home stores, high-end home stores have been developed in China for six or seven years, but they have won the favor of high-end consumers in the home market with large area, luxurious style, excellent service and good quality. . The sixth space home group headquartered in Hangzhou is a home chain brand that looks at this market segment and is deeply rooted in it. Chairman Xing Jiguo said that the group has operated six chain stores in Hangzhou, Ningbo, Suzhou, Wuxi and Hefei. The current store opening plan will continue in more than 20 cities across the country.
At present, the traditional mid-range home store industry has been developing a diversified transformation for a long time. For example, the home has already extended its reach to the high-end home market and opened its home. Red Star Macalline has established a Beijing Chaoyang store that integrates food, drink, and entertainment. . It can be said that the expansion of the home market is still going on. If there is a market, there will be expansion. In this battle to seize the territory, who can find their own direction and insist on going on will have some achievements. The high-end home market, as a market segment, will be easier to seize the market after achieving the chain model, get more cakes and win development opportunities.
High-end positioning
Like traditional home stores, high-end home stores also play the role of platform operators to attract brands to settle in and collect rents for profits. The difference is that the target partners of high-end home stores are international high-end home brands and domestic first-line brands.
Just a few years ago, international high-end brands were skeptical about entering the Chinese market, and how to introduce them into China became the top issue for operators. Xing Jiguo, chairman of the Sixth Space Group, said: “Foreign brands have always looked at Chinese consumers with an old eye. In fact, China’s luxury consumption has grown very fast in recent years, and last year’s sales growth rate was above 25%. Second in the United States, the second luxury consumer. Consumers go abroad to buy luxury clothing, luggage has become a fashion, and high-end home products, not much through foreign purchases. Because of the strong domestic consumption power, international home Brands are willing to enter. In addition, whether to provide first-class environment and supporting services is also an indispensable condition for impressing brand owners.
But successfully convincing the brand is a huge project, and it takes a very long time to spend more than a year. “There is usually a well-known international brand that will form a driving effect after entering the country. The second and third companies will be better negotiated later,†said Xing Jiguo. Since the sixth space was positioned in high-end stores in 2005, more than 30 international home brands such as BAKER, IPE CAVALLI, SAVIO, HASTENS and DUXIANA have been introduced into it, forming an international home market. Professor Pei Ning of Peking University once commented on this business model: "This opens up the imagination for the mallization of the Chinese home furnishing market and is a disruptor to the Chinese home market."
In fact, this high-end store model only captures the consumer demand of a group of high-end consumers. In recent years, China's household consumption has entered a mature stage, and many stores have been advocating the concept of cultural household consumption. Therefore, Chinese consumers will consider whether the product fits into their own ideas when purchasing home products. The high-end affluent consumer groups are not flustered by the price-oriented products of mid-range home stores. They are pursuing the improvement of their identity and taste by high-end home products, regardless of price factors. Some consumers have become accustomed to consuming high-end home products due to their high aesthetic and quality of life, and have become loyal supporters of high-end homes, which provide market opportunities for high-end store models.
However, not every city has the conditions for opening a store, and it is necessary to comprehensively examine issues such as consumption capacity, site selection, and market maturity. “Taking Hangzhou, the first store in the sixth space, as an example, Hangzhou has a regional tradition of luxury consumption and its consumption power is amazing, so the market environment is very mature. In addition, the appropriate geographical environment is also very crucial. The sixth space has been in Beijing, Shanghai and other places to find suitable locations." Xing Jiguo said.
Nanny service
High-end home stores not only provide quality, but also provide high-end services. Different from the traditional store price wars and the frequent promotions, the high-end home stores attract consumers with spacious shopping space, elegant atmosphere, luxurious products and international trends. In terms of after-sales service, because the development of high-end home furnishing industry is far from mature, there is no after-sales service network. The after-sales service of consumers is usually solved by operators like the sixth space.
It is understood that the biggest problem of international brand after-sales is usually the delivery time of the product. For some international high-end home brands, the delivery time of the products is usually after half a year, but for Chinese consumers, it seems unacceptable. In order to resolve this contradiction, it has become a necessary task to establish logistics warehouses in China and standard supply chain management for brand owners. Taking the sixth space as an example, such work is already underway, which not only solves the problem of after-sales service, but also opens up a new business income for the group, and builds the optimal operation of the high-end home brand value chain and supply chain. The concept of the model is also very consistent.
As a partner of the operator, the brand is also the target of its service. In the early introduction stage, various analysis reports such as the consumption power of the city, the positioning of the store, and the management ability of the operator are required to meet the demanding requirements of the brand. How to help it operate better after entering the station has also become the work of platform operators. “Usually we will help them design store styles, provide suggestions for improving products, help them develop product sales strategies, etc. In addition, we also help them find independent agents in other cities in China.†Xing Jiguo said
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