Chen Xiao’s investment in the famous nest family last year, the first flagship store has been closed, the industry believes that this is the result of macro-control leading to the cold of the home industry. "It can only be said to be an indirect reason. I think his shop is going too fast, although it is very beneficial to the industry." Yesterday, an industry insider familiar with the former chairman of the board of directors, Chen Xiao, told the "First Financial Daily" The famous family wants to be "real retail", but it is difficult to adapt to the local business atmosphere.
Federal furniture also agrees with this concept. A senior executive of the company told this reporter that the home furnishing enterprises have got rid of the small workshops and gradually moved closer to the brand management. Agents set up their own regional franchise stores by renting venues at home hypermarkets. In this way, home furnishing companies basically have brand control, rather than handing them over to chain stores.
He said that at present, 80% to 90% of federal furniture revenue depends on agents. There are direct federal furniture brand flagship stores in a few major cities across the country, and more are brand-based. “Now the home business is basically not wholesale, unless there is a national, strong channel,†he said. Similarly, home chain stores are mainly used to collect various store fees. This is exactly the same as the local mainstream home appliance chain business.
Chen Xiao, who has been withdrawing from the chain of home appliances, believes that many chain commercial enterprises do not do "commodity management" in the true sense, but rely on monopoly resources to do "market management." The former takes the commodity as the value orientation, adopts the buyout business method to benefit the consumers, and the latter uses the various store fees as the profit means.
Chen Xiao said that the chain “store business model†ultimately passed the cost on the consumers. Therefore, it established the business model of the name Nest Family as "mainly based on commodity management."
But such a business model also means greater pressure on its own operations. Moreover, the name of the nest family has just started, it is difficult to obtain the recognition of the big brand management companies, coupled with the industry downturn caused by real estate restrictions, it is difficult to break the short time. Other home chain giants continue to expand in the store business model, showing that the industry is far from saturated.
Recently, Red Star Macalline opened its flagship store in Hedong District, Tianjin. This is its third store in Tianjin. At present, Red Star Macalline has established more than 60 chain stores nationwide, and is still in a high-speed expansion stage. The reason for the rapid expansion of Red Star Macalline lies in the business ideas of its commercial real estate.
Since the first purchase of land and construction stores in 1997, the business idea of ​​commercial real estate has become a weapon for the expansion of Red Star Macalline. The purchase of land and construction stores not only avoids the rising rents, but also brings more returns to the appreciation of real estate.
At the same time of self-purchasing land construction, Red Star Macalline also carried out the “trust management†method of building a store. Looking for opportunities to cooperate with real estate developers, Red Star Macalline will intervene in the initial stages of real estate development, and is responsible for designing, building, attracting and managing.
Driven by Red Star Macalline, there are two different development ideas in the home chain. One is the commercial real estate route of Red Star Macalline, and the other is the traditional “Two Hosts†route. The former is heavy asset management and the latter is light asset management.
At present, Jisheng Weibang and other majors are taking the “Two Hosts†route, leasing the hypermarkets, and then renting them to the agents of various home furnishing companies.
However, the international furniture village of JSWB in Shanghai is a product of cooperation with real estate developers, which means that it is also close to the idea of ​​commercial real estate.
According to industry insiders, the introduction of home chain has become an important measure for ripening commercial plots in the context of urban construction, especially the expansion of large-scale construction of small and medium-sized cities. This development trend also caters to the continuous sinking of home furnishing companies and the demand for the third and fourth tier markets. This will, to a certain extent, become the driving force for the continued expansion of the home chain that is integrated with commercial real estate.
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