In 018, the home store was mixed. On the one hand, the data continued to decline. The regional traditional building materials market was shut down one after another. On the other hand, the Internet giant entered the market, and the company's transformation activities were frequent. With the continuous development of the Internet in the field of building materials and home furnishing, traditional stores have also reached a transitional point. Industry experts predict that a large number of regional home stores will be adjusted and shuffled in the future by means of closure or acquisition, mergers and acquisitions, and the number of stores will continue. cut back.
If you use a few keywords to summarize the performance of home stores this year, it can be summarized as: traffic decline, new retail transformation, diversified formats, channel sinking and reshuffle.
There is a measure in the field of home building materials called BHI, which is the abbreviation of the National Building Materials Home Furnishings Index. It is the sales index of building materials and home terminals sold by the Circulation Industry Development Department of the Ministry of Commerce and the China Building Materials Circulation Association.
According to the latest BHI data released, the BHI index in November was 90.81, down 10.73% from the previous month and down 1.25% year-on-year. The sales of building materials in the country above designated size reached 84.26 billion yuan in November, down 13.16% from the previous month. After the “Golden September and Silver 10” peak season was not prosperous, the national building materials and home furnishing market entered the traditional winter off-season in November, and BHI fell sharply. It can be seen from the statistics of the BHI index in the past three years that since the beginning of last year, the national building materials and home prosperity index has obviously decreased by one gear, which shows the difficult dilemma behind the home store.
At an industry forum held in Guangzhou in August this year, Fanjiayou, CEO of Haojia.com, revealed that a medium-sized store with an area of 20,000 square meters in Guangzhou can accommodate about 100 specialty stores, which are sold from Monday to Friday. Adding up to about 500,000 yuan, the average sales to each counter is only 5,000 yuan, which is a 20%-30% decline compared with the same period last year.
In addition to the data, through the weekday visits and research, we also clearly felt the coldness of the store, especially during non-holiday time, often the sales staff more than the consumers who buy furniture, some dealers said: "In the past, as long as there is a home business Doing promotions, don’t bother to promote the whole store, people come and go, and we’ve been screaming with the tweeters. The scorpions are dumb and don’t feel tired. Now it’s not working, no matter what new and interesting activities, just look at it. Less than a few people came, the staff put up a stall and chatted or slept there. The activities were still the same, but if you don't do it, you can imagine it is even more deserted."
New retail transformation
Under such a trend, many home stores have perceived the crisis ahead of time, and have started the pace of new retail transformation. First, the family is married to Ali, and the Jinyuan store is transformed into a comprehensive mall experience MALL model to accelerate the “big home” to “big consumption”. "Transformation, followed by Red Star Macalline in hand with Tencent, the two jointly launched the global home smart marketing platform IMP, during the double eleventh crazy development finally reached 16 billion yuan turnover.
In addition to chain stores, Fusenmei, Xiangjiang Home, Hongyang Home, Jimei Home, Gaoli Home and other regional stores have also tested the water, launched a one-stop integrated shopping mall in different places, foreign home retail brand IKEA, B&Q and Hansen also quickly followed. For a time, domestic and foreign home furnishing stores have steadily embarked on the road of new retail transformation.
As a result of the transformation of the store, some practitioners believe that the traditional home furnishing market is large enough, and there is still much room for improvement. The addition of Internet giants and the innovation of new retail models will bring new imagination to the industry. Some people also said that for the fast-moving consumer goods industry such as supermarkets, restaurants, clothing, etc., the new retail has indeed played a significant role, but the development logic of each industry is different. The home industry has been exploring the Internet for many years. Finding the right way out, the immature new retailer wants to make changes in this traditional land is not an easy task.
One of the changes in the opening of new retail sales in home stores is that the format is more diverse. For example, in the MALL, which opened in April, MALL has settled in both the world of food and the two brands of Yaolai Chenglong Cinema. The use of catering and cinema to enhance the store's ability to gather customers, followed by the sportsmanship and the sports brand SportsMonster, which is popular in the Korean market. Into the station, the realization of the fresh supermarket, catering theater, physical fitness, children's entertainment, home care, digital intelligence and other large consumer formats. Wang Ning, president of the Real Home, said that after the success of the MALL pilot, it will be replicated in other stores in the future.
In addition, the home of the home is also building a consumer ecosystem around the concept of big home. This year's Milan Furniture Fair and the Italian Boeri Architects have reached a cooperation, plans to land at least 500,000 square meters of "vertical forest-urban complex" project each year, including ecological Mall, ecological commercial block, vertical forest residential , office buildings, hotels, apartments, etc.; in November, the Real Home and Chongqing Yubei District Government jointly launched the "Smart Home Art Town", which will land a large commercial complex of 900,000 square meters, including home stores, design Creative, substrate wholesale, theme business, business office, catering and entertainment.
On the road of diversified business, another home store giant, Red Star Macalline, went earlier and further. As early as the first Red Star commercial brand release and the first business annual ceremony in 2013, Red Star Macalline board coach Che Jianxin publicly stated that he would enter commercial real estate, develop urban complexes and commercial shopping centers in the future, and proposed to build it by 2020. 100 integrated shopping malls, now the Aegean shopping mall has been blooming in many cities across the country.
In this year's A-share prospectus, Red Star Macalline has added an “incubator for the home industry”. From the business module displayed on the official website, it covers a wide range of content, covering e-commerce, home improvement, logistics, Consumer finance, real estate procurement, investment and financing, logistics industry parks, fund management and many other fields. From the perspective of companies investing in the past two years, in addition to custom home, smart home and artificial intelligence industries, they also invested in sports, transportation, entertainment, film and television industries, etc., showing that their ambitions are not limited to home stores or even pan-home field.
Channel sinking, shuffling intensified
Since the beginning of this year, Red Star Macalline and Real Home have accelerated the pace of opening stores. According to the official website information of the two companies, as of the end of November 2018, the number of Red Star Macalline Malls nationwide exceeded 300, and the home is 277. At home, the two leading stores have put forward the “Thousand Stores Plan”, and in the future, they will focus on first- and second-tier cities and make efforts to the third- and fourth-tier cities.
In the sinking of the channel, IKEA has also begun to accelerate. In addition to launching an online store, you can also try different types of stores online, such as a small city center store, an experience store, and the first “100-yuan store” opened in Taipei’s night market, building more outside the big shopping malls. Contacts, attract more consumers. From the trend of these giant layouts, the next home store will face a fierce market reshuffle. When the red-star Macalline, Real Home, and IKEA brands are gradually sinking into the third- and fourth-tier cities, the living space of some local regional stores will be further squeezed.
In fact, since the beginning of this year, many traditional building materials market mergers and acquisitions have been happening. Beijing Aijia Home West Fourth Ring Store, Yuquanying Building Materials Market Lighting Experience Hall, Shanghai Hongkou District Wanjia Building Materials Wholesale Market, Putuo District Jinsheng A number of old building materials markets such as the Hollywood home market, Chengdu Fuhe Bridge, etc. have been shut down, and it is foreseeable that this trend will become more apparent in the future. Home stores will face a number of mergers and acquisitions tides.
Some people in the industry analyzed that the back of the home store shuffle is affected by the custom wave. In recent years, with the popularity of the whole house customization, behind the high-speed growth of more than 30% of custom brands, not only eroded the original market share of finished furniture, but also made the traditional home store furniture merchants difficult, but also in the channel layout and tradition. The home store is also gradually drifting away. Although many traditional home stores have custom zones, more custom stores have opened as Shopping malls, street shops or community stores. Customized homes also take away the traffic and sales that originally belonged to the store while the channels were independent.
Fortunately, the head home store has felt the crisis has sold the pace of transformation. It is foreseeable that in the future, whether in the first-tier cities or in other regions, the home stores will gradually enter the reshuffle period, and some traditionally backward stores will be eliminated. After experiencing this reshuffle, the pattern of home stores will gradually stabilize and enter the track of healthy development.