Home Circulation Giant's Layout Expansion Speed

- Jan 16, 2019-

Accelerated chain development of home circulation enterprises


On January 6th, the home of the 2019 New Year reception was held. Wang Linpeng, chairman of Beijing Real Estate Investment Holding Group Co., Ltd., revealed a set of figures and revealed the opening plan for 2019. “In 2018, there were 80 branches in the house, and the number of stores opened reached 303. The market sales exceeded 75 billion yuan, a year-on-year increase of 23%. In 2019, the home will strive to achieve market sales of 85 billion yuan. The number of stores opened exceeded 400, becoming the benchmark and model for new retail in China's home furnishing industry."


Wang Ning, president of Beijing Juran Home Furnishing New Retail Chain Group Co., Ltd. introduced that in 2018, there were 80 branches in the house, and the total number of stores opened reached 303. On December 30, 2018, the home of the company opened 7 stores, among which Zhengzhou Ou Kailong North Longhu Store was the 300th opening store of the Real Home. Last year, there were 166 newly signed stores, and 531 stores were signed in total. In 2018, it became the year with the largest number of stores and contracted stores in the history of the family.


Looking back at the development process of the actual home, in the past two years, it has indeed entered the fast lane at the opening speed. From the establishment in 1999 to 2014, the family has grown from a store in Beijing to 100 chain stores nationwide in 15 years. In 2017, the home was completed in 200 stores. In 2018, it took 300 years to complete 300. The layout of the store. At the speed of opening a store, we constantly create the best results.


The competition in the home circulation industry has begun to heat up. Another big giant, Red Star Macalline, is constantly refreshing. According to the announcement released by Red Star Macalline Home Group Co., Ltd. on January 3, as of December 31, 2018, Red Star Macalline operated 80 self-operated shopping malls and 228 commissioned shopping malls. The business mode authorized the opening of 22 franchise home building materials projects, including a total of 359 home building materials stores / industrial street. In the early 2017, Red Star Macalline’s 2017 annual report showed that there were 256 national malls. Although the growth rate is slightly inferior, the overall number is even better.


It is foreseeable that the competition of home circulation enterprises will become increasingly fierce. The home is actually accelerating the chain layout from the first-tier cities to the fourth- and fifth-tier cities. Wang Linpeng said that in 2019, he will strive to open more than 100 new stores. By the end of the year, the number of stores will exceed 400, and the chain target of opening 600 stores in the next 3-5 years and opening 1,200 stores in 8-10 years will not only become a domestic home. The industry's first brand is also targeted at “famous brands in the field of consumer circulation”.


Parallel development of multiple businesses


In addition to the home sector, the business layout of home distribution companies is also expanding. On the one hand, relying on the flow advantage of home stores, attracting multiple formats, and experimenting with cross-border integration; on the other hand, as a factory and brand in the home industry And the dealers' "big masters", the home circulation enterprises have a more macro understanding of the industry, coupled with the advantages in capital, it is easier to make a big impact in the pan-home industry.


Take the actual home as an example. In 2018, cross-border integration became the main theme of physical business. The home of the home was based on the Beijing Real Home Experience MALL (Lize Shop), Guangzhou Tianhe Store and Hubei Huanggang Luotian Store. Supermarkets, catering lines, children's education and training, pension supplies, sports health, original art, wedding and other lifestyles, from "small home" to "big home, big consumption and home life mall" transformation and upgrading; The industrial eco-chain segment hosted two home furnishing exhibitions, highlighting the “smart cloud habitat”, “customization” and German red dot design awards; in the financial sector, the industry chain financial platform has issued loans totaling nearly 2 billion yuan in 2018. In addition, the China Home Equity Fund, which has jointly launched 3 billion yuan with industry brands, has also completed the establishment and early fundraising; in the logistics sector, Tianjin Baodi Smart Logistics Park is scheduled to start construction earlier this year and put into operation in the second half of the year. The Smart Logistics Park will also land this year; in the commercial real estate sector, the first vertical forest city complex in 2018 will be located in Huanggang, Hubei. Lin Changchun "actually-world" urban complex project opened a hit. At the same time, projects in Chongqing, Wuhan, Urumqi, Nanning, Sanya and other cities will also land in 2019.


Red Star Macalline is also positioned as a “super integrated service provider” in the home industry, and its goal is not limited to home hypermarkets. In addition to expanding offline stores, Red Star Macalline has frequently added more codes in the custom home, smart home and artificial intelligence industries in the past two years. In industries other than pan-home, it has also invested in innovative companies in the fields of sports and transportation.


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