According to statistics, the total area of ​​home furnishing stores in China has now exceeded 40 million square meters, of which about 50% of the stores are surplus, so the negative effects have been extended to the home industry. For home stores, transformation and upgrading is imperative. In such a market environment, cross-border operations of home stores are becoming more frequent.
Traditional home stores have a fast pace of cross-border movements
In fact, the diversification of home stores began as early as a few years ago, but the measures at that time were limited to the improvement of the internal environment and business format of the store, such as the opening of children's play areas, the introduction of home appliance sellers, etc. Cross-border can be said to be a bit "still half-faced." By 2016, the situation has changed a lot. In just one month, Beijing's three major home stores have repeatedly thrown out new business models, showing their urgent need for transformation. From the low-end format of selling home building materials to the fashionable pension, new energy and even integrated office, the cross-border pace of home stores is getting bigger and bigger.
Why do home stores cross-border operations?
Why are home stores so eager to engage in cross-border operations? Industry insiders say that they are mainly affected by e-commerce channels. Before October 2016, although the real estate market was in an explosive state, it did not affect the home furnishing industry. The home furnishing market is still in a state of low growth, while the expansion of e-commerce channels continues to increase. In this case, traditional home stores To survive, you must adjust your operating model. As the macro economy enters the new normal, the competition in the home market has become more "you die", and most home furnishing companies are facing difficulties in sales, profits, and even closures. At the same time, the Internet has had a huge impact on traditional businesses. The de-intermediation and cross-border convenience of e-commerce channels have seized the traditional commercial market, so the transformation of business models is imminent.
In addition to the situation, for traditional home stores, how to make better use of the sales subject is a problem that needs to be considered when transforming. The industry analysts believe that the cross-border operation of home stores is first to revitalize resources. If only home and building materials are used, it is difficult to make full use of all space. The best way to solve this problem is to introduce other formats and directly operate the store. And complement each other with home business.
Diversification is popular for home stores
A diversified home furnishing store, where consumers can not only buy home building materials, but also visit food supermarkets, eat, fitness, enjoy movies and other entertainment and leisure formats. From the current transition situation, the function of selling furniture and building materials products in home stores is being weakened, and it is evolving into a shopping mall model. In fact, the upgrade of home stores is also focused on consumption upgrades. Today's consumption structure is upgrading from “eat, wear, and live†to “education and educationâ€. “Changes in consumer demand have pointed out the direction for enterprise transformation and upgrading. ". The expansion of the business scope means that the home store extends the industrial chain and attracts people who do not have the demand for household consumption, so that the resources can be maximized and the store can be provided with more room for development.
With the increasing recognition of the concept of big home, no matter what kind of business in the cross-border operation of home stores, hard work and quality improvement are still the key to success. Only by creating an environment that is environmentally friendly, convenient, transparent and beautiful can consumers fight in disputes. Become a winner.
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