As the leading channel for distribution in the home furnishings industry, at the end of 2011, we look back on the themes of the year for furniture malls: closures and expansions went hand in hand, reforms coexisted with conservatism. When the coldness of the market became a consensus, the malls' persistence in their advantageous positions incorporated more thoughts about survival and models. Here, the Morning Post Home Furnishings Weekly specially organized the keywords of home furnishings malls in 2011, to review the warmth and coldness of the malls in 2011 together with industry professionals.
Keywords:
Expansion:
Where is the direction of the home furnishings market? Each company has different answers, and红星美凯龙's answer is simple: accept challenges, prepare for expansion. In December, the long-planned eighth-generation home furnishings mall model of红星美凯龙will be presented at Chaoyang Road Store. Replacing the current single-mall model with a mixed-mall model is红星美凯龙's mode of thinking under increasingly severe market conditions.
Similarly choosing "expansion" is Jimei Home Furnishings. On September 4, Jimei Home Furnishings opened its sixth flagship store, Shuitun Store, in Changping. After continuous layout in Wanjiacheng Store, Jimei Home Furnishings reached its peak in the "land grabbing" in northern Beijing through the Shuitun Store. Its operating area covers consumers in many places including Changping and Yanqing.
Morning Post Comment:
"Only by constantly running can one have the motivation to move forward," this classic saying best describes the expansion of malls in 2011. When the external market cannot help the development of enterprises, taking the initiative, actively assisting in running is not a bad way to "break out."
Keyword:
Routine Promotion:
According to relevant data statistics, throughout 2011, the frequency of promotions in major malls was as high as once a month or even more. Compared to the "node marketing" of previous years, i.e., concentrated marketing during national holidays, the promotion trend of malls in 2011 tended towards "routine." In interviews with reporters, Mr. Yin Yuxin, Vice President of Dongfang Jiayuan Home Furnishings Plaza, said: In 2011, Dongfang Jiayuan stores held about 18 promotional discount activities, averaging 1.5 times per month. The aggressive promotion strategy to seize market share was particularly evident in 2011. Meanwhile, the "innovation" of promotional methods was also prominently reflected this year. Traditional "discounts, coupons" continued to be popular, in addition, more direct "direct reduction, direct delivery", "flash sales", "discount coupons" were also attempted by malls.
Morning Post Comment:
Whether "routine promotion" is an acute reaction to the cold market cannot be "conclusively determined," but the consensus is that promotional methods are a "double-edged sword." How to truly give benefits to consumers while avoiding "false promotions" tests the business wisdom and integrity responsibility of enterprises.
Keyword:
Shop-in-Shop:
The market is "frozen" and may remain "frozen." However, for malls, breaking the ice is imperative. In addition to service, in addition to promotions, there is one new move in 2011 that must be mentioned. That is "shop-in-shop." In 2011, Chengwai Cheng Home Furnishings Plaza, one of the largest malls in Beijing, remodeled the parking square, and a batch of independent furniture stores "sprouted" alongside Chengwai Cheng Home Furnishings Plaza, becoming Chengwai Cheng's "shop-in-shop." The appearance of "shop-in-shop" compensates for the limitation of traditional home furnishings malls where individual store areas are too small to perfectly experience the brand essence, enriching consumers' shopping experiences at multiple levels.
Morning Post Comment:
The combination of premium "shop-in-shops" and panoramic "Chengwai Cheng" is a beneficial attempt for deep cooperation between building materials items and malls. The risk resistance ability of brands linked under this attempt is much higher than that of ordinary independent stores of building materials items.
Keyword:
Service:
Unlike other home furnishings companies, malls serve as the direct link between building materials companies and consumers, and most of the shopping experiences consumers receive come from the actions of the malls. How to firmly attract the few natural customers in 2011, Jingzhong Zhiwu did enough work on "service." In March 2011, based on the "commitment of unconditional return within 30 days," Jingzhong Zhiwu launched the first service commitment in Beijing malls targeting delivery and installation time - "zero delay" service. This solved the long-standing problem of logistics being "not up to par" for consumers. Half a year later, Jingzhong Zhiwu upgraded services again, making the "trade-in for new" service during National Day promotions a long-term service commitment, solving the problem of placement for old furniture for consumers.
Morning Post Comment:
More often than not, consumers will repeatedly compare the "added value" when purchasing goods, one important item being "service." When enterprises fight for market share, they might as well stop and do the necessary services solidly. This way, they win the hearts of consumers and the internal driving force for enterprise development.
Keyword:
Closure:
For "foreign supermarkets" in 2011, it was undoubtedly an "awkward" year. The performance of "foreign supermarkets" in the Chinese market has always been lukewarm, and this year they encountered a complete "Waterloo." In January, the Xisihuan store of Home Depot officially closed. Thus, Home Depot completely withdrew from the Beijing market. Just six months later, Leroy Merlin Dajiaoting store was deserted, officially entering closure status. Compared to their grand entry, the world-leading giants in the home furnishings industry left China on a "subtractive" path. Due to "incompatibility" and strict property policies, "foreign supermarkets" were inevitably forced to leave under both internal and external pressures.
Similarly pitiful as "foreign supermarkets" are "Huan Sanhuan" home furnishings and "Ai Jia Home Furnishings." After a series of failed transformations, "Huan Sanhuan" home furnishings had no choice but to close its doors in August. In October, "Ai Jia Home Furnishings" Hongmu Daguanlou hit a dead end, and "Ai Jia Home Furnishings" announced a change in operating varieties, which led to disputes with merchants over store closures. When facing new changes in the market, if there is no awareness of innovation and change, the final result for malls will be merciless elimination by the market.
Morning Post Comment:
Expansion and closure coexisted in 2011, facts once again proved that there are no bad markets, only poorly managed companies. Even if the external market is weak, if a company has good "internal skills," it will never reach the point of "closure."
Keyword:
Hongmu (Redwood):
In just one year of 2011, more than eight new redwood malls were added in Beijing, including large malls like "Chengwai Cheng" and "Jingzhong Zhiwu" also strengthened their efforts in the redwood field. "Redwood" became a hot topic for home furnishings malls in 2011. In interviews with reporters, Mr. Li, the manager of the redwood hall at "Jingzhong Zhiwu," believed: For most consumers, the key to consuming redwood furniture is nothing more than "authenticity." Only "authentic" materials and "authentic" craftsmanship can maximize the "value preservation" function of redwood.
Morning Post Comment:
Redwood furniture costing hundreds of thousands or even millions is actually quite distant from ordinary people. So it's worth questioning: What supports such a booming redwood market? Additionally, apart from self-defined standards by enterprises, the country's standards for redwood still only remain at the "species" level. The redwood market needs leading malls and leading production enterprises to improve the overall level of the redwood industry.