In the early stage of "Double Eleven", a confrontation between Tmall and 19 home stores provoked a thousand waves in the home industry. Although Tmall finally lifted the agreement on cooperation with O2O, a home-based merchant, it is not difficult to find that the traditional store is struggling from this fierce battle. When the change is going on, it only relies on the “double eleven†to fight for the respite, and the store is short-lived. It won't be known how long the victory can last.
The store has gradually become an "experience store" O2O touches the fundamental interests of traditional stores
The traditional home store mainly relies on the 'May 1' National Day 'New Year's Day three festival promotion period, which promotes 30%~40% of sales for the whole year. This year's Hangzhou home market is far less than last year, slightly unsatisfactory. In the past, the National Day is also a flat performance, it is very cold, many businesses will pin their hopes on the future New Year's Day, and Tmall's O2O strategy during the 'Double 11' will undoubtedly affect the future sales of traditional home stores.
It is understood that there are three sources of income for traditional home stores, one is to lease shops to merchants and collect fixed rents; the other is to collect water from dealers' proportions in proportion; and the other is to combine them to collect cost. The brands of merchant agents are different and their strengths are different, and the mode of charging is different. The specific fee collection depends on the negotiation between the store and the store.
However, no matter which mode, Tmall's approach will make offline customers flow online, and physical stores become 'experience stores', touching the fundamental interests of traditional home stores. The traditional home store collectively boycotts Tmall's home O2O strategy can be understood.
Store rents remain high, market innovation, survival of the fittest
Last year's poem "Tough enough" reflected the hard-fought scene of the home store: "Because you understand that you have to seize the market, you will continue to expand by default; because you understand that you are a chain operation, you will tolerate your bundled investment; because you understand the price of each place. In the rise, so understand that you increase the rent; because understand the market environment is very serious, so understand the market is very popular. But your staking, has let us run out of blood; your bundle of investment has let us jump the cliff; Your rent increase has already made our profits negative; the coldness of your store has made us have to close the store."
Store rents remain high, and even rising is an indisputable fact. The person in charge of a mattress business told Xiaobian that last year, in a better geographical location of Red Star, the rent was 600,000 a year. The rent can only be moved to the location near the toilet this year.
The price hikes are constantly going on. The O2O strategy led by Tmall continues to divide the market. Although the promotion of home in this strategy is difficult for most other industries, it has to be acknowledged that change is an unstoppable trend of social progress.
The prospect of withdrawal from the stores is not optimistic
Home Depot, a home building materials giant from the United States, fled the Chinese market at the end of 2012 after six years of hard work in China; and B&Q, the British Kingfisher Group, was also questioned. According to a household industry statistics, since August 2011, 12 home building materials stores in Beijing have officially closed, and in the past six months, there have been eight closed doors. In addition, there are five malls that are preparing to move or withdraw.
In the past three years, Hangzhou has successively withdrew seven stores, including B&Q, Real Home, Ouyada and other large stores. The reasons behind the collapse of the stores have been complicated. For some home brand dealers, they are currently in a dilemma.
From an industry perspective, affected by the economic downturn, real estate control policies and other factors, home building materials stores are increasingly difficult, and the "spoiler" of online sales has intensified the business dilemma of traditional home stores. The National Building Materials Household Climate Index (BHI) shows that China's BHI index fell to its lowest point in three years in February. Since March, BHI's coldness has gradually eased, and it has rebounded since April, but compared with the same period last year. BHI overall is still weak.
"The home building materials industry is too dull this year, and many shops are difficult to sustain. No matter what activities, as long as you go a little, even if there is no profit, earning popularity, we are willing to do it." A home brand distribution revealed that the current status of the home market difficult.
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