"South Red Star, North unexpectedly", wrote nearly half of the country's home circulation industry. In 2009, the group of men and men started together in home furnishing stores. After more than ten years of development, they went through crazy collection and editing, competition channels to grab the market, and brutal invasion and reshuffle of overseas Home Retail. Only Red Star Macalline and Juran home diamond cut diamond were left in the home circulation industry covering the whole country.
"The house price rose 2-3 times in the first ten years, and the household price did not rise because the industry innovation was not enough. On September 8th, car Jianxin, chairman of Red Star Macalline, pointed to the pain point of home industry growth at the 2020 autumn conference. In the past ten years, the Red Star, which has experienced horse racing and competition with each other, has also faced external impacts such as sluggish market, closed-off epidemic, and e-commerce squeeze, thus stepping into the turning point of the track.
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epidemic catalytic home furnishing stores survival challenges
the semi-annual report of the home industry was released. In the first half of the year, Red Star Macalline and Juran home ranked first and second, achieving revenue of 6.024 billion yuan and 3.918 billion yuan respectively, leaving the third richest MSN far behind. However, due to the impact of the epidemic, Red Star Macalline and Juran family both declined to varying degrees compared with 2019, with a year-on-year decrease of and 8.1% respectively.
At the same time, during the reporting period, the net profit attributable to the owner of the parent company of Red Star Macalline and Ju Ran home also decreased sharply. In the first half of 2020, the net profit of Red Star Macalline returned to the parent company reached 1.1013 billion yuan, down compared with the same period in 2019, the net profit of the shareholders of the listed company owned by Juran home was 0.406 billion yuan, a decrease of 57.57 percent year on year.
In fact, household consumption characterized by low frequency is going through the transition period. The industry has bid farewell to the incremental market and is generally in a competitive situation in the stock market. On the one hand, due to the trend of full decoration, many fitment are purchased centrally by developers, some of the terminal consumption demand decreases, and the diversion of B- end channels increases. On the other hand, the consumption structure of consumers is also changing, not only the performance of personalized demand is more prominent, but the e-commerce tide has also caused irresistible impact on traditional offline home furnishing stores.
At the same time, the downturn of the real estate market and the real estate regulation policy not only put great pressure on the real estate itself, but also have an impact on the Pan-household industry in the downstream of the real estate. The home market is experiencing the overall stall. It is an indisputable fact that the competition is fierce, the profits are diluted, and the performance fluctuates. "There is not much difference between the main businesses of Red Star Macalline and Juran home. They are all building platforms to provide space for displaying furniture brands or decoration brands," said Lu Wenxi, chief analyst of Zhongyuan Real Estate. As two giants in the industry, the location of the store or facing a larger rent pressure.
However, as competition intensifies, home furnishing stores is no longer as simple as enclosure, rental, drainage and collect the rent. According to the semi-annual report data, in order to avoid risks and expand revenue sources, the two major home furnishing stores have extended their businesses upstream and downstream.
Offline blocked accomplice online
in 2013, Taobao entered the home industry, causing 19 major home furnishing stores such as Red Star Macalline and Juran home to boycott, and signed the Opinions on Regulating e-commerce work. It is clear that "any merchant is strictly prohibited to spread or promote the Double 11 activities of other e-commerce online in any form in the store; Merchants are strictly prohibited to deliver and install orders of factories on other e-commerce online" and other regulations.
Over the past seven years, the Internet has penetrated into all aspects of the consumer field. The construction of basic logistics and rapid information transmission have enabled e-commerce to develop rapidly. Home furnishing stores no longer think about how to avoid being impacted by the Internet, how to catch the Internet Express to seize the opportunity to become a competitive point in the industry.
Especially in 2020 when the epidemic hit, offline stores were hit. They not only faced the situation of reduced passenger flow and closed down, but also needed to face the decline in rental rate and launch a rent-free policy in combination with epidemic prevention needs. In the first half of the year, Red Star Macalline's revenue from its own, lease, joint venture and joint venture stores decreased. The operating income of jueran home leasing and franchise management service industry also decreased.
At the same time, the expansion speed of stores also dropped sharply. In the past six months, the number of offline stores in Juran home has increased by only three. However, in just nine months last year, the number of stores has reached 151, and the number of stores has dropped sharply. Red Star Macalline opened a new self-operated shopping mall and closed a self-operated shopping mall. In terms of administrative shopping malls, a new committee-managed shopping mall was opened and four Committee-managed shopping malls were closed, it is also quite different from the 90.4% of stores in the four years since its listing.
Due to the sharp decrease in the overall offline traffic of the industry in the first half of the year, the construction of online platforms has become the main battleground for competition and competition in the home and home improvement industries. However, according to the data disclosed in the semi-annual report, with the cooperation with Ali, the family of the world is better. Red Star and Alibaba integrated city station business launched in 22 cities, covering 56 shopping malls and more than 9,800 brands. The city station of Juran home expanded from 5 cities at the beginning of this year to 128 cities, and the number of online products increased from 12000 at the beginning of this year to nearly 900000.
The city stood in the special period of the epidemic and achieved good results. During May Day alone, there were 461 live broadcasts in various shopping malls of Red Star Macalline nationwide, 9.73 million people watched, 50939 orders were converted, and the sales of online shopping malls in the same city station in Tmall exceeded 2.269 billion yuan. Juran home also said in the semi-annual report that in the first half of the year, a total of 3.102 billion yuan was guided by the city station, and a total of 316 stores carried out 37000 live broadcast activities. The cumulative live broadcast duration exceeded 88000 hours, store 151000 customers for the store.
Extending the industrial chain under financial pressure to find another way out
on August 18, 2019, Red Star Macalline officially announced the establishment of the sub-brand "MKL love home", which strongly entered the real estate brokerage industry. On May 11, according to the Beijing News, the real estate intermediary brand "MKL love home" owned by Red Star Macalline was established for less than 10 months. In April, the completion rate of the business performance exceeded 120%, and the number of open stores exceeded 200, it is a new army that cannot be ignored in the real estate intermediary industry.
This is the epitome of finding a new way out home furnishing stores after the traditional hypermarket model encounters challenges. Under the dual pressures of slowing sales growth and new retail, home furnishing stores has shifted its focus from channel layout and distributor management to diversified and in-depth integration of the industrial chain.
Since 2015, Red Star Macalline has successively invested children household O2O brand coolmanju, smart parking brand simple stop, VR home decoration platform dress-up and other enterprises, trying to get through the downstream. In the upstream of the industry, the "binding" between Red Star Macalline and real estate is also deepening. Since 2014, Red Star Macalline has provided the collection and supply of some products for real estate projects and explored fine decoration business. In 2020, Red Star Macalline also proposed to improve the home improvement business to the status of the first business, from the traditional home furnishing stores to the new direction of integrated supply chain integration of home improvement and home furnishing. In September, Red Star Macalline also released Shimao MKL, a high-end home decoration brand jointly built with Shimao Group ".
Different from the upstream real estate of Hongxing meikailong, jueran home chooses to build an ecological chain of home industry in the upstream and downstream of the industrial chain integrating logistics and finance. On the one hand, we carry out the trial operation with processing business as the core and warehouse allocation integration. On the other hand, we also purchase factoring, small loans and guarantees to provide financial services for upstream partners and merchants.
Although exploring new markets continues, it is worth noting that Red Star Macalline has been under the pressure of debt. The semi-annual report shows that 13.135 billion yuan of non-current liabilities and 3.543 billion yuan of short-term loans expired within one year. Compared with the monetary funds of 9.508 billion yuan at the end of the period, the sum of the two has a gap of 7.171 billion yuan, and the debt repayment pressure is high. However, the affordable home listed by backdoor also bears the promise of performance. Its net profit will reach 2.42 billion yuan by 2020, but its net profit in the first half of the year will only reach 16.7 percent of the target, and it is also facing huge pressure on gambling. From this point of view, Red Star Macalline and Juran family not only face industry pressure to compete with their peers, but also play a crucial role in winning themselves.
(Article Source: Leju network, invasion and deletion)
