What future will Red Star Macalline have after saying goodbye to involution?
One day after many years, if you recall the "famous scene" that happened this summer, the "century hug" of Wang Linpeng, chairman of Hongxing meikailong and chairman and CEO of jueran home ", it should be counted as one. The reason that prompted the leaders of these two listed companies to embrace each other was that on July 3, 2021, Red Star Macalline signed a strategic cooperation agreement with Juran House in Beijing.
According to the cooperation agreement, under the premise of following relevant applicable laws and regulations such as anti-monopoly law and anti-unfair Competition Law, the two parties are in line with promoting the healthy development of the industry, the common goal of better meeting the needs of consumers will be to carry out comprehensive cooperation in the fields of optimizing the competitive environment of the industry, maintaining the business order of the industry, sharing resources and digitalization.
(Image Source: Pan home circle-public number, invasion and deletion)
Red Star Macalline and Juran home reach strategic cooperation
For investors, this is indeed a big news enough to detonate the market. The recent stock price trend of Red Star Macalline also confirms this point. However, from a deeper perspective, the strategic cooperation between Red Star Macalline and natural home is actually an evolution of the home industry and a Evolution of Red Star Macalline.
Red Star Macalline is using practical actions to tell everyone that if the industry leaders are willing to embrace changes with an open attitude and are willing to learn from each other through continuous learning, then it is difficult to estimate the positive impact it may bring to the industry.
Make up for the short board of industry ecological construction, deep cultivation of 4.5 trillion large household
Red Star Macalline and Juran home are home circulation love and hate growing up with the rapid growth of China's economy. The two companies have maintained a delicate competition and cooperation relationship since the beginning of the merger.
This kind of competition and cooperation is not only reflected in the competition between the two companies in terms of traffic and location, but also in the pursuit of the two companies in terms of cooperative brands and service quality.
In the words of car Jianxin, chairman of Red Star Macalline, in the past few decades, Juran home and Red Star Macalline have jointly promoted the household industry from extensive growth to fine operation, and jointly promoted the standardization and healthy development of the industry. But it mainly depends on the way of fighting alone.
Why can't we fight alone now? The core reason is that at present, the home furnishing industry has entered the era of stock, and its core source of tourists is no longer a new house decoration, but the renovation of old houses, the renovation of second-hand houses, and the partial improvement. These consumers with the demand of stock transformation generally have strong payment ability, and have strong personalized and quality demand for space aesthetics and living environment.
In a word, the secondary consumption dividend of the stock market, combined with multiple factors such as per capita GDP growth and consumption upgrading, has made the market scale of the household industry different from each other.
Car Jianxin also mentioned in his speech on the day of signing the strategic cooperation agreement, "under the second bonus of stock houses, the future development space of the home furnishing industry is still vast. I believe that in the next two decades, the home furnishing industry will far surpass the real estate development industry."
At the same time, he also said that driven by consumers, household consumption is expected to increase fourfold. The fundamental logic is that low-end consumption will be upgraded to mid-end consumption, mid-end will be upgraded to high-end, and high-end will be upgraded to higher-end consumption.
The other side of the industry scale blowout is the mixed industry ecology. China's home decoration industry as a whole has been highly dispersed, with a large number of market participants. Even at present, there are still some problems in the market, such as the damage of consumers' rights and interests, poor shopping experience, low degree of digitalization, and endangering fair competition in the industry.
To make up for the shortcomings of the industry ecology and prevent the industry ecology from holding back the growth of the industry scale, a thorough upgrade must be made to the market environment. At this time, Red Star Macalline, the industry leader, stood up and chose to jointly undertake the mission of leading the upgrading and transformation of the industry and the responsibility of promoting the healthy growth of the home market.
Reached five consensus, the development of the home industry ushered in a new era
Leading the upgrading and transformation of the industry and promoting the healthy growth of the market are the topics given to the household industry by the Times. But why is Red Star Macalline the first to write?
Red Star Macalline is the first A + H-share listed company in domestic household industry, and is the initiator of commercial management, market-oriented operation and national chain household concept. Promoting the healthy and orderly development of the industry has always been the pursuit of Red Star Macalline.
In 2013, Red Star Macalline also joined hands with China Quality Certification Center to launch the leading brand project of home green environmental protection. Over the past eight years, Red Star Macalline has recommend a batch of leading brands of green environmental protection to the market with the highest standards in the industry, which has driven the upgrading of green environmental protection standards in the entire industry. By the end of March 2021, Red Star Macalline had operated 476 home shopping malls in 223 cities across the country.
Frost Sullivan survey data show that in 2020, in terms of retail sales, Red Star Macalline accounted for of the market share of China's chain home decoration and furniture mall industry, it occupies the largest market share in the home decoration and furniture retail industry.
The greater the ability, the greater the responsibility. Looking at the whole household industry, I'm afraid I can't find anyone more suitable for solving problems than Red Star Macalline. More importantly, Red Star Macalline is leading the home industry into a new era of development through strategic cooperation with Juran home.
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In this new era, there is no "involution", only the industry participants focusing on internal skills, such as Red Star Macalline, etc.; There are no unscrupulous merchants who are always running on the road, and only the healthy home ecology of "good coins expel bad coins; there are no consumers who have no help, only the reassuring and assured shopping experience created by the industry from decentralization to concentration.
The five consensus reached by Red Star Macalline and Juran home in this strategic cooperation-maintain the fair competition order in the household market nationwide and resolutely put an end to unfair competition behaviors such as "choosing one among two; open the brand resources of supply chain to each other; Jointly maintain the marketing order of the industry, resolutely resist market dumping below the cost price; Implement the business operation tenet of" honesty first "and" service first, protecting the legitimate rights and interests of consumers and jointly promoting the digital transformation and upgrading of the industry are an important step in creating this new era. With the implementation of five consensus, the high-quality, standardized and healthy home furnishing industry that Red Star Macalline is trying to build also has a clearer picture.
The ability to seek new changes and maintain continuous evolution at all times
In this era, there is no static stability, and some are just the changing normality. The environment, society and consumers have been changing all the time, and enterprises that cannot adapt to the changes will only be surpassed and eliminated.
Red Star Macalline can grow and evolve in the decades of earth-shaking changes in China's economy without the ability and will of enterprises to seek new things and change. What is more valuable is that this ability and will did not die out because of the growth of the enterprise scale, but became stronger and firmer because of the accumulation of time. This can be seen from Red Star Macalline's firm implementation of the strategy of light assets, heavy operation and leverage reduction to adapt to the new development environment.
Public information shows that since Red Star Macalline put forward the development strategy of light assets, heavy operation and leverage reduction in 2020, its operating performance has continued to improve. In the first quarter of 2021, Red Star Macalline realized operating income of 3.341 billion yuan, an increase of 30.70 percent year-on-year, and net profit of non-parent Net reached 0.413 billion yuan, an increase of 101.45 percent year-on-year; the net interest rate increased by 6.01 percentage points year-on-year to 21.68, and the profitability increased significantly.
At the same time, at the moment when digital transformation has become the general trend, Red Star Macalline has also transformed into a completely digital-driven enterprise through digital shopping mall engineering, digital infrastructure engineering, digital operation engineering, digital link engineering and digital organization engineering, upgrading from sales channel providers to marketing service providers, from real estate operators to digital user asset operators, and leading to promote the integration of home industry reform and internet reform, empowering 4 trillion every enterprise and participant in the home industry.
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The same is true for this strategic cooperation. Through strategic cooperation with Juran home, Red Star Macalline can concentrate limited resources on places that can create greater value, such as empowering brand owners, empowering dealers, and optimizing consumer experience, instead of wasting bullets in endless "involution. Red Star Macalline, which pulls energy away from involution, can also better focus on the development of the main business, improve operational efficiency, enhance brand influence, and create better returns for investors.
Red Star Macalline is a leading enterprise growing up in the pro-cycle era of real estate. It has the advantages of first-mover, built a deep moat, and at the same time it also has the ability of continuous learning and continuous evolution. This is enough to make people feel awe.
The reason is that the strong one with the ability of continuous evolution may break the shackles of the original industry and create unexpected values because of its ability to constantly seek new things and change. This is also the source of investors' excess returns. Judging from the recent stock price performance, the market has also recognized the potential value of the continuously evolving Red Star Macalline.
(Article Source: Pan home circle-public number, invasion and deletion)
