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The home of Xianghe, located in the vicinity of Beijing-Shenyang Expressway and the East Fifth Ring Road , has been quiet for half a year. Suddenly, the news that it will open on June 16th has been issued, and the slogan "Better price" and "After-sales guarantee for more than 70 years" have been issued. The industry is in turmoil. According to the reporter's understanding, the merchants that attracted the settled homes at the beginning of the Xianghe House almost gave up. At present, the home of Xianghe is dominated by non-mainstream brands in Beijing, and the business model is changed to direct operation. The upcoming opening of the Home of Xianghe is full of variables, and even if it can be opened as scheduled, it will face a greater test of life and death .
"Difficult to produce" half-year re-opening news
On June 16, the home of Xianghe will be reopened, which is half a year away from its previously announced November 26, 2011 opening. On May 12, the reporter visited the home of Xiang He, located in the southeast of Beijing and next to the Beijing-Shenyang Expressway. I saw the signboard of the "Global Brand Factory Direct Store" on the top of the red main building and the name of the store. At the main entrance, the two billboards used the red and blue interlaced fonts to produce a huge slogan of “Brand price, clear price†and “After-sales guarantee for more than 70 years, leading the home into the era of low profitâ€. On the shuttle bus next to the main building, these slogans are also covered with bodywork. On the nearby building, there is a high-hanging warning sign "Opening on June 16th". The slogan "Buy furniture for one month and save one year's salary" is quite conspicuous.
The home of Xianghe is said to have a total area of ​​180,000 square meters, which is divided into the main square area of ​​the main building and the supporting hardware and electrical building materials area. The hardware and electrical building materials section has been opened last year, and the main building is undergoing internal renovation. In front of the square, there is still a forbidden area to be repaired. The interior is completely cement concrete wall, and the ground is also pitted. Several workers are busy carrying materials inside, and there are no signs of having settled in. The light box advertisements on the wall of the east and west aisles have been installed. Zundian, Lianshangjia, Suijiang, Taiwan Dianshi, Keke, etc. are all common mainstream brands in home stores. When the reporter asked about the investment promotion, the staff member replied that "it is already full."
The home of Xianghe started its investment promotion in June last year. It is positioned as a “global brand home building materials factory storeâ€. The rental price is quite attractive. It is only 1/4 of the first-line stores such as the Real Home and Red Star Macalline. Beijing Furniture Association, Hebei Furniture Association and Tianjin Furniture Association group inspection.
In August last year, Xianghe Home said that the investment has been completed 45%, and it is expected to open on November 26 of that year, and said that 3-4 stores of the same scale will be established in Beijing within five years. After that, the home of Xianghe fell into silence, and the opening of the business became a bubble. Nowadays, the peaceful home that once again spreads the news, it does show a peaceful scene before the opening.
Mainstream brands have abandoned the home of Xianghe
"We have not received an invitation from Xianghe House this year, nor have we conducted in-depth discussions with them. At present, we have not heard of any brands to be settled." Li Fengjie, president of Hebei Furniture Association, told reporters on May 14 that he led the team last year. After the inspection of the Xianghe House, because the business did not start as scheduled, the follow-up contact did not proceed. This year, the home of Xianghe was reopened. There is no news of the furniture brand in Hebei Province.
Coincidentally, the Beijing Furniture Industry Association, which also visited the Xianghe House last year, has no clear news about the brand's presence. “It’s not a family, but it’s very rare.†Yu Xiusu, vice president and secretary general of the Beijing Furniture Industry Association, said that the home of Xianghe is mainly for brands across the country. The brand of Beijing has already been very good in the local area. Sales channels should not be the focus of investment.
When the Xianghe House attracted investment last year, many brands of the Beijing-style brand furniture alliance had intentionally established a flagship store here, and now they are about to reopen, and there is not much response. After many interviews with reporters, several well-known Beijing furniture brands gave negative answers to whether they were stationed. "We have no plans to open a store this year, and naturally will not settle in." Rong Lin, president of Rongjia, said. Qiao Yinjun, the chairman of the non-co-furniture department, said bluntly that the current market environment is not very good, the existing storefronts are no longer profitable, and it is impossible to open another store. Last year, it was clearly stated that Yifeng Furniture, which will be stationed in the home of Xianghe, has no intention of re-opening the house of Xianghe this year.
In the interview with the media, Xianghe Home said that the proportion of high-end and low-end products in the stores is 20%, 60% and 20% respectively. Although the official website of the Home of Xianghe has a well-known brand in the store display area, such as the iconic floor, top 100 furniture, red apple furniture, and Wrigley sanitary ware, none of the store introductions are “intentional customers, expectingâ€. Many of the brands that are gathered, like the statues of the aisle lightbox advertisements, the love of the family, the generals, the Taiwanese stone, the can be, etc., are not well known to consumers.
Direct mode is facing the test of life and death
On May 11th, an article entitled "When you enter the home of Xianghe in a depression, why?" The article appeared on the Internet, describing its business model. The first card that the 'Xianghe Home' home display is to completely subvert the original rental business model of the home store. It is the first time to eliminate all the manufacturers and consumption. Circulation between the people." Saying goodbye to the previous rental model, the home of Xianghe is obviously a direct operation.
The article also revealed the three big cards of the Xianghe House direct mode. First, the price killer —— the transaction price of the same brand is lower than the other hypermarkets by 40%-60%; the mode advantage——the whole site implements unified procurement and unified management; the third is the manufacturer brand addition worthy of full expression. However, this is also the three major disadvantages.
Liu Chen, secretary-general of the Beijing Branch of the Beijing Market Association, said that well-known brands are all implementing the same price in the same region, and it is difficult to achieve the “base price†as a selling point. The period during which new stores need to be observed and cultivated is very long. If it is a branded product, it has already been implemented with a clear price. Consumers will choose an old-fashioned store. If it is not a branded product, whether it is a "base price" cannot be compared, even if the price is low, product quality and after-sales It is also an important factor for consumers to consider.
Unified procurement and unified management are the models of supermarkets. Direct sales can indeed reduce the cost of distribution channels and reduce the price of end products. Home Depot, Lehua Meilan and other foreign supermarkets have become pioneers, and there is no wonder about the home of Xianghe. Yu Xiusu said that there are many rental stores in Beijing, and the direct mode is worth looking forward to.
As for the direct value of the brand to fully reflect the value-added, it is entirely a peaceful wishful thinking. In the mainstream stores such as the Real House and Red Star Macalline, the brands are displayed in a situational environment, and the collective strength of each manufacturer is used to sell, while the home of Xianghe is purchased from the manufacturers, sold independently and serviced. A variety of merchandise display methods, if the sales are good, the manufacturers can get benefits, sales are not good, but at most a loss of a sample. It is no wonder that some people in the industry laughed that manufacturers did not have the opportunity to expand their market as much as possible. The newly opened Xianghe House could kill a bloody road in the current market situation, and some people were sorrowful.
The home of Xianghe opened on June 16th. I am afraid it is not a problem, but it still has to wait and see if it can withstand the test of life and death after opening.
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