Home Depot withdraws from China's home furnishing chain industry "big decline"

In 2009, Qingdao store and Shenyang store closed; In 2010, Beijing Minsi Temple and Tianjin Dongli Store were closed; in 2011, Beijing store closed and exited the Beijing market; in September 2012, closed all stores in China (7 in total) ), completely withdraw from the Chinese market. This is after the Best Buy, another US retail giant has withdrawn from the Chinese market. The loss of Home Debao in China once again provoked the fragile nerves of the entire home industry. Whether it is Home Depot, B&Q's European and American model, or the local model of the Real House and Red Star Macalline, this year's home industry has been sung, it seems to be an indisputable fact. “We just made major strategic adjustments and did not withdraw from the Chinese market.” According to people at Home Depot China, the company did decide to close its seven large retail stores in Tianjin, Xi'an and Zhengzhou, but the move was to focus on Develop professional retail stores and online sales. This is exactly the same as Best Buy’s exit from the Chinese market. In fact, Frank Blake, the global president of Home Depot, has already predicted his defeat in China. He has previously said: "We have not found the right profit model in China, and the demand for DIY home building materials in China is not enough. In the future, we will either find a way to make a profit in China or leave China." In China, it has developed for 6 years. Home Depot, which opened a new store, chose the latter – leaving China. As for the aftermath, Home Depot China has issued a statement that consumers can currently consult through three customer service hotlines. Jia Debao will arrange special personnel in 4 stores in Tianjin in the near future. According to different situations, take measures such as refund, delivery, return, and construction, and bear corresponding responsibilities according to the contract, and continue to bear the product warranty responsibility. Home Depot has not adapted to the Chinese market for 6 years. Experts analyze that the labor costs in Europe and America are high. Most home decoration will choose to decorate itself, that is, DIY, and enjoy the happiness. However, in China, consumers have always been employed in home decoration. People are decorated, and almost no one will go home and assemble like American consumers. On the other hand, price is not the advantage of Home Depot. Consumers are still accustomed to comparing the price of materials to home textiles and other building materials supermarkets, and then go to the local building materials city to “Amoy” those building materials with the same category and lower prices. “Home Depot and consumers are not on one channel, Home Depot has finally become a material experience pavilion, and consumers have finished their ass to leave.” As a competitor, a retired employee of Oriental Homeland said this. In addition to the Oriental home, Home Depot faces a lot of competition, including the B&Q, which is also a “foreign household”. But even the localization of B&Q has done a good job in China in recent years. In fact, B&Q is also a DIY model when it first entered the Chinese market. However, after entering China, it found that the original positioning was not in line with the Chinese people's consumption habits. The decoration business was merged and expanded into a new business CIY (Create it Yourself), which provides for those who have no experience in building decoration. With the support of drawings, materials and construction, the “Baianju Decoration Design Center” was established, aiming to drive the sales of the stores with branded decoration centers. It is a pity that this has met with strong opposition from the British headquarters. Today's B&Q is localized for localization. In the eyes of many insiders, although it has learned Suning and Gome to make profit through non-product price difference, it is far from being able to learn Gome and Suning in the right to speak. . In fact, if the industry's performance in department stores, supermarkets, home appliance chains and other businesses have been covered with a cold frost, the home industry can be said to have encountered "severe cold." “2012 is the most difficult year”. Wang Linpeng, the president of the Real Estate Group, predicted on the last day of last year that the background of the combination was the bleakness of the entire property control policy to the home furnishing industry. Red Star has maintained a rapid development for a long time by virtue of the exogenous growth model of real estate, and has pushed itself to the position of the industry leader. At present, Red Star Macalline has 100 home malls in the country, and the latest stores have been upgraded to the eighth generation. However, due to the lack of a solid foundation and the economic downturn in recent years, the Red Star model has actually shown signs of fatigue. The days of Red Star Macalline’s many stores are not good, and tenants have suffered heavy losses. Among them, at the end of August, Nanjing Olympic Sports Red Star Store officially withdrew; in early August, Red Star Macalline Guangzhou Pazhou Store also closed in advance; in early September, Changshu Red Star Macalline’s merchants were reduced from 255 to 130... ... This kind of "screen" is also being staged in many home furnishing companies, just changing the name and changing the location. In Jimei Home, which is dominated by the Beijing market, its two Jimei homes in Tianjin and Beijing have also lost business due to the sluggish operation. Jimei maintains its business and chooses to “close the store” for some venues. Tested. In addition, it also closed the building materials stores in Beijing Minamata, Tianjin, Xiamen and other branches. “Jimei relies on the development model of leasing, which is also an important factor that causes it to fall into the current dilemma of closing the store.” Zou Mingxiao, a researcher in the building materials industry of CIC, believes that many stores in Jimei are leased. In the early stage of enterprise development, the leasing model is more applicable, but after a certain scale is formed, the rental cost will become a bottleneck and obstacle for further expansion of the enterprise. Chen Baoguang, vice chairman of the China Furniture Association, once pointed out that this "two-owner" model is considered to be inherently flawed. On the one hand, the operators of the home shopping mall want to get low rents from the owners, and on the other hand, they must raise the rent of the tenants. However, it is difficult for tenants to obtain the desired return. Naturally, they cannot accept the high rent. Once the internal and external forces are squeezed, the contradictions between the two sides will be detonated at any time. The weakness is still going on, and all the home furnishing companies have tried their best to stimulate consumers' desire to buy. Red Star Macalline opened up the “Eight Space” original home living museum. Zhu Jianzhong, deputy general manager of the China Merchants Development Department, said that the “100 million space” feature is to provide independent design studios for home designers, so that they have exclusive creative and communication places here. The actual home Xi'an store launched a new service: in the actual home to participate in the purchase of goods, from the date of delivery of goods on the date of acceptance, no damage within 90 days, does not affect the second sale, you can exchange returns. E-commerce spoilers Despite all kinds of innovations in services, physical homes still can't resist the "intrusion" from e-commerce. Recently, the 2012 Global Network Business Conference Taobao Home Summit news, in 2011 Taobao home industry turnover increased by 130% year-on-year, continued to maintain rapid growth in 2012, is expected in 2012, Taobao, Tmall and other e-commerce platforms The annual turnover of household products will reach 60 billion. No one can resist this kind of temptation. E-commerce has become the best channel for home furnishing companies to resist cold and warm winters. In 2012, it can be said that it is the “electricity” year of the home store. Jimei announced the cooperation with the electronic mall, followed by the blue Jingli home online mall - Blue King Mall revised version online, the long-awaited Red Star Macalline e-commerce website "Hongmei Mall" quietly appeared. Even the seemingly unmoving home actually sent a message to buy an e-commerce website. Even the “new business model” adjusted by Home Depot includes offline and online business. Offline, refers to the continued operation of two professional retail stores recently opened in Tianjin; online is the e-commerce model that most home supermarkets generally try, "the company is negotiating cooperation with many leading e-commerce websites in China." Home Depot The spokesperson said. For the brand to go online, there are not many dissidents in the industry, but for the Red Star Macalline and other involved in e-commerce, many people call it "self-satisfaction." "I don't think Red Star Macalline has any advantage. He used to be a commercial real estate. He played e-commerce as a platform. How to control the business is a problem. Logistics, after-sales, etc. are all problems. Red Star may not be able to solve these problems because, after all, It’s not that Red Star sells directly.” Wang Penghui, a well-known IT person and brand CEO. "There is basically no drama. If you look at Suning Tesco, you will know. Talent and logistics are not a problem. The problem is that e-commerce is stealing its own traditional business. How long can you fight yourself?" Co-founder Pan Shou Investment Management Co., Ltd. Sanzheng is not optimistic about this trend. The home will have to go left or right, open up e-commerce channels or innovative services, large-scale bankruptcy or industry-wide integration, I am afraid that we will wait until after this "winter". Since the acquisition of "Home World" at the end of 2006, Home Depot has changed three presidents of China in the past five years, but still has not found its own profit model. Chen Yaodong, the first president of Home Depot in China, made his debut at the door of the "Home World" after switching to Home Depot for more than five months. In 2007, he promoted the environmental protection concept of Home Depot, and the environmental protection is obviously not effective. In November 2008, Chen Yaodong was given a class, and the country was on the scene. Shan was once the vice president of B&Q's procurement in the most glorious period of the Chinese market. Dealing with suppliers for a long time, the most frequently slogan he screamed after he took office was "customer first." However, during his tenure, Home Depot closed the Qingdao store, Shenyang store and Beijing Minsi Temple store. Soon, the national Shansha curtain, Zhou Leimeng took over. Zhou Leimen was previously the general manager of Home Depot Asia Pacific. After just taking office for five months, Tianjin Dongli Store closed its doors. Two months later, it closed the Beijing West Fourth Ring Store. Rather than saying that Zhou Leimeng is seeking a way out for the development of Home Depot, it is better to say that Chen Yaodong and the former president of the National Youth Office have cleaned up the mess. At this point, how long can the 7 stores remaining in Home Depot be maintained? Where is the real way out for Home Depot? Zhou Leimeng still has no answer. In the view of a former Home Depot executive, the experience of Home Depot is "the problem of American-style warehouse-style hypermarket culture in the Chinese market and even in Asia. It is a contradiction between localized management and global management." Is the relationship between multinational retail groups and large Chinese owners."

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