Ali Jingdong enters the home new retail war upgrade

On October 24th, after the Shangchao and convenience stores have changed their faces, the new retail wave has also swept into the home field. On the eve of Tmall Double Eleven, the Real House and Tmall announced the new retail results jointly built by the two parties in Beijing to thousands of home building materials dealers and the media.

At the same time, the flagship store of Qumei Jingdong‘s North Fifth Ring Road opened. After the launch of the Jingdong Qumei Fashion Life Experience Hall in June, the second store of the two companies officially landed. This new “Qumei PLUS model” achieved good results only during the eleventh period. According to public data, during the National Day, its passenger traffic increased by 186.11% year-on-year, the turnover increased by 262.01%, and the customer unit price achieved a high growth rate of 67.22%. E-Commerce giants have accelerated the new retail layout of homes, and the competition in home stores is unprecedentedly fierce.

In fact, the challenges facing the home store industry in recent years have been an indisputable fact. According to the data of the Ministry of Commerce, the sales of home stores have been declining year by year since 2014. By 2017, the sales of home building materials above designated size reached 917.37 billion yuan, down 22.6% year-on-year. Some practitioners are deeply impressed by these figures: the traffic volume of some stores is decreasing, and the occupancy rate is shrinking. This includes both the reasons for poor passenger flow and the lack of shopping scenes designed according to consumer needs.

Nowadays, the concept of new retail is prevalent, and many traditional industries have taken this opportunity as a transformation. Among them, traditional home stores have begun to make major changes with the help of this shareholder. In February of this year, the actual home received a total investment of 13 billion yuan from Alibaba and Taikang Group. After this round of financing, the home of the real family, with the help of capital, took the Beijing Jinyuan store as a pilot, carried out the digital transformation of the store’s smart stores for 25 merchants, opened a full-scale digital upgrade of the people’s goods yard, and utilized Ali’s big data analysis. Ability to empower manufacturers. In addition, Jingdong, Netease and other companies have jointly created the first intelligent pan-home park to open in Qingdao this year. Major brands will create a family scene that integrates online and offline through cross-border cooperation. Consumers can stay in the model room and experience the accommodation scene. The items in it can be purchased at any time.

The common feature of the home furnishing store that is undergoing transformation is that it is becoming more and more “not doing business”. Through cross-border combination with different formats, home stores are getting rid of a single label and using other high-frequency consumption to drive low-frequency consumption of the home. Home is a high-experience industry, but the frequency of consumption is low, while children’s entertainment, catering and other formats have the characteristics of high frequency of consumption and high popularity, which can complement the home industry. Many home furnishing companies, with the help of capital and technology, have driven the popularity of catering and attracted the innovative marketing of potential customers outside the mall, opening up the exploration of new home retail.

Lai Yang, executive vice president of the Beijing Business Economics Association, believes that the shrinking scale of physical home stores is an unchangeable trend, but consumers still have the need for on-site experience, especially the materials and effects of furniture, and the development of home stores will become more and more Miniaturization and experience. At present, the traditional home furnishing industry is in line with the market development trend, and the home industry as an important part of the life scene will also become a must for the E-Commerce giant to deploy the offline scene, the new home retail war will or Full upgrade.