Che Jianxin talks about the Red Star Macalline model: more than commercial real estate

In response to these questions, in a recent interview, Che Jianxin answered.

Four in one ShoppingMall mode

At the beginning of 1991, the five-year-old "carpenter" built a new car. With the savings at hand, he established the first furniture franchise store in Jiangsu Province, Red Star Macalline Furniture City, and it took a short time to develop the store to More than 20, become the largest furniture chain store brand in Jiangsu. At this time, Red Star Macalline, in addition to distributing furniture produced by its own factory in its own store, is also acting as a proxy for many well-known domestic furniture brands. There is nothing special about the model. In fact, it is "Go back and sell, earn the difference from it." "That set.

But by 1996, 14 of the 24 Red Star Macalline chain stores had suffered losses to varying degrees. Che Jianxin began to look for answers from within him. To this end, he took the executive team to the United States several times to investigate various business formats. He eventually discovered that the problem was still in the model. Although this model was already mainstream in China at that time, “experts said yes, the government said yes”, and it also produced large-scale players such as Oriental Homeland and Home World, but in the new eyes of car construction, it was “a Decoded low-end model ".

Therefore, Che Jianxin shifted the positioning of Red Star Macalline from "channel" to "platform". That is to no longer worry about directly operating specific furniture products, but to build a shopping mall platform based on the European and American "ShoppingMall" model, introduce factories and regional distributors to enter "on-site direct sales", so that this platform becomes their channel; The role of Red Star Macalline has changed from a "producer and seller" to an "operator", providing services such as "unified marketing, unified after-sales service, and unified training" to the brand owners who have settled in. To profit.

According to Che Jianxin, this belongs to his “pioneering initiative” after he “grasped the Chinese market” and combined the “commercial real estate, Chinese department stores, European and American chains and Shopping Mall model” to integrate his “four in one”. The originality of the Red Star Macalline model is precisely what Che Jianxin is proud of. When it comes to this, he will also take the opportunity to come up with a "self-praise" of "the unprecedented".

More than commercial real estate

Compared with the previous ones, in addition to the shift to ShoppingMall from the format, the most significant feature of Red Star Macalline's "new model" is its integration with commercial real estate. Behind this change, in fact, Che Jianxin tried to extend the industrial chain of Red Star Macalline and open up the mall real estate and property chain.

This is also the key reason why Che Jianxin chose the "heavy asset" development path of "buying land and owning properties" and regarded it as the "life root" of the development of Red Star Macalline.

From 1997 to the present, we have bought 15 self-built shopping malls. The land has appreciated more than 20 times and the highest is more than 30 times. The land appreciation alone has reached more than 10 billion yuan.
Shen Yaojun believes that listing is very necessary for branded home furnishing stores and has many benefits for the development of the enterprise. Specifically, the company ’s shareholding structure ranges from a single share capital to a variety of shares, and the ability to resist risks is gradually strengthened. Stability and safety; for factories, the quality of business performance is directly related to the satisfaction of investors, and the long-term development momentum effectively consolidates the cooperative relationship between suppliers and ensures a balanced interest; for consumers, Transparent management enhances the public's ability to monitor, allowing consumers to experience shopping with confidence.
As the capital market is increasingly inclined to the home building materials industry, small and medium-sized enterprises are facing huge competitive pressures. Some smaller companies are ruthlessly eliminated by the market. Some large home building materials companies quickly raise funds through listing, improve brand quality, and achieve industrial upgrading. And to expand market share through listing, the decline in gross profit margin has reduced costs for consumers. For the entire large industry, the survival of the fittest has become the rule. By eliminating the weak companies in the market, effectively saving resources and avoiding repeated construction is the only way to regulate the market.

Attract foreign investment to establish an effective competitive partnership

The injection of foreign capital is also preparing to inject fresh blood into the home market. With the rush of listings in various stores, many foreign capitals have also poured into the domestic market, which has objectively promoted the development of the home market, but there are also some foreign investors who speculate to disrupt the market order for speculation. Faced with this problem, Shen Yaojun told reporters that domestic enterprises should actively respond to the interconnection of the capital chain, learn from foreign-funded enterprises for advanced technology for development and production, enhance the comprehensive strength between brands, and provide more people with employment opportunities to establish Brand social responsibility. But we must also be vigilant against speculators to avoid the disorder of funds disturbing the development of the entire market.

The home furnishing industry is changing from the previous free market competition form to a higher level, and to achieve rapid expansion, it must rely on the power of capital. The process of home building materials companies entering the capital market through listing is a process that gradually promotes the entire industry to become transparent. Although the competition is fierce, it is a necessary transformation. Only by continuously improving their own strength, clarifying the industrial model, and realizing the comprehensive competition of the industrial chain can the home furnishing enterprises resist the heavy pressure and seek their own sustainable development. function forumhottag_callback (data) {tags = data;} parsetag ();

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