Home appliance and home through, which has become a definite trend in the retail channel. At present, Red Star Macalline, actually home and other home channels are laying out the home appliance segment, and home appliance retail giants like Suning Tesco are also pulling through the home business to realize the industry chain and service chain to open up the operation.
Home appliances, home business through, for the retail giants with offline store resources, has a greater benefit. After all, under such industrial and consumption trends as scenario-based, set-based and intelligent, offline stores will play the heavy role of display, experience and transaction, which cannot be replaced by online platforms.
In terms of the number of stores and operational experience, Suning Tesco is undoubtedly the “senior player”. Compared to the scale of four to five thousand stores in the home channel, the number of stores in Suning Tesco far exceeds them. Nail Technology noted that only Suning’s retail cloud stores have reached 11,000 in 5 years.
Public information shows that on March 25, Suning Tesco Retail Cloud’s 11,000,000th store landed in Shenmu, Shaanxi. It is worth noting that this store is also the first large store of 1,000 ping level fusion in the retail cloud, which can provide one-stop solutions for home appliances and homes.
Why is this store worth focusing on? Nail Technology believes that this newly opened Retail Cloud store reflects two changes in the sinking market.
One, the sinking market opens the era of set purchase consumption. Although in the sink market, this retail cloud store area of a thousand square meters, which means that the scene, set of products have more display space, the sink market will also gradually from the era of single product consumption to set purchase consumption era. On the opening day, home appliance and home set purchase orders accounted for more than 20%, which has shown that the set purchase model in the sinking market is also popular.
Second, the sinking market in the high-end products ushered in the bonus period. The upgrade of “home consumption” is not only in the urban market, but also in the sinking market. The retail cloud stores focus on the “home consumption” upgrade, increasing the introduction of high-end products, but from the first day of the store performance, the consumption potential of the sink market is exploding. On the opening day, the store sales exceeded 800,000, of which the proportion of medium- and high-end products accounted for nearly 50%.
Based on the changes of the rise of the set purchase model and the sought-after mid- and high-end products, the competitiveness of Retail Cloud in the sinking market will be further released. In the nail technology, to achieve this release, the first thing to do is the scale of the successful model of replication. Suning Tesco retail cloud vice president Zhang Hui said, from the 11000 store business results, retail cloud home appliances, home integration model has been run through, has entered a high-speed replication “fast lane”.
This replication, Nail Technology believes that not only is the number of stores continue to improve, but more importantly, home appliances and other business integration development model replication, after the 10,000 stores era of “intensive cultivation” is essential.
After gaining scale advantage, high-quality growth has become a new issue. Nail technology noted that since last year, the retail cloud in the store model expansion action, through reuse, grafting in the main home appliance industry capabilities and experience in the precipitation, has expanded the county and town home integration stores, urban quick repair store, community sales and service integrated store and other multiple track, for Suning Tesco retail service provider fission development to explore new possibilities.
The opportunity is huge. It is understood that the overall retail market in China has a compound annual growth rate of 8.6%, and the sinking market has a compound annual growth rate of 8.8%. It is expected that by 2025, the per capita disposable income of the sink market will reach RMB 40,000, and the overall size of the sink market is expected to reach RMB 6.32 trillion. Such a huge market provides a wide world for the development of retail cloud.
Nail Technology believes that for home appliance brands that are committed to expanding in the sink market, retail cloud is a development express that cannot be missed. Data show that in 2021 alone, the retail cloud omni-channel cumulative sales of 20 million pieces of good quality goods, helping more than 1,800 mainstream home appliance home brands sink.
Big manufacturers and big brands have been keen to capture where the market opportunity. Nail technology noticed that Haier, Hisense, Midea, Chivas, Wrigley, Casadei, COLMO and other first-line brands and many high-end brands, all appear in the stores of Retail Cloud, a wave of brand companies and retailers working together to promote consumer upgrading in the sinking market, has surged.
Retail Cloud is ahead of the industry in terms of store opening speed, number of stores, single-store scale, operational efficiency and multi-format integration model. With efficiency and altruism to help small and medium-sized retailers successfully complete digital transformation, with high-quality, integrated products and services to tap and release the consumption potential of the sinking market, such a retail cloud has become the landing sample of Suning’s transformation to “retail service provider”, injecting new growth momentum for the retail market, especially the sinking retail market.