At home, "small room", after a meal, adjust a meal. Recently, the weather has become colder and colder. The friends from both the North and the South have started to start the mutual exchange mode. The Southern Party sent a slogan that “the northerners do not understand the coldness of the South”, and the northern faction calls “the southerners do not understand the cold of the north”! For another pair of small partners who have been trussing for a long time - e-commerce and traditional stores, it seems that the lack of practice has lost meaning, and the qualitative changes brought about by the truss itself are slowly emerging. Traditional stores stimulated by e-commerce have recently been actively transforming, targeting commercial real estate and seeking development. Can this transformation help the store to "winter"?

E-commerce rises home stores to find a way out

According to the data provided by the relevant survey institutions, the sales of household e-commerce in 2012 was about 49 billion yuan, accounting for 4.5% of the total sales of e-commerce. The 35 billion yuan that shocked hundreds of millions of netizens in 2013 was to let the big households see the strength of e-commerce and feel the strong pressure of e-commerce. The transformation of traditional stores is imperative, and the opportunity for transformation has already arrived.

On the one hand, the current household industry has the phenomenon of overcapacity in the industry and homogenization of products, which cannot meet the needs of consumers well, and industry adjustment is continuing.

On the other hand, compared with the home industry, which is somewhat saturated and even fierce, the profit margin of real estate is relatively larger. These home furnishing companies focus on self-sustaining properties, which is extremely important for a home furnishing company that wants to gain competitive advantage and long-term development. “The traditional advantage of furniture stores is commercial operation, property management and value-added. Many companies are based on their own advantages and are expanding to commercial real estate.” According to industry insiders, IKEA insists on it very well. The purchase of land for Chinese projects has made it the largest foreign landowner in China.

Red Star Meikailong takes the lead in entering commercial real estate

Under the impact of e-commerce, traditional stores have undergone transformation, some have played "O2O", some have strengthened the after-sales guarantee of the store, others have expanded the service categories of the store, and others, in an attempt to enter the commercial real estate sector. Take the example of Red Star Macalline, which is a commercial real estate market in the country. More and more home stores are beginning to transform and move towards shopping malls. Red Star Business official website shows that in the next five years, Red Star Business will accelerate the pace of commercial real estate investment, develop and layout in many cities across the country, and strive to build 100 Aegean shopping centers nationwide in 2020. And 60% of the 100 Aegean shopping malls will be completed through the transformation of Red Star Macalline Home Furnishings and other properties.

Traditional stores have obvious advantages in commercial real estate

There is no decision-maker who will trade rashly. What makes traditional stores choose the path of commercial real estate? The reason is very simple. For the commercial real estate sector, the advantages of traditional stores are obvious.

“In more and more commercial market segments, there is no doubt that traditional furniture companies are more likely to tap into their business opportunities in commercial real estate operations.” Wen Liyang, a researcher at Huaxi Real Estate Research Institute, believes that after years of development, home stores have Enterprises have traditional business advantages, property management advantages, talent advantages, etc., which are not available to many first-time commercial real estate developers. Almost all commercial real estate development does not have a very detailed demonstration process. The so-called pre-marketing plan is only the first step of the long march. The resulting business planning, project demonstration and other risks are also very large. Therefore, in the process of entering the real estate market, the matching degree between the designed products and the future projects will become a test for the success of the future commercial real estate operation of the home furnishing industry.

Xiao Bian believes that no matter how rough the road to transformation of the store, how many difficulties will be encountered at the beginning of the transition, as long as the store has determination and methods, the "winter" of the store will always pass.

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