On 19 december 2020, the launch of the family's new retail product and digital strategy was held in beijing. The digitalization of household building materials is becoming clearer and clearer. At the congress, sun jianbo, the general manager of the family's “savings plus” supermarket, shared the digital trend of the whole-chain building materials support platform。
From 1999 to date, houses have grown to become domestic retail giants with annual sales of 85 billion yuan, and 409 houses have been opened throughout the country, covering 220 cities, under the auspices of a trillion-class home-dressing market. In 2020, there was a marked trend towards the digitization of industries and the development of a platform for the sale of household building materials into the new world. The home is expected to be a navigator of new stages of development, based on years of digitized capability and operational experience gained online。
Current status of china's renovation of ki-aids: a huge blue sea
It is planned to establish an integrated offline and offline distribution platform as an important link in the construction of a whole chain of services for household consumption. With the mission of “simplifying home-dressing” and in line with home depot, a business model combining b2b2c and b2c has been adopted, which, on the one hand, expands the development of ip-owned branding operations from the supply side, upgrades the quality of base and support materials, and, on the other hand, provides distribution services free of charge to b- and c-side clients, improves client experience and improves the efficiency of industry operations。
According to publicly available information, family treasure was founded in delaware, united states of america, in 1978, and is the world's largest retailer of building materials. By the end of the 2019 fiscal year, it had achieved $120. 9 billion in operating income and a net profit of $11 billion, and the market value of nasdaq had been $220 billion. The 40 years of development of the family have not been easy, and the period has also been marked by the throes of the business transition and the downturn in the market. The exploration process and the final success of the business transformation of kardebo provided the chinese market with many valuable and relevant lessons learned。
It's a big deal
It is not difficult to observe china's basic and auxiliary industries, which are large but painful, and which need to be regulated and integrated. If upstream and downstream resources could be integrated to form normative industry standards, a huge market space would emerge。
In terms of market size, according to the oviyun network analysis, the market for household-based construction materials and for fully dressed household-based construction materials was approximately $2. 23 trillion in 2019. This represents about 10 per cent of the sale of base and auxiliary materials and about $200 billion in market capacity. Market space was further released with the advent of the storage age, coupled with the fast-dissolved market for low-end building materials and individual businesses. However, behind this huge market size, there are also striking contradictions and many pains between customer demand and the current state of the industry。
According to research, the pain spots are concentrated on three main areas: (1) low-end markets for building materials, the lack of circulation channels for refurbishing materials and supporting materials for individual entrepreneurs, and high logistics costs and efficiency as a result of the policy of urban alienation. Unlike the purchase of staples, furniture and household electricity, the purchase of fittings is not professionally directed, there is no comfortable and open shopping environment, there is no easy one-stop shopping environment, and the purchase of supporting materials is not only labour-intensive, but the quality of products and services is difficult to secure; (2) the renovation of the basics and auxiliary materials industry lacks door-to-door services. Most of the feeder supply channels have addressed only the distribution of products, but not the upswing after distribution, which has caused many inconveniences to the worker and the client and has also been a major pain to be addressed; and (3) the lack of standards and a low branding effect in the assembly and support industries. Markets are not well developed, and the industrial norms and standards they create lag far behind the pace of market development for refurbished materials. The market for traditional retrofitting materials, in the context of information asymmetries, has long been an open secret for the industry. In addition, the lack of brand protection awareness in a number of production enterprises also provides a fertile ground for bad-quality, labeled production enterprises to compete in a vicious manner and delays in the completion of brand premiums。
Based on this industry background, the opportunity to renovate the kiev material industry is self-evident, and the house's “savor +” supermarket should also be created。
Riyaya's “auxiliary +” supermarket: sword means china's largest assembly base and supply platform
Riyaya was born of a system of large houses and was able to make efficient use of its business experience for more than a decade in order to make direct trades, starting with industry pains and client needs, to establish an industrial eco-circle with efficiency at its core. Based on the current combined strength of the house, the direct sword of riyaba refers to china's largest base and auxiliary supply platform。
At present, the business model of the riyaya supermarket is to move up and down the industrial chain, using a combined b2b2c and b2c operating model, with online orders, sub-contribution/retribution/repatriation. Long-term empowerment of the worker, addressing pain points and increasing the size of the platform. The current ups and downs of the industrial chain in the fit-out industry is striking. Upstream competition is strong, and how to finance brand changes is a focus for branders. Strong upstream competition has led to cost shifts, leading to a surge in downstream costs. Chiefs of works and decorating companies are now becoming increasingly sensitive to the price of fittings, but are increasingly demanding on the quality of their products. So what the riya's supermarket does is go up and down, face the brand factory directly and abandon the middle agent chain; and when it comes directly to the chief or client, the chief or client orders through the riya's app, and the distribution warehouse receives the order and sends the product to the construction site。
Summarizing the profit model of riyaya's “supplex plus” supermarkets, it focuses on two main points: first, the integration of upstream supplier resources. In particular, the home would combine highly dispersed high-quality factories, including through the vigorous development of its own ip brand, and enable it to sustain its excess capacity. It will also continue to cultivate deep upstream resources through cooperation, oem, etc., to help it to address issues such as weak brand effects, difficulties in accessing clients, inability to fine-tune operations, and jointly improve the quality of base and support materials. At the same time, there has also been a significant increase in the profitability of products, with a projected increase of 15 percentage points in the ratio of commodity maori。
Second, empowerment of long-term workers and enhancement of linear service capabilities. The main target group of customers at the riya's “auxiliary plus” supermarket is the high-quality worker in the industry. High-quality chief of staff generally has a good reputation and a large number of sites, and orders come mainly from the flow of monuments and are more stable. To ensure the quality of delivery, it is procured with high branding, quality and integrity requirements. At the same time, because of the heavy workload and the increased focus on efficient and secure filing, distribution and after-sales services, these chiefs have a continuing demand for the platform and a strong willingness and ability to pay for it, which can result in long-term user adhesion. Rei house will leverage the sale of other fit-out supplements by creating a strong viscosity between the employee's endowment and the resources of the c client behind the chief's excavation. Furthermore, they are empowered through rapid and efficient logistics distribution systems, high-quality home brand resources, home brand endorsements, large data sharing, etc. The use of large platform resources for industry and industrial chain adhesiveness offers very visible capabilities and prominent opportunities。
Riya's “supples+” supermarket core competitiveness: a huge building block of markets and synergies
In the new economic era, cooperation between different fields can develop more dynamic forms of business offline. The family home has four distinct advantages on the kiev platform: (i) it covers 260 shops in 130 cities with a daily average of 220,000 visitors; (ii) it currently has 5,500 brands and 72,000 businesses in the country's 400 houses; (iii) it currently provides financial security for after-sale services; and (iv) it currently holds resources of 30,000+ for the beijing regional chiefs and is growing。
At the same time, the riyaya supermarket has established strategic partnerships with a number of domestic and foreign complementary brands. At this stage, three channels have been opened, namely, the app, the city of wisdom and the underline shop. With the development of the app function, the full functionality of intelligent optimized line assignment single algorithms, intelligent warehousing collections, logistics distribution visualization and automatic replenishment will be achieved. Data on all back-stage sedimentation users and member activity will provide the basis for the accurate operation of future users, and some data will also be shared with the chief of staff, such as product evaluation data and base and ancillary data, to enable him。
The future of the reyhouse: three steps, 20 billion
With regard to the future of riyaya, there is a clear and long-term plan for the family, which will take place in three steps, steady and steady, so as to realize the vision of china as the leader of the rehabilitation and distribution industry。
In the long term, the objectives of phase i (2021-2022) are to: complete the construction of the app, complete the deep integration of the base and secondary distribution lines, improve the inefficient links in the original industry, provide continuous digital innovation and adaptation to the procurement, logistics, marketing, distribution, etc., establish a system of highly intelligent, efficient and standardized operating services, sustain the deep tillage of the beijing market, continue to push up the market through the use of the best of the home industry, achieve 300 million yuan by 2021 for the sale of base and ancillary materials and 800 million yuan by 2022。
Phase ii (2023-2025): china, with beijing at its centre, continues to export talent and standard skills to second-line cities throughout the country, using the national supply chain system of the national physical shop and the platform for the sale of assistive materials, opening up the replication model and completing the market expansion. In the course of three years, 100 distribution, sale and display shops were opened, with 1. 5 billion sold in 2023, 3 billion in 2024 and 6 billion in 2025。
Phase iii (2026-2030): rezao, with its central city as its main focus, has expanded to the entire country with efficiency advantages, opening 300 shops for the renovation of distribution, sale and display under the feeder line and generating $20 billion in sales, and fully realizing the vision of rezao's “savants+” supermarket: to become a leader in china's renovation of the base and ancillary distribution industries。
