Red Star Macalline, Easy Home are on the list of "Top One Hundred Chain Stores in China in 2020"
Easy Home has been in the top ten of China's top one hundred chain stores for three consecutive years.
On June 7, the China Chain Store & Franchise Association released the "Top One Hundred Chain Stores in China in 2020". Red Star Macalline, Easy Home were on the list, ranking third and ninth respectively.
From the perspective of the home furnishing industry, Red Star Macalline’s 2020 sales (including tax) will be approximately 108.019 billion yuan, a year-on-year decrease of 14%; the total number of stores is 476, an increase of 11.2% year-on-year; the total sales (tax included) of Easy Home in 2020 will be approximately 65.74 billion yuan, a year-on-year decrease of 18.9%, the total number of stores is 502, a year-on-year increase of 16.7%.
The results of the Industry Basic Situation and Top One Hundred Chain Companies Survey in 2020 show that the sales volume of the top one hundred chain companies in 2020 is 2.4 trillion yuan, a decrease of 7.2% from the previous year. Among them, the sales of 52 top one hundred companies dropped year-on-year, a decrease of 15.4%. The sales scale of the top one hundred chain stores accounted for 6.1% of the total retail sales of consumer goods, a decrease of 0.2 percentage points from 2019.
In 2020, the COVID-19 epidemic will adversely affect business operations. At the same time, the implementation of new accounting standards and the rapid expansion of community group buying are also factors influencing the decline in sales of the top one hundred companies.
Tang Xingtong, an analyst at an e-commerce bank, said that Red Star Macalline, Easy Home will all experience an increase in the number of stores and a decline in sales in 2020. This phenomenon is a typical innovator's dilemma.
"The habitual way of thinking of home furnishing companies is to gain growth and look for growth by opening more stores. After a good location in first- and second-tier cities is occupied, they begin to sink channels and look for traffic in some third- and fourth-tier cities. The change of consumers’ buying habits, the collection and distribution of goods in the form of hypermarkets, and the leasing model are facing challenges."
Tang Xingtong believes that the home furnishing market will generally improve in 2021. "People's demand for a better life is the norm. The demand for this market is great and growing, but the products and services that meet this demand have changed."