At present, although the domestic consumer demand for hundreds of billions of high-end electrical appliances is accelerating, most high-net-worth individuals do not know where to buy high-end electrical appliances. This includes the chairman of Red Star Macalline Che Jianxin.

At the same time, with the increasingly high-quality, scene-oriented, and integrated electrical appliances consumption, and the high-end electrical products, it is still difficult for most consumers to name one or two high-end electrical appliances brands. So, how can high-net-worth individuals and high-end appliance brands easily "find" each other? The answer is: a professional brand new high-end electrical consumer field is needed.

Red Star Macalline' s smart electrical appliances living halls are being launched all over the country, which is such a brand-new high-end electrical appliance consumption field. The "Smart Electrical Appliances Supreme Pavilion" that just landed at the Red Star Macalline Zhongyuan No. 1 store in Zhengzhou, Henan Province a few days ago is the top version of the smart electrical appliances living pavilion with the largest domestic operating area, the most complete operating categories, and the largest single imported brand operating area.

According to the original plan, Red Star Macalline is expected to open 30 smart electrical life pavilions across the country by the end of 2021. However, as of now, the number of smart electrical life pavilions that Red Star Macalline has opened has exceeded 50 up to 100.

"With the implementation of our smart appliance living halls one by one, Red Star Macalline has become the largest channel of choice for high-end smart appliances in China." said Zhu Jiagui, CEO of Red Star Macalline Home Furnishing Group and general manager of the large operations center.

Two "pain points" and one "theme pavilion"

For consumers, from "buying an electrical appliance" in the past to now entering the era of "smart home life", they are increasingly favoring the consumption of whole-house integrated solutions, and many pre-installed electrical appliances have become the "pre-installed" in the upstream of the industry. "For rigidly-needed products, the business of household appliances and electrical appliances has shown an "integrated" development trend.

In this scenario, whether it is offline brand stores with incomplete categories or online stores that cannot provide scene-based experience solutions, it is difficult to meet the upgrade needs of consumers-this is the pain point of consumers.

As far as the electrical appliance industry is concerned, the current single-category electrical product market ceiling has gradually emerged, and the market has entered stock competition. Therefore, a large number of brand companies choose to expand their categories and enter the sinking market. There is a fierce battle between "destocking" and "price war".

However, when the sinking track is "unsinkable", it means that the market is saturated and the electrical industry is in urgent need of transformation and upgrading. On the transformation road of industrial upgrading, electrical appliances brands need a channel and touch point closest to users if they want to "sell" high-end electrical products out of the market-this is the pain point of the industry.

The gap in the market under the imbalance between supply and demand hides a blue ocean of market segments. Undoubtedly, by grasping the two pain points between consumers and the industry, the market gap of "a high-end consumer electronics market worth hundreds of billions" can be opened up.

To this end, Red Star Macalline began to accelerate its layout to build the world' s largest consumer market for high-end smart appliances.

In 2018, Red Star Macalline began its journey of pioneering high-end electrical appliances and formally established the Smart Electrical Appliances Division. In 2020, the smart electrical appliance category is regarded as the company' s first strategic category. In 2021, Red Star Macalline opened the world' s first "Smart Appliance Life Pavilion" and the world' s largest "Smart Appliance Supreme Pavilion" in Shanghai and Zhengzhou.

From being regarded as the company' s first strategic category, to now becoming the preferred channel of China' s high-end smart appliances, Red Star Macalline only took less than a year. On this road to high-end appliances, Red Star Macalline is working hard to build the world' s largest "Community of Preferred Channels for High-end Smart Appliances", and spare no effort to promote the implementation of the "Smart Appliance Life Hall" from 100 to ALL.

From smart appliance living hall to high-end traffic ecology

In order to speed up the implementation of the 100 to ALL plan, Red Star Macalline staged a "preemptive strike".

As the saying goes, the world of martial arts, only fast is not broken. In the ever-changing environment, companies should have a forward-looking strategic vision. Once they find a gap in the market, they should respond quickly and use their own superior resources to deeply bind the pain points that the industry has not yet explored with the company’ s own business. Finally, Complete a decisive attack.

Look at Red Star Macalline' s road to build a "smart electrical appliance life pavilion" in shopping malls across the country, which is running at a speed of 200%. Since May, Red Star Macalline has opened 50 smart electrical life halls. It is estimated that the total number of smart electrical life halls will be three times the original plan by the end of the year.

With the rapid expansion of the Smart Appliance Life Pavilion, Red Star Macalline has filled the market gap in the preferred channel for high-end appliances.

High-end electrical appliances themselves are products with high customer unit prices, which also means that it is more difficult for consumers to make decisions. For consumers, should they go to high-end department stores to "try their luck" or choose branded self-operated stores with different categories? Or place an order in an online store that cannot experience the product in person? The best choice, of course, is the offline store form. In addition to personal experience, you can also get more content, such as brand culture, service experience, design trends, trendy home trends, and so on.

For brands, with the help of platforms and channels, they can quickly reach precise consumers, quickly open the market, and increase brand influence. Therefore, in terms of "aggregating" high-end electrical appliance brands for "centralized display, interaction and sales", buyers and sellers need a reliable "high-end field".

As of the end of June 2021, Red Star Macalline has operated more than 400 shopping malls across the country. It is the largest offline home consumer high-net-worth crowd traffic portal, and has the industry’ s first community matrix and the largest data center in the home improvement industry. And aggregation delivery platform. In layman' s terms, Red Star Macalline not only has a high-net-worth consumer group, it is also the industry' s largest access channel for high-net-worth individuals.

At the same time, as of now, Red Star Macalline has opened 50 smart appliance living halls across the country, and more than 1,400 cooperative appliance brands, of which more than 30 head appliance brands have signed in-depth strategic cooperation agreements.

When the channel advantages and traffic value that have been accumulated for many years are released, Red Star Macalline has not only successfully attracted many big-name cooperations, but also strongly implanted "buy high-end electrical appliances in Red Star Macalline" into the hearts of consumers.

It will not be easy to make this thing happen. Logically, some electrical appliances and home furnishing companies can also open such theme pavilions, but if you want to establish a new consumer mindset of "buy high-end electrical appliances to **", a complete flow cycle ecology is indispensable behind it to escort and support.

This extremely challenging problem has been quietly resolved by Red Star Macalline. Research can find that there are currently 4 super traffic loops behind the Smart Appliance Life Pavilion: shopping mall-brand traffic loop, Red Star Macalline Brand Traffic Alliance-Smart Appliance Life Pavilion traffic loop, 9 theme pavilions traffic loop, brand - shopping mall traffic circle, circle superimposed, the bonus is invincible.

The first dimension is the passenger flow of the mall, such as the passenger flow brought by marketing activities, returning passenger flow, etc. Once these passenger flows arrive at the store, they will enter the brand store in the theme pavilion area for a stroll.

The second dimension is the passenger flow from the Red Star Macalline brand traffic alliance. For example, after the customers of home improvement arrive in the store, they will also visit the theme pavilion.

The third dimension is the 9 theme pavilions that are being built in Red Star Macalline Shopping Mall, which includes the smart electrical life pavilion, the trendy home pavilion, the boutique bathroom pavilion, the sleep life pavilion, the design living room pavilion, the import international pavilion, and the system door and window pavilion. High-end custom hall, soft decoration exhibition hall. Each theme pavilion itself is a super traffic entrance, and 9 major theme pavilions are equal to 9 super traffic entrances. In view of the background of the consumption trend of "one-stop shopping", the 9 theme pavilions have formed a huge flow cycle ecology invisibly.

The outermost ring is the passenger flow of the brand owners, such as Haier, Midea, Hisense, Siemens, Boss, Fangtai and other top brands through various materials, inform brand fans that when their largest brand experience store is in the nearby Red Star Macalline Smart Appliance Life Hall, when the distributors of these brands bring potential customers to the Red Star Macalline Smart Appliance Life Hall brand experience store, these passenger flows naturally become the superimposed passenger flow bonus of the entire theme pavilion.

Through this ingeniously designed "high-end traffic ecology", the brand owners who rush to the smart appliances living hall will have no worries about "easy to open a store, but difficult to maintain a store". This is probably the main reason why Red Star Macalline dared to strategically speed up 200% to promote the trend of "Smart Appliance Life Museum" to the whole country.

What is the market value behind the triumphant advance?

Behind any daring to subvert and innovate, there are not only extraordinary acumen, courage and courage, but also aspirations worthy of continued attention.

In fact, Red Star Macalline’ s efforts in the "high-end smart appliance market" are not just a simple commercial test, but a brand-new evolution of the business model. Red Star Macalline with the three growth poles of electrical appliances, home improvement and home furnishing is emerging.

There is no doubt that Red Star Macalline is the No. 1 brand in China' s home furnishing industry. The Frost & Sullivan report noted that "Red Star Macalline is the nationwide home decoration and furniture store operator with the largest business area, the largest number of stores, and the broadest geographic coverage in China" is the best proof.

Along with Red Star Macalline' s promotion of home improvement to the "first business" status in 2020, Red Star Macalline has taken the lead in practicing the integration of home improvement and home furnishing, and will build the home improvement business into a "second growth curve" outside of home furnishing.

Since then, when consumers began to pursue the integrity of electrical appliance style, decoration style, and home style, Red Star Macalline further set foot in the high-end electrical appliance market and seized the business model of integrating electrical appliances, home improvement and home furnishing.

At present, Red Star Macalline opened the world' s first smart electrical appliance living hall in Shanghai. It took only 4 months to complete an ultra-high sales record of 200 million yuan. By the end of 2021, Red Star Macalline will open 100 smart electrical appliances living pavilions across the country, and 200 are expected to be completed in 2022. By 2023, the smart electrical living pavilions will cover all shopping malls across the country. 

"Although smart appliances currently account for about 7% of the operating area of Red Star Macalline shopping malls, it will reach 15% in the future." said Zhu Jiagui, CEO of Red Star Macalline Home Furnishing Group and general manager of the large operations center.

At that time, a network of China' s largest high-end smart appliance retail channel network will be woven into shape. At that time, Red Star Macalline was no longer a simple home furnishing giant, but a comprehensive service provider with three growth poles of electrical appliances, home improvement and home furnishing, and able to provide consumers with complete solutions for a better life.

Concluding remarks

In the era of consumption upgrading, the general trend of people' s pursuit of a better life and the increasing release of their willingness to consume will not change. And high-end appliances are an indispensable part of this trend.

It can be said that what Red Star Macalline is doing is not only to "gather high-end electrical appliances scattered everywhere", or to create a "centralized platform that provides a full set of solutions" to solve the problem that consumers have nowhere to buy high-end electrical appliances. More importantly, Red Star Macalline is adapting to the tide of development of the times and providing people with "one-step" solutions for a better life.

In a sense, the entire "big home" industry pattern, including home improvement, electrical appliances, and even home services, is also being quietly moved. In time, visiting Red Star Macalline may become the most convenient choice for consumers to experience the trend of a better life.