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Che Jianxin: China's home opportunity huge red star to help Chengdu furniture
Red Star Group Chairman Che Jianxin On the afternoon of October 17, Red Star Macalline (see map) hand in hand brand spokesperson S to Chengdu, together with Group Chairman Che Jianxin, discovered the beauty of home life. Chengdu is the second spokesperson after Beijing. In the active city, we can see the strategic importance of Red Star Macalline to the West. Since the opening of the first store in Chengdu in 2007, Red Star Macalline has grown to the fourth store, and how should such high-speed expansion be interpreted? On the afternoon of the 17th, at the West Expo Home Furnishing Industry Forum, Che Jianxin gave a wonderful speech for the furniture company in Sichuan. How does Red Star Macalline view the furniture enterprises in Sichuan? How to achieve industrial upgrading in a big context? How to seek industry opportunities? With the above questions, we walked into the new world of car construction and sought answers from his mouth. [Time]: October 17th, 2009 at 20:30 [Location]: Chengdu Red Star Meikailong No. 1 Office Office [Guest]: Red Star Group Chairman and CEO Che Jianxin [Moderator]: Focus Home Network Chengdu Station reporter Zhou Linglin [Moderator]: Hello, in the afternoon, you participated in the forum of the West Expo home industry, and made a keynote speech on "China Opportunities" at the forum. Where do you think the industry opportunities are? According to the average annual furniture and building materials consumption of 10,000 yuan per household, the annual sales will exceed 3.3 trillion yuan. Red Star Macalline will consider planning more than 1 to 20,000 square meters of space for furniture in Chengdu when building a store in the country in the future. [Che Jianxin]: There are more than 200 local furniture production factories in Chengdu this afternoon. The "China Opportunities" I spoke mainly focused on the furniture industry, mainly analyzing the growth of the home building industry. When it comes to opportunities, there are several data. In the past 31 years, the Chinese furniture market has grown 350 times, growing at a rate of 15% per year. In the next 10 years, furniture is expected to grow at an annual rate of 10% to 12%. . Secondly, the market share of medium and high-end furniture is currently small. In the future, this proportion will increase. From the current 20% to 30-35%, the consumption grade will gradually increase and the company will develop towards the brand. In addition, China is still in a good period of development in the coming decades, mainly reflected in the increase in urban population and the expansion of urbanization rate. At present, the proportion of urban population in China is 45.7%, reaching 607 million, which is expected to increase by 1% per year. By 2025, the proportion will exceed 60%, reaching 1 billion urban population, about 330 million households, and annual household furniture consumption per household. In terms of 10,000 yuan, the annual sales will exceed 3.3 trillion yuan, which is a great opportunity. For Sichuan furniture, Red Star Macalline’s attitude is to unite them and achieve a win-win situation. For example, the Red Star Pudong store will let Chengdu furniture enter when it invites investment. The Xianghe River in Beijing will also set up the Sichuan Furniture Hall. There is also a point in the forum this afternoon that I forgot to tell the Chengdu furniture company. Now it is announced through your media. Well, it is that Red Star Macalline will consider planning more than 10,000 square meters of space for Chengdu's furniture when building a store in the country in the future. As a result, the number of Chengdu furniture brands will increase, and most brands should have a place. [Moderator]: When can I achieve it the fastest? [Che Jianxin]: The 2 stores in Chengdu can be realized first. Furniture relies on recycling consumption, with a total amount exceeding real estate, and the amount of furniture in the later period is huge. [Moderator]: Indeed, some people have said that China's home furnishing industry surpasses real estate. It is currently the most "money way" industry. Do you agree? [Che Jianxin]: I think that the total amount is more than real estate. Why do you say this? The use of housing for 70 years, furniture consumption is basically a cycle of 8 years, in fact, now less than 8 years, with the improvement of life, aesthetics and old houses, it should be said that 6 years and 1 cycle is more appropriate . If calculated according to the 8-year cycle, there will be 9 furniture consumption in 70 years. According to a set of houses with a total amount of 1 million, the furniture consumption will be 100,000 to 120,000. With the increase of the proportion of medium and high-end products, single furniture consumption The total amount will increase, and the total amount of furniture consumption in these nine times will exceed that of real estate. Furniture relies on recycling consumption, with a total amount exceeding real estate, and the amount of furniture in the later period is huge. China's market is huge. It is reasonable to say that we have to achieve 2,000 billion yuan. The mall must be 30% ahead of the consumer's psychological expectations. [Moderator]: This year, Red Star Macalline brought a lot of highlights. There are brand spokespersons. As the only home enterprise representative, they will enter the World Expo and also hold a furniture fair. Does the car think that there is a shortage of Chinese furniture display platforms? [Che Jianxin]: It should be said that the shopping malls of China's home furnishing brands are still relatively scarce. China's furniture sales last year were 1 trillion, and the sales of Red Star Macalline were about 235 billion, accounting for only 2.3%, and the next 2nd. The sales to the 8th place can account for 10% of sales. High-end furniture sales are about 200 billion, and Red Star can account for 10%. It should be said that the possession of Red Star is still very large, but the market in China is huge. It is reasonable to say that we do not achieve a total of 2,000 billion. High-end and tasteful furniture stores are lacking. Consumers and shopping malls are guided by each other. Shopping malls must achieve 30% of the target of psychological expectations of consumers, and play a guiding role. If the shopping malls and consumers meet the expectations of the present, it is obviously wrong. As a shopping mall, there must be education and guidance. After all, consumers have insufficient experience in setting up their homes, especially in terms of artist residence and taste, so the mall still needs to guide. they. [Moderator]: This is for consumers, what is the significance of the platform built by Red Star Macalline for manufacturers? [Che Jianxin]: When I was communicating with furniture manufacturers this afternoon, I proposed that the factory should have a sense of advancement, and that planning and strategy should be successful. As a shopping mall, it should play a role in guiding several furniture manufacturers, including The guidance of the foreground, the guidance of the aspirations, and the guidance of the idols. Red Star Macalline will invest a large amount of money in Chengdu, and it is estimated that it will invest between 20 and 3 billion yuan within two years. [Moderator]: Red Star Macalline has been in Chengdu for 2 years. I heard that 4 stores are also in the process of selecting a site. In the city like Chengdu, there are 4 stores. What are the most important aspects of the Chengdu market? [Che Jianxin]: The relationship between merchants and consumers I think is a mutually reinforcing relationship. Consumers have cultivated businesses, and merchants are also guiding consumers. Although the Red Star Chengdu No. 1 store is small in size, it is still quite tasteful. The consumers in Chengdu are more fashionable and tasteful, and they most resonate with Red Star at this point. Today, I held a small S meeting. I used to do it only in Beijing. Chengdu is the second station. Chengdu is the most beautiful city in Beijing except Shanghai and Shanghai. It is the pearl of the west. Due to the high land price in Chengdu in the past two years, Red Star Macalline is slow to enter. In the next two years, we will invest a lot of money in Chengdu. It is estimated that the investment will be 20 to 3 billion in two years. The speed of opening a store is slow, or it is slow [Moderator]: How is the progress of the four stores of Red Star Macalline? [Che Jianxin]: Our location layout is pursuing the direction of urban development and priority development. Red Star already has a No. 1 shop in the southwest of Chengdu, which was established in 2007. The second store will attract investment after the Spring Festival, and the opening is expected to be eleven next year. The location of the 3 and 4 stores is under consideration and should be in the south and north of the city. The opening time of the 3 stores is expected to be in the first half of 2011, and the opening of the 4 stores will be in the second half of 2011. [Moderator]: The speed of opening a store is accelerating. [Car construction new]: Slow, I think it is still slow. Red Star’s understanding of a city may not be worse than that of the local planning director. [Moderator]: What is the flaw in the location of the Red Star Macalline? [Che Jianxin]: I don’t forget the strategy all the time. Red Star’s understanding of a city may not be worse than the local planning director. We ran more than 100 cities and discussed the direction of urban development and the direction of construction. Our experience in urban development site selection has been very rich. How to build cities, we know through analysis, and maybe even more than planning bureaus. It was previously foreseen that research strategy is our most important job. Most cities have commonalities, and our strategic experience can be copied to provide assistance for future site selection. The biggest success of Red Star lies in the grasp of timing, and we grab it fast. [Moderator]: If the country expands so much, it should have high requirements for the capital and strength of the company. What is the strong support that Red Star relies on for so many years of development? [Che Jianxin]: It should be said that the biggest success of Red Star lies in the grasp of timing. We grab fast. In 2003, Red Star went to Beijing. In Tianjin in 2004, when the princes of various places have not developed and grown, Red Star is very fast. Speed ​​has seized the national market. It will be difficult to develop a national brand now, and it will take several times more efforts than the past to catch up. In addition, Red Star's sales in each city are basically the first place, the performance is very good, Red Star is learned by many peers, from the first generation to the eighth generation of Red Star innovative design, we are creating this industry, but also guiding this Industry, we defeated the foreign supermarket, B&Q (view map) closed 20 stores this year, Red Star has built 20 stores, Red Star will always occupy a sustainable advantage in products, services, business philosophy. [Moderator]: Thank you, the car!