Che Jianxin became the "king of home improvement" in China at the age of forty-eight. Its Red Star Macalline - "Mei Kai Long" represents a high degree of comfort - is China's largest furniture chain shopping mall, accounting for more than one-third of the country's large furniture shopping mall sales. In first-tier cities such as Beijing and Shanghai, the Red Star Macalline occupies a huge area, in sharp contrast to the high-density built environment of these cities. These malls successfully cater to the needs of customers, so that customers feel that they are buying "consultations" and "collections." As of the middle of this year, Red Star Macalline has 163 shopping malls, distributed in more than 120 cities in China; 51 of them are self-operated and the rest are managed.
Hao Xiubao, general manager of Datong Haoda, a business with Red Star Macalline, said, “In the past, home improvement shopping malls were small and chaotic. I have never seen a shopping mall of the size of Red Star Macalline.†Red Star Macalline After landing in the capital market this year and successfully listed in Hong Kong, Che Jianxin jumped to 56th place on the Forbes China Rich List with an asset of about 2.9 billion U.S. dollars.
Although the Chinese economy has shown signs of slowing down recently, the world's largest emerging economies are more likely to be in the gradual emergence of the middle class, who have produced various forms of consumption. The speculative atmosphere in the real estate market has cooled down, which means more real-world users. This group has a rigid demand for home improvement products, which is extremely beneficial to the Red Star Macalline, which operates a home improvement store. Red Star Macalline’s profit for the first half of this year rose 31% year-on-year to US$188 million; revenue increased 17% to US$674 million. The Chinese national equipment market is expected to grow by 10% year-on-year. Red Star Macalline's shopping malls are estimated to be mostly managed stores, which is based on the management model of the management can effectively avoid business risks.
This is the new cautious side of the car construction: diversification of risk, as he did in 1996, he chose to bring other sellers into the store, which also departed from the original collective enterprise. This strategy has evolved into a venue for other furniture retailers to operate, or to operate a similar property – Red Star Macalline does not currently have its own production line.
However, the expansion of business in recent years has pushed up the equity ratio of Chejian's new debt, which has risen from around 20% to nearly 30%, and has dropped to 21.6% after listing in Hong Kong.
"In the near future, demand for the brand will be diversified." Adams Kexin Chairman Hu Weidong said. Si Ke Xin is a furniture manufacturer that operates 300 stores and has strong new product development capabilities. Its products are sold in 130 Red Star Macalline Malls. They also often use monthly promotions to attract consumers to buy.
In an interview with Shanghai, where the company's headquarters is located, Che Jianxin talked with great interest about the fruits of the 11th holiday: sales rose 15%, and nearly 2 million people visited the Red Star Macalline Mall during the long vacation. Three times as many visitors to the Forbidden City, China's top tourist attraction. He stressed: "Our shopping mall is full of people!"
In order to attract more customers, Che Jianxin launched an offensive throughout China. What he is looking for is an expanding city and an influential partner in the local area, such as Zhengzhou City, the capital of Henan Province, a densely populated province. Its partner is Derun Real Estate. The city’s population is expanding tens of thousands every month. Derun and Red Star built a new project in the southern part of the city near the new airport, which is booming. The local government sold the land to them, hoping to use the influence of Red Star Macalline to attract other businesses to enter, thus driving the business in the region.
Chinese furniture is the world of Chinese companies, because the cost of overseas business furniture is too high, so consumers in mainland China prefer domestic brands. IKEA has 18 stores in China, focusing on the low-cost, do-it-yourself furniture market, while Red Star Macalline is targeting higher-end markets. Red Star Macalline has used star celebrities in recent years to bring passengers to the mall. There are two new spokespersons this year: Angelababy and Gao Yuanyuan. Angelababy is 26 years old and is ranked in the 2015 Forbes China Celebrity List. Gao Yuanyuan used to be the spokesperson of Olay.
Che Jianxin strictly controls the quality, which partially offsets the impact of the Internet on Red Star Macalline. In the development of the Internet and mobile, China has taken the lead in the world, and the Internet has already hit many physical stores. Red Star is implementing a strategy of online and offline integration, and the effect is not yet obvious. Che Jianxin does not believe that the Internet will have a huge impact on its furniture retail industry in recent years.
At the same time, China's asset prices are lower, and even in the consumer industry, physical stores may be further integrated. In the face of this situation, Tang Zhengmao, vice president of Red Star Macalline, said that he would keep an eye on the environment as always. China's GDP slowdown will certainly become the resistance of many physical stores, but the business model of Red Star Macalline is different from the traditional traditional physical stores, so it may not affect Red Star Macalline.
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