Photo of the event first
Nearly one hundred building materials merchants of Red Star Macalline went out of business, passively confronting rent increases
2009-12-3 22:20
Red Star Macalline has many "merchant door" incidents nationwide
2009-12-3 22:20
Nearly one hundred merchants blocked the Red Star Macalline, and the door was blocked
2009-12-3 22:20
The card door is very "blocked", Red Star reappears to be a "gambling", and all the merchants are determined to block again
2009-12-3 22:20
Seventy percent of merchants lost money, was the traffic jam at the gate of the gate, and Red Star skyrocketed rents, and the merchants called Red Star a "black heart"
2009-12-3 22:20
Nanjing: Nearly 80% of merchants lost money, merchants went out of business, and confrontational actions continued
A business was closed in Nanjing on December 1, 2009. Nanjing Red Star Macalline was located on Ningli Road, Kazimen. The leasing business began at the end of last year, but then in May this year due to the needs of municipal construction, the construction of the fence of Ningli Road at the entrance The traffic is extremely inconvenient, the congestion situation is serious, and the market passenger flow is severely affected. It is understood that this situation will continue at least until the middle of next year. The vast majority of businesses have been in a state of loss after nearly a year of painstaking operation. It is difficult to maintain the voluntary exit. Recently, the market management suddenly issued a notice that after the contract expires this year, the rental price of the renewal will increase significantly, the highest increase has reached 62%, and the price per square meter is as high as about 210, which caused a large number of owners Many merchants have repeatedly communicated with Red Star repeatedly.However, Red Star ignored the owners' demands and still implemented the rent adjustment policy, even unilaterally issued a cancellation notice to some of the merchants who came out to reflect the problem. Under the circumstances of frustration, the majority of owners filed a collective shutdown to protest to the market.After the incident, the relevant departments of the Nanjing government also Hurry to the scene for disposal in time, and the matter is currently in the process of coordination.
Shanghai: Seventy percent of merchants suffer losses
Recently, a Shanghai media reported that 70% of Red Star Macalline merchants faced losses. According to reporters, in Shanghai Red Star Macalline, the rent of some stalls has reached more than 200 yuan per square meter per month. Product distributors often complain that the rent is too high, and they can only spread the rent into the goods through price increases to make them The price of goods is becoming increasingly uncompetitive. Some merchants calculated an account for the reporter. With a store size of 200 square meters, according to the current rental status of Red Star Macalline, the merchant must have a monthly sales of more than 250,000 and a gross profit of 35% to be basically flat without loss. "20% rent, 10% transportation, distribution, installation fees, 5% staff salaries, commission fees have constituted 35% of gross profit, excluding taxes, finance, management and other expenses, under the current market conditions, It is actually not easy to achieve this sales. Sometimes in order to achieve sales, you can only cut profits and sell them at low prices, but even this is the same loss. "
It is understood that there are already merchants requesting the Shanghai Red Star Macalline shopping mall management department to reduce rents or withdraw from the market.
Shenzhen: Furniture Association, manufacturers join forces with Red Star Macalline to negotiate rent reduction
Not only in Shanghai, Red Star Macalline and Shenzhen Century Center cooperated with Century Center? Red Star Macalline Global Home Living Plaza project also encountered the same problem. It is understood that the rent of Century Center Building Materials Home Plaza originally was 90 yuan per square meter per month, but after working with Red Star Macalline, the rent rose to 160 yuan per square meter per month, nearly doubling the increase, which made many dealers Businessmen and manufacturers are overwhelmed.
Although some distributors choose to evacuate the store from Red Star, most manufacturers who have long-term cooperation with Red Star Macalline choose to be forced to accept high rents. In this regard, some industry insiders said helplessly that Red Star currently has more than 40 stores in the country, which is huge. If it is withdrawn due to excessive rents, it may affect the entry of other cities, so it can only be forced to accept high rent But in the long run, I am afraid that there will be an embarrassing situation where the Red Star Macalline stores are all directly operated by manufacturers, and there is no dealer.
Shunde: Handa joins hands with Red Star to show no "harmonious" voice
On November 10th, Haoda Furniture and Red Star Macalline held an investment briefing in Foshan, and it was officially announced that Red Star Macalline and Haoda Furniture jointly established the "Red Star Macalline Haoda Global Home Center" in Shunde, Foshan.
But at the same time, some unharmonious voices have been uploaded on the Internet-since October, tenants of Haoda Furniture Center have complained on the Internet. Although it is not yet possible to confirm the authenticity of the posts, these posts are obviously not in harmony with the atmosphere of the press conference held by Red Star Gouda.
Is Red Star Macalline's rapid expansion a blessing or a curse?
Although Red Star Macalline has set up stores and expanded rapidly at certain points across the country, problems continue to arise. According to reporters, because of the increase in rents, some brand merchants began to refuse to enter Red Star and set up their own brand-owned stores nationwide; more insiders revealed that Red Star Macalline Shanghai ’s 180,000 square meters of global home living square shops entered Dismal, the vacancy rate is close to 20%.
A few days ago, there were media reports that the industry's rumored stake in Red Star Macalline Home Furnishing Chain Group and the fund of Warburg Pincus, which acquired a 20% stake in Red Star Macalline, planned to inject $ 200 million in Red Star Macalline. So far, it has not been fully put in place, which makes people wonder whether Red Star Macalline's capital chain is tight, and it also doubts whether its rapid expansion plan in the country's cloth stores can be realized.
Difficulties in rent increase: Should the store face tenant confrontation or a win-win situation?
Red Star Macalline encountered the difficulty of rent increase during the expansion process. The store and tenant should have been the relationship between fish and water, which was a community of interests. However, with the step-by-step expansion of the home store, "the store is a big one. The situation of "tenant tense negative confrontation" has happened from time to time. Why are the two parties with the same root, but there are frequent contradictions. Is this the tenant's "overbearing" or the store's "heartlessness"? How should the relationship between stores and tenants be eased? Many stores began to actively seek "relief." According to the focus network, Yuexing Group has announced that it has spent 180 million to launch the "Xingshi" operation, launching five major initiatives such as injecting capital into difficult factories and carrying out various forms of rewards to consumers; in the future, homes will be the first to publicly launch "one collection and one release" rental discount In the plan, merchants can enjoy free rent again in the first quarter of next year, in order to "winter" together with the majority of merchants.
A few days ago, Ouyada Home Furnishing announced the implementation of the "Warm Winter Plan", from December this year to April next year, lowering the rents of merchants in different degrees, while increasing advertising and promotion efforts. Xu Liangxi, chairman of Ouyada, said that the store is closely linked to the dealer. If the dealer closes the door at a loss, the store will also face tremendous pressure. Therefore, it has decided to sacrifice part of the rental income of the store and work together with the dealer.
Although the industry is not optimistic about the home market next year, the positive actions of many stores have allowed furniture manufacturers to see the industry's hope. Regardless of whether it is a home furnishing store or a brand manufacturer, under the crisis, after all, it is a "life on the line", cooperation and development, and win-win benefits should become the general trend.
The expansion of the store leads to the "follow-up" of brand merchants. They follow the store and keep opening new stores, hoping to take the lead. On the one hand, it is desperately expanding, while on the other hand, sales are declining. At present, the average profit margin of the entire furniture industry is only about 3%. If you are not careful, the merchants will lose money. At the same time, the rapid expansion of home furnishing stores has also brought many problems to itself. At present, Red Star Macalline frequently changes coaches, and the internal adjustment of a wide range of job transfers has also caused the industry to have many conjectures about its internal management issues.
Low-cost marketing as a collective behavior
Similar positioning, high overlap of investment brands, promotion methods, and promotional activities are the same. What special attraction can such a furniture store have for consumers? Red Star Macalline encounters "merchant door". In a sluggish market situation, merchants market to the store Requirements are higher. Red Star Macalline's large-scale profit promotion for a long time has caused dissatisfaction with the merchants who entered it. An anonymity merchant said that low-cost marketing makes it difficult for furniture brands to survive, and at the same time, too low prices also allow consumers to Integrity raises doubts — "Is furniture so profitable?" "Blindly expanding, wantonly bargaining, and vicious competition. If it hits the market in this way, the lifespan is definitely short-lived."
For low-cost marketing, the industry generally believes that it is not a "healthy move." "This is often the case in many industries in China. This industry has not waited until it matures and has entered into fierce competition. This low-level, high-intensity competition is called incomplete market economy in management terms. In such cases Next, this industry is always at a relatively low level of competition. "
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