HONG KONG, Aug 27, 2021 – (ACN Newswire) – Company method complies with nationwide policy, and drive an extensive upgrading in the second phase of “House Living”
GOME (493 HK) sped up the application of the 2nd phase of “House Living” strategy in the very first half of 2021, with concentrate on innovation retailing and digitalized empowerment. The Company put complete efforts in developing integrated online and offline operations under the approach of user-oriented, platform-based operation, technology innovation and closed-loop development. These initiatives were placed to construct GOME’s new retailing ecosystem and echo proactively to China’s strategic instructions of driving a velocity in the advancement of brand-new intake.
China has actually stepped up efforts to take on monopoly and incorrect competition considering that the start of the year, with a view of creating a fairer and much healthier organization environment and room for advancement of the industry. A number of policies for promoting usage and promoting domestic demand have actually been presented, thereby substantially reducing the impact of the COVID-19 pandemic on the retail industry. GOME has improved its retail service capabilities substantially by continually enhancing its dual-platform brand-new retail ecosystem with its leading edges in precision supply chain management, nationwide logistics network and expert services. During the Reporting Period, the Business’s income reached RMB26,040 million, up by 36.5%year-on-year (” YoY”). Consolidated gross earnings topped RMB3,711 million, up by 67.0%YoY. Consolidated gross profit margin rebounded solidly, moved up by 2.7 percentage points YoY to 14.3%. In view of the fairly low penetration rate and substantial development capacity in the consumer markets of the third tier and below cities in China, GOME proactively checked out the blue ocean chances of these markets with the technique of “prioritizing large area over small region, prioritizing counties over towns and leveraging counties for exploring towns”. Throughout the Reporting Period, the Group opened nearly 600 brand-new county stores and prepared a full year opening of 1,000 new stores. As of 30 June 2021, the Business ran a total of 3,895 offline shops, consisting of 2,556 county shops. On the other hand, capitalizing on the versatility of the social networking approach, employees of GOME stores acted as seed users to establish grid-based communities, and quickly expanded the membership scale. During the Reporting Period, GOME developed more than 180,000 brand-new online neighborhoods and commanded an overall of nearly 1 million online neighborhoods cumulatively. The cumulative number of online neighborhood members increased by 30%YoY. The total number of online and offline members reached 228 million. During the Reporting Duration, GOME’s “ENJOYABLE” APP online platform also achieved substantial development. In specific, the variety of acquiring users increased 10 times YoY. Total variety of items acquired and number of orders increased 4 times YoY. The number of active users increased almost 3 times YoY. Member redeemed rate was roughly 30%. Regular monthly typical variety of repurchase users increased about 10 times YoY. SKU surpassed 600,000, of which 90%was originated from non-electrical appliances, showing the increasing diversity of the Group’s item offerings.
Leveraged supply chain and channel advantages to minimize expenses, boost effectiveness and increase profitability
On supply chain development, GOME incorporated the four components of home entertainment, innovation, low price and service to construct a three-in-one supply chain platform of “merchants invitation self-operation customization” and develop a fragile supply chain system based on the principle of smart personalization and quality items. The Company continued to reinforce the supply chain of home appliances, and enhance the procurement, operation and service processes to accomplish a high-efficient and low-priced operation model. GOME also signed up with hands with online and offline third-party vendors to produce a professional house device supply chain with varied products and price advantages. The Business cooperated with a variety of strategic partners to continually expand its market share by taking advantage of ingenious marketing tools and the changing nature of the online and offline sales circumstances.
Concerning channel operation, GOME adopted the “self-operation third-party company” design to realize cross-channel output through its own online and offline platforms, third-party platforms (JD, PDD, TikTok, etc.) and third-party agent operators. GOME also actively deepened its cooperation with industry-leading representative operators to realize thorough integration and empowerment in the supply chain, change representative operators into distributors and forge an ingenious community of representative operations.
Efficient utilization of home entertainment tools to promote consumer market vigor
With the pattern of brand-new retail reforms, GOME regarded entertainment as one of the essential development pillars and completely deepened the entertainment marketing design to drive consumer need. The Company strengthened the interaction in between the platform and users in home entertainment shopping through diversified means such as live streaming, talent show, limited-time offers, short video, matches and games. In particular, the timeless combination of special advertising amusing activities enabled users to delight in quality product or services at low costs in a fun way, consequently offering pleasurable sales and shopping experience in addition to spreading out pleasure. In addition, GOME likewise cooperated with platform stars to conduct livestreaming marketing on popular short video platforms in China such as TikTok, Tmall and Kuaishou. In the very first half of 2021, GOME finished 75,000 livestreaming reveals, reaching over 38 million individuals.
To support the policy of “promoting sales and market advancement with unique celebrations” proposed by the Ministry of Commerce, GOME held the Euro Cup “Football & FUN” activity throughout the Reporting Duration. This event showcased the crossover in between sports and retail industry. It helped with conversion through livestreaming of sales promo matches. Football fans might share the “ENJOYABLE” APP to buddies by material sharing or word of mouth, consequently broadening the new customer base and generating brand-new traffic. Subsequently, on 24 and 25 July 2021, GOME co-hosted the “2021 Super Music Festival” with iQiyi. As an extension of the “ENJOYABLE ZAO City” project, in addition to an extravaganza star lineup, the festival likewise complied with brand sponsors to set up food stalls, style area, interactive sessions and other enjoyable and trendy functions to improve customer experience.
Thorough integration of online and offline operations to develop a central company development ecosystem
With “designated website for each shop”, GOME has actually helped with the interaction in between offline stores and online “ENJOYABLE” APP platform, and offered multi-model, cross-channel, thorough and worth for cash going shopping experience to community household consumers within 1-8 km radius through output of “designs abilities”. For offline operation, GOME’s grid-based network of offline stores includes 5 types of shops: city stores, commercial complex shops, local stores, neighborhood shops and community stations. They provide “Home Living” services for neighborhood home customers within 1-8 km radius. As of 30 June 2021, the total screen location of offline stores reached 5.11 million square meters. In addition, GOME planned to proactively transform its offline outlets to “one shop with multiple functions” directed by the four concepts of “reuse of area, reuse based upon time slots, devices sharing and service sharing” so regarding enhance the usage rate of space resources, move sharing economy in regards to space utilization, and create an urban “social living room”.
Moreover, to support the Guidance on Building And Construction of Urban 15- Minute Convenient Living Circle provided by the Ministry of Commerce, GOME promoted proactively the joint advancement of various organization designs in the practical living circle, and constructed a detailed commercial service system with in-depth combination of online and offline activities and shared assistance between virtual and physical operations. The Business prepared to integrate fully merchant resources, and offer access to online functions such as shopping, catering, leisure, culture, elderly care and house cleaning through small programs, APPs and extensive service info platforms. These would offer locals with services such as search for nearby products and services, details questions, bill payment, geographical navigation and online voucher issuance and offline redemption, linking clever neighborhoods and intelligent house cleaning, and incorporating industrial and social functions, thus creating a central organization advancement ecosystem.
Continued to improve logistics service abilities to promote rural revitalization and facilitate development of low-tier markets
In the last few years, GOME has actually continued to improve its logistics service abilities and increased its efforts in rural market growth to promote consumption updating in backwoods. During the Reporting Period, the business’s home shipment and setup, house repairing, house cleaning, housekeeping and home restoration services covered more than 2,000 regions, taking advantage of the prospective demand in rural areas.
GOME is committed to creating high-standard service experience by concentrating on 3 elements of on-time delivery, quick shipment and quality experience. In addition, as a provider of high-end on-time item for big items warehousing and delivery, GOME supplies clients with personalized and on-time delivery value-added services. In the first half of 2021, GOME’s on-time shipment rate reached 98%. GOME also has actually stepped efforts proactively in creating the Japanese-inspired ultra-detailed service circumstance, and provided users with distinguished service experience for large products through standardized, top quality, and in-depth services with a consumer complete satisfaction rate of 96%.
Moreover, leveraging its leading capabilities of logistics services, GOME has offered supply chain options for various markets. In the first half of 2021, GOME Anxun Logistics developed external clients from numerous markets, and complied with Duoduo Vegetable, Meituan Option, Chengxin Choice, Ningbo Group Purchase and Supai to carry out community group purchase organization. It likewise cooperated with ByteDance and Meituan to perform moving company, cooperated with Shangpin House, Wayes, Minhua, Original Components and other merchants to establish home device and furniture delivery businesses. The Company strengthened actively cooperation with Xiaomi Youpin, Netease Choice and other e-commerce platforms.
Promoting fair competition to establish position as a selling company with the philosophy of joint contribution and shared benefits
GOME has actually been promoting reasonable competition in a quote to assist the retailing market to grow in the direction of fairer and healthier development. The Business is dedicated to develop an open platform for sharing and co-development geared to assisting providers, vendors and customers for executing extremely efficient interactions. GOME has actually leveraged a decentralized selling infrastructure coupled with its selling abilities as driving force to empower partners of the retailing market in incorporating more retailing resources and constructing an extremely efficient ecosystem for the selling industry. This technique would offer most consumers with a low carbon, environmental-friendly, extremely effective for all and data safe environment for sustainable intake. GOME has signed a cooperation arrangement with state-owned Shenzhen Investment Holding Capital Co. Ltd and Shenzhen Eternal Asia Supply Chain Business Ltd (002183 SZ) in July2021 Under this agreement, these three celebrations will cooperate in locations of capital, supply chain, channel and industry chain to establish a flat, sharing and decentralized tactical platform for huge consumption. Furthermore, they will collaborate complementary support on resources. These market leaders will sign up with hands in honing complete chain and totally incorporated service abilities all the way from production, brand incubation, brand name operation, channel management, marketing management and end-users sales.
GOME’s management concludes: “In the first half of 2021, although the pandemic has not yet decreased, a variety of policies for motivating consumption were introduced successively. They promoted the healing of domestic consumption, paved way to successfully an expected full financial recovery and injected a booster for the retail market. At the very same time, China has actually been promoting vigorously the accelerated development of brand-new usage in the last few years. Such efforts supported conventional companies to accelerate digitalization and intelligent change, and promoted larger and much deeper combination of online and offline operations. We are very pleased that the existing national strategic layout and policy direction are extremely in line with the advancement technique of GOME in recent years. In the future, GOME will continue to persist in executing nationwide methods, help with domestic need expansion and consumer updating in China. We promote reasonable competition and healthy advancement of the market, and make constant enhancement to satisfy the consumer demand of “Home Living” services and benefit the general public. The Company makes every effort to become a new technology integrated retailing company to serve the requirements of the country, the market and the general public. GOME will continue to maintain the corporate objective of “Promote efficiency through technology, build much better life through wisdom”, and continue to establish its “House Living” organization to become the leading business in appropriate sectors and develop greater value for the neighborhood and investors.
Topic: Press release summary
Sectors: Retail & eCommerce
From the Asia Corporate News Network
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