HONG KONG, Aug 27, 2021 – (ACN Newswire) – Organization method complies with nationwide policy, and drive a thorough updating in the 2nd stage of “House Living”
GOME (493 HK) sped up the execution of the 2nd stage of “House Living” technique in the very first half of 2021, with concentrate on innovation selling and digitalized empowerment. The Business put complete efforts in producing integrated online and offline operations under the approach of user-oriented, platform-based operation, technology development and closed-loop advancement. These efforts were placed to build GOME’s brand-new selling community and echo proactively to China’s tactical instructions of driving a velocity in the advancement of brand-new intake.
China has actually stepped up efforts to take on monopoly and inappropriate competitors considering that the start of the year, with a view of developing a fairer and much healthier company environment and space for advancement of the market. A number of policies for promoting usage and promoting domestic need have actually been presented, consequently considerably reducing the effect of the COVID-19 pandemic on the retail market. GOME has actually enhanced its retail service abilities considerably by constantly enhancing its dual-platform brand-new retail environment with its leading edges in accuracy supply chain management, across the country logistics network and expert services. Throughout the Reporting Duration, the Business’s earnings reached RMB26,040 million, up by 36.5%year-on-year (” YoY”). Consolidated gross revenue topped RMB3,711 million, up by 67.0%YoY. Consolidated gross revenue margin rebounded sturdily, went up by 2.7 portion points YoY to 14.3%. In view of the fairly low penetration rate and big development capacity in the customer markets of the 3rd tier and listed below cities in China, GOME proactively checked out the blue ocean chances of these markets with the technique of “focusing on big area over little area, focusing on counties over towns and leveraging counties for checking out towns”. Throughout the Reporting Duration, the Group opened almost 600 brand-new county shops and prepared a complete year opening of 1,000 brand-new shops. Since 30 June 2021, the Business ran an overall of 3,895 offline shops, consisting of 2,556 county shops. Capitalizing on the versatility of the social networking technique, workers of GOME shops acted as seed users to develop grid-based neighborhoods, and quickly broadened the subscription scale. Throughout the Reporting Duration, GOME developed more than 180,000 brand-new online neighborhoods and commanded an overall of almost 1 million online neighborhoods cumulatively. The cumulative variety of online neighborhood members increased by 30%YoY. The overall variety of online and offline members reached 228 million. Throughout the Reporting Duration, GOME’s “ENJOYABLE” APP online platform likewise accomplished substantial development. In specific, the variety of acquiring users increased 10 times YoY. Overall variety of items bought and variety of orders increased 4 times YoY. The variety of active users increased almost 3 times YoY. Member redeemed rate was around 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 devices, showing the increasing variety of the Group’s item offerings.
Leveraged supply chain and channel benefits to decrease expenses, boost performance and boost success
On supply chain advancement, GOME incorporated the 4 aspects of home entertainment, innovation, low rate and service to build a three-in-one supply chain platform of “merchants invite self-operation personalization” and develop a fragile supply chain system based upon the concept of smart modification and quality items. The Business continued to enhance the supply chain of house devices, and enhance the procurement, operation and service procedures to accomplish a high-efficient and inexpensive operation design. GOME likewise signed up with hands with online and offline third-party suppliers to develop an expert house device supply chain with varied items and cost benefits. The Business complied with a variety of tactical partners to continually broaden its market share by benefiting from ingenious marketing tools and the altering nature of the online and offline sales circumstances.
Relating to channel operation, GOME embraced the “self-operation third-party firm” design to understand cross-channel output through its own online and offline platforms, third-party platforms (JD, PDD, TikTok, and so on) and third-party representative operators. GOME likewise actively deepened its cooperation with industry-leading representative operators to understand thorough combination and empowerment in the supply chain, change representative operators into suppliers and create an ingenious community of representative operations.
Effective usage of home entertainment tools to promote customer market vigor
With the pattern of brand-new retail reforms, GOME concerned home entertainment as one of the essential advancement pillars and completely deepened the home entertainment marketing design to drive customer need. The Business enhanced the interaction in between the platform and users in home entertainment shopping through varied methods such as live streaming, skill program, limited-time deals, brief video, matches and video games. In specific, the timeless mix of unique marketing amusing activities permitted users to take pleasure in quality product or services at low costs in an enjoyable method, thus offering pleasurable sales and shopping experience along with spreading out delight. In addition, GOME likewise worked together with platform stars to carry out livestreaming marketing on popular brief 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 & ENJOYABLE” activity throughout the Reporting Duration. This occasion showcased the crossover in between sports and retail market. It assisted in conversion through livestreaming of sales promo matches. Football fans might share the “ENJOYABLE” APP to buddies by material sharing or word of mouth, thus broadening the brand-new client base and generating brand-new traffic. Consequently, on 24 and 25 July 2021, GOME co-hosted the “2021 Super Music Celebration” with iQiyi. As an extension of the “ENJOYABLE ZAO City” project, in addition to an extravaganza star lineup, the celebration likewise worked together with brand name sponsors to establish food stalls, style area, interactive sessions and other enjoyable and stylish functions to boost consumer experience.
Extensive combination of online and offline operations to produce a central company advancement community
With “designated website for each shop”, GOME has actually helped with the interaction in between offline shops and online “ENJOYABLE” APP platform, and supplied multi-model, cross-channel, extensive and worth for cash going shopping experience to neighborhood family clients within 1-8 km radius through output of “designs abilities”. For offline operation, GOME’s grid-based network of offline shops includes 5 kinds of shops: city shops, business complex shops, local shops, neighborhood shops and neighborhood stations. They supply “House Living” options for neighborhood family consumers within 1-8 km radius. Since 30 June 2021, the overall screen location of offline shops reached 5.11 million square meters. In addition, GOME prepared to proactively change its offline outlets to “one shop with several functions” assisted by the 4 concepts of “reuse of area, reuse based upon time slots, devices sharing and service sharing” so regarding enhance the usage rate of area resources, move sharing economy in regards to area usage, and develop a metropolitan “social living-room”.
Additionally, to support the Assistance on Building And Construction of Urban 15- Minute Convenient Living Circle released by the Ministry of Commerce, GOME promoted proactively the joint advancement of various service designs in the practical living circle, and constructed an extensive industrial service system with extensive combination of online and offline activities and shared assistance in between virtual and physical operations. The Business prepared to incorporate completely merchant resources, and deal access to online functions such as shopping, catering, leisure, culture, senior care and house cleaning through little programs, APPs and detailed service details platforms. These would supply locals with services such as look for neighboring products and services, details questions, expense payment, geographical navigation and online voucher issuance and offline redemption, linking clever neighborhoods and smart house cleaning, and incorporating industrial and social functions, thus producing a central company advancement community.
Continued to enhance logistics service abilities to promote rural revitalization and assist in advancement of low-tier markets
In the last few years, GOME has actually continued to enhance its logistics service abilities and increased its efforts in rural market growth to promote intake updating in backwoods. Throughout the Reporting Duration, the business’s house shipment and setup, house fixing, house cleansing, housekeeping and house restoration services covered more than 2,000 areas, taking advantage of the prospective need in backwoods.
GOME is devoted to developing high-standard service experience by concentrating on 3 elements of on-time shipment, fast shipment and quality experience. In addition, as a company of high-end on-time item for big products warehousing and shipment, GOME offers clients with tailored and on-time shipment value-added services. In the very first half of 2021, GOME’s on-time shipment rate reached 98%. GOME likewise has actually stepped efforts proactively in producing the Japanese-inspired ultra-detailed service situation, and supplied users with separated service experience for big products through standardized, top quality, and comprehensive services with a client complete satisfaction rate of 96%.
Furthermore, leveraging its leading abilities of logistics services, GOME has actually offered supply chain services for various markets. In the very first half of 2021, GOME Anxun Logistics established external consumers from different markets, and complied with Duoduo Veggie, Meituan Option, Chengxin Option, Ningbo Group Purchase and Supai to perform neighborhood group purchase service. It likewise worked together with ByteDance and Meituan to perform moving organization, complied with Shangpin House, Wayes, Minhua, Original Components and other merchants to establish house device and furnishings shipment services. The Business enhanced actively cooperation with Xiaomi Youpin, Netease Option and other e-commerce platforms.
Promoting reasonable competitors to develop position as a selling provider with the approach of joint contribution and shared advantages
GOME has actually been promoting reasonable competitors in a quote to assist the selling market to grow in the instructions of fairer and much healthier advancement. The Business is devoted to produce an open platform for sharing and co-development tailored to helping providers, suppliers and clients for performing extremely effective interactions. GOME has actually leveraged a decentralized selling facilities combined with its selling abilities as driving force to empower partners of the selling market in incorporating more selling resources and building an extremely effective community for the selling market. This technique would supply most customers with a low carbon, environmental-friendly, extremely effective for all and information safe environment for sustainable usage. GOME has actually signed a cooperation arrangement with state-owned Shenzhen Financial investment Holding Capital Co. Ltd and Shenzhen Eternal Asia Supply Chain Business Ltd (002183 SZ) in July2021 Under this contract, these 3 celebrations will comply in locations of capital, supply chain, channel and market chain to develop a flat, sharing and decentralized tactical platform for huge intake. They will collaborate complementary assistance on resources. These market leaders will sign up with hands in honing total chain and totally incorporated service abilities all the method from production, brand name incubation, brand name operation, channel management, marketing management and end-users sales.
GOME’s management concludes: “In the very first half of 2021, although the pandemic has actually not yet diminished, a variety of policies for motivating intake were presented successively. They promoted the healing of domestic intake, paved method to efficiently an anticipated complete financial healing and injected a booster for the retail market. At the exact same time, China has actually been promoting strongly the sped up advancement of brand-new intake over the last few years. Such efforts supported conventional companies to speed up digitalization and smart improvement, and promoted broader and much deeper combination of online and offline operations. We are extremely delighted that the existing nationwide tactical design and policy instructions are extremely in line with the advancement method of GOME in the last few years. In the future, GOME will continue to continue carrying out nationwide techniques, help with domestic need growth and customer updating in China. We promote reasonable competitors and healthy advancement of the market, and make constant enhancement to fulfill the customer need of “House Living” services and benefit the public. The Business aims to end up being a brand-new innovation incorporated selling company to serve the requirements of the nation, the market and the general public. GOME will continue to maintain the business objective of “Promote effectiveness through innovation, construct much better life through knowledge”, and continue to establish its “House Living” company to end up being the leading business in appropriate sectors and develop higher worth for the neighborhood and investors.
Subject: News release summary
Sectors: Retail & eCommerce
From the Asia Corporate News Network
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