Red Star Macalline responds to "circle money door" Subversion game is only for innovation

Recently, Red Star Macalline (view map) is very wronged. The innovation of a cooperation model carried out at the end of 2009 is not understood by some business partners, although this innovation is actually inspired by other partners. It also conforms to the business logic of more rational and effective allocation of resources. As a company founded in 1986, Red Star Macalline has been innovating in business models for more than 20 years, and the mall has been upgraded to the eighth generation. By the end of 2009, Red Star Macalline already has 60 stores, covering the first-tier cities and achieving an annual turnover of more than 30 billion. Some home brands that have grown up with Red Star Macalline are looking for Red Star Macalline, hoping that the two sides will be able to establish a closer "bundled" or "embedded" partnership in order to grow together quickly. Just as Harvard Business School professor Christopher's two paths are proposed when studying "innovation issues": one is SustaininsInnovation, which provides higher quality to the market; the other is destructive innovation. The weak link of the industry enters, subverts the market structure, and then continuously upgrades its products and services, and climbs to the top of the industrial chain. The global economic crisis triggered by the Wall Street financial crisis at the end of 2008 made the market in 2009 ups and downs. Although Red Star Macalline is an undisputed industry leader in terms of scale, Red Star Macalline, which is committed to driving industry change, is considering: “How can we be both big and strong”, how can we innovate and constantly Upgrade the products and services of Red Star Macalline to promote the deeper industrial upgrading of China's home furnishing industry, and then have global competitiveness. Therefore, when partners come up with the direction of “bundling cooperation”, Red Star Macalline I feel that the idea has been opened. Those who eat crabs first will eventually encounter obstacles due to the crab shell. In an attempt to promote innovation in the cooperative model, the management of Red Star Macalline realized that not all tenants had the willingness to “bundle cooperation”, and even some tenants were misunderstood because they did not understand. Under the trade-off, Red Star Macalline immediately decided to stop the above innovations, and the water will come naturally. Since the opening of the first furniture franchise store in 1991, the gradual formation of a simple business concept has made Red Star Macalline very committed to "customer-oriented", and "customer-oriented" is the professor market in many business schools. The golden rule that hangs on your lips. Inside the Red Star Macalline, “customer” has two levels of meaning. First, “customer” refers to the end consumer who buys furniture and other products in the mall; secondly, “customer” refers to renting the Red Star Macalline store. A variety of home products sellers or brands. In the business philosophy of Red Star Macalline, "customer first" is to be able to fully serve the above two types of customers; and in the long run, end consumers are more important, only one retail market can continue The effective passenger flow, then the seller's business in it is the active head and live water. Continuously “customer-oriented” innovation or subversion of the old law is precisely the key to the success of Red Star Macalline in the past few years. In other words, if there is no continuous innovation, in the past 20 years, Red Star Macalline is likely to appear quietly like other companies in the home industry, silently disappearing. Subversive Survival So far, China's home furnishing industry has grown to a value of 650 billion, with an average annual growth of nearly 15%, of which our furniture manufacturers account for 70% of the world's manufacturing. Even so, there are only a handful of local furniture brands that are familiar, not to mention the creation of a global company that rivals IKEA (see map). Among them, taking Red Star Macalline as an example, as the largest local furniture circulation enterprise, Red Star Macalline can only account for about 3% of the market. The industry leader is still the case, let alone the industry's small and medium players, how to struggle hard to prevent being eliminated. In contrast, the home appliance industry, the current output value of the home appliance industry is about 60-700 billion, and there are strong well-known manufacturers brands such as Haier, Midea, TCL, etc., as well as strong circulation companies such as Suning and Gome. The latter two companies can account for 20% market share. This is also the reason why Best Buy and other international large-scale home appliance chain stores have entered China. In contrast, the urgency of the upgrade of the home industry can be seen. To break through the bottleneck, we need to do very much. The idea of ​​Professor Christopher or the most famous economist in Austria, Schumpeter, is to “destructively create or innovate”. In other words, it is necessary to subvert some An old business model that keeps pace with the times. First, upgrade the “market” to a modern, large-scale shopping mall that gives consumers a better experience. After the reform and opening up, the initial impressions of Chinese consumers on furniture were mostly “workshops that were temporarily set up by several carpenters”—the tools that were randomly placed and the wood chips that fluttered everywhere. With the development of the commodity circulation industry, we can In the supermarket, there are a small variety of small furniture. At the same time, there are various home shopping malls in various places. The variety is rich and the price is slightly lower. However, the service and experience cannot be discussed. At this stage, the function of the home store is mainly to go. the amount. At this time, in foreign countries, IKEA has become a global furniture manufacturer and seller. At the same time, B&Q (view map) and Home Depot (view map) have become large retail companies with powerful home products. Recognizing that consumers are maturing and having more diverse needs, some companies in the local home industry have begun to decentralize their own innovation. Home stores like Red Star Macalline and Home (view map) are starting to experiment with more international terminal design innovations. Undoubtedly, as the market continues to open up, local companies gradually understand the most advanced business ideas and models abroad; those who are interested are consciously introduced and localized, which is also the introduction of the US private equity fund in 2007 by Red Star Macalline. One of the reasons why the Ping Fund is a strategic investor. After Huaping entered Red Star Macalline, the local company started the creation of back-office systems such as IT and finance, which provided it with a more uniform and guaranteed after-sales service for consumers who later went to the store. Laid the foundation. Secondly, change the traditional ideas of production and sales, make full use of the data obtained from terminal sales, and develop fist products; even through deep analysis of consumer demand, create fashion and export new consumption views to consumers. After Apple produced the iPod and iPhone, which are popular all over the world, many avid consumers claimed to be Apple followers. Apple is in a world of boring binary computer industry with 0 and 1 as the basic structure. From this perspective, from the day of birth, the furniture industry naturally carries people's beautiful, romantic and colorful life. The trick is to be a creative industry that is born with creativity. Che Jianxin said in a nutshell: "Business is production creativity", it is the pursuit of this concept, although not a furniture brand manufacturer, Red Star Macalline has spent 200 million in 2008, not far away, please In 2006, the designer of the Aichi Expo Pavilion in Japan established the Future Home Experience Hall, an exhibition hall for the future of human habitation, in Shanghai’s Hongxing Meikailong Furniture Building No. 1. You can experience dining at the same table in different places. In the smart kitchen, you can always be a real-time recipe for a good woman... From the perspective of traditional business, Red Star Macalline is definitely making a loss-making investment. However, Che Jianxin believes that if this can inspire the partners who visited this tour, and it will have more creativity; if it can also let the consumers who come here to visit, it will have more yuan for the future home. Demand, then this investment is worth the money. So looking back, it is easier to understand, why the company founded by the carpenter and from Changzhou can continuously upgrade and innovate the eight-generation home shopping mall, and creatively modernize the modern business MALL model with the Chinese traditional shop tradition. A new business model combined. Finally, to change the traditional "fighting soldiers and brave" mode of warfare in the industry, it is necessary to form an industry chain to compete against the industrial chain. According to Professor Xiang Bing, Dean of Cheung Kong Graduate School of Business, it is “chain-to-chain competition” and “integration of global resources to globally fight the world”. The success of the Apple iPhone mentioned above is not in the ability of Jobs alone, nor on Apple's ability. When Apple designed the iPhone's design, it first needed a skilled and powerful manufacturer to develop the mold and produce it at a relatively low cost. Therefore, there is no such thing as Apple's OEM, Taiwan's Foxconn, iPone is very likely not to be born in 2007 at that market price. When hardware development is in place, Apple needs to attract enough software developers who are willing to develop a variety of small mobile applications and put them on Apple's online store for downloading applications. consumer. The last thing to do is to find a telecom operator that is willing to cooperate with them, and both parties are willing to share the iPhone telecom traffic fee. If the new business model is to form the competitiveness of the industrial chain against the industrial chain, the question is not whether a company is innovative, whether it is strong, whether it is willing to subvert the tradition, but the overall supporting upgrade capability of the industry. However, most companies in China's domestic home furnishing industry have long been accustomed to individual combat, and have not yet formed the competitiveness of a large-scale industrial cluster similar to Milan's Milanese fashion industry and China's Wenzhou footwear industry. In fact, China's home manufacturing capacity currently accounts for about 70% of global home manufacturing capacity, but like most industries in China, China's furniture manufacturing industry has been engaged in the OEM of foreign brands for a long time. The rate is not high. It is foreseeable that after the financial crisis, the real estate industry in Europe and the United States will enter a relatively long period of low, while home and real estate have a strong correlation, and the narrowing of the furniture export market means that most of China's home furnishing Manufacturers must achieve a more planned transformation from "Made in China" to "Created in China." If you can't create new rules of the game, broaden your horizons and change your mind, then in the next few years, companies in the Chinese home furnishing industry will still lack the right to speak in the mainstream market. In the home industry for 23 years, after several model innovations and company transformation, Red Star Macalline has a very sensitive market foresight ability. Today, Red Star Macalline advocates different companies in the industry chain, should Hold the group to warm up, hold the group to shine, and build a joint advantage through industry upgrades. In the future competition of global economic integration, it is not the anxiety of points and points, but the competition between face and face. Therefore, in 2009, the two major circulation giants, Red Star Macalline and Real Home, went from "competition" to "combination" and came together to appeal to "the elimination of vicious competition among home furnishing enterprises and the making of enterprises in a win-win way." Strong.” As a larger company in the industry, Red Star Macalline hopes that home stores, including companies, can become “incubators”. Through the deep cooperation of manufacturers, the exchange of experience and the sharing of resources, we will create more strong brands in the industry. Nowadays, it is already the development path of the top 100 brands, Chivas Regal and Marco Polo of the well-known brands in the industry, which proves the necessity, timeliness and importance of the existence of “incubator”. The changes in the thinking mode of the circulation giants such as Red Star Macalline and Real Home have touched some home furnishing manufacturers and brand owners. They have also begun to consider whether they can “strongly unite” and cooperate through strong brands and strong channels. To accelerate industry innovation to increase consumer spending on brand manufacturers and brand channels. When they found the Red Star Macalline to discuss the deep strategic partnership, the latter responded quickly, so there was an innovative trap that made the Red Star Macalline somewhat confused at the beginning of the article. Is the direction wrong, or the path is not right? If you can cooperate with the producers, grasp the consumer demand, and accelerate the product turnover rate, it will definitely improve the profit rate; if you are interested in innovators, you will not have more confidence to build the brand. , increase research and development? Only when most companies in the industry, get rid of "cost and emulation", and strive to become "revolution and subversive

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