Baianju Brand Enters White Home Appliances and Restless

Wei Zhe, president of B&Q China, believes: "China's commercial retail competition lacks creativity, serious homogeneity, and differentiation is the basis for survival and development." At the beginning of the new year, B&Q has become the third largest in the world and the largest retail store of decorative building materials in Europe has entered the white goods sales field for the first time. It can be said that Wei Zhe’s differentiated business thinking is a true embodiment.

If you don’t, it’s already amazing. The "U.S.-Soviet contending for hegemony" in the field of white goods is quite advancing into the "Three Kingdoms" era.

Of course, the restlessness of B&Q is not a whim but a preparation.

First, the normal profit of home appliance retailers is very low and has become an open secret in the industry. For this “chicken ribs”, food is odorless, but it is a pity to give up. As China's home appliance retailing industry still suffers from various shortcomings, the high-end brand and loyalty brand market are relatively lacking. This “chicken rib” still has “taste” and is considered to be the Wei Zhe who led the B&R China to run wildly. It is impossible to let This business opportunity that can solve the future sustainable development potential of the enterprise and the core competitiveness of the company is so easy to escape from its own side.

Second, B&Q's home appliance products are concentrated in the brand, and are purchased globally. They order directly from the manufacturer, canceling the intermediate links, and the purchase volume of a single brand is large, so they can get a lower ex-factory price than other home appliance stores. Some of Midea's products will be 20%-30% lower than other similar products in the market. The low price ranks among the top four “Miracles” in B&Q and is known as “a deadly weapon.” It can be seen that it is a real name.

Third, B & Q home appliances using complementary products, building materials, retail stores, consumer characteristics into the white goods sales area, and home appliance stores are different, home appliances sales are not B & Q's profit source of profit. Therefore, when necessary, B & Q can be sold with "zero profit", because hot-selling white goods can in turn promote sales of B&Q related building materials and household products.

The restless B&Q can hardly be said to have opened up a new path for commercial retail companies, but it may be a constant pain for many home appliance chain stores.

However, although B&Q has a strong offensive and has a lot of relative advantages, it is still young in the field of household appliances and will not bring substantial impact to Gome and Suning in the short term.

First of all, for B&Q, although building materials and household electrical appliances are complementary products, B&Q has always given consumers the impression that it is a building material brand. The cooperation with them is mainly for decorating companies and real estate developers. The service direction is to provide meticulous services to customers. Selection of materials, materials, and household appliances, mainly energy-saving, environmentally friendly and convenient. In this case, B&Q is a huge test—how to guide consumers to their own stores, enrich and enrich the content of B&Q's brands, and organically combine building materials and home appliances to give full play to their advantages. It is a problem that B&Q needs to solve urgently.

Secondly, many department stores and supermarket chains have been doing white-electricity sales before, but with the rapid development of professional home appliance chain companies such as Gome and Suning, these retail formats have gradually withdrawn from sales of white electricity. In the higher era, B&Q has to perfect a new logistics distribution system, an operation management system and an installation and after-sales service system that conforms to the home appliance retail industry. Obviously, these cannot be done overnight, and they need answers in long-term practice.
Although B&Q does not see any waves in the short term, there should be a sense of urgency in the chain appliance stores.

Currently, due to their immature mode of expansion and funding sources, Chinese home appliance chain companies rely mainly on earning the difference between selling and selling prices and gaining profits from manufacturers and suppliers, which has led to Gome's becoming a representative of “low-priced goods”. The degree of loyalty and loyalty is very low. Once a better brand home appliance chain, high quality service, and a new brand that can be approved by the supplier, it will undoubtedly be a heavy blow to Gome, and it will seriously divert customers from Gome.

From this point of view, the time has come for a chain appliance store to change course, and the shift from sales to service has become urgent. The improvement of service quality and the extension of service content have become increasingly urgent.

Today, all walks of life emphasizes intelligence, and services are no exception. Current business services also need to be transformed from smart services formed through past experience to smart services.

Smart services are designed to provide high-quality, unique service and service extensions to meet the various needs of consumers in all aspects, and enable consumers to recognize the image, competitiveness, and service level of service companies and become loyal to them. Consumers, in order to achieve the purpose of expanding sales and occupying the market, are specifically represented in two aspects.

On the one hand, the smart service has increased the demand for shopping guides. In the past, the service of the shopping guide was merely to sell the goods. Now it is required that the guides actually become consumers' consumer advisors. After integrating consumer information, they will be most suitable. Commodity or combination of products recommended to customers.

On the other hand, retailers should develop services that exceed the requirements of national regulations around customers, such as regular home repairs, off-site shopping, and nationwide distribution. The intelligent service upgrades the service level and service level, and it will form a good reputation among the customer groups, which will make the retailer get rid of the simple price war and use its unique service projects to win customers.

In addition to attacking cities, chain appliance stores should pay more attention to the improvement of the enterprise service system. Those who have to end up in the world have no service content terminals. What is the use of more?