Gu Jun, head of Liupanshui Southwest National Home Decoration Expo City Project
The home furnishing industry has been booming. People in the industry often worry about the unpredictable market environment in the industry. There are always many home furnishing companies that are unprepared for market changes, and gradually disappear from the industry. However, as a local home furnishing enterprise, Guizhou Southwest International Home Furnishing Expo City has been in the industry for more than ten years, and it still stands still. It is a miracle. With the curiosity and confusion of the industry, the reporter conducted an exclusive interview with Mr. Gu Jun, the person in charge of the Liupanshui Southwest International Home Furnishing Expo City Project.
Reporter: Hello, Gu. Ten years ago, Guizhou Southwest Home Furnishing Expo City was still a small supermarket of less than 2,000 square meters. Now it has developed into a large chain home store with hundreds of thousands of square meters. For a short period of ten years, is this counted? Is it a miracle?
Mr. Gu: People in the industry can be considered a miracle, but for the Southwest Home Expo City, it is a necessity. Ten years, for others, it may be very short-lived, but it is a long time for the southwestern home, because the southwestern home on this road is full of too many hardships and bumps, experienced too much, and faced too much. From the expansion of the brand to the upgrading of the brand structure, from the small store to the transformation of the scale chain store, etc., it has brought tremendous pressure to the Southwest Home City. However, just because of such pressure, Southwest Home has the power to innovate and change, and has a rich brand precipitation and accumulation. What is gratifying is that along the way, Southwest Home brought out a group of “nailsâ€, our merchants, where the Southwest Home went, they will follow, and they will not be able to go. There is a popular saying among merchants that “following the southwest, there must be banknotesâ€, I think this is the embodiment of Southwestern homes that have indeed created value for merchants. After ten years of brand accumulation, Southwest Home has a better understanding of the market demand of consumers, and consumers are also accustomed to the business model of Southwest Home. In fact, this is a harmonious supply and demand culture that is silently established between each other. All of this objectively shows that the development of Southwestern home is not a miracle but a necessity.
Reporter: Yes, the hard environment can really make a company grow up. I think the more important thing in this decade is the spirit of the southwesters not shrinking when they face difficulties. There is an old saying in China that it is necessary to fight iron. What kind of advantages does Southwest Home Expo City create for merchants?
Gu Zong: Southwest Home is a “three-win platform†for creating value for stores, dealers and consumers. The value of each other is interdependent and mutually influential. Liupanshui Southwest Home is a local home furnishing enterprise in Guizhou. It has a huge advantage over other stores. It is the only home chain store with independent property rights. It is not like other stores to rent others. This will directly determine the southwest home. The store rent is far lower than the average level of the industry. Naturally, this reduces the operating cost of the merchant. The competitive advantage of the merchant's product price in the homogeneous market is more obvious, which not only increases the purchasing power of the consumer. It also increased the sales profit of merchants and finally laid a solid foundation for the survival of Southwest Home. At the same time, we also gave strong support to merchants in various aspects such as brand promotion and marketing planning.
Reporter: Gu Zong, I recently learned from the industry that Liupanshui Southwest International Home Furnishing Expo City is very popular in the early stage. It is said that once the news of the investment is released, manufacturers and distributors will flock here. This is a rare case in the Guizhou industry market. See, can you give us an analysis of the reasons?
Valley total: Hahaha. . . This is indeed the case. Our Liupanshui store has been selling more than 70% from the investment before the Spring Festival. At the beginning of the investment, our old merchants in Guiyang, as well as manufacturers and merchants across the country, flocked to the front of the building. However, this is within our expectation. For a chain home store, the market prospects and the competitive advantages of the store itself are the “double-edged sword†to protect the profitability of dealers. Our projects, whether from government support or market recognition, are beyond the reach of other stores. On the following February 18th, the development of western furniture circulation industry sponsored by Hongqiao New District of Liupanshui, Guizhou Provincial Association and our stores. The Trend Forum will be held in Liupanshui Southwest Home Expo City, where hundreds of representatives from the government, industry associations, and industry professionals will participate. The Liupanshui project is also the only home chain store with independent property rights. For example, the cost of opening a store in other stores by our merchants is enough to open two stores in our store, which will undoubtedly make their future competitive costs fully better. Market competitive advantage and market competitiveness. In the past 10 years, our market has accumulated a wealth of market experience. This is something that other stores cannot copy and compare, and is a soft indicator to ensure the profitability of our dealers. At the same time, on the one hand, the merchants between our merchants have also produced a good “cluster effectâ€; on the other hand, our storefront has almost reached a difficult situation. From the above points, I believe that what you hear is not a rumor but a real thing.
Reporter: I think the Southwest Home Expo City is focused on the word "Expo". Can you always make a simple explanation for this word?
Mr. Gu: "Expo" means big and complete. After ten years of development, Southwest International Home Decoration Expo City has developed from a small-scale home store with a single structure to a large-scale integrated store of several hundred thousand square meters today, covering thousands of brands such as furniture, decoration and decoration materials. I think this is the best description and summary of the Expo.
Reporter: So, does our brand number represent our brand competitiveness?
Gu Zong: The globalization of the brand structure is a manifestation of the scale of the store. This is a trend of market development. The single-structured furniture terminal for a single consumer can not meet the market demand. If it does not make a structure according to the market reaction. Adjustments to comply with the development of the market, then the chances of being eliminated by the market will be great. The hypermarkets with rich products, complete categories and wide radiation will become the development trend of furniture terminals in the future. Southwestern home is in the development of the market trend, the globalization of the brand structure is only a weight to improve the value of the enterprise, the scale of the store will be able to give full play to the terminal function of the store. In order to protect the interests of manufacturers and distributors, the brands that are stationed in our stores are strictly selected by us. For those who do not meet the requirements of China Merchants, we will give red light because manufacturers, distributors and consumers need a guaranteed market.
Reporter: Mr. Gu said that here, I am eager to know that Southwest Home is in an industry where external power is constantly increasing. What will happen next?
Gu Zong: Seize the opportunity and accelerate regional expansion. This year is the first year of the 12th Five-Year Plan. It is also a crucial year for the adjustment of Guizhou's industrial structure. The macroeconomic policy will undoubtedly provide a huge development momentum for the home furnishing industry. The regional expansion of the store is the development trend of the industry and the economic society. The inevitable result of development. We can see that the well-known domestic home stores have accelerated the pace of expansion, which fully illustrates the urgency and inevitability of regional expansion. Following the Jinyang Southwest Home Expo City, our Liupanshui project will start on time in August this year. At the same time, according to our next development strategy, we will open chain stores in Zunyi, Duyun and Kaili. Southwest Home has been paying close attention to opportunities and accelerating the pace of regional expansion of stores.
After ten years of precipitation, it has established a Guizhou brand. I believe that the curiosity and confusion of people in the industry can be explained by an experience. I also believe that the investment in Liupanshui Southwest International Home Furnishing Expo City is also a matter of course.
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