HONG KONG, Aug 27, 2021 – (ACN Newswire) – Industry strategy conforms to national policy, and power an in-depth upgrading in the 2nd half of “Home Living”
GOME (493.HK) accelerated the implementation of the 2nd half of “Home Living” strategy in the first half of of 2021, with focal point on technology retailing and digitalized empowerment. The Firm save aside elephantine efforts in rising integrated online and offline operations underneath the philosophy of user-oriented, platform-basically basically basically based operation, technology innovation and closed-loop style. These initiatives were positioned to form GOME’s soundless retailing ecosystem and echo proactively to China’s strategic direction of driving an acceleration in the come of soundless consumption.
China has stepped up efforts to kind out monopoly and irascible competition since the starting keep of the year, with a ogle of rising a fairer and more fit alternate ambiance and room for style of the alternate. Meanwhile, a series of policies for promoting consumption and stimulating home request of were presented, thereby greatly assuaging the impact of the COVID-19 pandemic on the retail alternate. GOME has improved its retail provider capabilities substantially by consistently optimizing its dual-platform soundless retail ecosystem with its main edges in precision supply chain administration, nationwide logistics community and expert products and providers. In some unspecified time in the future of the Reporting Length, the Firm’s revenue reached RMB26,040 million, up by 36.5% year-on-year (“YoY”). Consolidated wicked revenue topped RMB3,711 million, up by 67.0% YoY. Consolidated wicked revenue margin rebounded solidly, moved up by 2.7 percentage aspects YoY to 14.3%. In ogle of the slightly low penetration fee and gigantic enhance possible in the user markets of the third tier and underneath cities in China, GOME proactively explored the blue ocean opportunities of these markets with the capability of “prioritizing enormous self-discipline over microscopic self-discipline, prioritizing counties over towns and leveraging counties for exploring towns”. In some unspecified time in the future of the Reporting Length, the Neighborhood opened nearly 600 soundless county shops and deliberate a elephantine year opening of 1,000 soundless shops. As of 30 June 2021, the Firm operated a total of 3,895 offline shops, including 2,556 county shops. Meanwhile, capitalizing on the flexibleness of the social networking arrangement, workers of GOME shops acted as seed users to attach grid-basically basically basically based communities, and without be aware expanded the membership scale. In some unspecified time in the future of the Reporting Length, GOME created extra than 180,000 soundless online communities and commanded a total of nearly 1 million online communities cumulatively. The cumulative sequence of online crew members increased by 30% YoY. The total sequence of online and offline members reached 228 million. In some unspecified time in the future of the Reporting Length, GOME’s “FUN” APP online platform also completed well-known enhance. In particular, the sequence of shopping users increased 10 times YoY. Total sequence of products purchased and sequence of orders increased 4 times YoY. The sequence of active users increased nearly thrice YoY. Member repurchase fee became roughly 30%. Month-to-month average sequence of repurchase users increased about 10 times YoY. SKU exceeded 600,000, of which 90% became derived from non-electrical home equipment, reflecting the rising differ of the Neighborhood’s product offerings.
Leveraged supply chain and channel advantages to minimize charges, enhance efficiency and carry out bigger profitability
On supply chain style, GOME integrated the four aspects of entertainment, technology, low impress and restore to form a 3-in-one supply chain platform of “merchants invitation + self-operation + customization” and repair a aesthetic supply chain intention basically basically basically based on the intention of bright customization and quality products. The Firm persevered to beef up the provision chain of home home equipment, and optimize the procurement, operation and restore processes to total a excessive-efficient and low-impress operation mannequin. GOME also joined hands with online and offline third-birthday celebration vendors to produce a expert home equipment supply chain with diverse products and impress advantages. The Firm cooperated with a series of strategic companions to consistently prolong its market fragment by taking revenue of modern marketing instruments and the changing nature of the web and offline gross sales scenarios.
Relating to channel operation, GOME adopted the “self-operation + third-birthday celebration + company” mannequin to designate irascible-channel output by its receive online and offline platforms, third-birthday celebration platforms (JD, PDD, TikTok, etc.) and third-birthday celebration agent operators. GOME also actively deepened its cooperation with alternate-main agent operators to designate in-depth integration and empowerment in the provision chain, become agent operators into distributors and forge an modern ecosystem of agent operations.
Efficient utilization of entertainment instruments to stimulate user market vitality
With the style of soundless retail reforms, GOME regarded entertainment as one in every of the well-known style pillars and entirely deepened the entertainment marketing mannequin to power user request of. The Firm bolstered the interaction between the platform and users in entertainment taking a look by diversified system equivalent to are residing streaming, expertise voice, minute-time offers, short video, matches and video games. In particular, the traditional combination of particular promotional appealing activities allowed users to profit from quality products and providers and products at low prices in a relaxing arrangement, thereby offering relaxing gross sales and taking a look expertise as successfully as spreading pleasure. As successfully as, GOME also cooperated with platform celebrities to habits livestreaming marketing on in vogue short video platforms in China equivalent to TikTok, Tmall and Kuaishou. In the first half of of 2021, GOME completed 75,000 livestreaming shows, reaching over 38 million of us.
To bolster the policy of “promoting gross sales and market style with particular fairs” proposed by the Ministry of Commerce, GOME held the Euro Cup “Soccer & FUN” process right by the Reporting Length. This event showcased the crossover between sports activities and retail alternate. It facilitated conversion by livestreaming of gross sales promotion matches. Soccer fans might perhaps perhaps perhaps also fragment the “FUN” APP to chums by reveal material sharing or notice of mouth, thereby increasing the soundless buyer infamous and bringing in soundless traffic. Subsequently, on 24 and 25 July 2021, GOME co-hosted the “2021 Huge Music Festival” with iQiyi. As a continuation of the “FUN ZAO Metropolis” marketing campaign, apart from to an extravaganza enormous name lineup, the competition also cooperated with mark sponsors to self-discipline up food stalls, vogue home, interactive lessons and other relaxing and trendy parts to enhance buyer expertise.
In-depth integration of online and offline operations to produce a centralized alternate style ecosystem
With “designated webpage for every retailer”, GOME has facilitated the interaction between offline shops and online “FUN” APP platform, and equipped multi-mannequin, irascible-channel, comprehensive and impress for money taking a look expertise to crew household customers internal 1-8 km radius by output of “objects + capabilities”. For offline operation, GOME’s grid-basically basically basically based community of offline shops consists of 5 forms of shops: city shops, commercial advanced shops, regional shops, crew shops and crew stations. They offer “Home Living” solutions for crew household customers internal 1-8 km radius. As of 30 June 2021, the total voice voice of offline shops reached 5.11 million sq. meters. As successfully as, GOME deliberate to proactively become its offline outlets to “one retailer with a pair of choices” guided by the four principles of “reuse of home, reuse basically basically basically based on time slots, equipment sharing and restore sharing” in uncover to strengthen the utilization fee of home belongings, propel sharing economy by home utilization, and produce an city “social lounge”.
Furthermore, to enhance the Steering on Building of Metropolis 15-Minute Handy Living Circle issued by the Ministry of Commerce, GOME promoted proactively the joint style of assorted alternate objects in the helpful residing circle, and built a comprehensive commercial provider intention with in-depth integration of online and offline activities and mutual strengthen between digital and physical operations. The Firm deliberate to integrate entirely merchant belongings, and offer access to online choices equivalent to taking a look, catering, leisure, tradition, aged care and housekeeping by microscopic packages, APPs and comprehensive provider info platforms. These would offer residents with products and providers equivalent to eye for internal sight items and products and providers, info inquiry, bill cost, geographical navigation and online coupon issuance and offline redemption, connecting successfully-organized communities and bright housekeeping, and integrating commercial and social choices, thereby rising a centralized alternate style ecosystem.
Continued to strengthen logistics provider capabilities to promote rural revitalization and facilitate style of low-tier markets
In present years, GOME has persevered to strengthen its logistics provider capabilities and increased its efforts in rural market expansion to promote consumption upgrading in rural areas. In some unspecified time in the future of the Reporting Length, the corporate’s home supply and set up, home repairing, home cleansing, housekeeping and residential renovation products and providers lined extra than 2,000 regions, tapping into the aptitude request of in rural areas.
GOME is devoted to rising excessive-identical old provider expertise by focusing on three aspects of on-time supply, rapid supply and quality expertise. As successfully as, as a supplier of excessive-finish on-time product for big items warehousing and present, GOME offers customers with personalized and on-time supply impress-added products and providers. In the first half of of 2021, GOME’s on-time supply fee reached 98%. GOME also has stepped efforts proactively in rising the Eastern-inspired ultra-detailed provider voice, and equipped users with differentiated provider expertise for big items by standardized, excessive-quality, and detailed products and providers with a buyer pleasure fee of 96%.
Furthermore, leveraging its main capabilities of logistics products and providers, GOME has equipped supply chain solutions for assorted industries. In the first half of of 2021, GOME Anxun Logistics developed exterior customers from diverse industries, and cooperated with Duoduo Vegetable, Meituan Prefer, Chengxin Prefer, Ningbo Neighborhood Purchase and Supai to withhold out crew crew settle alternate. It also cooperated with ByteDance and Meituan to withhold out moving alternate, cooperated with Shangpin Home, Wayes, Minhua, Fashioned Substances and other merchants to carry out home equipment and furnishings supply companies. The Firm bolstered actively cooperation with Xiaomi Youpin, Netease Prefer and other e-commerce platforms.
Advocating gorgeous competition to attach space as a retailing provider supplier with the philosophy of joint contribution and shared benefits
GOME has been advocating gorgeous competition in a notify to attend the retailing alternate to develop in the direction of fairer and more fit style. The Firm is devoted to produce an originate platform for sharing and co-style geared to assisting suppliers, vendors and customers for executing highly efficient interactions. GOME has leveraged a decentralized retailing infrastructure coupled with its retailing capabilities as motive power to empower companions of the retailing alternate in integrating extra retailing belongings and setting up a highly efficient ecosystem for the retailing alternate. This intention would offer most patrons with a low carbon, environmental-pleasant, highly efficient for all and info safe ambiance for sustainable consumption. Furthermore, GOME has signed a cooperation settlement with voice-owned Shenzhen Investment Preserving Capital Co. Ltd and Shenzhen Eternal Asia Present Chain Firm Ltd (002183.SZ) in July 2021. Under this settlement, these three parties will cooperate in areas of capital, supply chain, channel and alternate chain to attach a flat, sharing and decentralized strategic platform for big consumption. Furthermore, they’re going to coordinate complementary strengthen on belongings. These alternate leaders will join hands in sharpening total chain and entirely integrated provider capabilities the total arrangement from production, mark incubation, mark operation, channel administration, marketing administration and finish-users gross sales.
GOME’s administration concludes: “In the first half of of 2021, even supposing the pandemic has no longer but subsided, a series of policies for encouraging consumption were presented successively. They promoted the restoration of home consumption, paved system to successfully an anticipated elephantine financial restoration and injected a booster for the retail alternate. At the identical time, China has been promoting vigorously the accelerated style of soundless consumption in present years. Such efforts supported ragged commercial enterprises to tempo up digitalization and bright transformation, and promoted wider and deeper integration of online and offline operations. We’re very satisfied that the present national strategic layout and policy direction are highly in keeping with the come capability of GOME in present years. In the slay, GOME will proceed to persist in implementing national suggestions, facilitate home request of expansion and user upgrading in China. We recommend gorgeous competition and healthy style of the alternate, and carry out staunch development to fulfill the user request of of “Home Living” products and providers and revenue the ordinary public. The Firm strives to change valid into a brand soundless technology integrated retailing provider supplier to wait on the needs of the country, the alternate and the general public. GOME will proceed to uphold the corporate mission of “Promote efficiency by technology, produce better existence by info”, and proceed to carry out its “Home Living” alternate to change into the main enterprise in linked sectors and produce higher impress for the crew and shareholders.
Topic: Press open summary
Sectors: Retail & eCommerce
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