Millennium Boat Zhang Haiying: In the industry "low valley"

Zhang Haiying, Vice President of Millennium Boat Group

The history of the Millennium Boat is from single to plural

[Reporter]: Hello, Mr. Zhang, thank you for accepting the interview of Sohu Home. Millennium Boat is one of the leading enterprises in China's wood industry. From 1999 to now, Millennium Boat has become a symbolic enterprise of China's healthy and environmentally friendly home building materials. What do you think is the fundamental success of the development of the Millennium Boat for so many years? What are some important nodes in the history of the development of the Millennium Boat to share with us?

[Zhang Haiying]: Hello everyone, we set up the first factory of Hangzhou Huahai Wood Industry from 1999, and then from 2003 to 2008, we established five logistics centers in Guangxi, Shandong, Jiashan, Hangzhou and Chengdu, and then Including our many production bases. In fact, we have arranged more than 600 specialty stores nationwide and several of our major logistics centers. The purpose of our service is to provide our healthy and environmentally friendly products on the one hand, and to provide us with better logistics and services for the whole country. Some convenience on the service. This is some development in our basic building materials.

Secondly, we also saw that with the improvement of people's living standards, the pursuit of the home environment will be higher and higher, so we say that our group is transforming from our basic building materials products to finished products. This is also the millennium boat we built our group. "Home Culture and Creative Port", we also want to be a base of the home industry, as a furniture company, furniture-related design company, as a product platform. Now everyone sees the collection. The store project that we have gathered is actually the second phase of our Millennium Boat “Home Culture and Creative Port”. It is a home store of our latest business model, so our development actually comes from Basic building materials, from a single factory to a group of multi-production, multi-base, and then to build our well-known trademarks, build brands, and then establish a nationwide store and our logistics center network, and then from the basic building materials to our Home products are in transition.

Home business model faces bottlenecks

[Reporter]: It should be said that the development of our millennium boat has been growing together with the development of China's home furnishing industry for so many years. What do you think of the current development of our home industry? Do you think there are some drawbacks in the development of the home industry?

[Zhang Haiying]: Today's home furnishing industry, our most common home store, is actually a model of commercial real estate. That is to say, there are commercial real estate in the industrial chain of our home. For example, we generally say that the store, then there are manufacturers, then agents, sometimes the dealers below, followed by logistics companies, installation companies, This chain is actually very long. If every chain link has to share a part of the profit, then let our limited profits be divided. Either the profit of each link is very low, or the consumer has to bear a very high price, so this is a very typical contradiction in our home furnishing industry. That is to say, manufacturers feel that the cost of developing the market is too high, the chain link is too long, and it is hard work, but it does not have much profit, but also needs product development, manufacturing, and sales. For dealers, find a storefront, open a store, keep a store every day, but the profits are very meager. For consumers, not only have to bear high prices, but also see some very similar products that can not distinguish the quality, so this is a problem faced by our home industry.

[Reporter]: Yes. And especially since last year, our entire home furnishing industry has experienced a decline, even more serious than the financial turmoil of the year.

[Zhang Haiying]: Yes.

[Reporter]: What do you think are the reasons that affect the development of our home industry? Is it external or is our industry itself experiencing such a bottleneck?

[Zhang Haiying]: I believe that of course, it will have an impact on the overall economic environment. For example, the regulation of real estate has actually suppressed many of our speculative needs or some high-end needs. The demand just needed will become more and more obvious. For example, there is already a very obvious trend in the real estate. In fact, if this demand appears, it will require us to have some products that meet the needs of the stratum, such as the true price-to-price ratio. The best, then some very good quality products. What I said just now is the impact of the whole environment on us. For our home furnishing industry, for a long time, at least for more than a decade, such a chain and model are operating. Everyone uses the same idea to move forward. In fact, it may take a lot of courage to lead the trend or change in the industry. Maybe the contradiction has not been so prominent before. Now the crisis has actually happened slowly. In fact, everyone in the home industry is now beginning to explore whether there are any new models. Then re-open a "blue sea".

Cui Shang home life · electricity mall e-commerce + direct sales to make the price more transparent

[Reporter]: Yes. Speaking of the new model, you just mentioned that we will have a new business model in the next millennium, called Cui Shang Home Life·Electric Mall, and share with us the business model and operation of this excavation home life. mode.

[Zhang Haiying]: Ok. In fact, it is the integration of online e-commerce plus the advantages of our direct production and manufacturing companies, and then the creation of a modern home chain store. On the one hand, it is somewhat similar to IKEA in terms of presentation form. In a practical environment of our store, we have a lot of model rooms, which provide very good and stylish sets of products and home accessories. There is also a very rich intensive display, and then there is a professional designer guide, this is it presented to the consumer, is a very stylish, modern IKEA-style supermarket.

On the sales model, on the one hand, it is e-commerce sales. On the other hand, we will concentrate on helping manufacturers to sell. For example, we often see catalogue marketing like B&Q and Tellus, we will specialize in community promotion and will do Group purchase, will do some suits for some real estate, apartment type, we will actually concentrate on helping our manufacturers to do some set of products. Consumers are in our stores and can get different services from ordinary stores. For example, our consumers enter our stores. We have designers based on his economic strength, his favorite style, and his family's arc. Features, help him carry out the whole set of not only furniture, but also jewelry, home textiles, all of these combinations. So it can be completely different from the presentation form of the store, from the sales model, to some services that the consumer can actually receive some of the experience.

[Reporter]: Is it a kind of experiential consumption?

[Zhang Haiying]: Yes.

[Reporter]: Because everyone is very fond of such a consumption model, but when it comes to Cui Shang's home life, electric mall, there is a doubt that traffic is a bit far away, it seems to be a bit remote from our downtown Hangzhou, of course, the traffic is still relatively Convenience, the viaduct will come down.

[Zhang Haiying]: Yes.

[Reporter]: Why did you choose to be in this place?

[Zhang Haiying]: On the one hand, with the expansion of the city, the scope of the city will become larger and larger. The same is true for countries like Europe and the United States. The city center may be some commercial and trade centers. In fact, people’s houses will become more and more suburbs. In fact, the land we are in is at the junction of Gongshu District and Yuhang District. In fact, the exit of the Zhonghe Elevated Good Fortune Road is just right, it is just at the junction of Hangzhou and Yuhang District, so let us This plot has Hangzhou passenger flow, Yuhang District, and some passenger flow in the two groups of Yuhang and Sandun. For example, there is a Shanghai landscape next to us. In fact, there are already many real estates. Now the crowd is getting denser and denser. This is the first factor. The second factor I just mentioned is that it is a second phase project of our “Home Culture Creative Port” because our “Home Culture Creative Port” itself is a platform for building a home industry with a total construction area of ​​200,000 square meters. From our overall planning, we will gather hundreds of home design, research and manufacturing sales companies. Then our Cuijia Home Exhibition Experience Center is just a platform for sales and display in the entire industry chain. Therefore, it should be due to these two considerations.

[Reporter]: In fact, in other words, some real big stores are actually in suburban areas in other European and American cities.

[Zhang Haiying]: Yes, yes.

[Reporter]: Because of this, it is more convenient for everyone to buy things, and the place is bigger.

[Zhang Haiying]: We have a lot of parking spaces in the suburbs. We have very abundant parking spaces. We don't have to worry about parking. We will also have our matching shuttle bus.

In the industry "low valley"

[Reporter]: Because we also said that the whole situation this year, as if the entire home furnishing industry is declining, in such a not very good environment, we have launched the Cui Shang home life · electric mall, you feel like this Where is the confidence in our operations in an environment?

[Zhang Haiying]: It should be said that our project has actually passed a precipitation and investigation for more than three years. In fact, we have been learning the IKEA model over and over again three years ago, and we are constantly researching in similar stores. For example, in Shenzhen for a hundred years, then our traditional home stores continue to do research, and some of our home industry associations, Then we talked with some insiders repeatedly. In fact, we believe that the current timing is a very good time for us to launch our new model. For example, in the second half of last year, Hangzhou also held a summit forum for the home furnishing industry. In fact, some time ago, we also had a very well-known media in the home furnishing industry, saying that “the dance on the knife tip” is actually because of the current industry situation. Already at a time when it should be said that the home industry is a matter of life and death, we happen to be taking advantage of the trend, but strengthen our confidence, because we believe that after more than three years of an argument, research, including our accumulation of our hands Some suppliers, manufacturers, associations, our suppliers support us, then we are very confident about our projects.

[Reporter]: Yes, I think of a sentence called "Bend the Road beyond". The more we think that the overall situation is not good, we will make a big attack in such a situation, maybe we can get everyone's piece. Good voice?

[Zhang Haiying]: Yes.

The future of the collection will go to the country with a chain model

[Reporter]: And in the past two years, we have also made some adjustments and reforms in the store. We know that some stores have launched clear price lists, and some have introduced such models that are similar to the experience-based power-on-line combination. What kind of model do you think we will be able to truly win in the development of the entire home industry?

[Zhang Haiying]: In fact, just like some malls, it has launched a clear price tag. I also saw that our rental-style stores now also engage in some factory direct sales bases like this model, or some e-commerce companies engage in experience halls, or our tradition. The home business is engaged in e-commerce, but they are all some improvements and improvements in the original model, it should be said that it is only patching. In fact, we are also considering, that is to say, if our traditional home store is transformed into a model of our collection, it is not easy. We have analyzed it, it is not so easy. On the one hand, it is the concept of the team, and on the other hand, its hardware environment is also limited. For example, some stores like ours are one, two, three, four, and there are many aisles, this kind of Wanting to do our very fluent movement will be very affected, because our design is like a European supermarket, like B&Q, Wal-Mart, the design of a two-storey European supermarket can have very good A trend, you can have a very rich display products. Therefore, if we want to make some repairs and improvements in the original model, we feel that we can certainly solve certain problems, so we feel that what we need more is a thorough innovation of a model, the impact it can bring and the possibility of touch. It will be bigger.

[Reporter]: We are still living at home. Will the electric mall have a chain of development in the future?

[Zhang Haiying]: Yes, this is actually a long-term goal for us. In fact, we are doing it from the very beginning. For example, we are now building our team, including when we are using our ERP (harmonic) information system, in fact, we are doing this with the headquarters structure. It is to make a chain copy in the future, so I am talking about a management mode at the headquarters. After the first flagship project in Hangzhou has matured, it can be copied out quickly. Therefore, it is the "Suning and Gome" of the home industry. This is the problem you just had. We think it is actually the future of our home industry. One of the modes that can win, we are also working hard in this direction of copying and covering the whole country.

[Reporter]: Imagine with us, what kind of goals will we have in a few years?

[Zhang Haiying]: Our goal is 12 years, 13 years may focus on our flagship project in Hangzhou, so that we can provide very good products to our customers in Hangzhou, while taking our online Sales can drive it. From 14 to 16 years, we are in the Yangtze River Delta of East China and the typical 10 major cities in the Pearl River Delta. We will build another flagship project, for example, we will have about 10 scales. In the third stage, we will expand in some second-tier cities and some second-tier cities in East China and some second-tier cities in Guangdong to some secondary and lower cities.

[Reporter]: Ok, thank you, Mr. Zhang for sharing with us a whole development model of the Cuijia Home Life Store Mall. We are also very much looking forward to this entity experience store e-commerce model can be faster and earlier. Our consumers meet and we wish that Cuishan can achieve better results.

[Zhang Haiying]: Ok, thank you.