Tmall Supermarket Integrates Three Brands
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The recent high-end home appliance and furniture expo has shifted its focus toward a transformative theme: “Future of Superstores and New Retail.” This event delved into the potential trajectories and growth opportunities available in the home appliance and furniture sector, particularly under the auspices of the government’s recycling and renewal policies. It facilitated an exchange of innovative practices under the new retail model, drawing over 200 brands like Haier, Midea, Hisense, TCL, Gree, and numerous others to showcase the latest trends and provide comprehensive solutions for “home” scenarios. The exposition provided a platform for industry stakeholders to illustrate progressive developments and directions within the household appliances and furniture markets.
One key player that garnered attention at the expo was Tmall Supermarket’s An Xinjie, who shared invaluable insights on navigating multiple channels for robust growth. He offered an overview of Tmall's strategic evolution over the year 2024, wherein it managed to sustain a double-digit growth in retail scale even amid extensive government subsidies that facilitated a significant uptick in high-end goods. Notably, over half of Tmall’s sales were attributed to premium items, emphasizing the rapid expansion across diverse categories such as home decor and kitchen appliances. An Xinjie highlighted four pivotal transitions in Tmall’s approach: a movement from rural areas to urban centers, a shift from small retail outlets to larger store formats, a transition from B2B models to B2C consumer engagements, and a blend of online and offline retailing.
By implementing the A2000 large-store strategy in prime urban locations and executing a multifaceted approach with its multi-store group initiatives, Tmall effectively transitioned from mere home appliance sales to an integrated approach linking home appliances, home renovation, and furniture. This strategic pivot marks Tmall’s endeavour to penetrate first and second-tier markets while deepening its omnichannel retail strategy. With that, An Xinjie rolled out Tmall’s ambitious operational initiatives for 2025, which encompass a “Store Renewal Upgrade Program,” a “Hundred Cities, Thousand Stores Initiative,” and a “Star Brand Support Program.” These initiatives aim to enhance store identities in core commercial districts, cultivate a vibrant retail ecosystem in mega-cities, and nurture new brands online, pushing forward the agenda of retail enhancement.
In 2024, retail project leader Gao Zhuangsheng encapsulated major achievements, noting that Tmall's A2000 urban large-store expansion had surpassed the 300-store mark in key commercial districts, contributing positively to both scale and operational quality. The government subsidy initiatives reignited demand for high-end products, leading to a comprehensive upgrade of retail experiences that reached nearly 100 million users. Conducting over ten thousand promotional events related to appliance recycling and renewal turned into a multidimensional digital marketing empowerment for retail partners, effectively enhancing online-offline synergy. Tmall Supermarket's multifaceted service offerings allowed numerous aspiring entrepreneurs and established brands alike to seize lucrative growth opportunities.
With the backdrop of the home appliance sector undergoing a significant transformation, the government’s recycling and renewal policy has ushered in fresh challenges and opportunities in the sector. Xu Dongsheng, the vice president of the China Household Electrical Appliances Association, pointed out that the appliance and furniture sectors are pivotal areas for recycling efforts, with over 33.3 million consumers participating in associated initiatives, invigorating the marketplace. Observing these dynamics, he underscored Tmall Supermarket’s leadership in the industry through innovative projects like the “Green Appliance Recycling Alliance” and the “Old Appliance Inspection Vehicles.” Collaborating with prominent home electrical brands, these endeavors provided consumers with diverse green appliance options and notable subsidies, significantly facilitating the implementation of national recycling initiatives in 2024.
An equally noteworthy perspective comes from Guo Meide, president of Aowei Cloud Network. He stressed that while the appliance market has not drastically altered in terms of demand totals and operational logic, the recycling policies are indeed stimulating demand for mid-to-high-end products, particularly in the third- and fourth-tier markets. This development is poised to create new opportunities for brick-and-mortar retail stores in 2025.
The essence of omnichannel retail lies in dismantling traditional channel constraints to foster a seamless online-offline integration, thus providing consumers with a more convenient and personalized shopping experience. Tmall Supermarket is proactively extending its market points of contact, evolving its service offerings to encompass both lower-tier and higher-tier markets, while making significant upgrades to its omnichannel retail strategy to address the needs of diverse consumer segments.
As brand representatives within the appliance and furniture sector navigate this evolving landscape, it is critical to acknowledge the diverse user demands. By implementing an omnichannel strategy, companies are encouraged to deliver products and services directly to the consumer, enhancing user experience and brand loyalty. This approach not only strengthens competitive positioning in the marketplace but also addresses the challenges posed by contraction within the overall appliance market. Tmall Supermarket continues its endeavor to foster integration and coherence within the industry, facilitating a seamless blend of online and offline experiences, ensuring that more households obtain the benefits of smart home technologies.
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