Home E-commerce will be the first zero-rent store in Beijing

Home E-commerce will be the first zero-rent store in Beijing

On February 16, Jimei Home and Housing Group announced that the first zero-rent home store in Beijing is about to be born. Sina Home's electronic mall “Home” will build an offline experience store in Jimei Dahong. Do not collect a penny of rent from merchants, introduce more than 100 brands on the scale of 6,000 square meters for online and offline interaction, break through the high cost bottleneck of e-commerce, and create a new mode of e-commerce operation.

Zero rent for new stores

“A new store is about to appear in Jimei’s Dahongmen store. Its format is the same as that of Jimei. It belongs to the booth system, but the business model is different. The new store does not accept merchant rent.” On February 16, Zhao Jianguo, president of Jimei Home, and Sina Home Wendong, the general manager of the Housing Business Group, appeared in front of the reporter and announced the news.

Jimei established a new store, why is the head of Sina Home become one of the protagonists? It turned out that this new store is not Jimei's own singing of a one-man show, but it is closely cooperating with Sina's e-commerce platform "home", and it has become a place where the brand of "home" will land. According to Wendong, the home furnishing mall “Home”, which was built by Sina Home, has been in operation since July 2011, attracting more than 500 well-known home building materials brands, with more than 20,000 items. Through the service initiatives such as advance payment, the online transaction volume of “home” has increased month by month. As the business grows, people hope to have a "seeing is believing" experience place, can personally see and touch the products seen on the Internet to enhance the confidence of purchase. Wendong and Zhao Jianguo hit it off and decided to join hands to create a “home-to-home” offline platform – “Jimei·Sina·Home E-commerce Experience Hall”.

This brand new e-commerce experience hall is located in the No.1 and No.2 halls of Jimei Home Dahongmen, belonging to the golden location of the entrance to the south gate, with a total operating area of ​​about 6,000 square meters. What is striking is that the store adopts the brand store model, which is still a booth system with the traditional store, but does not charge the pen a penny rent, becoming the first zero-rent store in Beijing.

Break through the bottleneck of e-commerce

With the highly-reliant network-based "post-80s" becoming the mainstream of consumption, e-commerce that can achieve online shopping has become a hot word in the home furnishing industry in recent years. Various home e-commerce platforms of different sizes have emerged, but customers Insufficient experience, online sellers' after-sales service is not in place, manufacturers' product quality is difficult to identify and other factors, making home e-commerce has been difficult to scale.

Establishing an offline experience platform is an important trick to solve these problems. However, some e-commerce platforms cannot do online business, but they charge rents through the offline experience hall, which has damped the enthusiasm of merchants. Recently, the offline experience stores of individual e-commerce platforms have exposed the rental gold to the traditional stores, and the “bundling” method requires online merchants to open the experience store offline, which casts a shadow over the home e-commerce.

Wendong believes that the essence of e-commerce is low cost. If the cost of the offline experience store is too high, it will lose the original meaning of e-commerce. To this end, Sina Home's "home" to establish an offline experience hall, must break through the high cost bottleneck, and cooperate with Jimei to establish a zero-rent store, so that this requirement can be perfectly achieved.

Since there is no rent, the “Jimei·Sina·Home E-Commerce Experience Hall” has attracted more than 4,000 brand registrations. Since the venue is limited, only more than 100 brands can be selected. Zhao Jianguo said that all the brands that settled in Jimei must meet the strict review conditions of Jimei; Wendong said that without the authorization of the brand headquarters, it would not be possible to enter the store at home, and could not enter the "home" or settle in the e-commerce experience hall. . The dual review of Jimei and “Home” will make every brand in the experience hall genuine.

Try a new business model

What income does Jimei and Sina rely on without rent? Shen Yaojun, vice president of Jimei Home Furnishing, said that although the E-Commerce Experience Hall does not charge rents to merchants like traditional booths, it needs to collect the management fee symbolically. The management fee of one yuan per square meter per day can be neglected for many merchants. .

According to Shen Yaojun, the income of Jimei and Sina is 5% based on the sales of the merchants. If the sales amount reaches a certain amount, the management fee is also waived. Take a 100 square meter booth as an example. If the monthly sales exceed 60,000 yuan, the management fee will be waived. “What we are looking for is to increase sales through online and offline interactions, and to generate revenue through sales points, creating a new business model.”

It is reported that Jimei has introduced red wine clubs, hospitals, department stores, fast hotels and other formats. Together with the E-Commerce Experience Hall, and the original home building materials store in Jimei, it will form a true one-stop shopping, leisure and entertainment base.

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