OFweek smart home network news recently, has nearly 900 million social users WeChat quietly made changes in the small program, was added by the outside world a variety of footnotes, the outside world that the micro-supplier to the small program is the social tool attribute WeChat e-commerce road In order to directly bypass the payment system against electricity supplier Ali. In the social platform from the two-dimensional code payment system to enter the e-commerce traffic entrance, e-commerce and physical retailers are also building social retail, is so before the release of the announcement to be renamed "Gome Retail" GOME said: in the consumption upgrade In the context of the new normal state of the economy, the company actively explored new retail paths and models, turning from "electrical retailers" to "home-oriented" solution providers and providers to embrace the new retail era. Gome is looking for a path from pure electricity supplier to electricity supplier plus social electricity supplier, changing consumers' traditional stereotype of “selling the country with electricityâ€. The offline channel is still the first system of pillar industries According to HomeNet's observation from Hong Kong stocks, during the transition from an electrical appliance store to a family leisure and experiential store, Gome was bought by several organizations, and this market behavior began with the first quarter earnings disclosed by Gome at the end of last month. In the context of the overall negative growth of the home appliance industry and retail industry in the first quarter, during the reporting period, Gome achieved sales revenue of 17.39 billion yuan, a year-on-year increase of 14.4%, and operating profit increased by 121%; of which, the sales revenue in the primary market, which tends to be saturated, was yoy. Growth of 15.1%, sales revenue in the secondary market increased by 12.5% ​​year-on-year, consolidated gross profit margin improved, and operating expense ratio decreased. At present, many well-known securities institutions such as Tianfeng Securities, Macquarie, First Shanghai and Bank of America Merrill Lynch have given Gome a Buy rating, and Gome is in a stage of revaluation. Industry insiders pointed out to Jiajiadian that GOME’s performance growth in the first quarter was only marginally higher. This is because its store revenue is still in the recovery period, not all of its profitability performance. After GOME’s online and offline businesses are fully integrated, its business scope After extending from home appliances to home furnishings, the financial report will be more dazzling. In the face of a weak offline market, even if the renovation of the store will result in a decline in profitability of the main business, for a veteran retail company with a cash flow of approximately RMB 13.6 billion, the pain is for a better long-term battle. At present, due to the slowdown of the real estate market in the Mainland, sales of home appliances have been under pressure, and poor sales of retail outlets are the norm. Securities firm Bank of America Merrill Lynch issued a research report and believes that although Gome's start will be weak this year, store sales will recover in the coming quarters. According to the 2016 financial report, the sales revenue of the first- and second-tier markets that have been transformed has increased year-on-year. The bank’s recent channel research shows that the company’s second quarter sales will return to normal with a target price of 1.2 yuan, reaffirming the 'buy' rating. The bank also pointed out that the company's stock price can be positively affected by the interconnection mechanism of the stock exchanges in the two cities. Gome's shareholding ratio in Hong Kong Stock Connect reached 7%, ranking top among Chinese retail shares listed on the Hong Kong stock market. According to last year's financial report, in 2016, Gome opened 117 new stores, and by the end of the year, the number of stores in 428 cities nationwide had increased to 1,628, and the stores were still being transformed. It is understood that in the renovation of stores last year, Gome spent 800 million yuan, and it is expected that the overall routine investment this year will be about 1 billion yuan. In the whole year of 2016, Gome has rebranded more than 500 stores, of which more than half of the stores are located in the primary market. In the first quarter of 2017, Gome upgraded and transformed about 30 stores; it is expected that 120 stores will be upgraded and transformed throughout the year. Due to the relatively small size of stores that need to be remodeled in 2017, and the relative reduction in renovation time, the impact on performance will be lower than last year. The growth in the number of completed renovation stores is approximately 8%, and the same-store growth in the future will gradually improve. In the new retail scene design, through the store to introduce home decoration design and electrical appliance purchase, whole house plumbing system and other complete sets of goods to achieve the "home total solution" scenario; in the supply chain logistics network coverage rate of 95.5%; In addition, Gome plans to build a self-built warehouse covering an area of ​​420,000 square meters. The deepening of post-service areas has also become one of the growth points. Online, overseas one does not fall In addition to offline store performance, GOME Online's business transaction volume maintained a 100% increase. Online transaction volume increased by 102.1% year-on-year to RMB 9.1 billion, and online business revenue increased by 41.7% year-on-year to RMB 2.21 billion. Mobile transaction volume increased by 127% year-on-year, its online share increased to 71%, and gross profit margin was around 4%. In January of this year, Gome also plans to go overseas. By the end of March, the new Gome PLUS will be launched. At present, the international version of Gome Plus has also come out. The first stop will be to India and take the light of “social + business + benefit sharingâ€. Asset model. With the national "One Belt and One Road" initiative, Gome will actively integrate into the nation's top-level policy. On the other hand, implementing Gome's new retail strategy along the region will be a beneficiary of the "Belt and Road Initiative." Last year, Gome acquired unlisted retail assets, and most of its 501 stores are located in the “Belt and Road†area. Unlike the saturation of the primary market and the slowdown in growth rate, the growth rate of Gome stores in these economies is very optimistic. Insiders pointed out that Gome, which is integrated with online and offline businesses, will create greater value for the construction of the Belt and Road Initiative and modern circulation. Gome Plus’ overseas strategy will form a joint force with overseas purchases to provide protection for the globalization of the country. Rising pillar industry - after-sales, logistics system Household appliances are low-frequency industries, and the conversion rate is not very high. Gome continues to increase its own high-frequency service capabilities. In the process of transitioning to service providers, the after-sales service links and logistics systems provide support. In February of this year, Gome, with its resolute attitude in the layout of new retail, put forward the strategy of “15 days no reason to return†and “Gome's omni-channel unified service commitment†at the consumer level, and always stood with the consumers. As a window of GOME's after-sales service, its Hengyuan After-sales Service Co., Ltd. provides consumers with various services such as home appliance installation, maintenance, cleaning and maintenance, extended warranty, old-age, and air treatment, etc., with 68 branch offices across the country and more than 6,000 service outlets. With more than 100,000 service personnel and a daily operating capacity of 350,000 sets, it has become one of the largest after-sales installation companies in the country and has gained a good reputation in the industry. Gome's series of actions in the after-sales service promoted the long-term market chaos in China's home appliance service industry and continued its healthy development. When traditional physical stores and e-commerce collectives rushed to their new retail roads, self-built logistics has become a new strategy for e-commerce to break new retail. Gome’s Internet CEO Fang Wei previously stated that Gome is not a complete Internet company, but a powerful supply chain company driven by technology. According to Gome's official data, the current coverage rate of Gome's logistics network is 95.5% in prefecture-level cities, 91% in prefecture-level cities, and 71% in township-level cities. In addition, Gome is still vigorously developing self-built warehouses. As early as 2015, Gome spun off its logistics operations and became an independent logistics company, starting to undertake third-party business. At present, Gome has more than 400 logistics distribution centers throughout the country, with more than 15,000 vehicles distributed. According to Gome, logistics will become one of the pillar industries of the retail industry. In the new era of retail, logistics will be an important part of retail sales and will become the key to influence the war situation. This year, Gome happened to be in the same year with frequent actions. It first released Gome's first "GOME" safety phone K1 in 30 years, and then its triple trade company changed its name to Gome and entered the smart phone field. Subsequently, the listed company Gome announced its plan to change its name. For Gome Retail, industry sources said that the worst time for Gome has passed and future performance should continue to improve gradually. Securities analysts believe that Gome's share price in the transition phase is in an underestimated period. When its “spiritual leader†returns, it may be re-evaluated in the capital market, and the market value will return to the height of 2015.