In 1997, China's real estate industry experienced a major transformation. That year marked the end of a welfare housing distribution system that had been in place for nearly half a century. Following this shift, real estate-related industries entered a period of rapid growth that lasted over a decade. Two years later, Wang Linpeng, an official cadre, was assigned to work at a state-owned enterprise in Beijing and officially began his career in the home distribution sector.
Wang was surprised by what he saw. "The so-called sales in state-owned enterprises aren’t really sales," he remarked. For the first time, he felt as though he had been influenced by a different way of thinking. He encountered a massive market—20,000 square meters in size—and witnessed a group of talented individuals who joined him around the same time. These people became a unique competitive advantage for the company. The combination of internal management awareness and service-oriented talent led to the introduction of the "first-to-pay" policy by the company.
According to Wang, in the hierarchy of China’s home distribution industry, the store holds the position of landlord, which is more powerful than the merchants. However, in actual consumer interactions, the merchants hold more power than the consumers themselves. Therefore, the store’s role in helping consumers resolve issues can help balance the power dynamics within this chain. Another issue arising from this structure is what has become known as "bundling"—a practice that has transitioned from being a hidden problem to an openly discussed topic in recent years. Stores have played a key role in enabling the rapid expansion of companies, while dealers have increasingly criticized them for excessive bundling.
However, Wang disagreed with these criticisms. "Those companies that complain about the store’s bundling are like people who can't eat grapes and then say they're sour," he said. In his view, the so-called "bundling" is simply the conditions and thresholds for cooperation between the store and the dealer. In fact, the store helps select strong and capable companies in the market.
Today, the home distribution industry is dominated by two major players: North and South Red Star. While Red Star Macalline has a slight edge in terms of scale, having been established 13 years earlier than the actual home, it has already opened 130 stores nationwide. As a result, 2014 remained an "expansion year" for the actual home, with its goal of surpassing 100 stores by 2015. The trend of leading companies expanding their presence continues to shape the future of China’s home distribution industry.
Small Fountain,Pool Water Fountain,Water Dance Light,Portable Musical Fountain
Guangzhou Dewy water fountain Technology Co., LTD , https://www.dewyfountain.com