Red Star Macalline's digital sentinel, Red Cloud is digitally empowering the home furnishing industry｜Interview

R e t n e w s Issue 580

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Text Zhou Yingmei

Editor Xiaotian

WeChat Public ID Retnews

Red Star Macalline mentioned in its annual report that its own home furnishings new retail transformation has achieved Some of the initial achievements, in 2018, all the layout of the mall digital marketing, and Ali's strategic cooperation project Tmall "home furnishing station" cumulative on-line in 22 cities, covering 56 shopping malls.

The information technology department team previously responsible for the digitalization of Red Star Macalline shopping centers has become independent of the Red Cloud, which was incorporated in August 2019 and is now just over one year old. Most of the personnel of the Red Cloud team come from the core members of the information technology department and IT department of Red Star Macalline Group, and there are 200 to 300 research and development personnel, and there are five or six subordinate category business divisions.

Previously, the Red Star Nebula team has provided digital membership system solutions for Red Star Macalline Group's shopping centers. Commercial real estate projects are the foundation of Red Star Nebula, and relying on Red Star Macalline's resources, the future development of traditional home furnishings factory brand digital business is the main direction.

In addition, Red Star Nebula is also considering some projects with high return on investment in the smart city category, such as the transformation of logistics parks, intelligent communities.

1 accurate access to customers in the field

"Even if you consume it, it's not necessarily your member." Tang Ming, vice president of Red Nebula, said that shopping centers are generally associate mode, you can know the daily sales of each store, but can not get the consumption data, so even if the people who consume in the shopping center is not necessarily a member of the shopping center.

In Tang Ming's view, membership means that the data can be seen and operated, "only a face data is useless", red nebula solution data capture including face, cell phone number, user ID, consumption data, license plate information, etc., after the fusion of this information, as long as there is an element on behalf of the person to come, so as to achieve accurate marketing. This can realize accurate marketing.

The so-called precision field marketing is when the customer walks into the field, can not quickly influence him. When the consumer walks into the field can provide the services he needs, that is, for example, when the consumer into the shopping mall, through the data found that he likes to drink coffee to give him a Starbucks coupon, the probability that he will go to the consumer. Or in the consumer just after the completion of shopping to recommend a movie coupon or meal coupon, to do more related marketing, "not waiting for consumers to go and then pushed to him, to push in time in the field," said Tang Ming, which is also a combination of systems, tools and strategies, and ultimately to achieve the diversion of flow to the field to the store.

The reason why it is difficult to digitize offline business is because there are not enough touchpoints. "Whether you do digital marketing or integration, without touchpoints you will definitely rest, because without these touchpoints, consumers can't find you and there is no way to digitize them." Tang Ming said at the 14th China Retailer Conference that enterprise digitalization is first and foremost the construction of touchpoints, and these touchpoints would include APP registration, big promotions, and offline human-computer interaction.

According to the current point of view, the red cloud to the home factory standardized digital solutions can be online in the fastest week, this is generally no customization needs, for itself with a server with their own small program for some companies. But generally have customized needs, from research to communication programs to solve the demand needs to spend 2 ~ 3 months.

Red Nebula a whole digital solution charges in 100,000 yuan to 500,000 yuan, plus face recognition and other cameras will be correspondingly increased to 500,000 yuan to 1 million yuan, which also means that a shopping center or factory need to spend so much cost to build their own digital system.

"A shopping center under 1 million yuan are very normal, more than a million will be very few people are willing to invest." Tang said.

Now when it comes to receipt collection, security is something that has to be talked about. Red Nebula said to the "New Retail Encyclopedia", most of the current Red Nebula solution is privatized deployment, deployed in our customer's server room or Ali cloud space, data saved by the customer, as a service provider Red Nebula can not touch the storage environment, the two sides also signed a confidentiality agreement. In addition, for some products, Nebula will also provide U-shield, which adds a layer of protection through technology.

2 shopping centers gradually digital

Red Cloud research data shows that the degree of digitization of shopping center members is less than 20%. As mentioned above, shopping centers have the characteristic of association, even if you buy something from some brand stores in the shopping center but this person is not necessarily not a member of the shopping center.

The ultimate goal of member digitization is still to be able to link multiple aspects, in order to do a better job of marketing, and thus increase the repurchase rate. Of course, Tang Ming also mentioned that some shopping centers are better located, naturally not lack of traffic, so the demand for digital membership is not so big, such as in the city center, occupy the subway entrance of the location of the traffic is already very large, the demand for digital marketing is not big. But a status quo is a large number of shopping centers do not have this condition.

Red Star Nebula's digital solution is to increase the degree of member digitization, can be increased to about 50%, "100% can not do", Tang Ming said, software or hardware is a tool to achieve further results depends on the shopping center's own operational strategy. At present, Red Star Macalline's shopping center Aegean Sea is also in use, the more stable situation is the degree of digitalization of members can be increased from 20% to 40%.

Red Star Macalline mentioned in the report, the company's *** there are 87 self-managed shopping malls, 247 commissioned malls, and 12 cooperative shopping malls. The self-managed malls and commissioned malls cover 209 cities in 29 provinces, municipalities and autonomous regions across the country. Red Star Macalline cites data from a Sullivan report that the company is the home décor and furniture mall operator with the largest operating area, the largest number of malls, and the widest geographic coverage in the country. retail sales accounted for 15.5% of China's market share in the chain home décor and furniture mall industry in 2019.

Backed by Red Star Macalline has accumulated a large number of home furnishing and commercial real estate resources nationwide, also including long-term local government partnerships, which should serve as a natural advantage for Red Cloud.

Tang Ming would like to emphasize that the Redstar Cloud team is doing business solutions and operations before doing digital solutions, transitioning from party A to party B, which is different from a pure software company doing digital solutions. From solving the internal needs of Red Star Macalline to create a digital system for the group to open up to the outside world, Red Cloud has honed and perhaps better understood the pain points of customers in the commercial real estate and home furnishing market sectors.

3 out of the enterprise, to the industry

Because the share of commercial real estate is limited, the country's 8,000 large and medium-sized shopping centers can be done each year, only a few hundred shopping centers, Red Star Nebula at the same time also doing home factory digital solutions. Relying on Red Star Macalline, Red Cloud connects a large number of home furnishing customers and investors.

In April and May of this year, Red Cloud signed a few large home furnishing factories, such as Shenzhen's left and right group, Jiangsu's goods, and Shanghai's Scandinavian artist are a few large customers that Red Cloud has just signed to provide them with digital solutions.

Red Nebula observed that the degree of digitalization of these home furnishing factory brands is relatively weak compared to commercial real estate, but these factories have a lot of demands, most of these home furnishing factories belong to the family business is now also up to the point of time to change the successor, the original owner's son or daughter began to accept the factory operations, these new successors to the 80s are mainly the idea of most of them are to keep up with the current trend, and therefore began to seek a digital transformation. seeking digital transformation.

Tang Ming mentioned that in the specialized areas of home production, such as MIS systems Red Cloud will not touch. Red Cloud's business areas are specifically for store billing, goods management, member insights, member marketing, etc., mainly member marketing, to help these home furnishing factory brands to improve the C-suite traffic operation. At present, these home furnishing factory brands are mainly distributed in South China, especially in Guangdong's Shenzhen, Foshan and other cities.

The most critical part of the digitization system is the core algorithm, which is developed by Red Cloud itself. The aforementioned hardware includes face recognition cameras, intelligent big screen, etc., which are produced by Red Star Macalline's subsidiaries. The software functions involved in the big screen, including the shopping mall guide, these are also developed by Red Star Nebula. The most basic of the software system may be the membership marketing system, "some people only buy a membership marketing system is also possible."

Now Red Cloud's most important solutions are three: home factory branding solutions, commercial real estate solutions and smart city solutions.

The home factory branding program is mainly based on Red Star Macalline's many home resources, while the commercial real estate program is mainly a shopping center member digital solutions to provide intelligent interactive screen. The third business direction smart city, can be understood as industrial digitalization solutions, Tang Ming mentioned with the new infrastructure proposed Red Star Nebula has signed a lot of logistics park transformation and agricultural trade project orders, belonging to the high ROI (return on investment) project.

In the future, digital government and smart community are also the business that Red Cloud will focus on. The digitization of government affairs will bring more convenience to the people's life processing, in the future, Red Nebula will also consider doing government affairs products.

In the intelligent community, Red Nebula is doing the product is launched with the public security department of the joint program, such as in the key location of the district layout camera and public security system linkage. It also includes the online payment of property fees and parking fees to provide more solutions to community affairs.