On March 27, Gome Retail Holdings Limited announced the 2017 fiscal year results report. The report shows that in the fiscal year ended December 31, 2017, Gome's main business maintained a healthy profitability, and the overall GMV increased by 20.10 percent year-on-year. %, Of which, the online platform GMV increased by 118.13% year-on-year; the comprehensive profit rate reached 18.26%; comparable store sales increased by 2.33% year-on-year to 46.879 billion yuan. The Gome shared retail model has achieved a good start in the strategic transformation of 'Home-Life'.
Significant transformation effect of main business continued profitability
In 2017, Gome through technology accumulation and technological innovation, based on the Internet, through the online and offline, to achieve supply chain, scenarios, services, membership, data, logistics support platform interoperability, and gradually form an online transaction + offline experience , Line quality products in Shanghai + product line under the boutique experience of a two-platform shared retail model. At the same time, Gome comprehensive upgrade products, services, operations three major capabilities, mainly from a single electrical business, and gradually transformed into a 'home' as the core of the overall solution Solution providers and service providers, formed integrated development of home appliances, home improvement, home, home services.
Driven by the new model of shared retail sales in the United States and the new map of 'Home and Life', Gome entered an important stage of comprehensive reform in 2017. During the transition period, Gome's performance remained bright and GMV grew significantly.
During the reporting period, the total volume of online and offline retail sales of Gome Retail continued to increase. The overall GMV reached RMB133.9 billion, an increase of 20.10% year-on-year, of which the online platform GMV increased by 118.13% year-on-year; the comprehensive profit rate reached 18.26%, which was higher than last year; Excluding operating factors, net profit was approximately RMB 531 million, an increase of 24.36% year-on-year.
Under the shared retail model, Gome’s transition to the “home-life” map yielded preliminary results. In 2017, Gome created a series of experience scenes centered on 'home and life'. During the reporting period, there were 38 countries across the country. Stores will introduce home improvement and will continue to add 100 stores in 2018. It is expected that this business will bring greater income potential to Gome in the future.
Strengthen Channels to Create Internet Retail Models
Under the general trend of consumption upgrade, Gome actively adjusted its channel layout, developed various forms of virtual stores and businesses, shared Gome's supply chain and services, shared member, commodity, and transaction data, and formed a shared retail channel under the new situation. Accelerate the creation of an Internet retail model. Based on the large-scale 'home-life' stores, we will continue to explore new types of stores such as community stores and technology-free stores, integrate self-service cash registers, millions of SKU cloud shelves, and other new Internet technologies. Under the influence, a bit of a layout network, to further open the market expansion.
In Tier I and Tier II cities, GOME will focus on large-scale new-scenes integrated stores to create 'home-life' experiences while continuing to explore new types of new-style stores, such as smart community stores that explore community services, and inject high-tech concepts into the world No one shop. In the fourth-tier and fifth-tier cities, Gome will also seize the consumption upgrade window, extend the county-area store network, form a three-dimensional sales for consumers, and pay attention to the pre-sale professional guidance and logistics after-sales service. It is expected to lay 3000 in the next three years. Home county store, comprehensive coverage of domestic top 100 counties and other county townships.
On the service side, Internet technology has greatly improved the quality of service experience and driven sales growth. In 2017, GMV generated through Gome Butler APP surged more than five times year-on-year. In the future, Gome will continue to invest in Internet technology to promote experiential stores and The integration of online resources, promote the landing of digital stores at all levels of the market, further release the market potential.
Mr. Wang Junzhou, the president of Gome Retail, concluded that: “2017 is the year that Gome Group is established. Under the guidance of the “Home and Life” strategy, our business operations are developing well and our profitability remains strong. At the same time, we also bring more users. A good life experience. Gome uses Internet technology empowerment store to store data on members, goods and transactions, and reconstructs the dynamic relationship between 'people, goods, and market'. In the future, we will continue to be efficient. With the aim of opening up and win-win, we will develop an internet retail platform and cultivate a billion-dollar 'home-life' market. The future of Gome is the Gome of the Internet. We will develop rapidly on the road of Internet retailing and help hundreds of millions of families achieve a better life. . '