On August 12, the 4th “China Excellent Management Company Selection Project” list hosted by Deloitte was released. The selection announcement and award dinner was held in Beijing. Red Star Macalline stood out from many candidate companies and was selected as the “2022 China Outstanding Management Company Award Company Award Company” list, becoming an award company for 2 consecutive years.
The “Best Managed Companies” (BMC) project is Deloitte's 29-year-old global project. It landed in China in 2018. It is currently the only international award in China that comprehensively evaluates the private enterprise management system. In four years, the BMC project pragmatically promoted internal transformation of more Chinese private enterprises, and externally created a benchmark for “social enterprises” and sustainable development.
The selection process can be described as selecting the best of the best. Since the launch of the project in October 2021, the organizer Deloitte China, in collaboration with the Chinese version of the “Harvard Business Review”, the Hong Kong University of Science and Technology Business School, and the Bank of Singapore took half a year of research, review and communication to select 50 leading Chinese private enterprises to enter the 4th BMC list.
Since BMC entered China, leading companies in various industries such as Fosun International, Blue Light, iFLYTEK, and Skyworth Group have all received awards. This time, seven companies, including Anta, Fuyao Glass, Chaoyun Group, and Red Star Macalline, were selected as winners for two consecutive years.
Zhao Lei, general manager of Red Star Macalline Beijing Operation and Development Center, received the medal on site
Xu Ke, managing partner for private enterprises and private customer services at Deloitte China, said that whether they are new winners or re-evaluation awards, this year's winners not only have strong soft power, but also have excellent performance indicators. The indicators for various industries are higher than the average for A-shares. Although crisis events such as the pandemic have had an impact on companies to varying degrees, BMC's winning companies are still commendable for their rapid recovery ability and 'resilience' growth in the pandemic era. Although each award-winning company shows different management characteristics due to its different industry and development stages, and its management system is constantly changing and adjusting, the following characteristics can be excellent factors: strategic level, adaptable and forward-looking strategic management system, focusing on building core products or services with innovative technological advantages; at the capability level, focusing on improving organizational management capabilities and digital transformation capabilities, with special emphasis on building risk management capabilities; Commitment level, focusing on cultivating talent echelons, internal and external ecosystems, and having long-term organizations A sense of mission and cultural value inheritance system; at the financial level, they have sound financial strategies, good cash reserves and cost control capabilities; most importantly, under the impact of changing external environments such as the pandemic, many outstanding management companies in China have shown good values as “resilient enterprises” and “social enterprises”.
Why did Red Star Macalline win the “China Excellent Management Company” award?
Over the past 36 years, Red Star Macalline has always insisted on ingenuity and innovation, and has become a benchmark enterprise in the home retail industry with efficient organization, strategy, execution, and operation capabilities.
Xie Jian, president of Red Star Macalline Home Furnishing Group and CEO of Mercure Technology Group, once summarized the company's management approach from four aspects: building a learning organization; promoting career entrepreneurship; focusing on talent development; staying on the same page with consumers, continuously upgrading the business format, and continuously integrating and innovating in the horizontal and vertical industrial chains.
In terms of organizational culture, Red Star Macalline is based on “career entrepreneurship”, combining “Soma culture” with “horse racing culture” to actively discover talents, cultivate talents, and achieve talents, encourage every employee to use their job as a platform to start a business, and “use career entrepreneurship to passion, so that every life becomes excellent and excellent.” Today, Red Star Macalline has become an uncompromising learning organization, a cradle for professional entrepreneurs, and a training center.
In this self-driving organization, Red Star Macalline has also established an agile talent supply chain system through projects such as Youth Luban to ensure a youthful organizational structure, and uses “action learning” methods to strongly bundle training and performance to achieve an automated transformation of organizational management from “human management” to “performance management.”
As an industry leader, Red Star Macalline continues to innovate and iterate, focus on improving its comprehensive strength, and actively build an “integration, co-creation and symbiosis” industry ecosystem with industry partners to promote the high-quality development of the home furnishing industry and better meet consumers' pursuit of a beautiful home.
First, Red Star Macalline's “two wings in one” strategy was implemented efficiently. Under the active promotion of the “land, sea, and air” forces, home improvement, and Internet operations have accelerated the collaborative development of home, home improvement, and Internet operations from strategy to organization, and from organization to business. With deep integration and traffic sharing in core projects, we enhance user stickiness and experience, create a user-centered one-stop consumption scenario, gradually integrate home improvement and home furnishings, online and offline, and continue to empower industries and brands.
Taking home improvement and home integration as an example, Red Star Macalline uses home improvement as a front-end traffic gateway for home retail, with nearly 500 offline home furnishing stores. Up to now, home improvement stores have covered more than 200 cities across the country and opened 253 stores; and through “Macalline Space Design,” “Macalline Home Improvement,” “Macalline Home Improvement,” “Macalline Home Improvement,” and “Macalline Home Double”, “Macalline Home Improvement”, and “Macalline Home Double”, covers the differentiated market, and focuses on building a technology center, and continues to cultivate the home improvement business in terms of home improvement systems and digital construction.
Second, deeply cultivate the strategy of “expand categories and refocus operations” to build the top ten themed pavilions represented by smart appliances. In 2021, Red Star Macalline took the lead in proposing a “brand expansion and reoperation” strategy in the industry, and made high-end appliances the company's first strategic category, and fully launched the smart appliances living center construction plan. On May 1, Red Star Macalline officially opened the world's first smart appliances living center at the Shanghai Global Home Furnishing Store No. 1. By the end of 2021, Red Star Macalline had opened 104 smart appliances living centers in major shopping malls across the country, making it the largest retail channel ecosystem for high-end appliances in China. In addition, Red Star Macalline Imported International Hall, Design Living Room Hall, High-end Custom Hall, Soft Furnishing Hall, System Door and Window Hall, Boutique Bathroom Hall, Sleep Living Hall, Trendy Furniture Hall, and Dingchi Space Hall are also making strong progress across the country, focusing on operations and upgrading store formats to accelerate penetration and seize the middle and high-end markets. “Buying appliances, furniture, and building materials to Red Star Macalline” has gradually become the consumer's first choice and consensus.
More importantly, Red Star Macalline also has a core keyword, which is “light assets.” In recent years, Red Star Macalline's “asset-light, heavy operation, and leverage-reduction” strategy has progressed in an orderly manner, and breakthroughs have been made in all businesses. Through the asset-light model, Red Star Macalline can quickly penetrate the sinking market with lower capital expenses, and self-operated shopping malls, thus forming good synergy with the self-operated shopping mall business distributed in high-quality locations in first-tier and second-tier cities in China, providing a solid scenario of traffic and transactions for home furnishing brands, and better meeting the burgeoning needs of old houses, second-hand housing and local improvements in the stock market.
Red Star Macalline's 2021 annual performance report shows that, relying on the steady progress of the “light assets, heavy operation, and leverage reduction” strategy, Red Star Macalline's core financial indicators performed well in 2021, showing a high-quality development trend. In 2021, Red Star Macalline achieved operating income of 15.51 billion yuan, an increase of 9.0% over the previous year; net profit after deduction reached 1.66 billion yuan, an increase of 42.6% over the previous year.
According to Frost & Sullivan (Frost & Sullivan) data, Red Star Macalline's retail sales accounted for 17.5% of the home furnishing chain's share in 2021, continuing to rank first, and its market share was almost the sum of the second to fifth places.
This time, Red Star Macalline was selected as the “China Excellent Management Company” and became a member of the BMC Global Network to strengthen exchanges with outstanding global companies, which will help Red Star Macalline get closer to the vision of “building a world commercial brand for the Chinese nation”.
In the future, as a well-deserved leader in the home furnishing industry, Red Star Macalline will continue to iterate and innovate, create better results, and co-create symbiosis with the industry with a platform mindset.