How Home E-Commerce Breaks Through Red Star Macalline First Trial

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In the early days of home furnishing e-commerce in 2011, many traditional furniture companies began to explore the digital market. Fast forward to the third year of this industry, and the anticipated boom hasn’t fully materialized. Despite the efforts of major players like Red Star Macalline, the sector is still in its introductory phase. These traditional giants are continuously rethinking their marketing strategies, searching for a sustainable path within the evolving landscape of home e-commerce. A report from the China Industry Consulting Network highlights that home furnishing e-commerce already accounts for 19.8% of the total market. By 2015, the Chinese home e-commerce market is projected to reach 205 billion yuan, with online shopping growth expected to surge by 249%. Tmall alone saw over 34 billion yuan in turnover for home improvement and decoration in 2012, signaling strong potential. However, despite these promising figures, the industry faces several challenges. As a durable goods category, home furnishings require high-quality standards, making it difficult for online-only models to build consumer trust. Additionally, the unique nature of the home market makes it challenging for customers to guarantee an optimal user experience without physical interaction. Lastly, traditional companies often struggle with internal adjustments and operational shifts, creating friction between online and offline channels. Red Star Macalline, a leading name in the traditional furniture industry, has recognized that the development of home e-commerce is at a critical stage. The company launched Xingyijia, its own online platform, aiming to capture a significant share of the growing market. To achieve this, they are refining their e-commerce strategy and focusing on brand visibility and customer engagement. Currently, Red Star Macalline's 118 shopping malls nationwide serve as a solid foundation for Xingyijia. Promotional content from the online platform is prominently displayed in stores, helping to generate word-of-mouth and increase awareness. At the same time, the company is enhancing the user experience through localized efforts. Xingyijia is working on an integrated online-offline model, hosting events such as "online ordering, offline experience and purchase" across more than 100 shopping malls in 80 cities. These initiatives have been well-received by consumers. Moreover, Red Star Macalline carefully differentiates products sold online and offline. While the offline stores focus on premium offerings, Xingyijia targets mid-range products, minimizing conflict and ensuring complementarity. This strategic approach helps maintain brand value while expanding market reach. According to Xingyijia’s representatives, home products are considered long-term investments, and consumers demand higher quality compared to fast-moving goods. Although online sales currently make up only a small portion of overall revenue, the company believes home e-commerce is destined to become the mainstream in the future. Red Star Macalline remains committed to innovation and exploration in this space, aiming to carve out a distinct position in the market. Experts suggest that the home e-commerce sector is still in its infancy, hindered by issues such as product materials, regional experiences, and distribution logistics. 2013 is expected to be a tough year for large-scale home e-commerce ventures. However, there is still considerable room for growth and development in the years ahead. (Editor: Peter)

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