(Yicai Global) June 15 -- Slow growth in demand growth and the impact of e-commerce are forcing the household appliance retail chain to seek a change in business model.
The first virtual-reality (VR) movie theater set in a GOME Electrical Appliances Holding Limited [0493.HK] (GOME) store opened to the public in Beijing on June 12.
"The VR movie theater is not just a place to watch movies," said Gome President Wang Junzhou. The VR movie theater is a pilot for retail reform within GOME.
The GOME VR Movie Theater covers an area of nearly 300 square meters. Consumers can experience VR movies, VR games, parties, an academic salon and 3D printing.
With iteration and corresponding quality improvement of VR technology, GOME will cooperate with good content producers and movie theater operators to satisfy consumer demand for offline entertainment experiences, said Guo Jun, GOME's senior vice president.
The GOME VR Movie Theater has negotiated with Steven Spielberg's VR content producers, Virtual Reality Co., said Wang Congqing, president of HTC's Vive Studios, GOME's primary technical partner..
The VR movie theater will increase footfall in GOME stores and generate more sticky consumption, insiders said.
After Beijing, GOME will push its VR movie theater model to its stores in other Chinese cities in future.
In addition to the VR movie theater, GOME said it will integrate culinary and entertainment elements such as its Cartoon Hall and Baking Classroom to enrich the experience of customers in stores and improve the capacity transferring passenger flow to sales income.
Aside from online and offline integration, the key point is the value restructuring of physical stores, Wang said. Scenario consumption and experiential consumption are the crucial aspects for realizing the sustainable and healthy development of physical stores.
Since the scenario revolution started in GOME in 2015, over 150 stores have thus far finished new scenario reconstruction. They integrate household appliances, entertainment, leisure, decoration, catering and finance, and provide customers with experiential consumption scenarios.