The home improvement market will not give the industry how to move forward

“The end of the double-season Golden Week promotion season means that the best sales time of the year has passed. Knowing that the market environment is not good this year, we are ready to even relax some traditional off-season, but the sales in October. The situation is still not strong, and the expected sprint has not arrived as expected." The owner of the ceramics store in the Venus Building Materials Market in Luohu Tianbei 4th Road said that this year is not destined to be good.

With the end of "Silver Ten", the final sales season of this year will also be closed. The reporter once again visited eight home furnishing stores in Tianbei and Baoan North Road. The respondents told reporters that even in the downturn of the property market last year, the market conditions in the same period have not been so low.

It is worth pondering that although all merchants have adopted a large promotion strategy during the year, the market is still not showing much improvement. The home improvement market is so weak, where is the crux? In the future, how will the home improvement industry move forward?

Whether the store is vacant or not

Since the end of last year, the voices of the home furnishing merchants in the country to close the store and switch jobs have been heard. As early as the beginning of the year, the industry insiders interviewed have predicted that at the end of this year, Shenzhen may have a large number of brands withdrawn.

It is understood that during the double festival in October, the large-scale home stores such as Shenyejiafu, Jinhaima, and Hongxing Meikailong all said that the double-sale promotion greatly improved the performance of the merchants. However, after a brief noisy, the reporters went to the 8 home improvement stores that were visited at the beginning of the year on weekdays and weekends. The traffic was as good as ever. Under such "quietness", there is another kind of dynamic: the vacancy of shops is more obvious than at the beginning of the year.

The reporter observed that some stores have posted more notices of “interior decoration” in the store. Although the vacant phenomenon of the store is there, in general, it does not exceed 10%. However, when the reporter consulted a number of merchants in the store, some merchants told reporters that in July and September each year, the home store was facing the problem of re-signing with the settled merchants. As far as they know, during that time, there were more than a dozen shops in the store to choose to withdraw.

“Clearance” and “One does not stay”, the eye-catching promotional language occasionally attracts several citizens to enter the store, but the price is high and the number of boards is small. In the long-lasting downturn, Gong boss, who is doing the door and window business, talked with the store management about the conditions and decided to finish the store this year. “There are not many real estate makers in the store, and it’s not bad to have one or two of them. In addition to the factory-operated stores, most of them are losing money.”

Gong Bo said that everyone is trying to figure out the aggregation effect, but the situation is not very good. "Now, by the end of the year, how much can be sold and sold, and then the store will be closed. It seems that the situation will be repeated in the year."

Does the road to expansion break through?

While withdrawing from the store and opening the new store, it is a strange phenomenon that the current brand home selling place presents. But whether the expansion of the road can really help the store out of the market "cold period", but people have to doubt.

At the end of July, the new style of the good-looking home in the Buji area opened. According to the introduction, the first weekend of the opening of the store, the traffic volume and volume of the store leaps and bounds, reaching more than three times the usual weekend; in August, the European city Xiangjiang home new opening, known as The first domestic 5G home complex, re-installed for two days, launched a total of 8 million profit-making feedback; September 23, Shenzhen building materials home brand enterprise - Huameiju home life square Shajing store opened, this is the opening of the gorgeous residence in Shenzhen The second store has been opened since then, and various promotional incentives have continued...

For the traditional model of home stores, the field rent is the benefit of its survival. If you do not open a new store or increase your rent, you will not be able to expand your turnover. For home manufacturers and dealers, the downturn in the big environment has made most companies do not want to follow up, but they are worried about their performance and dare not follow up. As a result, the contradiction between market players has become increasingly hot.

The domestic and foreign home improvement enterprises have gradually realized that this state is not desirable. Wang Tingguo, general manager of Milan Spring Radiator, said that the current building materials companies should follow the new store in the store to be selective. "Since last year, there have been many losses in each of the newly opened stores. Some brand stores may be The market share has been blindly opened, which has become a burden for enterprises." He said that in the case of Milan Spring, the opening of new stores has been very targeted.

"As with many industries in the current society, the home industry is now in a surplus stage, including not only products, overcapacity, but also sales stores." Industry expert Mr. Han said, "The threshold is now lower and more homogeneous. Competition is becoming more and more serious, coupled with the impact of the surrounding economic environment, the furniture industry feels very much pressure is inevitable."

It is worth noting that under the premise of poor environmental vitality, the overall home museum can be said to be a new thing in these two years. For example, the Art Exhibition Center has extended the past one and two phases to three phases, and the pavement is still in short supply. Shenzhen's first home furnishing market, “Slow Life”, Sungang Craft City Phase III Slow Life·Home Jewelry Center, before the opening, 95% of the shops have been rented out.

The Jewelry Boutique or Home Experience Pavilion provides a new space for the sale of furniture. The home products are used as exquisite jewelry to provide a new green for the industry, and the differentiated new stores are maturing.

The property market has a good recovery

The home improvement industry is sluggish. Many people in the industry will point their finger at one round after another, and they will not relax the property market regulation policy. They believe that the overall sluggish property market has dragged down the downstream home building materials industry.

Shenzhen Guohao Furniture Chairman Yu Guozhong reminded enterprises and dealers to have a psychological preparation for a protracted war. "We hope that dealers have a psychological preparation, because it is estimated that within three years, the country's macroeconomic regulation and control should not be too big. The adjustment is not good this year, and next year will not necessarily be good."

“The real estate and home industries, like teeth and lips, are inextricably linked.” Zhu Changling, chairman of the China Furniture Association, said in an interview that the real estate industry will generally affect the home industry after a year or half a year of downturn.

However, the reporter interviewed many insiders and learned that even if the current trend of the property market recovery can affect the home industry, how good the degree is, the home improvement enterprises have not much confidence.

Whether the real estate market can really recover, this issue is indeed "a bit overhanging." The expression of real estate mentioned in the report of the 18th National Congress has only one “establishing a housing system combining market allocation and government guarantee, and strengthening the construction and management of affordable housing”. In this regard, Dong Hao, director of the Real Estate Research Center of Beijing Normal University, believes that this can be seen as the top-level design of the CCP's solution to the housing problem, but this expression is not new, and it has been said for several years.

"In the face of rising housing prices and falling downs, the policy cannot be cancelled in the short term until the right way is found. Even after the 18th National Congress, certain aspects will still be severely suppressed, because as long as they do not suppress, House prices will rise, and housing prices will affect stability, which is a problem without solution." Dong Wei said.

“The home improvement industry must find its own way of living and can no longer rely on real estate” to become the voice of the interviewees. He Xunzhen, chairman of the Guangdong Furniture Chamber of Commerce and chairman of Fuzhidao Furniture Co., Ltd. suggested that, in the internal aspect, while focusing on sustainable development, the industry should tap its strength from the source and strengthen the competitiveness and vitality of its products. The vitality of the product stems from the quality of the product, the variety of the variety and the originality of the design. Externally, we will focus on emerging foreign trade markets such as Southeast Asia, the Middle East and Africa to open up the “Blue Ocean”. In China, new measures such as “renovation of furniture and old furniture” and “furniture to the countryside” may be tried.

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