Building materials and furniture stores often close the shop to cancel the rent "transfer" is the main point of breakthrough
In the autumn of September, it should have been the peak season for the consumption of the building materials and furniture market, but this year it was somewhat deserted. The three consecutive months of rising house prices and the statement of the Ministry of Housing and Urban-Rural Development that the Ministry of Housing and Urban-Rural Development insisted on insisting on regulation and control made the buyers' mentality somewhat entangled. In addition to the excessive expansion in the early stage, some building materials home stores have been closed, and merchants have also constantly asked to retire. An industry reshuffle is starting.
Multi-site building materials home stores closed
In mid-September, Home Depot, the world's largest building materials home furnishing retailer, announced that it had closed its seven large building materials home furnishing stores in Tianjin and Zhengzhou due to regional strategic adjustments in China. Prior to this, B & Q in the UK also reduced the number of stores in China from more than 60 at peak to around 40.
If the foreign-funded stores are closed because of "water and soil is not accepted", the life of domestically-grown domestic counterparts is not easy: in the first half of this year, the "Bafanglong" lighting city with a history of more than ten years turned into a flower and bird market. In July this year, Red Star Macalline confirmed that its flagship store in Guangzhou's Bazhou was about to withdraw.
According to statistics from the China Building Materials Circulation Association, the cumulative sales of building materials home furnishing stores above designated size in the first eight months of this year was 779.2 billion yuan, a year-on-year decrease of 6.84%. The reason for this is, on the one hand, that the property market purchase restriction policy has suppressed some investment demand; On the one hand, rigid demand is somewhat entangled in the face of rebounding housing prices and strict control policies, and many people hold a wait-and-see attitude.
Blind expansion + e-commerce distribution
The coldness of the building materials home store has a certain relationship with real estate regulation, but it is not the whole reason. Many industry insiders analyzed that blind expansion and e-commerce diversion are the real drivers of the industry's difficulties. "It can be said with certainty that the domestic building materials and home furnishing stores are already in excess." Qin Zhanxue, vice president of China Building Materials Circulation Association, said. For example, in a central city in the west, the population of the main urban area is about 7 million, but the area of ​​the store has reached 3 million square meters, which is clearly surplus.
While sales of the building materials and home furnishing industry declined, the scale of new stores was increasing. In Qin Zhanxue's view, the reason behind this contrast lies in the small abacus in the operator's mind: At present, commercial real estate is not regulated like residential real estate. Even if the home store is not doing well, it can be transformed into something else. "In fact, building materials and home furnishing are already the most basic needs. If this is not done well, how can the transformation succeed?" He said.
The diversion of e-commerce also played a role. The reporter learned from Qijia.com, the country's largest building materials home e-commerce platform, that in the first half of this year, the platform's completed sales amounted to nearly 12 billion yuan, an increase of 100% year-on-year. "Post-90s", they will choose a more convenient decoration method when they first buy a home, which gives the e-commerce platform a great development opportunity.
Although the current impact of e-commerce on the industry is not particularly great, but with the standardization of household products, the diversion effect will become more apparent in the future. While closing the store, Home Depot announced that it is engaging with China's leading e-commerce platform to meet new customer needs.
"Transfer" is the main point of breakthrough
Faced with the dilemma, operators of building materials and home furnishing stores stepped up to break through and expand into second- and third-tier cities as an option.
Cai Yuren, deputy general manager of operations for international furniture brand Tellus and Le, said in Shanghai a few days ago that the layout of first-tier cities in the entire home furnishing industry is almost saturated. In the second half of the year, Teli Hele will open 5 to 7 new stores and enter the second-tier cities with vitality and consumption prospects such as Wenzhou and Shijiazhuang.
In addition to transferring positions, transferring target customers is a bigger change. Qin Zhanxue analyzed that for the building materials and home furnishing industry, the construction of affordable housing is actually a big cake. In addition, commercial housing development is also increasingly inclined to provide hardcover rooms and finished houses. The purchase and decoration of furniture materials for these houses are carried out uniformly by the builders, and the number of home stores that can get a slice of it is currently very small. "The reason is that this is caused by the inconsistency between the end-consumer model of the home store and the needs of the builder." Qin Zhanxue said. When faced with individual customers, most of the household stores rely on collecting rents from merchants. For collective customers, they need to establish their own distribution system and logistics system. If you adapt to this change, the building materials home furnishing market can obtain long-term and stable development space in the domestic urbanization process.
In the short term, consumption expansion policies in some regions have brought a glimmer of hope to home furnishing stores. The Beijing Finance Bureau has issued a notice on the website a few days ago, initiating a public bidding for the “furniture trade-in pilot†and will determine no more than six furniture sales enterprises. If this policy is promoted, it will undoubtedly ease the pressure on the building materials and home furnishing industry.
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