Vicious expansion triggered industry reshuffle home stores to start transformation and upgrade

According to data released jointly by the Ministry of Commerce and the China Building Materials Circulation Association, the cumulative sales of building materials stores above designated size in the country from January to June this year decreased by 6.19%. Similarly, after a frenzied expansion last year, many merchants in Xi'an this year complained that business was difficult to do, and the traffic of the store was too small...

How can we seek a breakthrough in development? Wang Xuanqing, deputy director of the Department of Circulation Development of the Ministry of Commerce, said that the transformation of industry and industry has become imperative.

Change is passed, and the general rule is long. Many home stores in Xi'an are already undergoing transformation. After an in-depth investigation of the industry, the reporter hopes that the ideas and methods of seniors and pioneers can inject a "cardiotonic agent" into the industry.

After the "crazy" is cold

In the Xi'an Municipal Trade Commission, the reporter got the same information. Secretary-General Li Xue of the Chamber of Commerce and Industry said that at a seminar earlier, he said that last year's economic downturn, home shopping malls have become more difficult. . However, last year, Xi'an home building materials industry was indeed a year of crazy expansion. Within a year, many large-scale home hypermarkets appeared within the Third Ring Road, and they were concentrated in the sales season of May 1st and 11th home furnishing industries. The sudden increase in the market will inevitably lead to a decline in sales. Since the beginning of this year, various home stores have experienced different degrees of withdrawal.

This year, there are still a lot of home building materials stores opened. A dealer named Wang in Sansen Furniture City said that after the first round of sales in March, the Xi'an home market, whether in several newly opened stores or old-fashioned home hypermarkets, is a popular market, a large store, often There are more sales people than consumers who buy.

A dealer who has been doing ingredients for seven years told reporters that the Xi'an Depot, which closed down last year, has caused a major trauma to a large number of building materials dealers. This loss has not completely slowed down in the past year. Therefore, the market is always in a downturn, as a dealer, there is nothing to do with promotional activities.

Malignant expansion triggers industry shuffling

Last year, home furnishing stores closed down across the country. Home Depot, the second largest building materials retailer in the US, announced the closure of all seven home building materials retail stores in China; B&Q in the UK has reduced its stores in China from 60 to 40 at peak times. In Beijing, in just half a year last year, the number of home building materials stores closed down has reached eight. The Oriental Home Building Materials Supermarket, which used to be the largest chain building material supermarket in China, has also suffered from the closure of the store since the beginning of 2013.

In the interview, the industry believes that the reason why home stores have closed down, blind expansion, high saturation, and serious homogenization are the main reasons.

In the building materials and home furnishing industry, Li Baoyu, a professional manager who has been fighting for more than ten years, said that since the real estate market, home stores and dealers have spent a considerable period of honeymoon, shopping malls are everywhere, and the number of shops has leapfrogged...but since 2008 In just a few years, the situation has turned sharply. At present, the home market has been highly saturated, and the "cake" is so big. Everyone has come in and you are vying for it. He further analyzed: the general phenomenon of closing stores in home stores, on the one hand, the market demand caused by real estate regulation has shrunk, and the main reason is the fierce competition caused by the vicious expansion of the industry.

The shrinking market forces the home industry to transform and upgrade

In the interview, Huang Yuen, general manager of Ruitai Branch's real estate marketing planning agency, told reporters that since last year, the real estate market has undergone great changes, and the era of commodity housing has become unresolved, and then the real estate market in the financial crisis era. The pattern is already a three-point situation in the world of commercial housing, affordable housing and urban housing reform. The next high-end model of the real estate market will be – commercial real estate and office buildings will enter a period of rapid development.

For the building materials and home market in the downstream industry, commercial housing is the main consumer battlefield. At present, with the regulation of housing prices, the sentiment of holding the currency will continue. Therefore, the downstream home building materials industry that depends on the survival of the commodity housing market will surely continue to decline in sales as the area of ​​commercial housing starts to decrease. Therefore, it is extremely urgent for the real estate industry to force the upgrading and transformation of the home industry.

Give up the "price war" and choose "value war"

Huang Yuen told reporters that the 2008 financial crisis was under the trigger. The nationwide home furnishing store has entered a period of stagflation, and individual companies have begun to shrink. Xi'an’s home stores have just begun to expand fully, but they have taken over the position, so the market The balance of the pattern was broken, and the competition also intensified. The price war of the store promotion war became the main battlefield of the home industry.

Feng Zhenbang, deputy general manager of Yisen Zhenglong, said that from the very beginning, the home store has followed the management and marketing model of the home appliance industry. As early as ten years ago, when the home appliance industry appeared in professional stores, the marketing model used, after 10 years, the home building materials industry is still in use, from the president signing, to group buying, from the purchase to cash back, discounts, discounts, from celebrities Endorsements to the industry alliance, from price wars to preferential warfare, from factory purchase to experience, without exception, is the old way along the home appliance industry. These marketing models are no longer favored by the electronics and FMCG industries. At present, shaping the brand image, new product research and development, and technological innovation have become the core marketing model. This is the inevitable result of the current crisis in the home industry and the inability to extricate themselves.

One of the business management department of the Trade Commission said that due to the rapid development and expansion of the building materials and home furnishing industry for 10 years, the building materials and home furnishing stores that are only renting and renting are no longer sustainable. In order to obtain orderly and sustainable development, the furniture industry must abandon the "price war" and choose the "value war." In other words, the building materials and home furnishing industry will only have a new way out after the transformation and upgrading.

Li Yulin, secretary-general of Shaanxi Furniture Association, believes that the home industry must go out of the dilemma and must establish brand influence. It must rely on production technology, product quality and after-sales service, insist on continuous updating of quality, innovation in product design, continuous improvement of functions and creation. New value. At the same time, the implementation of brand strategy, standard positioning style, strict control of the price control mechanism, long-term brand strategic planning, positioning the company's own position, with long-term development as the goal, in order to shape the core competitiveness of high-end furniture companies. Our reporter Huang Meiru

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