The times are changing. Today, 80 and 90 have become the main consumers. When it comes to home purchases, the voice of “check-in†is getting higher and higher. So in order to cater to the needs of consumers, real estate developers have launched a hardcover housing strategy and have gradually become a trend.
However, this is undoubtedly a clear day for the furniture and building materials industry. The news of the stunners, together with the e-commerce industry, is also robbing the market of resources, making the situation of physical home-based companies very awkward. For this dilemma, how should home companies be better?
The rise of e-commerce, physical store sales as bad as before
First, look at a set of data. The national building materials boom index BHI, jointly issued by the Ministry of Commerce's Department of Circulation Industry Development and the China Building Materials Circulation Association, points out that January-December 2017 accumulated sales were 917.37 billion yuan, a year-on-year decrease of 22.60%. . In January 2018, the national building materials index (BHI) was 79.82, a decrease of 12.24 points month-on-month and an increase of 8.47 points year-on-year. Sales volume of building materials homes above the national level reached 68.15 billion yuan in January, down 12.55% month-on-month and 41.23% year-on-year.
Overall, the market for furniture and building materials continued to slump, and the overall effect of the overall performance of the nation's building materials and home furnishing market in January was also steady and moderate. Compared with the same period last year, the market performance was relatively warmer, and the sales of building materials and home appliances above designated size increased by 41.23% year-on-year.
For the current situation in which the furniture and building materials market continues to slump and the current market is deserted, some people in the industry believe that this is normal. For a long period of time in the past, during the Spring Festival season, it was considered as the traditional peak season of the home market. However, in recent years, under the rapid development of diversification of e-commerce and sales channels, the peak season for the Spring Festival has been eliminated.
Due to the rapid rise of e-commerce and changes in people's buying habits of home furnishings, physical store sales have shrunk, and home retailer physical stores have gradually transformed into experience stores and image flagship stores. “A home furnishing industry observer said that a senior manager of the Hongmu building also admitted that they knew that the merchants did not sell their products and that the shopping malls had gone to a rent collection period. They were also guilty of being jealous, but they could not be rented because they did not sell their goods. Dilemma.
Hardcover room becomes another flood of domestic enterprises
Why has the business of home stores been deserted or even shrinking in recent years? Some people in the industry pointed out that this has a great impact on the proportion of hard-to-finish housing transactions that have risen year by year. According to media reports, in first-tier cities such as Beijing, Shanghai, Guangzhou, and Shenzhen, hardcover housing projects are growing at a rate of almost 10% per year. More than 70% of new projects in Guangzhou are hardcover rooms, 60% in Shanghai, and Beijing also reaches 50%.
In the more mature cities of real estate development, hardcover houses have already demonstrated high market acceptance and unique advantages. The hardcover room can realize “baggage check-inâ€, which means convenience and peace of mind to the owner. For the consumption of building materials, it means that it is placed in front of the entire industry chain.
The production method of hardcover houses is a technology-intensive large-scale industrial production, that is, development companies, construction companies, design units, product manufacturing companies, furniture and building materials production companies, and building materials brand chain stores can form a large-scale industrial chain, reflecting the scale The advantages of chemical and industrialization are time-saving and environmentally friendly. The large-scale promotion of hardcover houses has the greatest impact on home retail stores that focus on retail sales.
In the past, they were between furniture and building materials companies and consumers, and the appearance of hardcover houses allowed building materials home companies to cross the store and directly face developers or builders. This is because on the one hand there is stronger bargaining power, and more importantly, the intermediate link of the store is omitted. This has an obvious impact on the furniture and building materials market.
The Beijing Municipal Housing and Construction Commission announced on August 9, 2016 that Beijing public rental housing, affordable housing, price-restricted housing, shanty town reconstruction and resettlement houses, and self-contained housing will be fully implemented. At this point, all projects (including self-contained housing) newly incorporated into the annual construction plan of Beijing's social security housing have fully implemented fully-furnished finished products.
From this point of view, the promotion of hardcover houses has become a trend, and the impact on home stores in the future may become even more apparent.
Accelerate the transformation and adapt to the market
Although home stores are not as prosperous as in previous years, traffic has actually decreased, and poor business practices are also common conditions. However, some home stores make amazing money.
On February 10th, Chengdu Fusenmei Furniture Co., Ltd. released its 2017 annual performance report. According to the report, Fusenmei achieved operating income of 1.258 billion yuan in 2017, an increase of 3.06% year-on-year; operating profit was 769 million yuan, an increase of 17.50% over the same period of last year. Red Star Meikailong realized revenue of approximately RMB 10.6 billion in 2017, surpassing the RMB 10 billion mark for the first time; the estimated net profit is RMB 2.28 billion.
In 2017, Actually Home opened the “crazy action†of store expansion, and also stated that in the next five years, 600 stores will be opened nationwide, and in the next 10 years, there will be 1200 stores nationwide. In order to accomplish this goal, actually the home is in the strategic layout, but also a heavy attack, as in the previous period, accepted from Alibaba, Taikang Group, Yunfeng Fund, Jiahua Albert Capital and other investment institutions up to 13 billion yuan of joint investment, And reached a new retail strategic cooperation with Alibaba Group.
Obviously, from the above data, it can be seen that since the rental fees from home stores to shops are not affected by the hardcover rooms, once the business operators are in a long-term downturn, they will no doubt have to choose to withdraw from the stores. The result will definitely affect the market revenue.
Many stores have advanced the layout ahead of schedule and can work directly with upstream real estate developers. The characteristics of “one-stop†shopping are gradually being highlighted. From design to decoration, from purchasing materials to furniture accessories, from household goods to home accessories, that is to say, from the consumer to the house key to formal occupancy, all the consumption links can be Actually home to achieve. Of course, hardcover room cooperation is no exception.
The hardcover room policy is not a flood of beasts. Home stores and merchants must actively respond to accelerated transformation, timely capture market information, do a good job of market analysis, and formulate a feasible operating plan. Only in this way can we not be afraid of this “flood and beast†in the hardcover room.
Conclusion:
The e-commerce channels and hardcover room projects have become new barriers for the home building materials industry. The e-commerce channels have caused the sales of home physical stores to drop substantially. The emergence of hard-packed rooms has enabled the home business market to be topped off. Rather than sit back and wait for self-satisfaction, it is better to open up online channels to accelerate business transformation and achieve true “one-stop†services. This is the only way for major home stores and merchants to break through the difficulties.
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