Affected by the in-depth control of the real estate industry, its upstream building materials industry and downstream home furnishing industry are facing severe challenges. While the performance of listed companies has fallen sharply, some small companies with tight capital chains have to close their doors and shut down, while others that are still able to sustain themselves are seeking transformation, such as using e-commerce platforms to combine traditional store sales to increase shipping channels. The home improvement industry has even fallen into the bottom, the business of the small guerrillas is not easy to do, and the orders of the big decoration companies are also decreasing. Is winter for the building materials home improvement industry really coming?
On September 3, which coincided with the weekend, despite the promotion of the Oriental Home Furnishing Plaza in Beijing's North Fifth Ring Road, it was still awesome. The owner of a whole cabinet is surfing the Internet boringly, "This year's business is too bad, and the discounts will not attract customers." Next to this cabinet store, there are several vacant stores, which still retain the names of some business brands. .
This is just a microcosm of the collective slump in the building materials and home furnishing industry. After experiencing crazy growth in recent years, affected by the regulation of real estate, the performance of the building materials and home furnishing industry in the first half of the year began to decline collectively, and even there were many closed down.
"From the floor to the wardrobe, to the decoration materials, etc., this year is generally not good." Tang Zhaoqun, general manager of Chaoshang Mall, said in an interview with the "First Financial Daily", "This industry has gradually started due to the increasing cost of traditional channels. Transform to e-commerce. "
Great decline in performance
In the first half of this year, the performance of listed companies in the building materials industry generally fell sharply, and some listed companies even suffered losses.
Smic, which is mainly engaged in the business of vitrified bricks and glazed bricks, suffered a net profit loss of 65.294 million yuan in the first half of this year, a significant decrease of 1098.36% year-on-year.
Smike said that in the first half of the year, the average sales price of the company's products fell by 5.9% year-on-year, while the average unit cost of sales increased by 10.3%, and the number of sales increased by 6.6%. The decrease of 11.6 percentage points reduced the gross profit of the main business by 47.62 million yuan year-on-year.
* ST Guochuang, which specializes in bathroom products, realized that its main business income in the first half of this year decreased by 24.23% compared with the same period last year; net profit fell by 99.3%.
The net profit of Chenglin Co., Ltd., which is mainly engaged in decoration materials such as ceramics trading, faucets, bathroom accessories, shower heads, and loose parts, dropped significantly by 297.59% year-on-year.
On the one hand, sales are declining, on the other hand, costs are rising. Tang Zhaoqun told this newspaper that rising store rents, labor costs, and raw material costs have eaten up a lot of profits.
Cheng Lin said that after the minimum wage adjustment in July last year, the company's labor cost increased by more than 20%. In April this year, the minimum wage was significantly increased, and the labor cost in the second quarter rose by 20% compared with the first quarter. In the case of a sluggish export environment, this is undoubtedly worse for the manufacturing industry.
Difficulties of transformation
"The transformation of the marketing channel of the home furnishing industry has reached an imminent point." Tang Zhaoqun said that the current home furnishing materials companies mainly sell through traditional channels.
The high rent of commercial real estate is the most important factor forcing the marketing transformation of home building materials companies. Zhu Hongyao, the general manager of Beautiful Island Flooring, told this newspaper that a problem was discovered last year. Most dealers think that in the past, they earned 100 yuan, of which the channel cost was about 20 to 30 yuan, but now whether it is a prefecture-level city or a county, Channel costs will rise to more than 30 to 50 yuan.
According to Weng Shaobin, president of Daya Technology, taking the flooring industry as an example, the business model has now reached the third stage. The first stage is the end of last century and the beginning of this century, building materials supermarkets squeezed out traditional direct stores and specialty stores out of the market; the second stage is around 2005, when a large number of finely decorated houses began to appear on the market, flooring companies must cooperate with real estate developers Otherwise, a large part of the market will be lost; the third stage is the current e-commerce.
"Apart from building materials, judging from the development of e-commerce in other industries over the past few years, that is not whether you build or not, but you have no choice but to build." Weng Shaobin believes that 5 to 8 years later, e-commerce may account for the floor The proportion of transactions is 50% ~ 60%. Now, traditional specialty stores, especially in first-tier cities, will gradually transform their functions from the current stores into experience centers.
"Household building materials are different from other products. In the past, it was generally believed that the Internet cannot sell semi-finished products for floors and home furnishing, because we think that experience is a very strong part of this industry. Consumers cannot directly buy online without the experience of a physical store. This kind of product. "Ye Jun, director of the Yangtze floor planning, said in an interview with this newspaper, but now e-commerce is a problem that companies must consider.
"The biggest problem restricting home e-commerce is the issue of integrity. At present, there are many poor quality home products on the Internet, so it has a negative impact on the entire industry." Tang Zhaoqun said.
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