Home stores are excessively "prosperous"

Home stores are excessively "prosperous"

As the home building materials industry gradually began to heat up, the sales form of the store has also been widely promoted, but at this stage, the marketing of the store also has its disadvantages. The general trend of the store “prosperity” leads to oversupply of the store, and the market appears to be oversupply, while the other In addition, because the flooring companies can not afford the heavy points of the store, they chose to evacuate. Therefore, for the marketing floor enterprises to enter the market must be stable and win.

Excessive "prosperity" in the store

Since the real estate industry has continued to heat up in previous years, since 2010, many well-known home hypermarkets have started “land battles” in major central cities across the country, and the staking has become the most popular game in home hypermarkets.

The over-expansion of the store has led to a direct result of excess store. The floor is an integral part of the home, and naturally it will not bloom from the downs of the home market. In the context of the continuous expansion of hypermarkets, at present, the volume of China's home stores has greatly exceeded the market consumption capacity, while the benefits of flooring companies and distributors have gradually withdrawn from the market, regardless of whether they are in the short-term or long-term. Development has an adverse impact.

The problem of excess home sales also exists in other parts of the country. According to the industry standard of 10,000 square meters annual sales of 100 million yuan to calculate, last year, the home building materials industry achieved annual sales of about 200 billion yuan, which means that 20 million of the store area can meet the market demand, and the current total area of ​​domestic home stores It has already exceeded 40 million. If the trend of the industry does not change in the future, 50% of the store area is surplus.

Oversupply in the market

Since the beginning of this year, news of the closure of home stores has spread throughout the country, and the current situation of the home furnishing industry is not optimistic. In the past few years, the situation of floor enterprises entering the store is still very lively. Nowadays, except for the well-known stores, the situation is slightly better. Most of the stores are cold and clear, and the floor brands are lonely.

The positioning of home stores is similar, and the homogenization of household products is more serious. The brand overlap rate in the home market is very high, the methods of promotion and the means of promotion are the same, and the innovation ability is very poor. These are the factors that cause the profits of dealers in many markets to decline or even lose. However, this is also the result of the law of the survival of the fittest.

Inflict increased competition in the industry

According to the relevant experience of developed countries, after a market has been fully competitive, a large number of enterprises will cease to exist, and 20% of the remaining enterprises will occupy 80% of the market.

The property market is regulating, market demand is shrinking, but the apparent excess of home stores is the main reason for the collapse of stores. The market capacity has been limited, the number of stores has increased, the turnover of single stores has naturally been diluted, the profit margin of dealers has been compressed, and it is inevitable that stores will not operate. If some home stores expand their momentum, then there will be a phenomenon of one side expanding and one side closing down. Some experts also believe that the current phenomenon of the closure of home stores is essentially the self-regulation of the industry. It is not a bad thing for the home industry to squeeze out the bubble itself.

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