The impact of real estate regulation and control will be radiated in various industries such as building materials, ceramics and furniture . The madness of the property market in 2009 and the active advancement of infrastructure have also spawned a large number of dealers. And in the second half of 2011, after they passed the period of rapid development, they had to face the operational pain caused by the shrinking industry. Even the big distributors with stronger strengths said that the sales dropped sharply, and 2012 seemed even more sad.
As a small and well-known dealer in the Guangzhou furniture industry, the overall performance of Shiwei Pavilion has dropped by about 30% in the first half of this year. Even if the facade is added, the overall performance is lower than before. Occasionally, the balance can reach a balance in one month, and the rest Basically, they are losing money. In the furniture industry, major distributors generally face downward pressure on sales.
Not only the furniture industry, but also the building materials industry, bathroom products, and decoration industries all experienced shrinking sales. The performance of some large distributors this year has declined by varying degrees, with a maximum decline of 50%. The impact of real estate regulation is a direct incentive. Starting in the second half of 2011, the situation in 2012 will be more severe.
In the face of difficulties, many dealers' development plans have been stranded, and they have said that they can adjust their stores at any time according to the operating conditions, and the places with better markets will increase, and the bad stores will close. At the same time, dealers who originally focused on high-end products have also begun to explore the path of diversification, and began to promote products for low-end consumers with weak consumer power.
I didn't expect shrinkage to come so fast
"From a macro perspective, there will be a trough in the development of the industry in three to five years, coupled with changes in the international situation and stimulus from external factors, shrinkage will inevitably occur." Li Qizhong, the person in charge of Shiwei Pavilion said, but real estate The impact of regulation is the most direct.
"The real change started in the second half of last year, and we also expect that the market will start to shrink, but we did not expect to come so fast." Wang Weidong, general manager of Nature Floor Guangdong Branch, felt that after July last year, the company's orders Started to decrease significantly.
In the decoration industry, some small and medium-sized decoration companies are forced to close due to shrinking business and rising cost pressures. Even for powerful brand companies, the annual turnover decline is at least 30%.
"Now many big dealers in the furniture industry are losing money." Hu Yuanqian, the boss of Yongbotang dealers, said that taking the May 1 Golden Week as an example, the prices are only concessionary, and the overall performance of its stores from January to May fell by about 20%. The peak sales season is also very bland, the cake is smaller, more people grab, the business is less.
Although the number of stores is not large, Lin Jiansheng, a well-off dealer, said that according to his understanding with his peers, this year the market is difficult to do. "The newly opened stores, like a large home purchasing center in Pazhou, Vegas and Ouyada all have a lot of vacancies, and even some of the stores that were very popular are now starting to have vacancies. If they are not sold well, they will not lose money. The survival of the new store also requires at least three to five years of cultivation period. "
Zhang Chengzhi, secretary general of the Guangdong Furniture Association, said that about 30% of furniture dealers are in low profit, about 40% are in capital preservation, and about 30% are in loss. In the eyes of many furniture dealers, this data is relatively conservative. "I expect about 40% -50% to be loss-making." A boss who has been in the bank for many years said, "Many people are insisting on it. The company is hard to do it. Even if it is a loss, you can stick to it."
Pay more than in previous years, the decline continues
In the furniture industry, it is not only the Shiwei Pavilion that is facing a decline in sales.
Jinshang Famous Store has opened 40 stores in the Pearl River Delta since its establishment in 2002, most of which are concentrated in Guangzhou. Jin Shang, general manager of Jinshang Store, previously revealed that the turnover in 2011 fell by 30% to 40% from 2010, and the first half of 2012 fell by 30% to 40% from the same period in 2011. "The situation is expected in the second half of 2012 It could be worse. "
Chivas mattresses, well-known to the public, have developed very rapidly in recent years, with all stores in first-tier cities stationed. There are currently more than 500 specialty stores. Due to the wide range of shops, the operating pressure has also increased.
"After a day of meetings, the pressure is high, we must seize it." Xiang Yang, general manager of Chivas South China, said with a smile. According to her, the company's sales in 2011 were the same as in 2010, "but this is flat with the increase of the facade, in fact it is down." (Source: Southern Metropolis Daily Nandu Net)
The feeling of paying more and reaping less was recognized by Wang Weidong, general manager of Nature Floors Guangdong Branch. "A lot of adjustments have been made this year, and we have paid more than last year to achieve a flat state. If we do the same thing this year as last year, it must have declined."
In 2011, the sales of Nature Floors increased by 17%. "But the target set at the beginning of the year is 30%, there is no way, it really can't be achieved." Wang Weidong said, he also compared the market situation in 2012, a 20% year-on-year decline in March, sales in April were basically flat, and there was no final in May Statistics, "at most it is flat."
"Some of the peers have slid very hard, even reaching 50%, and the situation of the natural floor is still good."
In addition to these large dealers, some small and medium dealers are also facing a decline in sales. Yongbotang, which has a branch in Gimhae, has a total of more than 20 in Guangzhou, and 70% of large stores have entered. "Factory direct sales are better than smaller agents. If the factory has a 10% profit, even if it is sold at a flat price, it looks like a loss, but the market can still be flat."
Expand or not? Uncertain prospects
Whether to enter Beijing and when to enter Beijing, Shiwei Museum is hesitating. Whether to expand or close, where to expand and where to close, is also a problem faced by other dealers. "In the past two years, we must first seize our important cities and regions, but now we are more cautious and a little more stable." In 2012, the principle of the Shiwei Pavilion was to plan to open 10-15 new stores, while adjusting the old stores. , The market with confidence and prospects will increase, such as the Louvre. Five stores have been added in the past few months. If the benefits are not good, consider closing.
"Floor industry reshuffle has intensified. Many stores have peers closing stores. If they are not operating well, they will reduce their stores." Wang Weidong, general manager of Nature Floors Guangdong Branch, said that in terms of channels, any losses will be closed. "We feel that the market cannot be improved in the short term. If it lasts for about two years, we must adopt this approach to deal with it. If it is a short term, it will be over after a while, but it is not now."
As of now, Nature Floors has added two new stores this year, but if the old store suffers severe losses, it will be closed. "Generally speaking, the average store sells at least 500 square meters to protect the capital. We also have a few stores that are losing money, but it depends on how to calculate. If you look at the amount of sales signed, you will have a profit; if you install according to the actual customer, it is Loss ".
Due to the uncertain prospects, some dealers have been unsure of the new trend this year. Hu Yuanqian, the business owner of Yonghaitang ’s Jinhaima Jiangnan Avenue Store, said how to adjust the storefront this year will be decided in the second half of the year. "A good market still needs to be entered. After all, if there is production, it will be sold on the market. But if the loss is relatively severe, the store will be withdrawn."
Originally high-end, now diversified
Although the market is unclear and the dealers are not optimistic about the future market, they still try their best to drive sales.
Natural Floor has made active adjustments in its products. On the one hand, based on high-end products, a new high-end floor brand has been developed, which is "close to the meaning of luxury goods". At present, the sales of high-end products are relatively stable. On the other hand, low-end and mid-range products with high cost performance, such as laminate flooring, are being launched, which is approaching low consumption. "Such adjustments are also made according to changes in the real estate market. The high-end is really not affected much, some low-end products are gradually going to the low-end, and the real impact is the mid-end products." Nature Floor Guangdong Branch Manager Wang Weidong said.
The original high-end products are now exploring the low-end, nature is by no means a case. (Source: Southern Metropolis Daily Nandu Net)
"We also have to cater to market demand." Xiang Yang, general manager of Chivas South China, said that the current small apartment properties are selling well, and the launch of affordable housing, the audience is mainly relatively low-income groups, in order to cater to the needs of these customers , More and more companies are making targeted adjustments.
As for the future, distributors in various industries are still actively exploring whether they are diversified and are hesitant to focus on high-end products. Li Qizhong, the relevant person in charge of Shiwei Pavilion, admitted that the company has plans to set up a subsidiary company to operate popular products. It is a medium-priced but good quality product. "But it is still in the discussion stage. The channel has not been implemented. The pressure is also very high. "
miniature
Overall performance fell by 30% in the first half
Shiwei Pavilion, a well-known distributor in the furniture industry in Guangzhou, as of now, has more than 70 stores in seven cities and regions in Guangzhou, Panyu, Shenzhen, Lecong, Zhuhai, Wuhan, and Chongqing. The store is concentrated in the exhibition hall of specialized furniture venues, focusing on high-end personalized furniture. Since 2010, Shiwei Pavilion has stepped out of Guangdong to face the national layout, with a planned sales target of 500 million yuan in 2012.
"In such a special period, it is indeed not easy to do it." Li Qizhong, the relevant person in charge of Shiwei Pavilion, said, "The industry began to decline at the end of last year, and it became more and more obvious in the first half of this year. Dealers felt that life was not good. Currently 80% -90% of the stores do not make money, and the monthly loss is 3 million to 4 million yuan. In the first half of this year, the overall performance fell by about 30%. Even if the facade was increased, the overall performance was lower than before. Occasionally, the balance of payments can be reached within a month, and the rest of the month is basically at a loss.
Affected by the overall shrinkage of the industry, the original plan of Shiwei Pavilion to enter Beijing and Shanghai this year has also become uncertain. "Generally speaking, special areas must be stationed, no matter how much profit or loss, they must seize the market. But this year the industry is becoming more and more difficult, and rising prices have led to higher wages for employees. When they first entered Beijing and Shanghai, they certainly did not make money. So the plan is temporarily affected. "Li Qizhong revealed.
â– Look at the market
The real change started in the second half of last year, and we also expect that the market will start to shrink, but we did not expect it to come so fast.
——— Wang Weidong, General Manager of Nature Floor Guangdong Branch
Many large distributors in the furniture industry are losing money.
——— Yubotang dealer boss Hu Yuanqian
The situation is expected to be worse in the second half of 2012.
——— Zhang Bangken, General Manager of Jinshang Famous Store
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