Furniture and building materials in the peak season is not prosperous

In September, it is supposed to be the peak season for the consumption of building materials and home furnishing market. This year, it was somewhat deserted. Some building materials and home stores have been closed one after another, and merchants have been constantly asking for rent-offs. An industry shuffling campaign is underway.

In mid-September, the world's largest building materials and home retailer, American Home Depot announced that it has closed seven large building materials and home stores in Tianjin and Zhengzhou due to China's regional strategic adjustment. Prior to this, B&Q in the UK also reduced the number of stores in China from about 60 at the peak to about 40 (community network forum).

The days of domestic counterparts are also not good: in the first half of this year, Beijing’s “Bafanglong” lighting city with more than ten years of history was transformed into a flower and bird market. In July of this year, Red Star Macalline confirmed that the flagship store in Guangzhou, Pazhou, is about to be withdrawn.

According to statistics from the China Building Materials Circulation Association, in the first eight months of this year, the cumulative sales of building materials and home appliances above designated size nationwide was 779.2 billion yuan, down 6.84% year-on-year. The reason is that on the one hand, the property market purchase restriction policy has restrained part of the investment demand; on the other hand, the rigid demand in the face of rebounding housing prices and strict regulation, the performance is somewhat "tangled", many people hold a wait-and-see attitude.

The coldness of building materials and home stores has a certain relationship with real estate regulation, but this is not all. "It can be said with certainty that domestic building materials and home furnishing stores have been over-sized," said Qin Zhanxue, vice president of China Building Materials Circulation Association. For example, in a central city in the west, the population of the main city is about 7 million, and the area of ​​the store has reached 3 million square meters.

The diversion of e-commerce has also played a role in fueling the situation. The reporter learned from Qijia.com, the largest building materials and home e-commerce platform in China, that the platform completed sales of nearly 12 billion yuan in the first half of this year, a year-on-year increase of 100%.

At the same time, Home Depot announced that it is in contact with China's leading e-commerce platform to meet new customer needs. In the face of difficulties, operators of building materials and home stores have stepped up their efforts to expand into second- and third-tier cities.

Cai Yuren, deputy general manager of international home furnishing and special operations, said in Shanghai that the layout of first-tier cities in the entire home furnishing industry is almost saturated. In the second half of the year, Tellus and Music will open 5-7 stores and enter second-tier cities with vitality and consumption prospects in Wenzhou and Shijiazhuang.

In addition to shifting positions, shifting target customers is a bigger change. Qin Zhanxue analysis, for the building materials and home furnishing industry, the construction of affordable housing is actually a big cake. In addition, commercial housing development is increasingly inclined to provide hardcover and finished rooms. The purchase and renovation of materials for these houses is carried out by the builders, and the number of home stores that have a share of them is currently small.

Qin Zhanxue said that when it comes to individual customers, most of the home stores rely on the rent of merchants to live. For group customers, they are required to establish their own distribution systems and logistics systems. If we adapt to this change, building materials and home stores will be able to gain long-term development space in the process of urbanization in China.

In the short term, the expansion of consumption policies in some regions has brought a glimmer of hope to home furnishing stores. The Beijing Finance Bureau issued a notice on the website a few days ago to start a public bidding for the “Furniture Replacement Pilot” and will determine no more than six furniture sales companies. If this policy is promoted, it will undoubtedly ease the pressure on the building materials and home furnishing industry.

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