The overall wardrobe has gone through ten years in China since its inception. In recent years, the overall wardrobe has suddenly become a blockbuster in the sluggish home market, igniting the fire of the industry's resurgence. At present, the overall wardrobe industry is rapidly growing in major home building materials stores in Beijing, and the number of dealers is also increasing. Among them, there are many other types of dealers, such as furniture, wooden doors, cabinets and so on. Among them, the furniture distributors' attention to the wardrobe industry has attracted much attention.
It is worth mentioning that many distributors in the furniture industry gave up operating furniture and turned to the wardrobe industry. This has become a trend in Beijing and even in China. The reasons for the trial analysis are summarized as follows:
Rents are rising year by year, squeezing profit margins
Faced with the luxury facilities in the home shopping mall and the high operating costs passed on to rent and other expenses, the cost of settlement is generally high. According to the survey of dealers and stores, the rent levels of home furnishing stores in Beijing and Shanghai are similar, in mainstream stores , Such as Beijing ’s “Homeâ€, “Outside the Cityâ€, “Red Star Macallineâ€, “Jimei Homeâ€, “Lanjing Lijiaâ€, “Love Homeâ€, “Lvxin Homeâ€, etc. Different locations are priced separately. The rent for the best location exceeds 450 yuan / square meter (used area), the rent for the worst location also exceeds 40 yuan / square meter (building area), and the average rent is 120 yuan / square meter (building Area). Moreover, the rents are increasing every year, and the long-term lease contract stipulates that the required percentage increase must be paid every year. Especially in the past two years, the rental prices of stores around the world have been rising. The distributors of products often complain that the rents are too high, and they can only spread the rents to the commodities through price increases, making their prices increasingly less competitive. With a store size of 200 square meters, according to the current rental status, merchants must have a monthly sales of more than 250,000, and a gross profit of 35% can be basically flat without loss.
According to a Beijing-based furniture distributor, "20% of rent, 10% of transportation, distribution, installation fees, 5% of staff salaries, and commission fees have constituted 35% of gross profit, excluding taxes, finance, management, etc. Expenses, under the current market conditions, it is actually not easy to achieve this sales. Sometimes in order to achieve sales, you can only cut profits and sell them at low prices, but even this is the same loss. "Furniture dealers make a living The difficulty is evident.
Blind expansion, overcapacity
The Chinese furniture industry has experienced rapid development for nearly 30 years, and has now entered a state of "overcapacity". According to the monitoring and forecast of relevant agencies, the average growth rate of China's furniture consumer market in the past few years has reached 8.8%. In 2005, the demand reached 180 billion yuan, in 2006 the demand reached 210 billion yuan, and in 2007 the demand reached 300 billion yuan. Even in 2008, when the financial crisis triggered by real estate and oil raged the world, demand exceeded 300 billion yuan. The 20% -30% annual expansion rate leads to a surplus of provincial channels.
The expansion of the store leads to the "follow-up" of brand merchants. They follow the store and keep opening new stores, hoping to take the lead. On the one hand, it is desperately expanding, while on the other hand, sales are declining. The field of furniture circulation has entered an era of blind expansion and disordered competition. At present, the average profit margin of the furniture industry is only about 3%. If a little careless, the merchants will lose money. At the same time, the rapid expansion of furniture stores has brought many disadvantages to itself.
The rapid expansion of furniture stores has led to oversupply, which is one of the reasons for the decline in store sales. In the past two years, the increase rate of various large-scale stores that mainly focus on furniture sales has reached 20% to 30% in first- and second-tier cities. The furniture store area in many provincial cities has reached 2.8 million square meters, and Every year, hundreds of thousands of square meters of new development are developed. In addition, the same positioning of shopping malls, the high overlapping rate of investment brands, the same promotion methods and promotional activities, so that many dealers in furniture stores have suffered losses.
In this regard, some experts pointed out: "The furniture store is unprecedented disaster or has come", this statement is true. The current furniture market is too much, and it has developed into a state of being out of control. The so-called out of control is the unreasonable layout. In some large and medium-sized cities abroad, the number of home stores with a large-scale furniture market of more than 10,000 square meters will not exceed 3 at most, and the total area of ​​stores will not exceed 800,000 square meters. In China, according to rough statistics, as of the end of 2009, there were more than 1,000 home furnishing stores with an area of ​​more than 10,000 square meters in the country, and almost all large and medium-sized cities have a large excess of furniture market.
Although the furniture consumer market is now huge, it is far from catching up with the annual growth of furniture production and the rate of increase of circulation enterprises. The expansion rate of furniture stores in China is also very fast, especially in recent years, the expansion rate is unprecedented, from tens of thousands of square meters to hundreds of thousands of square meters, and even the furniture store area has an area of ​​more than 1 million square meters. According to incomplete statistics, in 2009 alone, there were more than 100 new furniture hypermarkets with more than 10,000 square meters in the country. On the surface, the number of furniture stores has increased and increased, and the opportunities for furniture manufacturers to compete for market space have increased accordingly. The sales network has expanded and the marketing cost should be reduced. However, due to repeated construction and fighting each other, the performance of the unit sales point has decreased, the marketing cost has increased, and the furniture store is facing increasing pressure. Now, the more provincial furniture stores are opened, the more they are built. The swarms of swarms that have appeared in other industries have begun to cover the entire furniture industry. As far as the Beijing market is concerned, it is not already saturated, but already surplus. Many furniture cities no longer have the crowded scenes of the past, most of them are monkly birds, the business is deserted, and 70% of the merchants in many large furniture chain stores are facing losses.
Perennial promotion, hard to make a difference
Facing the tremendous pressure of the first- and second-tier cities, many furniture companies have seen the huge potential of the third- and fourth-tier markets and the rural market, and have taken a fancy to the huge cheeses that are sinking. As a result, some companies have carried out dislocation operations, accurate positioning, and channel sinking, and vigorously explored domestic third- and fourth-tier markets in order to achieve higher channel coverage and avoid homogeneous competition and branded operations.
After the channel sinks, discount sales are regarded as "life-saving straws" by many merchants, so many regular promotional ads make many consumers tire of it: What is the real price of furniture? Can a home with such a high profit make? Consumers' distrust and alertness naturally arise. At this time, no matter how fancy the advertisements are, the discounts are even lower. I am afraid that they will not impress consumers who have lost their trust.
Although the discount sales of major furniture malls at the end of last year drove some sales, from the words "dealing at a loss", "blood-price reduction", "big bottom promotion", it can still be revealed that furniture manufacturers and stores have been deeply affected by the crisis . This year's situation is not optimistic. Furniture companies really need to have a tenacity to fight against death in a crisis.
To sum up, in recent years, China's furniture industry has faced the following situations: mature consumption, fierce competition, homogenization of products, reduced space, and significantly reduced economic benefits. Despite the nearly 20% growth in the domestic furniture consumer market in 2009, furniture distribution companies have also increased at a rapid rate, leading to increased competition in this market. In addition, the rapid expansion of furniture stores has led to oversupply, which is one of the reasons for the decline in store sales. In recent years, the global economy has been declining, the financial turmoil has raged the world, and domestic and foreign consumer demand has shrunk. The eyes of corporate stores are in the first- and second-tier cities, making this a "Red Sea." Dealers and store giants are busy "fighting landlords" and reducing rents. More dealers were even unable to fight, and the landlords could not fight anymore. Facing various difficulties, the road to change was a bit dazed, and they could only quietly retreat.
At the same time, the rise of the overall wardrobe industry seems to allow more furniture industry distributors to see the dawn, so they have "abandoned the secrets". As a "new force" in the home furnishing industry, the overall wardrobe has continuously created miracles since entering the market, which will inevitably become the next growth point of the home furnishing industry.
It is worth mentioning that many distributors in the furniture industry gave up operating furniture and turned to the wardrobe industry. This has become a trend in Beijing and even in China. The reasons for the trial analysis are summarized as follows:
Rents are rising year by year, squeezing profit margins
Faced with the luxury facilities in the home shopping mall and the high operating costs passed on to rent and other expenses, the cost of settlement is generally high. According to the survey of dealers and stores, the rent levels of home furnishing stores in Beijing and Shanghai are similar, in mainstream stores , Such as Beijing ’s “Homeâ€, “Outside the Cityâ€, “Red Star Macallineâ€, “Jimei Homeâ€, “Lanjing Lijiaâ€, “Love Homeâ€, “Lvxin Homeâ€, etc. Different locations are priced separately. The rent for the best location exceeds 450 yuan / square meter (used area), the rent for the worst location also exceeds 40 yuan / square meter (building area), and the average rent is 120 yuan / square meter (building Area). Moreover, the rents are increasing every year, and the long-term lease contract stipulates that the required percentage increase must be paid every year. Especially in the past two years, the rental prices of stores around the world have been rising. The distributors of products often complain that the rents are too high, and they can only spread the rents to the commodities through price increases, making their prices increasingly less competitive. With a store size of 200 square meters, according to the current rental status, merchants must have a monthly sales of more than 250,000, and a gross profit of 35% can be basically flat without loss.
According to a Beijing-based furniture distributor, "20% of rent, 10% of transportation, distribution, installation fees, 5% of staff salaries, and commission fees have constituted 35% of gross profit, excluding taxes, finance, management, etc. Expenses, under the current market conditions, it is actually not easy to achieve this sales. Sometimes in order to achieve sales, you can only cut profits and sell them at low prices, but even this is the same loss. "Furniture dealers make a living The difficulty is evident.
Blind expansion, overcapacity
The Chinese furniture industry has experienced rapid development for nearly 30 years, and has now entered a state of "overcapacity". According to the monitoring and forecast of relevant agencies, the average growth rate of China's furniture consumer market in the past few years has reached 8.8%. In 2005, the demand reached 180 billion yuan, in 2006 the demand reached 210 billion yuan, and in 2007 the demand reached 300 billion yuan. Even in 2008, when the financial crisis triggered by real estate and oil raged the world, demand exceeded 300 billion yuan. The 20% -30% annual expansion rate leads to a surplus of provincial channels.
The expansion of the store leads to the "follow-up" of brand merchants. They follow the store and keep opening new stores, hoping to take the lead. On the one hand, it is desperately expanding, while on the other hand, sales are declining. The field of furniture circulation has entered an era of blind expansion and disordered competition. At present, the average profit margin of the furniture industry is only about 3%. If a little careless, the merchants will lose money. At the same time, the rapid expansion of furniture stores has brought many disadvantages to itself.
The rapid expansion of furniture stores has led to oversupply, which is one of the reasons for the decline in store sales. In the past two years, the increase rate of various large-scale stores that mainly focus on furniture sales has reached 20% to 30% in first- and second-tier cities. The furniture store area in many provincial cities has reached 2.8 million square meters, and Every year, hundreds of thousands of square meters of new development are developed. In addition, the same positioning of shopping malls, the high overlapping rate of investment brands, the same promotion methods and promotional activities, so that many dealers in furniture stores have suffered losses.
In this regard, some experts pointed out: "The furniture store is unprecedented disaster or has come", this statement is true. The current furniture market is too much, and it has developed into a state of being out of control. The so-called out of control is the unreasonable layout. In some large and medium-sized cities abroad, the number of home stores with a large-scale furniture market of more than 10,000 square meters will not exceed 3 at most, and the total area of ​​stores will not exceed 800,000 square meters. In China, according to rough statistics, as of the end of 2009, there were more than 1,000 home furnishing stores with an area of ​​more than 10,000 square meters in the country, and almost all large and medium-sized cities have a large excess of furniture market.
Although the furniture consumer market is now huge, it is far from catching up with the annual growth of furniture production and the rate of increase of circulation enterprises. The expansion rate of furniture stores in China is also very fast, especially in recent years, the expansion rate is unprecedented, from tens of thousands of square meters to hundreds of thousands of square meters, and even the furniture store area has an area of ​​more than 1 million square meters. According to incomplete statistics, in 2009 alone, there were more than 100 new furniture hypermarkets with more than 10,000 square meters in the country. On the surface, the number of furniture stores has increased and increased, and the opportunities for furniture manufacturers to compete for market space have increased accordingly. The sales network has expanded and the marketing cost should be reduced. However, due to repeated construction and fighting each other, the performance of the unit sales point has decreased, the marketing cost has increased, and the furniture store is facing increasing pressure. Now, the more provincial furniture stores are opened, the more they are built. The swarms of swarms that have appeared in other industries have begun to cover the entire furniture industry. As far as the Beijing market is concerned, it is not already saturated, but already surplus. Many furniture cities no longer have the crowded scenes of the past, most of them are monkly birds, the business is deserted, and 70% of the merchants in many large furniture chain stores are facing losses.
Perennial promotion, hard to make a difference
Facing the tremendous pressure of the first- and second-tier cities, many furniture companies have seen the huge potential of the third- and fourth-tier markets and the rural market, and have taken a fancy to the huge cheeses that are sinking. As a result, some companies have carried out dislocation operations, accurate positioning, and channel sinking, and vigorously explored domestic third- and fourth-tier markets in order to achieve higher channel coverage and avoid homogeneous competition and branded operations.
After the channel sinks, discount sales are regarded as "life-saving straws" by many merchants, so many regular promotional ads make many consumers tire of it: What is the real price of furniture? Can a home with such a high profit make? Consumers' distrust and alertness naturally arise. At this time, no matter how fancy the advertisements are, the discounts are even lower. I am afraid that they will not impress consumers who have lost their trust.
Although the discount sales of major furniture malls at the end of last year drove some sales, from the words "dealing at a loss", "blood-price reduction", "big bottom promotion", it can still be revealed that furniture manufacturers and stores have been deeply affected by the crisis . This year's situation is not optimistic. Furniture companies really need to have a tenacity to fight against death in a crisis.
To sum up, in recent years, China's furniture industry has faced the following situations: mature consumption, fierce competition, homogenization of products, reduced space, and significantly reduced economic benefits. Despite the nearly 20% growth in the domestic furniture consumer market in 2009, furniture distribution companies have also increased at a rapid rate, leading to increased competition in this market. In addition, the rapid expansion of furniture stores has led to oversupply, which is one of the reasons for the decline in store sales. In recent years, the global economy has been declining, the financial turmoil has raged the world, and domestic and foreign consumer demand has shrunk. The eyes of corporate stores are in the first- and second-tier cities, making this a "Red Sea." Dealers and store giants are busy "fighting landlords" and reducing rents. More dealers were even unable to fight, and the landlords could not fight anymore. Facing various difficulties, the road to change was a bit dazed, and they could only quietly retreat.
At the same time, the rise of the overall wardrobe industry seems to allow more furniture industry distributors to see the dawn, so they have "abandoned the secrets". As a "new force" in the home furnishing industry, the overall wardrobe has continuously created miracles since entering the market, which will inevitably become the next growth point of the home furnishing industry.
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