Summer is a good day for home decoration, and it is also the time when the home market is full of people and orders. However, with the continuous control of real estate, the home stores closely related to real estate also feel the chill of the “cold winterâ€. The cold-selling stores, the loss-making merchants, the withdrawal of the cabinets, and the closing of the stores, for the furniture stores and merchants, this summer is a bit cold.
The home furnishing market is not good, and the foreign monks are also hard to read the "good news". The largest European and world's third largest home store brand, B&Q, has suffered losses in China for six consecutive years. Therefore, transformation has become a choice that all companies in the home industry chain must face, but transformation also needs wisdom, not the development of new products, the migration of factories is so simple. To put it bluntly, transformation is the second venture.
Cheng Zhijin, defeat is retreat
On July 22nd, it was the heat of the 24 solar terms, and the heat was hard to bear. Usually, the hottest time is the traditional peak season for the home improvement building materials industry, but this year's market is a bit cold.
Only rent up or not
At the intersection of Wuzhong Road and Hechuan Road, the most prosperous business location in the Hongqiao area in the west of Shanghai, the four homes are entwined at the four corners of the intersection. Among them are the Haomeijia Building Chain Supermarket, which is affiliated to Bailian Group, China's largest commercial group. In the year of development in Shanghai, a large-scale scissors stone cloth home.
In an inconspicuous corner on the fourth floor of the rock-paper-scissors, a merchant who manages crafts is preparing to evacuate the store, and a prominent billboard is displayed at the door: “Fifty-Fold Clearanceâ€.
This is a local Shanghai company engaged in the production, development and marketing of all kinds of high-end art and home decorations. At the peak, the company set up booths in a number of home stores such as Scissors Stone, Yuexing Home, Shengyuan Dadi Home Furnishing City, but at present, the scale has been greatly reduced. For the only scissor stone cloth store with booths, The company is also preparing to evacuate.
“The rent is too high to afford.†A sales manager of the company pointed to a crowded store and told the “First Financial Daily†that “the business is too bad. Today, the cashier at the fourth floor received only one order. This is also a rock-paper-scissor, and the opposite of the Athesno (Life Aesthetics Square) and the Dahuajiao (home) can't even be seen."
The store is not large, about 90 square meters, but the monthly rent is as high as 23,000 yuan, which means that the rent per square meter has exceeded 250 yuan. From the store location, the entire store AB has two floors and seven floors, and the booth on the fourth floor is obviously not a golden location. The sales manager told reporters: "The evacuation is really helpless." The rent of the store is rising every year, and the rent of the house is already low in the whole store, mainly selling.
In fact, the phenomenon of such merchants withdrawing from furniture stores is happening almost every day. Previously, Chongqing, Nanjing, Zhengzhou and other cities have manufacturers or agents collectively evacuated from a large home store, and some homes have also been evacuated.
There are people who have left before, and those who have come after. A source close to the scissors and stone cloth store told reporters that although the merchants who were evacuating and preparing to evacuate were still there, there were still people entering the market, so the store was not worried about the merchants withdrawing the cabinet, because the latecomers must all be "high price." ". For example, the rent for the above-mentioned handicraft merchants is 23,000 yuan, and the rent for new merchants is increased to 28,000 yuan, which is more than 300 yuan per square meter, up 22%.
It has been reported that about 60% to 70% of dealers in these home stores are at a loss due to high rent pressure.
When the house price is still falling, the rent is only up and down. The above-mentioned people analyzed the reporters because most of the stores are not self-constructed, but operated by means of joint construction or leasing. If they are purely leased, the store itself will bear high rents. “The operators of the home store only pass the “two-room east†model. On the one hand, they want to get low rents from the owners, and on the other hand they have to raise the rents of the tenants.â€
This person estimates that the majority of domestic sales in the first half of the year only reached one-fifth of the annual performance indicators, and the loss has become the key word of the home store industry.
Layer transfer
In fact, not only the scissors stone cloth home is a typical representative of high-field rent, but a local home circulation leading enterprise is recognized by the outside world as the rent is higher than the peer level.
Previously, the first store in Guangzhou, the home store, was also the largest flagship store in Guangzhou, Pazhou. Due to excessive rents and poor business, many merchants were evacuated. For store operators, if the tenant turnover rate reaches 15% or more, the risk is self-evident.
On the 18th, the home store issued a notice on the official website saying: Guangzhou Huanbo Exhibition Co., Ltd. plans to change the business direction after the expiration of the tripartite agreement this year, adjust the business categories of the store, and change the business jewelry and small commodities.
The announcement means that the furniture store, Pazhou, will be withdrawn in October this year.
The home store uses a “pure lease†model, which means that the factory and regional agents who enter the store only collect rents, including the cost of shop rental, promotion funds, and public property management.
When interviewing the two stores of Wenshui Road and Zhenbei Road in Shanghai, the reporter found that the monthly rent per square meter was three to four hundred yuan, and the rent of some gold booths even reached five or six hundred yuan per square meter.
A person from a Guangdong sanitary ware company told reporters: "The average rent of the store is 3% per year. The lack of strength can't be done at all." He said that rents account for about half of the operating costs or more, such as 50%. Rent, 10% transportation, distribution, installation fee, 5% staff salary and commission, does not include tax, financial, management and other expenses, that is, the gross profit must be at least 65% to ensure no loss.
Such a high gross profit is almost impossible for small and medium-sized brands, especially in a bad economic environment.
According to Xu Guanrong, secretary general of the Shanghai Furniture Industry Association, the cost of sales (rent, hydropower, manpower) accounts for less than 16% of the total cost of the production enterprise, which is a reasonable condition for furniture companies.
So what about the excess cost? “Improve the price and pass it on to the consumers. This is a clear rule.†Insiders at the home store admitted to the reporters that the merchants can only spread the rent to the goods through price increases, but in this way, the price of their goods is increasingly lacking. Competitiveness.
An insider of a home store admitted to the reporter: "This year, I have already felt that the actual pressure on the business is really very large. Some stores have begun to adjust the rent."
It has been reported that Beijing Chengwai Home Furnishing has started to lower some rents since the first half of this year. At the same time, Foshan Jiabo City also slightly reduced the three-year rent before opening.
However, a distributor who mainly imports paint did not expect too much. He told reporters: "Even if the drop is temporary, part of it, the good store will not rent down."
Tri-fold secret
Under the high pressure of rent costs, what is the price of the product?
A sales manager of a local furniture company in Fengxian, Shanghai, told reporters: "For furniture, the general price will be six or seven times higher. A few high-end furniture and even the price is nearly ten times the cost price." He said that many times The store will also do activities, so that the merchants can make profits, the discounts of 7788 are added up. At most, the discount is usually 40%. Generally, the 30% discount is the bottom line of the capital preservation.
In the rock-paper-scissors, a small furniture booth, the boss personally sits on the town, saying that “the cost of rent has accounted for more than half of the operating costs of the company. After this hot day, take a break and do not.†While chatting with the reporter, the boss reduced the offer from 30% to 50%, and finally fell to 4.2%.
The rising rents are due to the unprecedented staking of home furnishing stores in recent years. Statistics show that the total area of ​​home furnishing stores in the country has exceeded 40 million square meters. At present, the annual sales in the domestic market is 200 billion yuan, calculated according to the annual sales of 10,000 square meters of 100 million yuan, that is, as long as 20 million square meters of the store is enough. This means that nearly 50% of the store area is oversized.
For example, the expansion of Dawang Hongxing Meikailong has reached the scale of 100 MALLs this year. According to its plan, it will reach 200 MALLs nationwide in 2020. The official website of Scissors and Stones also shows that in the future, the national chain operation will be launched, and Shanghai and surrounding cities, East China and national first-tier cities will be gradually developed. At present, the scissors stone cloth Pudong Oriental store has opened.
This high-speed expansion pace determines one such game rule: if you can afford it, you have to bear the rising rent; if you can't afford it, you will automatically get out.
A senior executive of the local flooring company, Shengxiang Group, told reporters that under the “rental bundling†model similar to Red Star Macalline, brands are often required to enter the chain stores in the country, if the merchants are not willing to enter the newly opened A certain furniture store, then, will also lose other opportunities to enter this chain store in the future. Even if it enters, the brand cannot give priority to the placement rights.
This cruel model is also a double-edged sword in the eyes of the above-mentioned Red Star Macalline insiders. "When you come over, the brand and the store will expand the scale and influence together, and you will not be able to survive. Only the survival of the fittest."
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