According to a household statistics, since August 2011, 12 home building materials stores in Beijing have officially closed, and in the past six months, there have been 8 closed doors. In addition, there are 5 malls that are preparing to move or withdraw. field.
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.
According to statistics from the China Furniture Association, according to the industry standard of 10,000 square meters annual sales of 100 million yuan, last year, the furniture and building materials industry achieved annual sales of about 200 billion yuan, which means that 20 million store area can meet market demand. At present, the total area of ​​domestic home stores has exceeded 40 million. If the trend of the industry does not change in the future, 50% of the store area is surplus.
Furniture store area is over 50%
“The current furniture market in Hebei Province can be said to be a serious surplus. The total number of furniture stores in Hebei Province has reached nearly 1,000, of which there are more than 200 stores with more than 10,000 square meters. The furniture market area above the county level is about 10 million square meters. For example, in the urban area of ​​Shijiazhuang, Shijiazhuang has a population of 2 million. The furniture store in the urban area has exceeded 1 million square meters. There are also 1 million square meters of furniture stores in the surrounding area. On average, each citizen has 1 square. Mr. Li Fengqi, chairman of the Hebei Furniture Association, said in an interview with the China Business Daily that the rapid expansion of furniture stores has led to a situation of oversupply. Many furniture gates can be sold, business is deserted, and some furniture markets are operating. Unsustainable, forced to transform or close.
Recently, the reporter of China Business Daily participated in the Xianghe Industry Model Seminar. The reporter learned that there are three major furniture distribution centers in Hebei Province: the total sales area of ​​Xianghe Furniture City, which has the title of Northern Furniture Trade Capital, has reached 2.6 million square meters. Annual sales of 24.5 billion yuan. Shengfang, the production and sales base of metal glass furniture in Hebei, has a market share of nearly 70% among similar products in the country. The Zhengding furniture market currently has a million square meters, and annual sales have exceeded 5 billion yuan. The furniture market in Hebei Province has experienced a serious excess. However, the pace of expansion has not slowed down. “Xianghe Furniture City will have to expand another 3.5 million square meters to form the largest furniture distribution center in northern China that surrounds Beijing and Tianjin and radiates North China, Northwest China and Northeast China.†Li Yuge, director of Xianghe Furniture City Management Committee, told China Business Daily.
“The problem of surplus furniture stores also exists in other parts of the country.†At the Xianghe Industry Model Seminar, Zhu Changling, chairman of the China Furniture Association, introduced that according to the statistics of the China Furniture Association, the annual sales of 10,000 square meters are 100 million yuan. Calculated, last year, the furniture and building materials industry achieved annual sales of about 200 billion yuan, which means that 20 million square meters of store area can meet market demand, and the total area of ​​domestic home stores has exceeded 40 million square meters, if the future The trend of the industry does not change, and 50% of the store area is surplus.
Industry experts believe that the excessive expansion of the store, the direct result is the excess of the store. In the context of the continuous expansion of hypermarkets, at present, the volume of furniture stores in China has greatly exceeded the market consumption capacity, and the interests of enterprises and distributors are impaired, which is not conducive to the development of the industry.
Since the beginning of this year, news of the closure of home stores has spread throughout the country. In Beijing alone, 12 home building materials stores have been closed, and another five are preparing to be relocated. The current status of the home industry is not optimistic.
Store violations are common
The oversupply of the store has caused tensions in the supply of zero supply. At the Xianghe Industry Model Seminar, Director Liu Weidong of the Hebei Provincial Administration for Industry and Commerce specifically mentioned the issue of fair trade between retailers and suppliers. Liu Weidong said that in a routine inspection, some retailers in Hebei Province had a fee for collecting the reserve fee. According to the relevant regulations, the retailer's new store opening fee, inquiry fee, barcode fee, and store entrance fee are all illegal charges.
It is understood that at present, the operation mode of Xianghe Furniture City is mostly based on leasing, and self-employment only accounts for about 9%. Due to the sluggish industry, some furniture stores rely on their own advantages. When signing cooperation agreements with enterprises, the cost of decoration, publicity, operation and management is often transferred to the merchants in the store in the form of high rents, so that the merchants can't make ends meet. Management is unsustainable. Liu Weidong introduced that the inspection also found that retailers had the behavior of collecting promotional service fees. "Retailer charges are more common. These fees are not open, opaque, and unreasonable. They violate the principle of fair competition, which harms the interests of enterprises and the interests of consumers."
In addition, the furniture store rents are too high, but also let the dealers complain. In Beijing, the annual rent per square meter of furniture stores is as high as six or seven thousand yuan, and the annual rent of 100 square meters is more than 700,000 yuan. Due to the high rents, dealers in various stores across the country even collectively protested that rents were too high and refused to pay rent.
Liu Weidong said that retailers and suppliers should follow the rules of retailers and suppliers for fair trade management, prohibiting retailers from charging fees. In the future, on the one hand, we must urge retailers and suppliers to sign a fair cooperation agreement, improve the service fee income and expenditure accounts; on the other hand, we must strengthen inspections and find problems to be investigated and regulated according to law. At the same time, furniture companies are encouraged to report violations.
"At present, the positioning of furniture stores is similar, and the homogenization of furniture products is more serious." Li Fengqi, chairman of Hebei Furniture Association, believes that the brand overlap rate of the furniture market is very high, and the methods of promotion and promotion are uniform and the innovation ability is very poor. Therefore, many dealers in the market have lost profits and even lost money.
For the current status of the furniture retail industry, Zhu Changling, chairman of the China Furniture Association, pointed out that after long-term cultivation, the retail enterprises that are used to the role of “landlord†should return to the retail source, and retail enterprises should break out to the upstream and increase the proportion of self-employment.
Strengthening the supervision of the furniture city market
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 furniture market focuses on reputation, product quality and standardized operations. However, according to a set of data provided by the Hebei Provincial Administration of Industry and Commerce, there are still some problems in the furniture market in Hebei Province. In 2012, the sampling rate of products was only 76%. The problem mainly lies in the excessive content of formaldehyde heavy metals in wooden furniture. In addition, there are also unfair competition behaviors such as counterfeiting, hanging brand names and trademark infringement. Hebei Province's industrial and commercial system accepted 2,286 pieces of furniture reports last year. The main problems reflected by consumers are that the furniture ordered and the display do not match. Second, the operator uses the unclear agreement in the contract to induce consumers. The third is not to fulfill the agreement, if not delivered on time or refuse to bear the liability for breach of contract. Fourth, the after-sales service is not in place, and the product has problems. The operator refuses to repair.
"In the current market competition, if a company relaxes its quality management and has serious quality problems, it will surely die very badly." Liu Weidong, director of the Hebei Provincial Administration for Industry and Commerce, believes that with the increasingly fierce market competition, the profit rate gradually Lowering, the phenomenon of false propaganda and shoddy in the market has begun to rise, which has aroused widespread concern of the society and the government's management departments attach great importance to it. "This year, the furniture market should design a market access system, and exclude individuals and enterprises that do not have production conditions and operating conditions from the market threshold. Further improve the management mechanism, strengthen standardized management, and block the loopholes in management from the system. The dead end of supervision."
"This year, we must conduct a rigorous inspection of the furniture market. We must resolutely crack down on the phenomenon of shoddy, false propaganda, no product specification, and unclear roads. We will never be soft." Director of Hebei Furniture Distribution Committee, Xianghe Furniture City Management Committee In an interview with the China Business Daily, Li Yuge, the director of the conference, said that this year, a group of unscrupulous merchants who are not honest and illegally operating will be eliminated, the black sheep will be removed, and the reputation and popularity of Xianghe Furniture City will be improved.
How to deal with the downturn
With the continuous introduction of the “National Five Articles†rules for the property market regulation, the real estate industry is once again facing a severe winter. The furniture market as a real estate downstream industry is bound to be affected.
According to the data of the Department of Circulation Industry Development of the Ministry of Commerce and the China Building Materials Circulation Association, the annual sales of building materials and furniture stores above designated size in China was 1,246.7 billion yuan, down 2.46% year-on-year, while the cumulative sales from January to March 2013 were 213.6 billion yuan, down 2.43% year-on-year. It is precisely in the case that the national building materials and furniture industry is in a downturn, starting from 2011, the Chinese furniture and home furnishing industry is suffering from a fierce industry shock, and many well-known stores are closed.
The industry believes that the property market is regulating, market demand is shrinking, but the apparent excess of furniture 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 furniture stores expand their momentum, then there will be a phenomenon of one side expanding and one side closing down. Experts also believe that the current phenomenon of the closure of furniture stores is essentially the self-regulation of the furniture industry. It is not a bad thing for the furniture industry to squeeze out the bubble itself.
“Urbanization will bring a strong driving force for the furniture industry for 10 to 20 years.†Li Fengqi, chairman of the Hebei Furniture Association, told the China Business Daily that he is full of confidence in the furniture market in Hebei Province. In 2015, the urbanization rate in Hebei will increase from 45% in 2010 to 54%, and to 64% in 2020. So many people have to go to the city to have housing and buy furniture, so the market size is very huge. The outlook for the industry is very optimistic. He said that if the store wants to have a foothold in the future market, it must rely on constant positioning, innovation, sales model innovation, marketing methods to be innovative, management methods to be innovative, and core competitiveness to be consolidated in innovation. Find new breakthroughs in innovation. At present, we must speed up the innovation and upgrading of marketing channels, give full play to the role of furniture dealers, and make the furniture circulation industry bigger and stronger.
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