"Great Leap Forward" expansion of the store is difficult for the development of furniture merchants

Although according to industry data, China's furniture industry still has a 30% growth in 2010, this furniture company that once appeared to the outside world to fight for money and has a lot of scenery. At the end of 2010, the price of raw materials and labor Increased costs, renminbi upgrades, export trade barriers, real estate regulation, and malformed expansion of stores have become difficult. Many furniture giants can't help but express their feelings that the market is too cold and the industry is difficult.

"Great Leap Forward" expansion: unprecedented deterioration of zero supply contradictions

In 2008, 2009 and 2010, the keywords associated with furniture stores were expansion, expansion and expansion. The term expansion has become the main theme of the development of home stores. Red Star Macalline has attracted more than 40 stores in 2010 and opened more than 30 stores. The number of stores opened in a year is the sum before 2010; at the same time, in 2010, Yuexing Home Furnishing proposed the "100 Store Plan". The home also issued a statement in the second half of the year that the home will expand to "100 stores" in the next five years. Unsurprisingly, in 2011, the home store will continue the "old tone" of 2010: expansion!

Indeed, before the furniture pattern is finalized, the "scale" wins become the "single bridge" leading to the throne of the store. "Fast fish eats slow fish" is first manifested in the home store: if it does not realize chains and does not implement brutal expansion, it is destined to become "a lonely family." Not expanding means shrinking, which means being overtaken by opponents. "Suning" and "Gome" in the "next door" are living examples. Whoever has the "largest territory" is the "boss".

The large expansion of the store should have represented the prosperity of an industry, but the reality is that the circulation of furniture mainly depends on the sales model of the hypermarket. With the rise of real estate prices in China, the rent of the hypermarket has also risen. Costs are becoming more and more difficult to load, and the expansion of stores has further pushed up the vacancy rate, and the days of furniture companies are getting sad every day.

A first-line dealer of a certain furniture brand calculated an account for the reporter: 'In the past 200 square meters, the monthly rent was 20,000, and the profit was 500,000; now 300 square meters, the monthly rent is 40,000, the profit is still 500,000', a lot Furniture dealers have increased investment burdens, increased operating costs, decreased average profits, and even suffered losses. According to a survey by the Ningbo Furniture Chamber of Commerce, the sales performance of a single store of the same brand has generally fallen sharply compared with previous years, generally falling by 20% -30%, and the serious has reached 60% -70%. The entire industry is in an awkward position : Distributors--have been busy for a year, but their profits are lower than in previous years; furniture real estate developers--stores are blooming everywhere, and there are few well-managed stores; furniture manufacturers--increased production capacity, but no longer sell.

Liu Yongkang, chairman of Kang Naideng Furniture, bluntly said: 'After October 2010, the industry seems to have entered a freezing period. Most furniture companies have poor sales performance and stand in the perspective of industry conscience, even if the existing store area is reduced by half. The common people can still buy good or even better furniture; the current ecological environment of the furniture industry is not good, and the interests of everyone in the entire industry chain will be affected. '

The furniture manufacturers survive: the "difference between rich and poor" is getting worse

The economist Lang Xianping, known as the "godfather of private enterprises", said in a recent furniture forum: "Chinese furniture companies have 70% of production capacity, but only 29% of consumption capacity. Over the years, the real promotion of Chinese furniture exports is not product innovation, but a large volume. Chinese furniture has a serious overcapacity and is not exported. The Chinese economy immediately disintegrates. '

Although this remark is somewhat alarmist, according to reporters, after the export recovery in the first 11 months of last year, the number of orders placed by foreign furniture buyers mainly from Europe and the United States began to decline, causing some furniture exports in the Pearl River Delta Factories have reduced staff size; a Beijing-based furniture company also said on Weibo: 'After October, Beijing home building materials sales decreased by 80% compared with the same period last year. ', The dilemma of the furniture industry's survival is frequent.

At the same time, the survival status of furniture manufacturers has also fallen into a dilemma. The differentiation between the rich and the poor is becoming more and more serious-large and medium-sized enterprises have received orders in good condition, and there has not been a significant decline. , Enterprises work overtime and work harder. Other small furniture companies that focus on foreign trade face another situation: they are trapped in rising raw materials, their bargaining power is reduced, and orders are lost.

Especially after the cancellation of the "three to one supplement" in coastal areas, many suppliers of materials and accessories in the furniture industry have been withdrawn, and export tax rebates have been reduced, making it difficult for enterprises to continue production. The owner of a well-known furniture company in Dongguan told reporters, 'Since the financial crisis, two furniture companies in Dalingshan, Dongguan have closed down every day.'

Conclusion:

If the crazy expansion of the furniture store is due to the good situation in the home furnishing industry, then with the overall downturn in the market environment, the living environment of furniture companies is deteriorating, what is the reason for the continued expansion of the furniture store? What is behind the expansion? Is the market becoming saturated or the huge opportunities of the market? Is it the needs of operators, the needs of channel operators, or the strong desire of consumers in the market? Who can answer these questions?



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