Zhang Quanling said, "When I throw you away in this era, I will not say goodbye to you". If you walk into the current home furnishing stores, you will find that what you said is true. Scattered customers and vacant stores are shrinking throughout the home furnishing stores.
Who Killed home furnishing stores?
Home furnishing stores abandoned by the Times
the common difficulties in the household industry today are complicated:
1 The era of full decoration is coming
due to the improvement of new house delivery standards by local governments, full decoration has become a trend. According to the report of the Chinese Academy of Social Sciences, 70% of the current demand for home decoration comes from new buildings, and many fitment are purchased centrally by developers, part of the terminal consumption demand is decreasing. Home furnishing enterprises began to turn to developers or internet home furnishing companies that provide a full set of customized services, thus bypassing traditional home furnishing stores.
2 Changes in preferences of post-90s home improvement consumers
home consumers are getting younger and younger, and the user habits of the new generation of home decoration consumers have undergone drastic changes. They prefer to buy some furniture and soft clothes online, and the impact of e-commerce tide on traditional offline home furnishing stores is hard to resist.
Photo source: Guide to the livable trend of cat nesters 90 days after tomorrow (Photo source: Bojun media-public number, invasion and deletion)
at present, after 90 s and 95 s, these "Internet Aborigines" are gradually becoming the backbone of home decoration consumption. Different from the previous generation, they are used to the new retail experience that is connected online and offline, shopping in person is not required. Offline experience and online fragmentation shopping are the normal conditions.
3 Low frequency household consumption
household consumption is a low-frequency consumption. Furniture belongs to the non-standard products of large pieces. Decoration can last for many years, especially some fitment, but the unit price is very high.
4 real estate boom declines
at present, the overall economic situation is grim. The first sentence of the fourth part of the central bank's report this year is that this year's global economic recession has become a foregone conclusion, the per capita income of more than 170 of the 189 member countries of the International Monetary Fund showed negative growth. In contrast, domestic GDP in the first quarter fell 6.8 percent year-on-year, investment in real estate development fell 7.7 percent, and land transfer revenue in the first quarter fell 7.9 percent year-on-year. The weakness of the real estate industry has become an indisputable fact.
The downturn in the real estate market and the real estate regulation policy not only put great pressure on the real estate itself, but also affect the whole pan-household industry of furniture, bathroom and even kitchen and bathroom in the downstream of the real estate. In the second half of 2017, the overall revenue and profit growth rate of the household industry began to decline, which also made it have to change in products and business models.
5. The eggs are recovered under the epidemic
the furniture exhibition in March every year is the time when distributors switch brands intensively, and it is also the time when furniture factories focus on optimizing distributors. The offline sales season of "gold, three silver and four" in the home decoration industry was smashed by a sudden epidemic. Dealers no longer consider which brand to switch, but directly withdraw the store, resulting in a record high rent rate of home furnishing stores.
The overall shutdown of the decoration project was postponed, the furniture store was empty, and the home building materials exhibition was canceled one after another...... According to the data released by the circulation industry development department of the Ministry of Commerce and China Building Materials Circulation Association, in January 2020, the National Building Materials and home Prosperity Index BHI was 78.62, down 20.74 points from the previous month; the sales volume of building materials above the national scale in January home furnishing stores was 60.22 billion yuan, down 33.57% from the previous month. In 2020, empowerment is a high-frequency word in the furniture industry. For home furnishing stores without empowerment, it may not last until 2020.
There are closed enterprises and no closed industries.
Now in the transition period of the home furnishing industry, there are two factors affecting the transformation, namely, the consumer market and the sales situation. First, the whole consumption structure is changing, and the original consumption demand is relatively unified. Now China's consumer market is beginning to be layered, and the personalized demand is also outstanding, the original retail format serving the unified market is difficult to adapt to the changes in the current consumer market.
In addition, retail forms are also changing. The original single retail scene in stores has become more and more new forms such as home, O2O, and community retail, it needs to be adjusted from the original function to the store to meet the convenience of users' purchase.
China's home market still has a broad space to rise, and the home market has become a trillion track. No Huan, the head of Taobao jiyoujia, once said in an interview, "calculating online and offline channels at the same time, the size of China's home market is about 5 trillion only for soft clothes. At present, the share of online channels has not reached 20%-30%, and there is a lot of room for improvement ".
From the perspective of time, China's home market also has strong resilience. After every challenge, the overall competitiveness of the home market will leap forward, which may be the role of the big waves.
Only enterprises that have closed down and industries that have not closed down, as long as innovative models continue to appear. In the future, the whole home furnishing field will definitely go out of the enterprise with successful transformation.
(Image Source: Bojun media-public number, invasion and deletion)
run faster, run to full decoration and online
in the face of the great changes, the coping strategies of home furnishing stores are diversified, embracing online and full decoration, and transforming offline hypermarkets become urgent.
Ikea is the king of the world's home market, and the most successful home retail enterprise in the world. In 2016, Ikea's operating income and net profit reached 35.1 billion euros and 4.2 billion euros respectively, up 7.3 percent and 20 percent year-on-year respectively. However, in the most important Asian market, from 2016 to 2018, Ikea China handed over three consecutive years of declining sales growth rate. Times have changed. Ikea, which has been in China for two or ten years, is waking up like a dream.
In 2019, Ikea was determined to reform. In addition to the slogan of "digital upgrade", in terms of business, Ikea launched the whole house design business unit aiming at the trend of full residential decoration, and laid out the whole house design service. Starting from the bedroom and kitchen, in the future, we will upgrade the public service and cooperate with different real estate companies to do fine decoration houses and long-rent apartments, hoping to create new increments.
Ms. Li-Na Zhang, vice president of Ikea China business, shared in the interview: "In the Chinese market, a large number of fans like Ikea Nordic home design style, and IKEA also owns and cultivates a group of designer resources. In September 2019, we launched Ikea whole house design service for the whole country. Through this service, we can better provide customers with home style design, space design, whole house storage solution, lighting atmosphere design and kitchen customization design."
the growth performance of customized products and building materials products in various home improvement categories is bright. At present, customized products have become potential categories for online development. The smaller family structure and the pressure of house prices make small-sized houses more and more popular, and customized furniture that can meet personalized needs is gradually rising. Although customized furniture is mainly concentrated in cabinets, wardrobes and other fields at present, it will gradually expand into the whole house furniture field in the future.
The rising star family and Red Star Macalline are at the key point of transformation. Offline Gome, Suning and other traditional retail channel giants have entered the big home industry one after another, with their own home improvement companies and Home Retail layout. Offline, Jingdong, Alibaba and other e-commerce platforms are exploring e-commerce in the home industry.
After cooperating with Alibaba, Juran home is transforming to a comprehensive MALL, moving towards big consumption, extending the industrial chain around home, preparing to import food supermarkets and fitness centers beyond the traditional home furnishing stores, the development of pension products supermarkets, children's entertainment, cinemas, digital intelligence and other formats has introduced projects such as freshippo Xiansheng, Yaolai cinema, and children's amusement, from the layout of pan-home, eating, drinking and playing, food, clothing, housing, transportation and other high-frequency life retail formats.
Red Star Macalline is also trying to take off the "home furnishing stores" hat like the family of Juran. In 2017, Red Star Macalline began to take the double MALL mode of "Home + department store". In addition to furniture and building materials merchants, the comprehensive MALL also has catering, accommodation, finance, office, entertainment, sports, leisure and other facilities, form multi-format coverage.
The home market is experiencing an overall stall, home furnishing stores the Ethernet effect is fully demonstrated, and the reshuffle stage poses a particularly serious challenge to small and medium-sized stores. Home furnishing stores is no longer as simple as enclosure, rental, drainage and collect the rent. In the future, stores will play more roles and be supplemented with many classes. For example, after home decoration, the market, namely, logistics, installation, maintenance and other home services, still has a lot of room for improvement.
Change is connected, pain is reached. As a home furnishing market in the full decoration industry chain, it is undergoing a tragic transformation, and "living" is emphasized again.
(Article Source: home building materials industry circle, invasion and deletion)
