Has the "dark moment" of home building materials stores passed?
In recent years, with the accelerated pace of life, concepts such as "you can buy goods at home lying down", "one-stop solution for decoration", and "carrying bags and entering" have been deeply rooted in people's hearts, coupled with the impact of the new Crown epidemic, most home building materials stores in China suffered heavy losses in 2020.
On the one hand, due to the interception of decoration demand from various channels, fewer and fewer consumers directly and autonomously go to home building materials stores to purchase materials; On the other hand, the epidemic caused offline work to fail to be carried out smoothly, many home building materials stores almost stagnated in the first half of 2020. As a result, merchants who cannot make ends meet begin to withdraw and close their stores. Although some large chain home building materials stores have introduced rent-free and rent-reduction policies accordingly, it is a drop in the bucket for merchants.
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"Live", "Hold On", "survive" and other tragic words have become the mantra of home building materials dealers. In their view, the sales of stores alone have long been unable to support the cost of operation. Not withdrawing stores is only to preserve the brand's image and status in the market, however, to complete the actual sales performance, we can only find another way out.
The first half of 2021 is coming to an end. What is the current situation of home building materials stores?
Relevant statistics show that from January to April 2021, the cumulative sales of home building materials stores above the national scale was 285.5 billion yuan, up year on year. When this data came out, it not only revealed the signal of market recovery, but also made thousands of merchants who shared prosperity and loss with home building materials stores see the dawn.
Virtual reality
Has the home building materials store successfully survived the "dark moment?
In fact, the so-called market recovery is mainly due to macro-economic recovery and the release of upstream market demand. At the macroeconomic level, in the **Quarter of 2021, the gross domestic product was 24931 billion yuan, an increase of 18.3 percent year-on-year, and the per capita consumption expenditure of the National residents was 5978 yuan, a nominal increase of 17.6 percent; At the upstream real estate market level, from January to April, 2021, the average monthly transaction of commercial residential buildings was about 34.81 million square meters, and the transaction scale of commercial residential buildings in key cities reached the level of** in the same period of the past five years.
The recovery effect of macro environment and upstream market is transmitted to downstream industries. Home building materials stores once ushered in the peak sales season, but now it is too early to celebrate that "winter has passed and warm spring has arrived.
At present, the supply chain reform of decoration market under the guidance of consumption demand and consumption trend is still in progress. The manufacturer has directly become the material supplier of large housing enterprises and installation enterprises. The "Internet + home decoration" model has gradually matured, and the scale of the whole installation company has begun to show. People who Master resources have left the home building materials store to set up a studio alone, integrating the platform, the lack of passenger flow in home building materials stores is still an unavoidable problem. More than one ceramic tile distributor disclosed to the reporter of China ceramics network: "Only manufacturers and manufacturers have the strength to compete in the B- end market. If the distributor is not strong enough, he can only do some individual customers, and these individual customers also rely on their own contacts and resources to dig, just sitting in the store can't wait."
Lack of passenger flow means that it becomes difficult to attract investment, and the increasing profit pressure of home building materials stores will undoubtedly be grafted to merchants entering home building materials stores. In the National tile market survey of China ceramics network "Tao Xing China", the dealers interviewed complained about the cost and cost of the store from time to time, and compared with the expenditure and effect, they complained.
"The monthly rent is tens of thousands, which can be supported when the passenger flow is large, but now it is really too much to afford."
"The big stores in high-end stores look bright. They have invested nearly one million a year, but 600 thousands or 700 thousands of them have lost. The people who do business are not fools."
"Now the stores of home building materials are no longer selling goods, but the display of brands and products. From rent to labor costs, the benefits generated are not waiting."
......
Gray
Whether home building materials stores and merchants get along well or not, there is no doubt that the relationship between the two is mutual prosperity and loss. The volume of home building materials stores will shrink and the influence will be weakened, and the business of merchants will be affected. If the business of merchants is not good, there will be fewer and fewer brands choosing to enter home building materials stores. In this cycle of "cause and effect", any party making non-positive measures will lead to the destruction of the "ecosystem.
Recently, TikTok and WeChat circle of friends had a heated event-"The rent of a home building materials store in Hubei has increased, and merchants have collectively closed down to protest!", At present, it continues to ferment on social platforms. It is understood that the fuse of this incident was that the household building materials store raised the original 1.16 public stall coefficient to 1.56, and the merchants who settled in could not accept such a large percentage retracement, so they collectively turned off the lights to protest.
The building is still the original building. Why has the public stall area increased? Some insiders analyzed: due to the impact of the epidemic and the impact of physical stores on the Internet, the current offline stores are not doing well, and merchants have already complained. If the mall directly raises the rent now, it is bound to cause strong resentment and protest from merchants. As a result, some places have played the "little smart" of raising rent in disguise. The unit price of rent remains unchanged and does not rise, expanding the public stall area and allowing merchants to pay more rent every month.
Another news also reflects the embarrassing situation of home building materials stores. A few days ago, a TV station in Zhengzhou, Henan province exposed that a large 180000-square-meter home building materials store had been decorated for two years and has not yet opened. It is understood that the home building materials store was originally scheduled to open at the end of 2019. Now the staff are dismissed and the relevant person in charge is lost. At present, there are about 150 brands in the home building materials store, and most of the merchants have decorated the stores, with a total loss of about 40 millions or 50 millions yuan.
"Secure happiness" is no longer lost, and the days of home building materials dealers have become gloomy.
Survival
China Ceramics network found in the market survey that the home building materials stores in most cities have been saturated or even surplus, but there are still new home building materials stores under construction. This phenomenon is especially common in first-tier cities and provincial capitals. There may be more than a dozen or even dozens of home building materials stores in urban areas alone. Under such fierce competition, the survival and development of home building materials stores depend more on the sustainable "renewal" of merchants in the stores ", as mentioned earlier, it is really not advisable to damage merchants in order to preserve themselves.
What is the right way to survive in home building materials stores? Some insiders expressed their views: "First, ensure cash flow and survive first; Secondly, do a good job in marketing orientation and develop new models to make the settled merchants live better; Third, continuously improve the level of digital management and provide one-stop overall solutions to make stores and merchants live longer."
For home building materials stores with good living conditions, continuously optimizing the category and brand structure in the stores is an important measure to further enhance the brand value of the stores. Taking Hangzhou ouyada home as an example, it analyzes the demand situation of category market through data to carry out active category adjustment and brand optimization; At the same time, it introduces mainstream first-tier brands in market consumption, steadily increasing the proportion of Class A brands in shopping malls, continuously optimize the category and brand resources in the field. This method has been followed by more home building materials stores.
Factors such as market volume, influence, public praise, management, and brand strength determine the competitiveness and status of a home building materials store, which is exactly the countless home building materials stores in some cities, however, there are always one or two leading stores that are hard to find.
At present, the simple and rough attack on the city and land in home building materials stores has become a thing of the past. Only by making yourself live a better life and "endure to death" opponents can you survive in the future market competition.
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(Article Source: China Wood network, invasion and deletion)
