The consequences of excess home stores show that transformation and upgrading bring highlights to enterprises

 

Looking back at the past 2013, a phenomenon that appeared in the home furnishing industry is strange and thought-provoking. According to the National Building Material Home Furnishing Index issued by the Ministry of Commerce ’s Circulation Department and the China Building Materials Circulation Association recently, furniture store sales rose in 2013, but Profits have declined; according to the year-end statistics of the China Furniture Association, the total output of the Chinese furniture industry declined in 2013, but the output value and profits have increased. This decrease, one increase, and two figures reflect what happened in the industry?

 

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The consequences of surplus home stores appear, sales increase and profits decline

 

It is understood that the National Building Materials Home Prosperity Index (BHI) is a prosperity index of a building materials home terminal store jointly issued by the Department of Circulation of the Ministry of Commerce and the China Building Materials Circulation Association, and is regarded as a barometer for the home furnishing industry. The BHI index for December 2013 was announced a few days ago, with a BHI of 101.86, a decrease of 12.45 points from the previous month and a decrease of 4.62 points from the same period last year. With the release of data in December last year, the building materials home furnishing index for the whole year of 2013 was also released. According to data, last year, the cumulative sales of home building materials stores above designated size in the country were 1,248.1 billion yuan, a year-on-year increase of 0.11%.

 

"Last year sales of home stores increased, but profits did not increase, and even declined. In the state where real estate just needs to be released and building materials home stores are surplus, this is an inevitable result. There is demand, but the fierce competition is 2013. The portrayal of the building materials home furnishing market in 2016. "Qin Zhanxue, executive vice chairman of China Building Materials Circulation Association, explained.

 

For the sales of home stores, the profits have fallen, and industry insiders have made an analogy. In the past, an advertising campaign was put in, and two sets of marketing staff can sell 20 sets of cabinets. But now for a promotion, at least four or five advertisements must be invested, and at the same time, five or six marketing staff can sell 20 sets of cabinets. Although the sales volume will increase, the profit will not increase too much.

 

The consequences of excess stores have gradually emerged

 

The increase in sales and the decrease in profits reflect some of the grim situations facing home stores. First of all, the consequences of excessive home furnishing and intense competition have gradually emerged. Qin Zhanxue also clearly raised this realistic issue-in the state where the home store has been surplus, the increase in sales and the decline in profits is an inevitable result; the fierce competition is the portrayal of the building materials home market in 2013.

 

Zhu Changling, chairman of the China Furniture Association, also introduced that the development of the furniture industry in 2013 had several notable characteristics, first of all, the great development of the circulation market and the diversification of channels. In 2013, China's furniture distribution market area exceeded 70 million square meters. With the development of distribution stores, the diversified pattern of China's furniture distribution channels is gradually taking shape. In addition to agents, wholesalers and retailers, there are international brand stores, Furniture supermarkets, comprehensive room supply stores, chain stores, self-operated stores, flagship stores, online sales and other channels coexist.

 

Some people in the industry believe that there is a vicious competition in the surplus of home stores. Due to the rapid development and expansion over the years, in the context of real estate regulation and control, home furnishing stores that just sit on land to collect rents can no longer be maintained. The square meters of building materials home stores in some cities have reached half or more of the local population, that is to say, the building materials home stores in this city require 1 to 2 people per square meter to maintain normal operations, which is not sustainable.

 

In addition to the surplus of store area, the rise of e-commerce is also an important factor for the impact of traditional home stores. With the continuous upgrading of electronic network technology and the continuous improvement of modern logistics and distribution, as well as various "group purchase" models and over-the-counter transactions of pattern refurbishment, it has a great impact on the existing home furnishing stores. What is more serious is that the expansion of e-commerce will become stronger in the new year, and furniture will surely become another hot spot for major e-commerce after clothing, books, home appliances, and 3C products. E-commerce is undoubtedly A major development trend in the future consumer market.

 

In fact, traditional home furnishing stores and manufacturing companies are also aware of the power of e-commerce. In recent years, both manufacturing companies and home furnishing stores have tried to build their own e-commerce platforms, and it is costly. At present, the home has launched its own official online shopping platform "Actually Online"; the online shopping mall "Qu Miao" launched by Qumei is in full swing; Wrigley and Faenza sanitary ware have also established official online stores.

 

Transformation and upgrading bring highlights to enterprises

 

Although the sales terminal situation is not optimistic, some rare highlights have appeared in production enterprises. According to statistics from the China Furniture Association, the total output of the Chinese furniture industry declined in 2013, but output, profit, and export growth occurred. Industry investment is still very active and very positive. Investment growth for the whole year is expected to reach 25.4%, while profit growth will reach 18%. In the first three quarters of 2013, the above-scale enterprises completed the main business income of 450.926 billion yuan, the output was 46605.64 million pieces, the accumulated profit was 24.153 billion yuan, and the profit growth rate exceeded the main business income growth rate.

 

The profit growth of the furniture industry is inseparable from the transformation and upgrading of the industry and the massive use of new materials and technologies. At present, furniture manufacturers continue to introduce various new materials, new processes, new technologies and are widely used in furniture production. Not only that, the development of furniture has also led to the innovation and development of production technology in the field of furniture raw materials and woodworking machinery, objectively promoted the overall progress and development of furniture and furniture peripheral industries, and accelerated industrial upgrading. In the past two years, furniture companies have focused on communication with universities and colleges, gradually combining theoretical knowledge with social practice, forming a "production, education and research integration" development, which will make all links closely connected and can quickly improve the transformation of scientific and technological achievements. rate.

 

In addition, in 2013, the country expanded the pilot scope of "VAT reform and increase", improved the survival environment of small and micro enterprises, and other policy measures continuously released the dividends of reform and innovation, and injected new vitality into the stable operation of the furniture industry.

 

The increase and decrease in profit data between home stores and manufacturing companies actually reflects the gap between innovation and progress and adherence to the old.

 

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