Floor companies need to stabilize and win?

With the gradual rise of the home building materials industry, the sales form of the store has also been widely promoted, but at the present stage, there are disadvantages in the marketing of the store, and the phenomenon of oversupply appears in the market. The general trend of the store “prosperity” leads to excess sales. Therefore, for the store floor companies to enter the market must be stable and win.

Excessive "prosperity" in stores

As real estate continued to heat up in the past few years, from 2010, many well-known home hypermarkets began to launch "land battles" in major cities across the country. The staking and entertainment has become the most enthusiastic game in the home hypermarkets.

Excessive expansion of the store, leading to a direct result of excess stores. The floor is an integral part of the home, and naturally it will not break away from the slump in the home market. Under the background of the continuous expansion of hypermarkets, at present, the volume of China's home store has greatly exceeded the market's consumption capacity, while the interests of floor companies and distributors have been damaged and they gradually withdraw from the store. Whether in the short-term or long-term, it will be against the industry. Development has an adverse effect.

The problem of excess home stores also exists in other parts of the country. According to the industry standard of 10,000 square meters of annual sales of 100 million yuan to calculate, last year, the home building materials industry achieved annual sales of about 200 billion yuan, which means that 20 million of the store area can meet market demand, and the current total area of ​​domestic domestic stores It has already surpassed 40 million. If the trend of the industry does not change in the future, 50% of the store area will be surplus.

Oversupply in the market Since the beginning of this year, the news of the collapse of home stores has spread all over the country. The status quo in the home industry is not optimistic. A few years ago, the situation of floor companies entering the stores was still very lively. Nowadays, except for the well-known stores, the majority of the stores are desolate, leaving a lot of lonely brands on the floor.

The positioning of home stores is similar, and the homogenization of household products is more serious. The brand overlap ratio in the home market is very high. The method of promotion, the means of promotion are stereotyped, and the ability to innovate is very poor. These are the factors that cause the profits of dealers in many markets to decline and even cause losses. However, this is also the result of the law of the market in the survival of the fittest.

Intensified competition in the industry According to the relevant experience of developed countries, after a market has been fully competitive, a large number of companies will cease to exist, and 20% of the remaining enterprises will occupy 80% of the market.

The property market is in control, and the market demand is shrinking. However, the apparent surplus of home stores is the main reason for the failure of the stores to close down. The market capacity is inherently limited, the number of stores has increased, the single store turnover has naturally been diluted, and the dealer’s profit margins have been compressed. It is inevitable that the stores cannot continue to operate. If the expansion of some home stores will continue, there will be expansion and collapse. Some experts also believe that the current phenomenon of the failure of home shopping malls is essentially self-regulation by the industry. It is the home industry itself that is crowding out bubbles. It is not a bad thing.