Observation on the overall survival status of China's furniture market in 2012

The overall decline in the Chinese furniture market has been going on for nearly two years, and so far no signs of improvement have been seen. The "shuffle" sound is also one after another, the dealers who have been forced by the influencers, as well as the manufacturers, and many large supermarkets that used to be quite strong. What is the living condition of furniture hypermarkets in key cities this year? What ups and downs have you experienced? What dramatic changes have occurred in the evolution of relationships with dealers? The store took the initiative to "low down the body" This year, some hypermarkets began to actively reduce rents, or through preferential measures such as disguised rebates. In Shenyang, a major town in the northeast, there were 4 stores closed in November 2011. Although there were no big stores closing this year, some obvious changes have taken place. For example, the Shenyang First Store has launched a preferential policy of “10% discount on annual rents” since August; the Shenyang Third Store is free from rent from June to September this year. If the situation in September is not good, it will continue. The preferential policy was introduced; Red Star Macalline Dadong Store had a volume of 200,000 square meters. This year, it was adjusted and cut down by 1/3 of the area. Qumei and other brands have already withdrawn. According to industry insiders, the reason why the Shenyang Third Store has introduced a preferential policy of exempting four months of rent is mainly due to its lack of commercial atmosphere, inaccurate brand structure and excess marketing means. The adjusted Red Star Macalline Dadong store, whether the investment can be full, many dealers are skeptical and wait-and-see attitude. Similarly, in Hefei, Kunming, Guangzhou, and Shanghai, some well-known chain stores have also introduced different levels of preferential policies for rent reduction. According to Wan Ping, chairman of Hefei Wanjiamei Co., Ltd., “Hefei Hongxing Meikailong (one store) rent is reduced by 15% in 2013 (ie September this year to September next year); the sixth space is rent-free for 4 months; Hongxingmei Kailong (second store) has just opened, rent-free for 2 months.” Li Junming, general manager of Kunming Port, revealed that “some supermarkets in Kunming are owners who actively reduce rents, most of which are 20% off, and some are 30% off.” Guangzhou According to feedback from a senior dealer, Guangzhou Jisheng Weibang (Weizhou Store) has a 40% discount on annual rent. A dealer in Shanghai who asked not to be named feedback: "At present, Shanghai's hypermarkets are obviously less likely to lower rents. Generally, they are more implicit, and some preferential policies are disguised. For example, engaging in activities." Why do hypermarkets actively reduce rents? An executive who resigned from a well-known chain store broke the word in reflection, and "there is no market for the market." According to informed sources, compared with the same period of last year, the overall sales performance of Shanghai dealers decreased by at least 30%, the loss ratio exceeded 70%; Shenyang dealers lost more than 80%; Kunming, Hefei dealers lost more than 50%; Zhengzhou distribution The loss ratio of merchants in June-September exceeded 80%, and the proportion of losses in the whole year exceeded 60%. The proportion of large-scale dealers with more than 20 stores in Guangzhou was 100%. In fact, the practice of actively reducing rents in stores is also certain. To a certain extent, it has been recognized by dealers. Wan Ping said: "This will solve some problems for the time being. At least we can pull this time for a long time. Everyone is struggling." Li Junming believes that "the practice of rent reduction by hypermarkets is sensible and can stabilize the market." With such a kind of subsidy, the key can give the merchants a sense of stability. First, the morale pulling momentum in the upcoming peak season, and second, the store is concerned about the profit and loss of the merchants, and is willing to bear some of the driving force of responsibility. Under such push and pull, Dealers can also accept or be willing to stick to it for a while. Without these two forces, some dealers may give up completely.” The strength and weakness of the pattern is hard to return? Once upon a time, the high profile and strength of hypermarkets became an industry characteristic. “In 2010, I felt that the model of Shenyang Sandian was not suitable for dealers, because it would make us unable to control the cost, so I milled a lot of them back and forth. They were very bullish at that time and tried to disintegrate in many ways. I, seal my shop, scare me, say what I want to do fire inspection, and I am billed every day, unlike corporate behavior, maybe the landlord is like this. Later, I used a lot of means, including bundling. At that time, the overall sales situation of the store was actually It’s better than three stores. In order to attract investment, the three stores have refurbished one store and three stores. In fact, it is not for upgrading, but for bundling the three stores with bad business.” A well-known dealer in Shenyang was still in the situation at the time. The memory is still fresh. Can the strength of the hypermarket in the past be changed in the face of the current crisis? Although we have seen some of the stores starting to try to lower their posture and lower rents or introduce preferential policies in a small scope, can the deep-rooted concept change? Taking Kunming as an example, this year's largest store of 20 million square meters in the local area has a particularly small passenger flow, and there is a serious phenomenon of 100% loss of merchants entering the business. Even in this case, the store is still reluctant to sacrifice some of the benefits to the merchants. Therefore, the merchants inside have brewed some countermeasures and some disputes have arisen. To this end, on the eve of the Dongguan Exhibition in September, Li Junming, who had just been elected as the president of the new Home Business Association, had no time to watch the exhibition and hurriedly flew back to Kunming for mediation. "I originally talked about them on behalf of them. I didn't talk about something that really helped everyone." Li Junming was quite helpless. This further reveals the weak position of the seller group, who still lacks the right to speak before the strong sales scene. “Generally speaking, the contracts signed by the store and the merchants are all annual. From the spirit of the contract, it is our business to lose money without losing money. However, the merchants are not even qualified for the contract content and terms before signing the contract. Negotiations. In fact, merchants originally expected that in the most difficult time, the store could sacrifice some income subsidies to them. Now it seems that the differences are relatively large.” He also made an estimate of the future development of the incident, “even In September and October, no merchants believe that they can achieve the same level of the month, and they are desperate. I predict that this will lead to a large-scale withdrawal of the store. After October, a batch will be withdrawn. After the Spring Festival, there will be a large-scale withdrawal. Phenomenon.” He also stressed that in this round of turmoil, if some hypermarkets can't see the situation clearly, and there is a large-scale withdrawal of the store, the strength will definitely hurt, and it is unlikely that the future will be filled by supplementary investment. What else can I change? For hypermarkets, 2012 is also a difficult time. The retreat of the Red Star Guangzhou Pazhou Store, the “crash” of the Tianjin store, and the “batch closure” of the Beijing store that attracted CCTV attention were all sensational. We have also seen that the crisis they face, in addition to market conditions, and its absolute superiority are constantly being weakened. Wu Haiming, the chairman of Shanghai New Aristocratic Home Furnishings, believes that small dealers must hold a group and open a store to open a store, so that they will have more say in front of factories and shopping malls. Fang Qi, chairman of Shenyang Gutongjin Home Furnishing Chain, will focus on developing its own brand and building an independent store in the future. For cooperation with the store, he believes that it is necessary to combine a variety of factors - for the store to make money, the dealer can also make money, the dealer can cooperate; the dealer can not cooperate to make money in the store, the dealer can not survive; For stores with unreasonable rents, dealers should resolutely give up; dealers must resolutely give up on stores that do not integrate well. From the perspective of the store, the reduction of rents or disguised subsidies has already signaled a change. But what should be included in this transformation? You know, just lowering the original high head is not enough. In this regard, as early as the beginning of the year, the party began to call for "sales thinking", the store should also change its sub-leasing model. “Short-term sublease can be, long-term sublease mode is not suitable for economic law, especially the actual situation is not suitable for the furniture industry. Because the property is not owned by the hypermarket, the hypermarket is also facing the pressure of increasing operating costs. Rent is also painful for dealers.” Of course, it is not limited to this. In addition to behaviors, how to strengthen service awareness is a long-term project. "The decline in sales is still a big problem. To be honest, many dealers are desperate and have already withdrawn from the industry. I always think that this is not only a matter for dealers, but also for the survival of the store, and the coldness of the store." Wan Ping said. The night before dawn is the darkest, and this night seems to last a long time. In the middle of it, dealers need to think about it, and hypermarkets also need to think about it.

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