In addition to quality, price has become the biggest factor in the transaction, and is also the focus of merchant competition. The competition in the shopping mall is fierce and the promotion is intensive. "It is the consumers who benefit most from the home industry."
Home building materials sales enter the era of small profits
Some time ago, the two consecutive days of the Central Plains Home Furnishing President's signing binge ended. After two days of intensive rain, many promotional posters and brochure pages were scattered all over the place. China ’s real estate development has entered the golden stage of development since 2004. Home building materials are an accessory product of real estate. The home building materials industry has also ushered in a golden decade. The entire industry has developed rapidly and brand building has been strengthened. Entering the era of normal profits, a large number of enterprises will bid farewell to high profits. "Many headquarters manufacturers of first-line brands said.
Go to the headquarters and enter the market directly in peak season
In 2011, due to market restrictions on the real estate market, RMB appreciation, and international economic factors, the terminal market for home building materials has dropped significantly compared with the same period last year; for the internal market, exports have decreased, and the prices of various raw materials and daily necessities have risen sharply. Factors such as high prices, high rentals in terminal stores, and a sharp increase in employee wages have also increased the pressure on dealers. This year, the decline in corporate profits has become the biggest shadow under the optimistic economic growth rate, which has caused companies in the downstream industries such as building materials to complain.
The home furnishing season, which started in September and October, has led home furnishing companies to take the lead. "Entering the holiday promotion war ahead of time, businesses are grabbing the market." Red Star Macalline said a stair brand business. On August 20th and 21st, the "President's Signing" frenzy initiated by the three major home furnishing giants in Central Plains swept through Greentown. Two days of heavy rain did not extinguish the enthusiasm of home furnishing. Don't fall. The car parks of the stores of Ou Kailong, Actual Home and Red Star Macalline have been full. From the well-known brands of furniture, cabinets, wardrobes, ceramics, sanitary ware, wooden door stairs and other categories, the headquarters of the manufacturers have led teams to Zhengzhou to promote profits.
Merchants entered the peak season early, increased promotional activities, and direct profit from the headquarters, which directly shows that the home building materials industry has entered the era of small profits. Shan Jun, general manager of the left and right sofas, said.
Building materials and home industry bid farewell to the era of high profits
Li Kaiyuan, deputy general manager of Huida, said, "This is a normal trend, and the market economy itself will lead to profit equalization, which is a natural process." This interpretation is based on the most basic truth of the market economy-supply increases beyond demand, naturally lowering prices and leading to lower profits. "We are gradually turning to the development of integrated home furnishing, developing bathroom cabinets, integrated bathroom rooms, etc."
The industry enters the era of low profit
With the rise in labor and raw material prices, it is inevitable that the increase in product cost will lead to a rise in product prices. Any industry that has matured will enter the era of meager profit. Home furnishing manufacturers and distributors cannot always be at a high profit level. The era of profiteering in the home furnishing industry has passed.
"Sometimes the period of huge profits will pass. Under normal economic conditions, enterprises should rely on management to make money, not on huge profits." Lian Zhigang, chairman of Huali Lighting, said. With the rise in labor and raw material prices, it is inevitable that the increase in product cost will lead to a rise in product prices. Any industry that has matured will enter the era of meager profit. Home furnishing manufacturers and distributors cannot stay at a high profit level. The profiteering era of the home furnishing industry has passed. With the survival of the fittest in the market, some products will increase prices and some products will reduce prices. .
"The headquarters directly makes profits and supplements the dealers, which is even greater than the discount for finding acquaintances in the past." Dai Zong, head of the multi-brand brand of Jisi said. "In this large-scale promotion, the merchant brand does not put profits first, zero profits or profit-making, but it is a big display and regional promotion of the brand." Huida brand, director of Henan Jintai Building Materials Chang Jiangjun believes that any industry is actually saying goodbye to the era of high profits. Industry insiders believe that once the home furnishing industry enters a period of meager profit, enterprises must make full use of raw materials, reduce inventory, give full play to labor benefits, optimize procurement and sales links, and each process cost control is an opportunity to obtain profit growth points. In the era of home construction materials tending to be marginal, many brands have begun to seek new ways to survive in the market. Like buying land to build a factory, developing a whole series of home furnishing: selling bricks to produce bathroom cabinets; selling cabinets also produces ceramic products ... to develop more diversified products.
Consumers will be the biggest beneficiaries
Today, the most anticipated thing for consumers is to buy their favorite home products at the best price. The most obvious feature of consumption is sensible purchase. The service, product quality and overall design of home brands are much higher than before. In addition to quality, price has become the biggest factor in the transaction, and is also the focus of merchant competition. The mall is fiercely competitive and intensively promoted. "This is precisely the most profitable consumer of the home furnishing industry." Dan Xianxi, marketing director of Holocaust wardrobe. Competition in the industry has intensified. One is to grab the market early at the time point, like this year has been advanced to August, and can't wait to promote various promotional activities; the second is that the major mainstream home stores have entered the competition between the stores, forcing them to enter. The merchants have come up with great discounts, coupled with discount discounts at the store, which will benefit consumers. Under the fierce competition, manufacturers are forced to reduce profits and increase investment in promotion and promotion.
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