When the impact of real estate regulation gradually emerged in the home industry this year, when a large number of upstream building materials manufacturers caused a large-scale industry reshuffle due to excess capacity, both the home market in Hangzhou and building materials agents are facing tough choices. In recent days, the home town of Hongfeng Home Town, which is located in the west of Wuchang City, reported that the original home city with a total area of ​​120,000 square meters and two independent halls for building materials and furniture will use 1-2 months to make major adjustments to the library area. After being verified by reporters, merchants, and insiders, Hongfeng Home City, which has significantly reduced its brand of building materials, will “merge†building materials and furniture to the 60,000-square-foot (original Hongfeng Building Materials) pavilion, and another 60,000 square meters. Hongfeng Furniture Museum will be re-planned after emptying and the transformation will attract other industry projects.
In this year, the reduction of the operating area of ​​building materials products is actually not the only one in Hongfeng Home Town. Also located in the west of the city, the Ou Yada Tianyi shop on Gudun Road, after opening a new business in April this year, sohu.com, cut off the bathroom area, cut the tile area, and carried out the main direction from single building materials to furniture-based building materials. Supplementary market transformation. On the other side of Da Ma Road, the area of ​​the main building of the New Age Home Living Plaza was covered with scaffolding, and adjustments and reconstructions have also begun. It is understood that the transformed A Pavilion will be transformed into a furniture business and adjust a number of building materials brands.
According to industry insiders, this change in the pattern of the market in the west of the city is not only a result of competition among the markets, but also a clear signal for the brand building materials agents to select the strategy for “big retreat†this year. For building materials agents who follow the “Great Leap Forward†in the number of market stores in the past two years, under the current situation, “retreating to advance†may be a more sensible and rational survival strategy.
The most aggressive Weitao agents first “brakeâ€
Sanitary ceramic products are always placed in the gold of the entire building materials market. It was originally a "heavyweight" category of goodfeel in building materials products, plus the constant “buildup†of dominant brands in the hands of a few big agents. In Hangzhou, whether an emerging comprehensive household market or building materials market can be successfully opened and obtained The recognition of the consumer market, to a large extent, depends on the success of the investment in the two major brands of the Wei and Tao products.
The importance of Weitao's products has made it the "olive branch" where the market has thrown out all kinds of excellent treatment in the "fighting war" in the number and scale of the home furnishing market in Hangzhou. It is the first object to be enthusiastically pursued. For various reasons, Weitao agents have actively or passively expanded the number of stores rapidly in the past two years. And it was the bathroom ceramics agent that had been the most aggressive, and it was the first "brake" this year.
The prime location on the first and second floors of the main channel of the Hongfeng Home City Building Materials Museum is that the Toto, Kohler, Lejia, Apollo, Jinyitao and other well-known pottery brands Tianlong Eight are still in the store but the stores are still inside. Demolition. “The Roca was the first to withdraw at the end of last year,†said Zhu Xiaojun, general manager of Hangzhou Hengdu Building Materials Co., Ltd. Afterwards, agents of Kohler's products, and many more Taotao agents headed by Dongying Enterprises, such as TOTO, Wrigley, etc., also joined the collective retreat of the brand collectively.
For this year's collective withdrawal, as early as the beginning of this year, there are signs of remarks by the bosses. At the beginning of this year's forecast of this year’s situation, Chen Hangfu, chairman of Dongjian Corporation, and Wu Jianguo, chairman of Xinlian Trade, both clearly stated to the reporter that their intention to adjust the number of stores in Hangzhou and to strengthen the effective and reasonable distribution of strategic points. From the withdrawal of Hongfeng Home Furnishing City and Eurasian Tianyi Store, it is undoubtedly the implementation of the plan formulated at the beginning of the year with the method of “dismounting the brave manâ€.
2/3 building materials agents are operating at a loss this year
In fact, with Weihai products as the “wind vaneâ€, building materials manufacturers, including cabinets, floors, sliding doors, etc., are slowing down the pace of opening stores this year. “For a building materials distributor, the cost of opening a new store in a new market is there. Decoration, distribution, personnel, and rent are at least 500,000 to 1.5 million. With such a large investment, the return is unknown. "A number of well-known Weitao, cabinets, flooring, doors and windows and other brand building materials business after calculations told reporters goodfeel, the market rent increases, sales dismal, increased labor costs and other factors, so that this year's industry profits are being quickly swallowed by the cost, multiple The average profit rate of the building materials industry has dropped by at least 10-15 percent. As reporters learned from more markets and merchants, about two-thirds of building materials merchants are in a state of losing business this year.
In this case, slowing down the opening of the store or shrinking the storefront is undoubtedly a sound way to overcome this year's difficulties. Affected by the wait-and-see attitude of building material dealers, several new markets opened in Hangzhou from the end of last year to this year were almost all short-term or long-term trapped in the problem of insufficient investment rate, which caused the overall market opening time to be postponed.
It is understood that in the relationship between manufacturers, agents, and the home market, agents have always been considered as a group with relatively weak anti-risk capabilities. In the home furnishing market, the overall rapid decline in sales, increasing labor costs this year, the operating pressure of home agents can be imagined. The fierce competition of online sales channels and real estate fine-tuning business is even more devastating to the impact and challenges brought to the former small and medium-sized building materials dealers who only dealt in the retail market.
Anonymous building materials dealers told reporters that the rapid increase in real estate decoration projects in Hangzhou, in addition to a small number of large building materials business in the project to focus on the profit outside the renovation of the home network, the impact of a group of small and medium-sized building materials business The impact is very great. “The greater impact of the refined decoration on the industry may appear in the next 3-5 years.†The owner of the building materials business, which has been a cabinet business for many years, planned to clear the inventory in the second half of the year and switch to it. The reason is that the market competition is too fierce, and he did not have the financial strength to take the brand cabinet agent, there is no advantage in the era of hardcover in the future, it is better to see the focus on the renovation of the home network, timely exit.
Big shuffling may appear in the first half of next year
Ma Yun has a famous saying, "Today is very cruel, tomorrow is more cruel, the day after tomorrow will be very beautiful, but the vast majority of people are dead tomorrow night, but not see the acquired sun." This sentence is used to describe the present stage of building materials industry in Hangzhou The development is equally appropriate. In the Weitao industry in Hangzhou, he has been working hard for nearly 20 years and has represented many building materials brands. Ni Jianyong, who has experienced many rounds of industry, feels that the current Hangzhou building materials industry is experiencing “darkness before the dawn†and the most difficult time. There may be "first-half of this year's cruelty, but it will not wait for the next year to be better" in the first half of next year.
Ni Jianyong believes that this reshuffle will test the resistance of medium-sized building materials agents. The operating costs of medium-sized agents range from 1 million to 10 million, and they often form a certain network layout. However, they are not sound and have certain marketing capabilities. However, they are not professional and have certain sales channels, but they are still not perfect. In the first half of last year, he chose to wait and see temporarily. He said that with the arrival of the “profit-making†era of building materials management, dealers in the future must not only tolerate the period of loneliness, but also build outlets under the premise of allowing reasonable losses. Store building, team building and many other efforts.
According to industry insiders, whether it is upstream building materials manufacturers, building materials agents, or the building materials market, nowadays following the national economic situation, as well as real estate control policies, will face a series of major reshuffle. At present, the closure boom caused by the excess capacity of the upstream building materials manufacturers has already pushed down the “dominoâ€. The surplus layout of the home building materials market in many first-tier cities including Hangzhou has also revealed operational problems. The role and reaction will inevitably also experience waves. In this case, brand building materials traders are better off retreating, retaining their strength and watching it change.
In this year, the reduction of the operating area of ​​building materials products is actually not the only one in Hongfeng Home Town. Also located in the west of the city, the Ou Yada Tianyi shop on Gudun Road, after opening a new business in April this year, sohu.com, cut off the bathroom area, cut the tile area, and carried out the main direction from single building materials to furniture-based building materials. Supplementary market transformation. On the other side of Da Ma Road, the area of ​​the main building of the New Age Home Living Plaza was covered with scaffolding, and adjustments and reconstructions have also begun. It is understood that the transformed A Pavilion will be transformed into a furniture business and adjust a number of building materials brands.
According to industry insiders, this change in the pattern of the market in the west of the city is not only a result of competition among the markets, but also a clear signal for the brand building materials agents to select the strategy for “big retreat†this year. For building materials agents who follow the “Great Leap Forward†in the number of market stores in the past two years, under the current situation, “retreating to advance†may be a more sensible and rational survival strategy.
The most aggressive Weitao agents first “brakeâ€
Sanitary ceramic products are always placed in the gold of the entire building materials market. It was originally a "heavyweight" category of goodfeel in building materials products, plus the constant “buildup†of dominant brands in the hands of a few big agents. In Hangzhou, whether an emerging comprehensive household market or building materials market can be successfully opened and obtained The recognition of the consumer market, to a large extent, depends on the success of the investment in the two major brands of the Wei and Tao products.
The importance of Weitao's products has made it the "olive branch" where the market has thrown out all kinds of excellent treatment in the "fighting war" in the number and scale of the home furnishing market in Hangzhou. It is the first object to be enthusiastically pursued. For various reasons, Weitao agents have actively or passively expanded the number of stores rapidly in the past two years. And it was the bathroom ceramics agent that had been the most aggressive, and it was the first "brake" this year.
The prime location on the first and second floors of the main channel of the Hongfeng Home City Building Materials Museum is that the Toto, Kohler, Lejia, Apollo, Jinyitao and other well-known pottery brands Tianlong Eight are still in the store but the stores are still inside. Demolition. “The Roca was the first to withdraw at the end of last year,†said Zhu Xiaojun, general manager of Hangzhou Hengdu Building Materials Co., Ltd. Afterwards, agents of Kohler's products, and many more Taotao agents headed by Dongying Enterprises, such as TOTO, Wrigley, etc., also joined the collective retreat of the brand collectively.
For this year's collective withdrawal, as early as the beginning of this year, there are signs of remarks by the bosses. At the beginning of this year's forecast of this year’s situation, Chen Hangfu, chairman of Dongjian Corporation, and Wu Jianguo, chairman of Xinlian Trade, both clearly stated to the reporter that their intention to adjust the number of stores in Hangzhou and to strengthen the effective and reasonable distribution of strategic points. From the withdrawal of Hongfeng Home Furnishing City and Eurasian Tianyi Store, it is undoubtedly the implementation of the plan formulated at the beginning of the year with the method of “dismounting the brave manâ€.
2/3 building materials agents are operating at a loss this year
In fact, with Weihai products as the “wind vaneâ€, building materials manufacturers, including cabinets, floors, sliding doors, etc., are slowing down the pace of opening stores this year. “For a building materials distributor, the cost of opening a new store in a new market is there. Decoration, distribution, personnel, and rent are at least 500,000 to 1.5 million. With such a large investment, the return is unknown. "A number of well-known Weitao, cabinets, flooring, doors and windows and other brand building materials business after calculations told reporters goodfeel, the market rent increases, sales dismal, increased labor costs and other factors, so that this year's industry profits are being quickly swallowed by the cost, multiple The average profit rate of the building materials industry has dropped by at least 10-15 percent. As reporters learned from more markets and merchants, about two-thirds of building materials merchants are in a state of losing business this year.
In this case, slowing down the opening of the store or shrinking the storefront is undoubtedly a sound way to overcome this year's difficulties. Affected by the wait-and-see attitude of building material dealers, several new markets opened in Hangzhou from the end of last year to this year were almost all short-term or long-term trapped in the problem of insufficient investment rate, which caused the overall market opening time to be postponed.
It is understood that in the relationship between manufacturers, agents, and the home market, agents have always been considered as a group with relatively weak anti-risk capabilities. In the home furnishing market, the overall rapid decline in sales, increasing labor costs this year, the operating pressure of home agents can be imagined. The fierce competition of online sales channels and real estate fine-tuning business is even more devastating to the impact and challenges brought to the former small and medium-sized building materials dealers who only dealt in the retail market.
Anonymous building materials dealers told reporters that the rapid increase in real estate decoration projects in Hangzhou, in addition to a small number of large building materials business in the project to focus on the profit outside the renovation of the home network, the impact of a group of small and medium-sized building materials business The impact is very great. “The greater impact of the refined decoration on the industry may appear in the next 3-5 years.†The owner of the building materials business, which has been a cabinet business for many years, planned to clear the inventory in the second half of the year and switch to it. The reason is that the market competition is too fierce, and he did not have the financial strength to take the brand cabinet agent, there is no advantage in the era of hardcover in the future, it is better to see the focus on the renovation of the home network, timely exit.
Big shuffling may appear in the first half of next year
Ma Yun has a famous saying, "Today is very cruel, tomorrow is more cruel, the day after tomorrow will be very beautiful, but the vast majority of people are dead tomorrow night, but not see the acquired sun." This sentence is used to describe the present stage of building materials industry in Hangzhou The development is equally appropriate. In the Weitao industry in Hangzhou, he has been working hard for nearly 20 years and has represented many building materials brands. Ni Jianyong, who has experienced many rounds of industry, feels that the current Hangzhou building materials industry is experiencing “darkness before the dawn†and the most difficult time. There may be "first-half of this year's cruelty, but it will not wait for the next year to be better" in the first half of next year.
Ni Jianyong believes that this reshuffle will test the resistance of medium-sized building materials agents. The operating costs of medium-sized agents range from 1 million to 10 million, and they often form a certain network layout. However, they are not sound and have certain marketing capabilities. However, they are not professional and have certain sales channels, but they are still not perfect. In the first half of last year, he chose to wait and see temporarily. He said that with the arrival of the “profit-making†era of building materials management, dealers in the future must not only tolerate the period of loneliness, but also build outlets under the premise of allowing reasonable losses. Store building, team building and many other efforts.
According to industry insiders, whether it is upstream building materials manufacturers, building materials agents, or the building materials market, nowadays following the national economic situation, as well as real estate control policies, will face a series of major reshuffle. At present, the closure boom caused by the excess capacity of the upstream building materials manufacturers has already pushed down the “dominoâ€. The surplus layout of the home building materials market in many first-tier cities including Hangzhou has also revealed operational problems. The role and reaction will inevitably also experience waves. In this case, brand building materials traders are better off retreating, retaining their strength and watching it change.
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