The reporters of "China Business News" visited the South Furniture City, Tuanyi Furniture City, Nanhua Furniture City, Fujiwara Furniture City and Dongheng Furniture City, and found that they were all gates. The increase in rents makes the business miserable, some businesses are bleak, and some businesses have closed down because of losses.
However, from the data published by the National Bureau of Statistics, the situation in the furniture industry is not as bleak. For example, in the first half of 2018, the retail sales of furniture reached 105.3 billion yuan, a year-on-year increase of 10.1%. Compared with the growth rate of total retail sales of consumer goods in the same period, the growth rate of furniture retail sales has increased by 0.7 percentage points.
Better than the performance of construction and decoration materials, namely floor, tile, paint and other types of materials, the retail sales growth in the first half of the year was only 8.1%. The impact of the hardcover room is very powerful.
It can also be combined with the National Building Materials Home Furnishings Index. In the first half of 2018, the cumulative sales of building materials and home appliances above designated size was 448.78 billion yuan, up 10.23% year-on-year. The figures for the whole year also came out. The accumulated sales amounted to 966.16 billion yuan, up 5.32% year-on-year. The sales in the second half of the year were not as good as the first half.
This growth rate is not low, the industry performance is still booming, and there is no bad to the extent of grief. Moreover, it is still in the rising stage of urbanization. In 2017, the urbanization rate is 58.52%, 60% in 2018, developed countries generally around 80%, and nearly 20% growth.
From a population perspective, the furniture market has won 10 percentage points, or a few percentage points of growth, is still normal. If urbanization is stabilized in the future, the growth of furniture retail sales may become negative, and that is the real downturn.
The reporter believes that the business of the furniture city is now suffering, there are several factors:
One is that money is not as profitable as before. It is difficult and the competition is fierce. Some dealers' own ability improvement has not kept up, and it is naturally difficult to adopt the original management method.
Second, the channels are too scattered, and the impact of emerging channels is relatively large. Many professional furniture cities are not as popular as before, and it is not the only place for customers to buy furniture.
If you only rely on the flow of the store, once the flow of the store falls, the business of the merchant is certainly not as good as before, and the increase in rent is too large, resulting in a much thinner profit than before, and it is easy to lose money.
Third, there are some places in the furniture industry zone, which was famous and has a long history. For example, Foshan Lecong, Hebei Xianghe, Jiangxi Southwest Kang, etc., local furniture city wholesale and retail, all done wholesale, and retail.
However, there are few famous national leading brands and few can not be seen. Nowadays, people want to buy a brand, buy a personality, spend less money to buy grades, can not keep up with this change in consumption, the space of miscellaneous brands will become smaller and smaller, unless the rental market is specifically made, the price is extremely low.
In terms of music from the perspective of furniture, according to the scale of the local population of Foshan, the furniture city can not afford to rely on retail, and must go to the foreign market and sell things. However, Lecong furniture is not as good as Foshan ceramics. Lecong lacks a well-known brand with high popularity and does not have much say in the national retail market.
Looking at wholesale again, the attraction is not as strong as before. The channel has changed, it is very scattered, there is no need to run and buy goods, the traffic is divided. What's more, the e-commerce is very convenient now, there is no need to go to the scene, some orders are directly made online, and the store's passenger flow is divided into half. You will not do online sales and naturally lose some buyers.
Coupled with the strength of the first- and second-line furniture brands, the number of franchise stores opened in different places, the less the non-brand stores in the local area can survive. Selling small and medium-sized brands, it is difficult to compete with listed companies or well-known chain stores. This kind of store that lacks brand effect is rapidly decreasing, and the number of merchants who naturally purchase goods from Lecong will decrease.
Fourth, the industry's Matthew effect has intensified. The leading brands' agents are around 50% mixed, and about 40% can be maintained, and about 10% are losing money. However, most of the brands are having a hard time. The reason is that consumers recognize brands, a little bit of money, and want to buy brand names. This psychology is absolutely common to the whole industry. Don't think about correcting them. Only think of ways to satisfy consumers' psychology.
Most of the markets are being hunted by head brands, and the opening speed is very fierce. According to the statistics of large materials, most listed home furnishing companies have opened more than 100 new stores in 2018. These stores are open to take the market. The cake is so big, there are more people to grab, and you will be able to get less. The ability to compete is a bit worse, and there will be a lot less.
Even if some analysts think that the growth rate of listed home furnishing companies has declined, it is not as beautiful as before. However, if it is not good, the growth rate of most leading enterprises is more than 20%, and some have broken through 30%, far higher than the industry average. Speed up. Take the situation of listed companies to compare, the revenue in the first three quarters of 2018 is that at least the revenue growth of Meike Home and Gujia Home has exceeded 30%. In addition, like Sophia, Shang Lu home, and good Lai Ke are more than 20%. At least 30% more than the year-on-year increase in net profit, such as Shangpin Home, Hao Laike, Zhibang Home, etc., more than 20%, such as Europe, Gujia, Sofia, Meike Home, etc.
The scale of growth of the entire industry is limited, and the days of listed companies and leading companies are much better. The situation of small and medium-sized companies is naturally much more difficult. Those companies that are slow in growth, product advantages are not prominent, word-of-mouth is flat, and the ability to make orders is not strong enough. It is an unexpected thing to face losses, and it may even close down.
According to statistics from the China Industrial Research Institute, by the end of 2017, the number of enterprises above designated size in China's furniture industry reached 6,000, an increase of 39 compared with the previous year. However, there were 608 loss-making enterprises, an increase of 108 over the same period of the previous year, and the loss was 10.13%.
Key points: 108 loss-making enterprises increased by 10.13%. The situation after 2017 compared with 2016. The entire industry is only about 10% growth rate, and those leading enterprises have achieved 20%, or even 30% growth, the crowding effect has occurred, and some companies' businesses must be taken away.
Then, in the first half of 2018, the number of furniture manufacturing enterprises nationwide has grown to 6,217, including 958 losses, with a loss of 15.4% and a total loss of 2.06 billion yuan. When the time is up to January-October, the number of furniture companies has grown to 6,236, and the number has increased by more than a dozen. Among them, there were 919 losses, with a loss of 14.7% and a total loss of 2.08 billion yuan. Although the losses have narrowed, compared with 608 at the end of last year, the loss has increased this year, the number of companies that have lost money has increased, and there are still many small and medium-sized businesses that do not come in, and the combined amount will be very large.
Pessimism is transmitted, not to mention that the company that lost money has indeed increased a lot more than in previous years, and it is normal to feel that it is difficult. The difficulty in 2019 is not less than that in 2018. The environmental protection policy has not been relaxed. The raw materials are still rising in price. The labor may be more expensive, which will further push up the operating costs. Only the price increase can guarantee a certain profit.
If the merchant lacks the ability to increase the price of the terminal, the customer will not come at a price increase. The end result is that the business will be worse and the day will be more difficult. The property market regulation has not been relaxed. Do not place too high expectations on the transaction area, which means that the demand growth of the retail market will not be higher than that of 2018, and there is a possibility of reduction.
When it comes to each market segment or specific city, the situation is very different. For example, some urban populations have large inflows, new houses have a larger transaction volume, and the furniture business will do better. On the contrary, the population of some cities is still going out, the industry can't keep up, the real estate business is poor, and the furniture business is very difficult.
The reporter noticed that the scale of office furniture procurement in 2018 is OK, and it has a large number of companies. A strong business can see if it can be cut into it, and understand the threshold, process and entry method of purchasing. Ladies and gentlemen, have you discovered that companies like U-Art, Art, Vatican, etc. are not old brands, they have only appeared in recent years, either e-commerce or positioning oriental art, suddenly suddenly emerged, the scale is small, but the growth is not yet difference.
Therefore, I also think that with the previous way of doing business, it is very unlikely that the previous glory will be harvested in this era. What new young consumers like, what do they buy? What are the new mainstream channels and how do you sell them? There are new answers. Find the right answer, and the estimated hardships will come to an end.
You and me, everyone, without exception, are making adjustments based on new policies, new situations, and new circumstances.