Home store off the tide is causing people to think deeply

Since 2012, there have been reports of home stores closing down. On March 31, 2012, Beijing Bafanglong Lighting City announced the closing of the store, ending its 12-year history of operating lamps. On September 14, 2012, Home Depot, the world's largest home building materials supermarket, completely withdrew from the Chinese market. Not long ago, Dongfang Homeland Building Materials Supermarket was exposed to arrears from suppliers and consumers. The purchase price reached 200 million yuan, and now it has reached the edge of the collapse.

The tide of home store closings is provoking, the reasons are nothing but three things: First, the home industry is a downstream industry closely related to the real estate industry, the trend of the real estate industry to a large extent determines the direction of the home market. This round of the tide of home shopping malls closed down, and the country continues to strengthen the real estate macro-control, the property market trading volume has shrunk dramatically, leading to a reduction in the flow of home stores are closely related.

Second, an important internal cause of the sluggish sales of home building materials stores is the blind expansion of stores in recent years. In recent years, as the real estate industry continued to heat up, many home stores began to “snack” around major cities in the country. Among them, the expansion of the Meikailong Red Star is the fastest. According to statistics, the number of its stores grows at an average annual rate of about 10 stores. Currently, there are more than 100 stores opened in the country. It is said that by 2020, the number of stores nationwide will reach 200. At the same time, stores are increasingly pursuing single-unit scales. In first-tier cities such as Beijing and Shanghai, the area of ​​a home store has reached 80,000 to 100,000 square meters. With the excess capacity in the upstream and the blind expansion of the stores, the brands of well-known home stores have experienced problems such as a decrease in the occupancy rate and difficulty in attracting investment. It is not surprising that small and medium-sized stores are closed down.

Third, the rise of refined homes has brought a heavy blow to the home building materials industry. From the perspective of the development of the real estate industry, refined decoration will become the mainstream of the future. The data shows that the proportion of finely-furnished houses currently sold in real estate is 50% in Beijing and 70% in Guangzhou, and Shenzhen announced as early as 2008 that “completely renovated homes sold by the end of 2010 should reach 100%”. The popularity of refined decoration houses has led to a large number of sales channels for home building materials starting from the traditional home market to the real estate market.

In fact, in the current economic environment, home stores will inevitably undergo a round of reshuffle. Just as people have illnesses and illnesses, it is normal for the survival of the fittest. From a deeper perspective, the phenomenon of the closure of home stores is essentially a self-adjustment of the industry. This is a good thing, and we can eliminate stores that are highly homogenized and do not meet the needs of mass consumers, and help solve the problem of overcapacity in the stores. .

In order to retain merchants, there is bound to be a rent war between the stores and the stores. In the future, the phenomenon of rent reduction or rent-free renting will probably occur in large numbers. At the same time, there will be price wars and service wars between the stores and the stores. Consumers are expected to become the ultimate beneficiaries. They can buy better products and more thoughtful services with less money.

The more sluggish the industry is, the more necessary it is for home stores to analyze the situation calmly, improve their internal skills, plan their own product positioning, and improve their management capabilities. Stores should rely on new formats, better services, better management, and stronger marketing to retain consumers and find their place in the competition.