Home-based enterprises change their roles and do their best to make the market grow by industry segmentation

In March 2011, Red Star Macalline officially opened its second store in Fangbei, the provincial capital of Shijiazhuang. It was during the expansion of the home store around 2006 that Red Star Macalline took the first step into Shijiazhuang.

In Shi'an Road, Shijiazhuang, 12 kilometers from the East Second Ring Road to the West Second Ring Road, more than ten furniture stores are arranged along the way: Dongming Furniture East Second Ring Store, Mi's Furniture, Ximei Haomeijia, Mingyue Decoration Materials Mall Truth, truth and beauty...

According to the understanding, Hongxing Meikailong, one of the leading enterprises in the national home furnishing industry, entered the provincial capital market for the first time in the same period. The provincial capital began to open the store expansion of home store enterprises. In the past few years, the operating area of ​​Shijiazhuang Home Furnishing has soared from 100,000 square meters to more than 1 million square meters at the end of last year. There are more than 20 brands in home and store.

In addition, the merger and integration of the provincial home furnishing industry has intensified. In August 2010, Hebei Dongming International Furniture Expo Co., Ltd. merged with the 11-year-old Jinlilai Furniture City. After half a year, Dongming expanded again and became the big owner of Jinmen Furniture City, which opened for six years. At present, Hebei Dongming has 10 chain stores in the province, and has 6 stores in Shijiazhuang. The number of chain stores ranks first in Hebei.

On March 1, 2011, the national home furnishing company Red Star Macalline officially opened its second store in Shijiazhuang, Fangbei. Another national home furnishing giant has already settled in the provincial capital and is currently undergoing renovations.

According to the introduction, the speeding expansion of the home building materials industry is related to the “virtual fire boom” in the real estate market in the past few years. At present, with the step-by-step efforts of macroeconomic regulation and control, the gradual return to the healthy and benign real estate market will definitely produce for the home building materials industry. profound influence.

Slow down and stabilize

“Through the expansion period and experienced the merger tide”, in 2012, the home building materials market continued the downturn in 2011, the store rents rose further, the dealer costs increased, the profits fell, and the liquidity was short. Some home furnishing companies even refused to withdraw. Out of the market. After the industry experienced short-term huge prosperity and rapid growth, the home furnishing industry downstream of the real estate also felt the "seismic wave" caused by the "most severe" real estate regulation and control policy. “The market demand in the short term will indeed be suppressed,” said Zhang Yanli, marketing director of Hebei Dongming International Furniture Expo Co., Ltd. Looking back at the sales situation of Dongming in the past few years, she feels quite deep. “When the financial crisis arrived in 2008, the whole industry was shouting 'Wolf is coming', but the overall sales performance of Dongming from 2008 to 2010 was sharply increased, while sales growth slowed in 2011, and sales performance was basically the same as last year. She is flat, steady and increasing.” She analyzed that this is mainly because the market demand generated by the commercial housing estates accumulated before 2008 gradually digested in the next two years, and in 2011, the impact of real estate regulation on the home building materials industry was only Gradually revealed.

Jiang Tao, director of the planning department of Mingyue Furniture Building, also pointed out that the impact of real estate regulation on the home furnishing industry can be seen from the changes in the sales structure in 2011. “One obvious change is that compared with previous years, fewer customers purchase furniture. There are more customers who buy loosely."

After all, the improvement of living brings a rigid market. Zhang Yanli said that the current "weakness" of the market is only the result of short-term adjustment of the industry. It does not explain the future trend of the home building industry. "Compared with housing, young people get married to furniture. The demand is more rigid. Middle-aged consumers who already own their own homes or improve their housing are increasingly pursuing a high-quality life. They value the cultural connotation of the living environment and the demand for new furniture is also there."
The industry believes that the future home building materials industry will slow down from the “speeding” of heavy volume growth.

Performance growth by industry segmentation

While some home furnishing companies hold high-profile "one-stop shopping" signs, others are beginning to focus on industry segments.

On November 30th, 2011, Dongming Tioma Office Furniture Experience Hall opened and became the first professional office furniture experience museum in our province and even the whole country. Li Fengqi, president of the Hebei Furniture Association, said that this is an important step for Dongming to move toward differentiated operations. Li Fengqi said that in the face of severe market competition, local brands must, while maintaining their original advantages, do a good job in expansion and innovation, and make great efforts in innovation concepts, innovation management, and innovative services to continuously promote innovation and meet different consumption. The needs of the group.

Mingyue is also doing its own market segment, solid wood furniture is the breakthrough point for the change of the moon. Jiang Tao said, "We have reduced the number of software and panel homes, expanded the proportion of solid wood furniture, and transformed from a comprehensive store to a specialized store, aiming to create a furniture store featuring solid wood furniture."

Jiang Tao told reporters that although Mingyue does not have the scale advantage, as one of the earliest furniture companies in our province, the steady development in the past 15 years has made the company have certain brand advantages. In the future, the development strategy of Mingyue will not only further adjust the product structure, but also create a “Mingyue Solid Wood Boutique Building”, and will also work hard to explore the marketing road that suits you.

According to Jiang Tao, the sales in the next month of 2011 are 1.5 times that of the previous year. One of the strategies is “flexible guerrilla promotion tactics”. “The total number of customers who purchase is reduced, we will maximize the attraction of scattered customers. It has been reduced to zero and has been continuously launched in a targeted manner throughout the year.” The proportion of sales promotion has doubled from the previous year.

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