Looking back at the past 2013, a phenomenon in the home furnishing industry is peculiar and thought-provoking - according to the National Building Materials Home Furnishings Index released by the Circulation Department of the Ministry of Commerce and the China Building Materials Circulation Association, sales of furniture stores increased in 2013, but Profits have declined; according to the year-end statistics of the China Furniture Association, the total output of China's furniture industry declined in 2013, but output value and profits have increased. This reduction of two data, reflecting what kind of situation in the industry?

Home store sales increase profits decline

According to the reporter's understanding, the National Building Materials Home Furnishings Index (BHI) is a boom index of a building materials and home terminal store jointly issued by the Circulation Department of the Ministry of Commerce and the China Building Materials Circulation Association. It is regarded as a barometer of the home industry. The BHI index for December 2013 was announced recently. The BHI was 101.86, a decrease of 12.45 points from the previous month and a decrease of 4.62 points year-on-year. With the release of data in December last year, the 2013 annual building materials home boom index was also released. According to the data, last year, the cumulative sales of home-scale building materials stores above designated size was 1,248.1 billion yuan, up 0.11% year-on-year.

“The sales of home stores increased last year, but the profits did not increase, and even declined. In the state that real estate just needs to be released centrally, and the building materials and home stores are already surplus, this is an inevitable result. There is demand, but the competition is fierce. The portrayal of the building materials home market in the year." Qin Zhanxue, executive vice president of China Building Materials Circulation Association, explained this.

The consequences of excess home sales show a decline in sales and profits

For the decline in sales of home sales, the industry has made an analogy. Previously, it invested in an advertising campaign, and two marketers could sell 20 sets of cabinets. But now, if you want to do a promotion, you have to invest at least four or five times. At the same time, with five or six marketers, you can sell twenty sets of cabinets, so that although the sales will increase, the profit will not increase too much.

The consequences of excess store have gradually emerged

The decline in sales volume and profits has been reflected in some of the tough conditions facing home stores. First of all, the consequences of excessive home sales and fierce competition have gradually emerged. Qin Zhanxue also clearly raised this practical problem - in the state of excess of home sales, the decline in sales volume is an inevitable result; the fierce competition is a portrayal of the building materials home market in 2013.

Zhu Changling, chairman of the China Furniture Association, also introduced that there are several notable features in the development of the furniture industry in 2013. The first is the large-scale development of the circulation market and the diversification of channels. In 2013, China's furniture circulation market area has exceeded 70 million square meters. At the same time of the development of circulation stores, the diversified pattern of China's furniture distribution channels has gradually formed. In addition to agents, wholesalers and retailers, there are international brand stores. Furniture supermarkets, comprehensive room supply stores, chain stores, self-operated stores, flagship stores, online sales and other channels coexist.

Some insiders believe that there is a vicious competition in the excess of home stores. Due to the rapid development and expansion of many years, in the context of real estate regulation and control, only the home stores that rent and rent are unable to maintain. Some urban building materials and home stores have reached half or more of the local population. That is to say, the building materials and home stores in this city require 1 or 2 people per square meter to maintain normal operations, which is unsustainable.

In addition to the excess area of ​​the store, the rise of e-commerce is also an important factor for the impact of traditional home stores. With the continuous upgrading of electronic network technology and the continuous improvement of modern logistics distribution, as well as various "group purchase" models and refurbished over-the-counter transactions, it has had a great impact on existing home stores. What is more serious is that the expansion of e-commerce will be stronger in the new year. Furniture will become another hotspot for major e-commerce companies after clothing, books, home appliances and 3C products. E-commerce is undoubtedly A major development trend in the future consumer market.

In fact, traditional home stores and production companies are also aware of the power of e-commerce. In recent years, both manufacturers and home stores have tried to build their own e-commerce platforms, and they have spent a lot of money on this. At present, the actual home has launched its own official online shopping platform "actually online"; Qumei launched online shopping mall "Qumiao" is in full swing; Wrigley and Faenza sanitary ware have also set up an official online mall.

Transformation and upgrading bring bright spots to enterprises

Although the sales terminal situation is not optimistic, but the production companies have some rare highlights. According to the statistics of the China Furniture Association, in 2013, the total output of the Chinese furniture industry declined, but there was an increase in output value, profit, and exports. Industry investment is still very active and positive. The annual investment growth is expected to reach 25.4%, while the profit growth will reach 18%. In the first three quarters of 2013, the above-scale enterprises completed the main business income of 450.926 billion yuan, the output of 46605.64 million pieces, the accumulated profit of 24.153 billion yuan, and the profit growth rate exceeded the growth rate of the main business income.

The profit growth of the furniture industry is inseparable from the transformation and upgrading of the industry and the large-scale adoption of new materials and technologies. At present, furniture manufacturers continue to introduce a variety of new materials, new processes, new technologies and widely used in furniture production. Not only that, the development of furniture has also promoted the innovation and development of the production technology of furniture raw materials and woodworking machinery, objectively promoted the overall progress and development of the furniture and furniture surrounding industries, and accelerated the industrial upgrading. In the past two years, furniture companies have paid attention to the communication with colleges and universities, and gradually combined theoretical knowledge with social practice to form the development of “integration of production, study and research”, which will make all links closely connected and can rapidly improve the transformation of scientific and technological achievements. rate.

In addition, in 2013, the state expanded the “VAT reform” pilot scope and improved the survival environment of small and micro enterprises, and continued to release the dividend of reform and innovation, which injected new vitality into the smooth operation of the furniture industry.

The increase and decrease of profit data between home stores and production companies essentially reflects the gap between innovation and the old age.

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