echemi logo
Product
  • Product
  • Supplier
  • Inquiry
    Home > Coatings News > Paints and Coatings Market > Renovation industry market decline everyone live or "help" magic weapon

    Renovation industry market decline everyone live or "help" magic weapon

    • Last Update: 2021-01-09
    • Source: Internet
    • Author: User
    Search more information of high quality chemicals, good prices and reliable suppliers, visit www.echemi.com
    china Paint Online News News
    " the first half of the decoration market has been the end of last year's real estate dividend digested almost, should be the peak season in August sales fell by about 10% compared to August last year. "Although the National Building Materials Home Boom Index (BHI) began to stop falling in August, but industry insiders revealed that almost all decoration companies and e-commerce platform business has declined, but also predicted that the Internet home improvement industry in the next year may expose major problems, "only 10% of gross profit can not be supported for too long, some companies have been 'burned' almost." "Market participants believe that the home-clothing industry to continue to develop, or to take the "everyone live" route.phenomenon one:
    decoration industry in the second half of the pressure is greater
    Guangdong decoration industry in the off-season is generally only in the plum rainy season, August to December are high season. However, in August this year, the decoration industry is not a good day. The boss of a decoration company complained to reporters that since June, almost all of the decoration company's customer base is declining, building materials vendors and stores are having a hard time. Business in August was lower than last year and about 10 per cent lower than in August, he said. He also learned that several well-known platforms are declining business volume and customer consultation volume: "The second half of last year, the performance has been growing, did not expect the second half of this year began to get worse, the next few months of more pressure."
    Zheng Yuanhang, general manager of The Real Decoration Guangzhou Company, said that the industry rose in the first half of this year, most decoration companies in the first half of the revenue and net profit ushered in a rebound phenomenon, mainly because the government "destocking" and other macro policies continue to promote the property market and most decoration companies home and public wear business to boost confidence, and now the dividend has been basically digested by the market. It is understood that in 2015, china's national decoration industry market demand scale of 1660 billion yuan, of which the demand for commercial housing decoration is 72.8%, the renovation and decoration of old houses for 19.5%, hardcover housing renovation and decoration for 7.7%.
    Zheng Yuanhang told reporters that the first-hand property market has always been the decoration industry," but with the changes in the market, the second-hand property market consumption capacity is stronger, so the second-hand market is the key to the future of the market success or failure. At present, the real second-hand building decoration business volume has reached 40% of its total business volume. However, the China Architectural Decoration Association issued the "Chinese Architectural Decoration Blue Book" mentioned that the stock of housing market leading characteristics are becoming more obvious, the construction decoration industry's dependence on the real estate market is weakening. Zheng Yuanhang also said that the real estate market on the decoration industry's impact is becoming less and less obvious.phenomenon ii:
    Internet homewear has not yet solved the three major pain points
    the market downturn has also had an impact on the Internet homewear industry. In a recent press conference in Guangzhou, the company's decoration chairman Sun Wei said in an interview that the current Internet home improvement still does not solve the industry's three major pain points: "First, there is no essential solution to the owners in the decoration quality, duration, price and other concerns, because of the work of construction workers Unrecordable and untraceable; second, the marginal cost of decoration has not decreased with the increase in the number of decoration sites; third, supply chain efficiency is still low, the dispersion of B and C ends leads to design, construction, production standards are not uniform, resulting in downstream furniture enterprises need personalized production.
    Mr. Huang, who has been in the industry for many years, told reporters that last year the Internet took the decoration industry to a new level, so that more people pay attention to the decoration industry, but also let the traditional decoration industry learn to advocate the customer experience, but at present most consumers are more concerned about the living environment, care about personality needs, customized needs, and the standardization of the Internet can not meet the needs of these consumers.
    Mr. Huang revealed that, as far as he knows, most Internet homewear companies are still in a loss-making state, "the annual increase in labor costs of 10% to 20%, and now a cement worker's monthly salary can reach 10,000 to 20,000 yuan, enterprise pressure is great." Without at least 20% gross profit, decoration businesses don't want to survive. In
    his view, the main low-cost, low-margin Internet home improvement enterprises are likely to fall into a "quagmire": low profits, the need for capital turnover, it is necessary to sign more orders to maintain turnover, and more single construction and increased pressure, can only find outsourced workers to work, but the quality but also easy to cause construction problems. Within a year, he argues, these Internet home-based companies will face bigger problems if they fail to make the transition.analysis:
    "everybody living" is a new trend in the development of the industry
    what is "everybody living"? Zheng Yuanhang explained that the decoration industry, home industry is upstream, one is downstream, the current direction of the industry is to integrate upstream and downstream resources, like the original main industry is the flooring enterprises, gradually to cabinets, wooden door industry development, originally made ware enterprises also began to dabble in the flooring industry, all hope to obtain a greater market share through the support of customer data. And "everyone living" is to include hard, soft, custom furniture and other resources required by all customers to integrate, through the decoration company to dominate the whole. Industry insiders believe that this integration is not a simple "ticket plus hotel", not simply from the supplier to take goods, price increases packaged sales, but the three industries together to achieve "whole house customization."
    " whole house custom-made style is coming. Sun Wei told reporters with confidence. In fact, the data prove his point. In the first half of 2016, the whole house customization enterprise situation is excellent, almost all realized the profit. Among them, Sofia's first-half revenue was RMB1,669 million, up 44.10%, and net profit was RMB200 million, up 48%, while First Half Revenue was RMB530 million, up 26.1% YoY, and net profit was RMB69.44 million, up 40.17% YoY. In addition, Qumei's revenue of 680 million yuan, up 25.07 percent year-on-year, and net profit of 72.6157 million yuan, up 90.46 percent year-on-year. Also in the transformation and transformation of Meek Meijia in the first half of the year to achieve operating income of 1.486 billion yuan, up 15.28 percent year-on-year, net profit of 132 million yuan, up 2.46 percent year-on-year.
    This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.

    Contact Us

    The source of this page with content of products and services is from Internet, which doesn't represent ECHEMI's opinion. If you have any queries, please write to service@echemi.com. It will be replied within 5 days.

    Moreover, if you find any instances of plagiarism from the page, please send email to service@echemi.com with relevant evidence.