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    Home > Coatings News > Paints and Coatings Market > Three characteristics of the development of China's building materials and home furnishing market in 2018

    Three characteristics of the development of China's building materials and home furnishing market in 2018

    • Last Update: 2021-05-01
    • Source: Internet
    • Author: User
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       Recently, the China Building Materials Circulation Association released the 2018 National BHEI (China Urban Building Materials and Home Furnishing Market Saturation Early Warning Index) data report (hereinafter referred to as the "report").
    The release of BHEI is of great significance.
    It uses quantitative economic theory to control the rational layout of my country's building materials and home furnishing market from the source, provides decision-making basis for governments at all levels to formulate regulations and attract investment, and provides reference for risk research and judgment for corporate investment.
    While improving the national building materials and home furnishing market planning system, further standardize the circulation and operation order of building materials and home furnishing products, and promote the sustainable and healthy development of the entire building materials and home furnishing industry.
       The report shows that in 2018, the national BHEI value reached 160.
    98 (located in the red light district), and the national building materials and home furnishing stores have entered the current oversaturated state from the saturation state in 2016 (the BHEI value in 2016 is 133.
    96, located in the yellow light district), which is very important for the whole country.
    In other words, the overall surplus of building materials and home furnishing stores is still increasing.
       Through a detailed analysis of BHEI in 50 typical cities across the country, the report believes that the current development of the national building materials and home furnishing market has the following three characteristics.
       First, the current national building materials and home furnishing stores are still presenting the status quo of "overall surplus and partial scarcity", and the competition in new first-tier cities and second-tier cities is relatively fierce.
       Second, the first-tier cities Bei, Shanghai, and Guangzhou are not in the red light zone, and compared with 2016, the BHEI has dropped significantly, and Shanghai has entered the green light zone.
    This phenomenon is not only a concrete manifestation of the trend of population and resources still concentrated in large cities in recent years, but also related to environmental protection and the upgrading of urban functional areas.
    In the past two years, the home building materials market has been dismantled and it has become the norm.
    Many models are backward and inefficient.
    Most of the traditional building materials market faces the fate of being cleared and closed down.
       Third, the low operation of the market does not mean a decline.
    A comparative analysis of the BHEI of 28 typical cities announced in 2016 and current data shows that the building materials and home furnishing market is "mature" and that the market has certain self-regulation and self-healing capabilities.
    Since more than 95% of my country's building materials and home furnishing circulation industry are private enterprises, and are labor-intensive, with low added value and other attributes, small and medium-sized enterprises account for the majority.
    Their continuous self-improvement, transformation, upgrading, and innovation to adapt to the market should not be underestimated.
       In this regard, the China Building Materials Circulation Association recommends: First, the layout of the urban building materials and home furnishing market should follow the law of urban development and carry out a reasonable layout.
    With reference to BHEI, the construction of stores should be reduced when it is in the yellow light area, and the construction should be stopped when it is in the red light area.
    And encourage investment and construction in some fourth- and fifth-tier cities where the scarce building materials and home furnishing stores are well-connected, but to prevent rushing.
    The second is to encourage and support the multi-format development of the building materials and home furnishing market, forming a coexistence of rental stores, supermarkets, boutique stores and innovative formats.
    The third is to lead new demands, cultivate green values, and promote consumption upgrades.
    In turn, the traditional building materials and home furnishing market will be upgraded and re-arranged to develop smart homes and build smart shopping malls.

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