Will the regulation of the property market cause the furniture market to shrink?

When I mentioned the current situation of the home market in the past two years, many people could not help but sigh and sigh. The words "depression", "cold winter", "depression", "micro-profit" and "high cost" all came out from the industry population. They also Looking for reasons to find reasons, a large part of which is attributed to the macro environment, such as rising prices, real estate regulation, etc., which inhibit people's consumer demand, can not see the market's just-needed and potential, but is it really like this?

Domestic property market shrinks and affects the home industry

Leading the whole body, the impact of real estate regulation and control, radiation in building materials, ceramics, furniture and other industries. The madness of the property market in 2009 and the active promotion of infrastructure construction have also spawned a large number of dealers. In the second half of 2011, after they had passed the rapid development period, they had to face the business pain caused by the shrinking industry. Even the big players with strong strengths have said that sales have fallen sharply, and 2012 seems to be even more difficult.

"Now many large dealers in the furniture industry are losing money." Hu Yuanqian, the owner of Zibotang, said that when he took the May 1st Golden Week, the price was favorable, and the overall performance of its stores fell by about 20% in January-May. The sales season is also very dull, the cake is small, more people are robbed, and business is even less.

Zhang Chengzhi, secretary-general of the Guangdong Furniture Association, said that about 30% of furniture dealers are in a small profit, about 40% are in capital preservation, and about 30% are losing money. This data is still conservative in the eyes of many furniture dealers. “I expect 40%-50% to be a loss.” A boss who has been in the bank for many years said, “Many people insist that companies can't do it easily. If they lose money, they can stick to it.”

In the face of difficulties, many dealers' development plans have been stranded. They have said that they can adjust their stores at any time according to their business conditions. The market will increase in good places, and the bad stores will close the stores. At the same time, dealers who originally focused on high-end products began to explore the path of diversification and began to push products for low-end consumers with weaker spending power.

Will the regulation of the property market cause the furniture market to shrink?

Will the regulation of the property market cause the furniture market to shrink?

But in fact, the corner can see the potential and opportunities:

Chinese buyers spend $9 billion a year to buy a home in the US

According to foreign media reports, the latest report released by the National Association of Realtors of the United States shows that foreign rich people have gone to the United States to buy houses in view of the six-year fall in US housing prices and the rise of currency exchange rates in some countries and instability in Europe. Among them, the Chinese buyer's investment amounted to 9 billion US dollars ranked second, and the Canadian buyer's investment amounted to 19.8 billion US dollars. According to the report, from March 2011 to March 2012, foreigners invested a total of 82.5 billion US dollars to purchase US real estate, an increase of 24% over the same period of the previous year.

At the same time, the amount of property purchased by foreigners accounts for 8.9% of the total amount of US home sales. Of all foreign buyers, 55% are from five countries: Canada, China, Mexico, India and the United Kingdom. Among them, Canadian buyers accounted for 24% of the amount of foreigners buying in the United States, ranking first. Chinese buyers ranked second with 11%.

Such an amount shows that there are still quite a lot of wealthy people in China. The purchasing power of Chinese people is not bad. If these consumer demands can be met at home, not only the property market is good, but for the furniture market, this is definitely a block. "Big cake." What needs to be considered is how to discover this part of the potential.

The housing market has become a "big cake" in the home industry

In 2011, a series of property market regulation policies drastically reduced the transaction volume of commercial housing and second-hand housing. As the furniture industry downstream of the industrial chain, it also suffered an unprecedented impact. At the same time, in 2011, the state invested 10 million sets of affordable housing, accounting for about 60% of all housing. Even if it is calculated according to 50 square meters, it will generate 500 million square meters of renovation demand.

Analysts roughly calculated that 10 million sets of this year and the "12th Five-Year Plan" 36 million sets of affordable housing construction plans will have a huge pulling effect on the sales of cement, glass, ceramics, paint, flooring, hardware, furniture, lighting and other products. If the average consumption of home improvement in each suite is 10,000 yuan, it will drive the consumer market of about 360 billion yuan.

The industry analysts predict that the supply of affordable housing will be considerable in the coming period, and the scale of the construction of affordable housing will be equivalent to the total transaction volume of first-hand commodity housing. The regulation of real estate has had a negative impact on the downstream furniture industry, and the construction of affordable housing has brought a glimmer of light to the gradually shrinking furniture market. The central government's emphasis on the construction of affordable housing has undoubtedly confirmed the huge market potential of affordable housing. Although the cake is large, how to divide it into one piece or divide it into a larger piece is a problem that every furniture company needs to think about.

In summary, regardless of the market situation, as long as the ups and downs, opportunities and potentials are always there, just need more than can be avoided, so companies and their grievances, it is better to study quietly, how to break?

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