Home sales are frequently closed, the supermarket is facing a survival crisis

For hundreds of years, Xiangjiang homes have closed the door to small and medium-sized stores facing the crisis of survival.

Xiangjiang home's store is now locked by reporter Tang Hao

Source: China E-Commerce Research Center, China Furniture Sellers Association Business Newspaper Graphic Xu Qiao

Three years ago, when China’s well-known home furnishing chain companies opened their first store in Nanping, Chongqing, they were incited. What caught the eye of the reporters yesterday was the huge lock hanging on the door. Through the glass, the empty shopping malls are full of dust, and it is faintly visible that a variety of home brand signs are still there, and the price is scattered.

This kind of picture, also appeared in Yuanjiagang's Xiangjiang home, has been cleared from the market and still leaves an empty tens of thousands of square meters of stores, just like leaving a huge scar to the industry.

In the country, the tide of bank closures in the home market is also intensifying in the near future. Formerly the largest Oriental Home Building Materials Supermarket Headquarters in China is applying for bankruptcy. Home Depot, the second largest building materials retailer in the US, has announced the closure of all its stores in China. B&Q in the UK has reduced the number of stores in China from 60 to 40 in peak hours. about……

Case home marketer goes to the building

Yesterday afternoon, a total of 4 floors, 50,000 square meters of good century home store people went to the building, the door closed, through the glass faintly visible a variety of home brand signs are still there, the price is scattered.

Yesterday, the reporter of the Commercial Daily saw on the official website of the 100-year-old official website that Chongqing Nanping Store was in the eye, but according to the telephone call on the official website, it was told that “a hundred years have been withdrawn from Chongqing”.

Three years ago, when the famous Chinese home furnishing chain opened its first store, its responsible person confidently declared that a hundred-year-old home business model will bring new development to the Chongqing home market through three modes of coexistence. mode. What everyone didn’t think was that the first store in the past 100 years was the last store. A few months ago, it was officially cleared for a hundred years.

The Xiangjiang home in Yuanjiagang is also difficult to escape the fate of closing the door. According to public information, Xiangjiang Home has nearly 200 large-scale home chain stores across the country. It officially settled in Chongqing in September 2010 and opened in December of the same year.

Yesterday, the reporter of the Commercial Daily saw at the original site of the store that the store with up to 7 floors is now locked. At the scene, only one security guard was in charge, and the security guard said, "The business is not good. The merchants have all moved away a few months ago."

According to media reports, Xiangjiang Home was taken to court by several merchants in October last year due to early departure. A shop owner who had worked in Xiangjiang Home for two years in soft-clothing business told the reporter that she invested 700,000 yuan in the store, but the business was very deserted. "With two years of loss, the blood was lost, and the mall was closed due to poor management. The reporter of the Business Daily, according to the phone provided by the above-mentioned shopkeeper, called the relevant person in charge of Xiangjiang Home to contact the interview and was rejected.

Industry closures are getting worse

Not only in Chongqing, the tide of bank closures in the country is also growing.

The media disclosed that the Oriental Home Building Materials Supermarket, which was once the largest domestic chain building supermarket in China, suffered from the closure of the store in 2013. The latest news from the reporter of the Business Daily indicates that the Oriental Home Building Materials Supermarket Headquarters is applying for bankruptcy.

In addition, in September last year, Home Depot, the second largest building materials retailer in the United States, announced the closure of all seven home building retail stores in China. Another industry giant, B&Q in the UK, has experienced a decline in performance in China in recent years. It has reduced the number of stores in China from 60 to 40 in peak hours. The B&Q Wuhan Hankou store closed on February 9, 2013.

The direct incentive for bankruptcy, bankruptcy, and store reductions is a serious loss in the industry. Taking Xiangjiang Home as an example, its related people have admitted that the ugly losses in Chongqing have reached nearly 100 million yuan. The 2012 performance report of B&Q's parent company, Kingfisher Group, shows that in the first quarter alone, the loss of B&Q in China reached 5 million pounds. This is the sixth consecutive year that B&Q has lost money in China.

“2012 should be the worst year for home sales.” Zhang Zongrong, the general manager of the Southwestern District of the House of Representatives, told the Business Daily yesterday that from the beginning of the year to the end of the year, the major stores thought a lot of ways, almost every weekend. The price promotion war, but the effect is not satisfactory.

Recently, the National Building Materials Home Furnishings Index (BHI) released by the China Building Materials Circulation Association confirmed the market's desertion in the past year. Statistics show that in December 2012, BHI continued its decline in November, and the major building materials and home furnishing markets have entered the winter of the market. In 2012, the annual sales of building materials and homes above designated size reached 1,246.7 billion yuan, a year-on-year decrease of 2.46%.

Zhang Qiaoli, head of Qingtian Furniture Chongqing, said in an interview with the Commercial Daily that Qingtian Furniture reduced the operating area of ​​10,000 square meters last year due to the downturn in the industry. Zhang Qiaoli admits that due to bad market conditions, Qingtian’s private sector area was reduced by 20% last year and sales fell by 10%.

Zhang Zongrong said, "It can be said that the entire industry has encountered unprecedented challenges, the brand is relatively less affected, and the small and medium-sized stores are facing a crisis of survival."

the reason

Blind expansion leads to high saturation

Benefiting from the real estate market, home sales and punishment dealers have spent a considerable period of honeymoon, shopping malls everywhere, the number of shops has leapfrogged... However, in just a few years, why did the situation turn sharply?

"Chongqing home market is currently highly saturated, 'cake' is so big, everyone is coming in and you are vying for it, surely there are more porridge." Yesterday, Li Chengda, secretary general of Chongqing Furniture Association, told the reporter. Qin Zhanxue, executive vice president and secretary general of China Building Materials Circulation Association, also told reporters that the general phenomenon of closing stores in home stores is that the market demand caused by real estate regulation has shrunk, and the main reason is the vicious expansion of the industry. Intense competition.

According to data provided by Chongqing Furniture Association, since the second half of 2009, large-scale stores have rushed to the Chongqing market. The main city currently has nearly 30 home stores with a total area of ​​nearly 3 million square meters. The fierce competition is evident.

Li Chengda said that the national home building materials industry has maintained an annual growth rate of 20% to 30% for more than a decade. Among the well-known enterprises, Red Star Macalline has expanded rapidly. In the past six years, the number of its stores has grown at an average rate of about 10 per year. Actually, the home has also thrown out the “hundred store chain strategy” and increased Siege slightly.

According to statistics from the China Furniture Association, the annual sales of the furniture and building materials industry was about 200 billion yuan. At present, the total area of ​​domestic home stores has exceeded 40 million square meters, of which 50% of the store area is surplus.

In addition, e-commerce is also considered to be a major factor in the diversion of home sales. According to the survey data of the China Electronic Commerce Research Center, the sales of household e-commerce in 2012 was 49 billion yuan, accounting for 4.5% of the total sales of e-commerce. Li Junming, president of the China Furniture Sellers Association, told the media recently that at least 40% of the retail sales in the industry will be completed online within five years.

sound

"Failure is a good thing."

However, many industry insiders said in an interview with the Commercial Daily that "closing is a good thing" is an opportunity for the industry to adjust and standardize itself. "At present, the area of ​​home stores is excessive, and the phenomenon of homogenization competition is serious. The bankruptcy is self-adjustment within the industry. It can eliminate homogenization and vicious competition, and solve the problem of excessive number and area of ​​stores, which is conducive to the healthy development of the entire industry." Secretary of Chongqing Furniture Association Chang Li Chengda said.

Many industry insiders believe that the days of this year's stores will be better than last year. According to Zhang Qiaoli, head of Qingtian Furniture's Chongqing area, sales from the beginning of last year have increased, and sales have increased by about 20% year-on-year. “The real estate market just needs to be released, which also makes the downstream home industry have a chance to breathe.”

There are also companies that are "bottoming". Zhang Zongrong, general manager of Southwestern District, believes that active expansion is also a good strategy to seize the market. "In May of this year, we will open a store in Guizhou. At present, we have two stores in Sichuan, and we are rebuilding in Chongqing. A 100,000 square meter store is also in preparation.

Way out

Is the catenary a panacea?

Touch-net is becoming the choice of more and more stores. Recently, it has been reported that Red Star Macalline wants to use 200 million to restructure its e-commerce platform, and the home is also beginning to lay out e-commerce.

Wang Xiaokang, the general manager of the home appliance business, said publicly that the online store of the home will be officially launched on November 11 this year. At that time, the home will be the main business, and the O2O model will be used to cover the online channels.

Yuan Jianming, secretary general of the Chongqing Cabinet Association, told the reporter that whether it is for businesses or consumers, the home industry is a good thing to touch the net, which can save costs and conform to the trend, and is undoubtedly a city for the current depressed industry market. Life-saving straw.

However, some insiders also said that household goods have their own particularities, and the network will face many specific problems. First of all, the consumption experience is different; secondly, the return is very troublesome and the cost is high, especially the logistics cost; finally, after the sale, for example, the online floor seller cannot provide installation and after-sales service.

Qin Zhanxue, executive vice president and secretary general of China Building Materials Circulation Association, said that at present, for the home store industry, no business model including e-commerce has been widely recognized in the industry, and the business model of home stores is still in the exploration stage.

He said, "In the case of surplus stores, when it is difficult to test the management and endurance of the enterprise. Who is prepared, whoever has a unique approach, who will win in the process of the game." (Chongqing Business Daily)

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