Home building materials market begins to sprint at the end of the year

In the fourth quarter of 2015, after half of the holiday season, the decoration of the wedding room and the arrival of new homes at the end of the year were positive. At present, it is at a peak of renovation and just needs to be completely released. Home stores and building materials stores will naturally not miss rare promotional opportunities. A variety of promotions are conducted at the end of the year. However, in the case of bleak overall market, I am afraid that the short-term sprint is just a glass of water, the annual harvest plan may become empty words.

Dash at the end of the year

The traditional sense of gold nine silver in October, home business are not idle, all kinds of promotional activities one after another, the duration of long, large margin of preference, input costs are all very few in one year, so after the National Day In nearly a month, most of the merchants entered the relative ordering and digestion period, and now entering the mid-November period means that the sprint phase of the year has come.

According to industry analysts, the reason why the promotional activities of the home store was so concentrated in the past year was that the “golden nine silver ten” had already absorbed some of the purchasing power. At present, there are more than one month away from the New Year holiday and you want to snatch more. With a lot of market share, it is necessary to prepare vigorous promotional activities in advance in order to attract the attention of consumers. In addition, there are also rigid consumer demands that need to be released at the end of the year. Businesses want to seize this business opportunity and start sprinting at the end of the year.

Limited demand sprint fatigue

On the one hand, the merchants who resort to tricks on the one hand are, on the other hand, a market that is not competitive. The reporter learned that although the current peak consumption of the household industry, but the overall environment is bleak so that the release of rigid demand is limited, in the round of the end of the sprint, many businesses difficult to achieve the desired goal.

Many businesses report that the effect of gold, nine silver, and ten has gradually disappeared in recent years, and the traditional season of low seasons has gradually become more modest. A ceramic tile dealer at the Mercure Center told the reporter that from the perspective of the market a few years ago, the end of the year was the peak season for household consumption, and it was also when the rigid demand was strongest. There are two main reasons for this: First, the end of the year is the traditional wedding season, and many people choose to marry at the end of the year. In this way, newcomers will generally purchase home products to decorate new homes in the coming months. Second, before the Spring Festival, many people would like to purchase new homes to decorate their existing homes, change the house to a beautiful new dress for the Chinese New Year, and part of them will catch the Spring Festival. The former occupants also concentrated on buying homes during this time. Although the two major factors of new home renovation and new homes at the end of the year are still exerting the demand release effect, they are far less than they were a few years ago. Therefore, the limited rigid demand may cause businesses to become weak.

Get through this winter and look forward to spring

20% of the businesses are profitable, 50% are flat, and 30% are losing money. Ms. Yang, who has been in business for more than a decade in building materials business, said that such data is still a conservative estimate. This year's loss-making business is still more than 30%. The reporter understands that since entering the cold winter in 2012, the home market has seen few signs of warming. Even so, the merchants who survived this winter have still not given up on their expectations for next spring.

The gradual withdrawal of stores by merchants and the transfer of sublet ads are a direct result of the market downturn. This reporter learned that Guangzhou City Mercure Center, Red Star Meikailong Zhongshan Xingnan Mall have a lot of businesses directly to leave the store, and some businesses in order to reduce the loss or find a turn and play transfer sublet advertising. According to a rough estimate, there are more than a dozen stores in the Mercure Center, while the Red Star Meikailong Zhongshan Xingnan Shopping Mall has a number of dozens of stores and sublets, and only diatom mud shops have closed several of them.

According to Cao Xiaohua, head of Taocheng Ceramics in Guangzhou City, the market environment has brought unprecedented challenges to businesses, but has been operating in this industry for many years and is not willing to withdraw from the market. It must also persevere, looking for everything from improving services and reducing costs. Probably, the day when the market has always warmed up, it can be successful if you can squat.