Excessive low price promotion in home stores is still difficult to rescue the market to start shuffling

Last year, CCTV’s economic information broadcasted a news report that “Beijing’s home hypermarkets closed down in batches for six months”, which triggered thinking about the home market across the country.

Today, in the face of economic slowdown, property market regulation, and market shrinkage, Liuzhou has a number of home stores that are rushing to rush, and let Liuzhou home furnishing stores have a lot of talk. Is there a phenomenon of “excessive store” in Liuzhou? In the face of the rapid expansion of the market, how will the Liuzhou home market shuffle?

Excess area of ​​the store

Liuzhou home furnishing professional market has a total area of ​​700,000 square meters

“The May 1st promotion is coming soon. Now I don’t know what kind of promotion can I use to promote popularity. I am very anxious.” Yesterday morning, Wang Yuan (a pseudonym), the head of a home store in Liuzhou, told reporters that the economic growth rate Slow down, making this year's home market competition even more fierce. “People always say that the home market is facing shuffling. In fact, shuffling has already begun...”

Coincidentally, the first two days, Liuzhou City, another home store planning department head told reporters: "The past '3 · 15' promotion, even if the promotion is far greater than in the past, but passenger flow, sales are difficult to say optimistic. These two days are busy planning the 'May 1' promotion activities, and there is a danger of dismissal from the task, which is very stressful."

The reporter was informed that this year's "National Five" was introduced, and the real estate regulation and control was even stronger. As the economic growth slowed down, some contradictions in the Liuzhou home furnishing industry broke out rapidly. First and foremost, the expansion of the Liuzhou home market is too fast, and even a little surplus, so that the business has a feeling of gluttony.

The reporter learned that Liuzhou currently has nearly 30 home stores, except for the traditional Donghuan, West Ring and other large-scale stores and scattered furniture cities. The home stores above the scale include Red Star Macalline, Liuzhou Home Expo Center, and West. Ring decoration building materials market, Hexi Building Materials Park, Haichuan Furniture Expo Center, Hongweicang Building Materials Market, Xinfengcang Building Materials Market, Liaoyuan Building Materials Market, Liuyi Building Materials Market and Meilian Home. According to incomplete statistics, in Liuzhou City, the total area of ​​large-scale home furnishing market, which is above the scale, has been opened or under construction, has reached 700,000 square meters. In addition to the existing stores, Liuzhou still has a number of home stores that are in full swing.

The over-expansion of home stores has led to a direct result of excess stores. According to the statistical bulletin of the 2011 National Economic and Social Development of Liuzhou City, the population of Liuzhou City was 1.058 million at the end of 2011. Almost 1.5 people had a square of home shopping area, and each family had at least 2 square meters. In addition, according to the annual sales of 100 million yuan in the sales area of ​​the China Furniture Association according to the industry standard of 10,000 square meters, the annual sales of the Liuzhou home market is far less than 7 billion. If there is no major change in the industry in the future, there is a serious oversupply in the home market.

Business positioning is similar

Some businesses do not hesitate to survive by price wars, false propaganda and other unfair business practices.

The pace of expansion is so rapid, once the demand is reduced, what kind of situation will the large home store face?

On April 13th, it was a weekend. The reporter went to several well-known home stores in Liuzhou for investigation and interviews. It was found that some home store stores are door-to-door, and some store customers are not as good as sales people. A promoter of a sofa sales shop said: "I don't see a few customers a day. If a customer comes to know that he just comes to see it, he will try to sell his product, otherwise the store will be too cold."

"At least one person has to play more than 100 sales calls a day, this year is harder than last year." In a building materials market in the West Ring Road of Liuzhou City, salesman Xiao Liao told reporters that they are responsible for the staff through telephone marketing, at least 100 a day. Multiple calls. But when you make so many calls, you don't have to come.

It is reported that the situation of Liuzhou home furnishing market is not optimistic. Coupled with the rapid expansion of the store, consumers are diverted, which not only leads to low-cost marketing into collective behavior but also leads to market confusion. For example, many stores have survived because of the similarity of positioning, the high overlap rate of investment brands, promotion methods, and promotion activities, regardless of price wars, false propaganda and other unfair business practices. As a result, 2 fold and 30% off goods are flooding the market, and false group buying activities continue.

A businessman who asked not to be named told reporters that low-cost marketing makes it difficult for furniture brands to survive. At the same time, too low prices have caused consumers to question the integrity of the industry – “Is the furniture profit so high?”

In addition, excessive expansion of the store led to oversupply, and the home market was too unbalanced, which objectively contributed to the consumption inertia and further shrank the market. The merchant also told reporters that while the hypermarket is expanding, the cost of decoration, publicity, and operation management is often transferred to the merchants in the store in the form of high rents, so that the merchants can't make ends meet, and the operation is difficult to sustain. Last year, due to excessive rents, there were a number of dealers in Liuzhou who collectively protested that rents were too high and refused to pay rents. In some stores, there were also many merchants who dropped their stores.