Depressed house prices, shrinking profits of store

2022-07-22
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In September, this time in previous years is the peak decoration season, and the stores on weekends are very lively. This year, affected by the decline in house prices, prospective home buyers have been in a wait-and-see state. The delivery volume in Shenzhen in the first half of the year has fallen to the level of 1997, which has affected the downstream industry of real estate home furnishing. House prices are depressed, and the profits of shopping malls have shrunk &8220; Shenzhen property prices have been falling for half a year, which has brought a lot of impact to our home shopping malls. To be honest, the sales of le'anju in the first half of the year also decreased by about 10% compared with the same period last year. This is a fairly good business, and many stores are basically eating old money&# 8221; Caohailing, deputy general manager of Shenzhen le'anju building materials store chain supermarket, told reporters. Another hypermarket in Shenzhen, the Century Center home building materials chain enterprise, was also affected&# 8220; House prices continue to decline, and people dare not buy houses easily. There is no delivery volume. The home building materials stores must be affected. The sales of Century Center in the first half of this year also decreased compared with the same period last year&# 8221; Guo Jian, deputy general manager of the Century Center, said frankly. As a downstream industry, home furnishing and real estate can be described as & 8220; The lips die and the teeth are cold;. Especially &8220; Delivery volume &8221; It is the data that household enterprises only focus on. According to statistics, the turnover of new houses in Shenzhen in the first half of this year was 1.56 million square meters. If the level of the first half of this year is maintained in the second half of this year, the annual turnover will be only over 3million square meters, which has fallen back to the level of 1997&# 8220; Originally, people who wanted to buy a house waited until September and October to start decoration, but now what they hear every day is that the house price has an inflection point, so they want to wait for the house price to fall before buying a house&# 8221; This is what Mr. Liu said in his heart. The instability of house prices made him start not knowing how to do it, and this is the general psychology of many consumers who want to buy a house. Discounts and group purchases have become weapons of competition in stores. Open a newspaper and you can see a large number of promotional advertisements in home stores; Buy 3000 and get 600 free&# 8220; Buy 2000 and get 400 free&# 8220; 50% off and then 50% off&# 8220; Group purchase super price &8221&# 8230;&# 8230; Popularity is always the focus of stores. In order to attract the remaining few owners, store businesses have tried all kinds of promotion methods, and at the same time, large-scale advertising is also a sharp weapon for businesses to compete. This must be a strong store to toss up&# 8220; Century Center has planned to open a new furniture store with an area of 80000 square meters. At the same time, in terms of promotional means, we have also introduced many preferential policies. Only by giving real benefits to consumers can we seize this limited cake&# 8221; Guo Jian of the Century Center said. Le'anju and guo'anju have launched large-scale group purchases from time to time; Group purchase &8221; Become the most effective way for building materials stores to break through sales. No matter when house prices fall or stop, there are always people who need to buy houses and decorate them. In the case of limited market share, who can seize more markets? Caohailing told reporters, & 8220; The more cruel the reality is, the more important it is to establish your own brand and reputation;. Small stores are facing market reshuffle. In sharp contrast to the decline in house prices this year, house prices soared last year, and the home furnishing industry also experienced a short-term prosperity. Behind this prosperity, it has become a huge business opportunity in the eyes of many businesses, so &8220; Wow &8221; Many small stores stand out in the market overnight. However, the market environment this year has made these new-type small stores lose their direction and space. Some shopping malls are empty, and there is little sign of business in front of the business house&# 8220; On the premise of a good market environment, these small stores may also follow the principle of fair competition. When normal competition can no longer make them survive, small stores begin to play all kinds of false cards, such as free design, free installation, sale below cost price and other abnormal competition means to disrupt the whole market environment&# 8221; Le'anju caohailing told reporters, & 8220; I believe that after the baptism of time, these means of small stores cannot be recognized by the market, and elimination is inevitable&# 8221; Market competition is the law of the jungle, and the fittest survive. After the baptism of competition, building materials stores will also be more standardized and reasonable. At the same time, the reporter also learned that some stores are actively transforming and seeking new vitality. Such as &8220; Shenzhen jiazhifu home &8221; It used to be mainly engaged in building materials, but now it is &8220; Furniture &8221; For the main&# 8220; Secondary decoration &8221; There is no doubt that the profit growth point &8220; Fine decoration &8221; After the further implementation of the policy, the individual purchase demand of consumers will decline, and the stores based on basic building materials will face a new round of baptism&# 8220; Whether it is the downturn of the real estate market or the era of hardbound, a good enterprise should have flexible market adaptability. No matter how the market changes, I believe that the retail market will always exist. Moreover, China has its own national conditions, people will not necessarily accept hardbound houses, and the demand for personalized decoration will still exist. At the same time, the prosperity of the second-hand housing market and the secondary decoration will also bring new market space for building materials stores. Building materials stores should respond to the ever-changing market in a flexible and innovative way; Le'anju caohailing said. It is understood that the number of consumers who go to building materials stores and the number of secondary decoration consumers has gradually increased this year, and the product prices they generally demand are low. According to the reporter, about 40% to 60% of the owners of second-hand houses will carry out secondary decoration after the transaction; About five years after the transaction of the new house, 20% of the owners will carry out secondary decoration&# 8220; Second hand decoration &8221; It will become a new profit growth point for stores

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