Beijing piloted the implementation of the furniture trade-in policy. The income from participating in the pilot has increased by at least 30%. However, the policy cannot fundamentally restore the decline of the home industry. The problems that have always existed in the home building materials industry will be concentrated in the cold current. The Octagon Dragon Lighting City, built in 1999, is located in the West Fourth Ring Road in Beijing. For more than 12 years, the lamps are being operated here. Starting from March 31 this year, the Bafanglong market no longer sells lighting, but instead operates flowers, birds and fish. Bafanglong, who was once known as the "Big Eight Lighting City" in Yuquanying, Shilihe, Beisihuan, Wanjia Denghuo, Bandung Huiyang, etc., became the first gatekeeper of the Beijing Home Furnishing Store in 2012. In fact, since 2009, due to the impact of the international financial crisis and real estate regulation and control policies, the operating conditions of the lighting city have changed. The flow of passengers decreased and the merchants retired. Until March of this year, the 7000-square-meter lighting city was determined to transform. The collapse and transformation seem to spread like infectious diseases. Beijing has successively owned home building materials such as Xinglong Home Building Materials City, Jinkaideide Home Store, Oriental Home Lishuiqiao Store, or closed or relocated. In November this year, Beijing piloted the policy of replacing the furniture with the old one. Liu Chen, secretary-general of the Beijing Market Association Home Market Branch, told this reporter that the income from participating in the pilot has increased by at least 30%. Can a shot of a cardiotonic agent fundamentally restore the decline of furniture stores? The policy of replacing old furniture with absolute over-capacity was first proposed by the Ministry of Commerce. In February this year, when reporting on the operation of China’s business operations in January 2012, Shen Danyang, a spokesperson for the Ministry of Commerce, said at the press conference that the Ministry of Commerce is conducting research with relevant departments to introduce new developments in view of the slowdown in consumption growth. The policy measures to promote consumption, including the replacement of the old-for-new policy. On June 1, 2012, Vice Minister of Commerce Jiang Zengwei inspected the old furniture recycling and processing center, and asked the actual home to write the report on the recycling experience of the old furniture to the Ministry of Commerce for the government to formulate the policy of replacing the furniture with the old one. Beijing subsequently became the first city in the country to test furniture for trade-in. On November 1st, five companies including the Real Home, Red Star Macalline, Jimei Home, Chengwai Chengjia Plaza, and Lanjingli Home Dazhongsi Home Plaza began a one-month pilot. According to the latest news provided by the Beijing Municipal Commission of Commerce, from November 1 to November 25, five pilot sales companies sold 18,584 pieces of old-for-new furniture, amounting to 106 million yuan, accounting for 24.2% of the total sales of similar furniture. However, Meng Guoqiang, president of China National Construction (3.07, -0.01, -0.32%) Materials Distribution Association, believes that the policy cannot fundamentally restore the decline of the home industry. The problems that have always existed in the home building materials industry will be concentrated in the cold current. Its performance is that the hypermarkets are expanding in disorder, dealers can't keep up with the speed of big stores, big companies compete with each other, and some small, weak-powered stores may be eliminated. Meng Guoqiang and Liu Chen both believe that the absolute area of ​​the national furniture store is excessive. In the past 10 years, the furniture industry has maintained an annual growth rate of 20% to 30%. Even after the financial crisis, it once again claimed to be a “sunrise industryâ€. As a result, home stores have never stopped “expandingâ€. Around 2008, not only Beijing, but also a lot of stores across the country, they both recruit producers and recruit dealers. Some companies are aware of the risks and have gradually withdrawn. At present, most manufacturers do not operate in the mall, but instead hand over the products to dealers. On the afternoon of September 13, American building materials giant Depot suddenly closed all seven building materials stores in China. Home Depot is the second largest retailer in the United States after Wal-Mart and the world's largest home building materials supermarket. Home Depot (China) issued a statement on September 15 stating that the company's business focus will be transformed into professional retail stores and online sales. Giant B&Q has lost money in China for six consecutive years. The tide of closing stores that began to sweep through B&Q three years ago has not stopped. After closing a store in Nanjing at the beginning of this year, the number of stores in B&Q in China was reduced from 63 at the peak to 40. Meng Guoqiang believes that it is impossible for large domestic brand stores to see these problems, but on the one hand, they are more than expected, and they think they can squeeze out others. On the other hand, there are also plans to store land, and they can get land cheaply in the local government's investment promotion. In December 2009, Red Star Macalline only had 60 stores in 38 cities across the country. In less than three years, more than 40 stores were added. According to its plan, by 2020, Red Star Macalline will open 200 stores nationwide. Actually, the home is also racing against time. Following the opening of 12 new stores last year, the group plans to open 17 new stores this year, involving third- and fourth-tier cities such as Daqing in Heilongjiang, Quanzhou in Fujian, and Lu'an in Anhui. But since last year, the two companies have successively reported that the store has closed down. Unstoppable elimination and adjustment of Wangshi Baili Household Goods Store, Yanzhao Furniture City, Liangdu Home Mall, Hongyan Bridge Building Materials City, Dachao Furniture City, Love Celebrity Decoration Center, Love Day, once ranked among the home building materials industry in Beijing Home Furniture Building Materials Street, Bixi Square, Lize Building Materials City, Tianwei Building Materials City, and Lanjingli Home Building Materials City have gradually faded out of sight. In the downturn, the shock seems to be more violent. The purchase of new commercial housing is declining, while the decoration materials for affordable housing are generally purchased in bulk, and rarely pass through the store. “This has given the store a new topic,†Meng Guoqiang said. “In the future, developers will build more refined homes. Can home stores change the retail model, become distribution centers and logistics centers, or become large wholesale centers?†At the same time, the aggressive momentum of e-commerce has also provided a new topic for the traditional building materials sales carrier, the home building materials market. "If you want to become an exhibition base for e-commerce, you must open your own e-commerce channel." Meng Guoqiang said. In the Taobao National Carnival, the daily turnover of the home building materials branch exceeded 1.2 billion. Red Star Macalline has begun to expand its business online. Its e-commerce plan mainly consists of three parts: the B2C platform business, which is mainly based on household building materials, the rushing business of home textiles and small household items, and the group purchase business of household goods, which touches various transactions in the e-commerce market. the way. However, Meng Guoqiang believes that the threat of e-commerce is not very big. Most of the e-commerce transactions are low-priced products, and high-end furniture has not been involved. However, according to the current trend, e-commerce may take a large share in the future. The business model of domestic furniture stores mainly collects rent and management fees, such as homes, the rent is fixed according to the location of the shop, and the management fee is charged according to the sales of the store, usually a point, but at the peak of sales. May and October are two points. Compared with the dealers stationed in the store, the shopping malls tend to be in a strong position, and the income can be “drought and dryâ€. Liu Chen pointed out that furniture stores must be inclined to consumers to ensure the rigidity of services, using large carriers for marketing and publicity. He also pointed out that the development of the complex may also be one of the trends. The merchants of Dajingsi Lanjinglijiajiafang Square told this reporter that the business has improved since October this year. Correspondingly, the national building materials and household climate index jointly issued by the Circulation Department of the Ministry of Commerce and the China Building Materials Circulation Association suddenly rose to 130.29 in October, a sharp increase of 9.47% from the previous month and a significant increase of 7.52% year-on-year. This is the second highest peak since the release of the sentiment index in March 2010, only inferior to the 134.9 in May 2010. Sales of building materials and home stores in October also rose sharply. According to data released by the China Building Materials Circulation Association, the sales of home building materials above designated size in the country was 142 billion yuan in October, a substantial increase of 20.28%. However, cumulative sales in January-October were 1,039.1 billion yuan, down 4.6% year-on-year. Liu Chen believes that on the one hand, the real estate market has begun to pick up; on the other hand, the old-for-new policy has also awakened some wait-and-see consumption and lagging consumption.
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