Merchant withdrawal is not a good anti-rent policy, reform is king

In 2012, the furniture market was affected by the turmoil in the property market, and the furniture market was in a slump. Even the high-end home furnishing store, Red Star Macalline, also suffered from the dilemma of “removing stores”. Looking at the whole country, Beijing, Chongqing, Nanjing, Shenzhen and other cities are facing the same pressure to withdraw stores. The unregulated real estate regulation has led to high rental pressures in the store, and the operation of the store has become a major problem.

Store rents soared, the industry was in trouble

At present, there are roughly the following forms of domestic furniture sales: one is that the manufacturer rents the venue to sell the furniture, that is, a large home sales store, but there are also dealers who rent the venue to sell the furniture; second, the dealer rents or builds the venue to purchase Self-operated operation; third, independent brand management, which is a large furniture brand at home and abroad, and another is the department store to open a venue to operate furniture. However, there is a thorny problem in the above models, that is, rental pressure. Among them, renting venues to sell furniture faces the most direct rental pressure. Independent brand stores are mostly factory brands and are operated by dealers. Passive, feedback based on actual market conditions is not as good as expected. The most important factor is inseparable from real estate policy regulation, so some industry insiders pointed out, "As long as the real estate regulation is not relaxed, the home industry is difficult to recover, and it is difficult for merchants to guarantee sales."

In addition, some people in the industry pointed out that although some cities do not currently have a large number of withdrawals, the situation is not optimistic. Taking Guangzhou as an example, many home shopping malls have recently opened, and they are still able to enjoy the operating privileges provided by the store, such as temporary rent-free and rent-reduction, which are relatively stable. For example, the Red Star Macalline store in Guangzhou will not have a large-scale withdrawal for the time being, but in the future, the prospects are worrying. Industry insiders expect a decline of 20% -30% in the operation of the entire home furnishing store this year, causing the industry to be in trouble for a time.

Mode transformation breaks through the dilemma?

Faced with the current high rents in stores, many companies have embarked on a new development path. Traditional home stores open up e-commerce channels, and home e-commerce has opened offline physical stores. Overall, the combination of e-commerce and entities may become the future trend of the furniture market.

With the continuous expansion of online shopping groups, the transformation of traditional furniture companies into e-commerce has become a general trend. According to the information of the State Administration for Industry and Commerce on September 10, 2012, the number of online shopping users nationwide has reached 210 million, accounting for 39% of the 538 million Internet users. Online shopping has become an important part of residents' lives. In 2011, the transaction scale of the national e-commerce market was 7 trillion yuan, of which the transaction scale of the online shopping market reached 773.56 billion yuan. With such a prospect, people in the industry pointed out that "if you don't do e-commerce, you will regret it in five years", so many companies have high expectations for this field of e-commerce. At present, there is an average home appliance company every day, that is to say, nearly 400 home appliance companies will be born in a year. This trend has led many home furnishing stores to establish online malls, and with the popularity of the Internet, thousands of consumers will prefer online shopping as a convenient shopping method.

Due to the particularity of furniture products, home furnishing is not only limited to online sales, but also focuses on offline experience. Therefore, experience marketing has become a new favorite. At present, more and more furniture e-commerce companies have established offline experience stores, the purpose is to lead online consumers to fully experience the details of furniture offline. Consumer Lin said that if the online store has a physical store experience, this will be a lot of relief, so everyone is happy to accept such a way.

Judging from the current market conditions, the transformation of the traditional model is imperative, and certain means must be adopted to help enterprises to survive the turbulent period. The transformation of the model may be a new turning point for furniture companies and a very affordable shopping experience for consumers.

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