Building materials home industry bid farewell to high-profit era

Last weekend, the signing and sales frenzy of Zhongyuan Furniture Co., Ltd. ended for two consecutive days. After two days of intensive rain, many posters and brochures were scattered all over the place. China's real estate development has entered the stage of gold development since 2004. Home building materials are the subsidiary products of real estate. The development of home building materials industry has also ushered in a golden decade. The entire industry has developed rapidly and brand building has been strengthened. “After this year, the Chinese economy In the era of normal profits, a large number of companies will bid farewell to high profits,” said the headquarters of many first-line brands.

The peak season preempted the headquarter to enter the market. In 2011, the end markets of home building materials declined significantly compared with the same period of last year due to the restrictions on the purchase restrictions in the real estate market, the appreciation of ***, and international economic factors. In terms of internal markets, exports decreased. The prices of various raw materials and supplies have risen sharply, the rents at terminal stores have risen sharply, and the wages of employees have soared. This has also caused pressure on dealers to increase dramatically. This year, the decline in corporate profits has become the biggest shadow of optimistic economic growth, causing companies in the downstream industries such as building materials to agonize.

The home season, which was originally started in September and October, allowed home-owners to grab the lead. "In advance into the holiday promotion war, businesses are rushing to grab the market." Red Star Meikailong said a staircase brand merchants. On August 20th and 21st, the celebrity “signed and sold by the president” from the top three home stores in the Central Plains swept through Greentown. Two days of heavy rain did not extinguish the enthusiasm of the home-owners. The display racks, promotional pages, and store atmosphere created a Do not fall. Oke Long, actually home, Red Star Macalon's store parking lot are full. From well-known brands such as furniture, cabinets, wardrobes, ceramics, sanitary ware, and wooden door staircases, manufacturers' headquarters have led teams to Zhengzhou to promote profits.

Businesses early to enter the peak season, increase promotional activities, direct profit sharing headquarters, which directly illustrates the home building materials industry has entered the era of Boli. General manager of the left and right sofas said.

Li Kaiyuan, deputy general manager of Huida, said, “This is a normal trend, and the market economy itself will lead to average profits. This is a very natural process.” This interpretation is based on the most basic principle of the market economy—supply increases beyond demand, naturally causing prices to fall, and leading to lower profits. “We are gradually turning to integrated home development to develop bathroom cabinets, overall bathroom rooms, etc.”

The industry enters the era of meager profits With the rise in the prices of labor and raw materials, it is inevitable that the increase in product costs will lead to the increase in product prices. Any industry development is mature, will enter the era of meager profits, such as home manufacturers, dealers can not always be in a high level of profit, the era of profits of the home industry has passed.

“The windfall era will sooner or later pass. Under normal economic conditions, companies should rely on management to make money rather than rely on profits.” Lian Zhigang, Chairman of Gorgeous Lighting, said. With the increase in the price of labor and raw materials, it is inevitable that the increase in product costs will lead to the increase in product prices. Any industry development is mature, will enter the era of meager profits, such as home manufacturers, dealers can not always be in a high level of profit, the era of profits in the home industry has passed, with the market survival of the fittest, there will be product prices, there are products that will cut prices .

"The direct benefit from the headquarters is to make up for the distributors. This is even greater than finding acquaintances in the past," said General Dai, who is responsible for many brands. "This kind of large-scale promotional activities, business brand is not the first place in profits, zero profit or loss of money, what is needed is a big display of the brand and regional publicity." Huida brand, Henan Jintai Building Materials Director Chang Huang Junjian believes that any industry actually bids farewell to the high-profit era.

People in the industry believe that once the home industry enters a period of low profit, companies must make full use of raw materials, reduce inventory, give full play to artificial benefits, and optimize procurement and sales. Each process cost control is an opportunity to gain profit growth.

In the era of home building materials tending to low profit, many brands have begun to seek new ways to survive in the market. Like the purchase of a factory, the development of the overall home series: the production of bathroom cabinets selling bricks series; selling cabinets also produce ceramic products ... ... to develop more diversified products.

Consumers will be the biggest beneficiaries Nowadays, consumers are most looking forward to buying their favorite home products at the best price. The most obvious feature of consumption is rational purchase. The service, product quality and overall design of home brands are much higher than previously required. In addition to quality, the price has become the biggest factor in the transaction, and it is also the focus of the business competition. The fierce competition in shopping malls, and the intensive marketing, “this is precisely the most profitable consumer in the home industry,” said Hao Xie, director of the wardrobe market, but Xian Xie said.

Intensified competition in the industry, first in the time node, grab the market early, like this year has been ahead of schedule to August, can not wait to push a variety of promotional activities; second, major mainstream home stores have entered the competition between the stores, forcing the major stations Businesses have come up with big discounts, coupled with discounts on the stores, consumers, and fierce competition, forcing manufacturers to reduce profits and increase investment in promotion and promotion.

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