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Furniture and building materials enter the third- and fourth-tier cities to seize the low-end market
Nowadays, a wave of gold rushing to the third and fourth tier markets is on the rise. Not only are the major supermarkets blooming all over the country, but various furniture and building materials brands and home improvement companies are also trying to develop in second and third tier cities, and they have all been laid out. And is this a passive choice under fierce competition or a proactive attack for expansion? Many home store owners said that the industry situation has not improved much compared to last year, and compared with the saturation of the first- and second-tier cities and competition. Intensified, due to the promotion of the national new urbanization policy in 2013, the third- and fourth-tier cities and the markets that are not “restricted†will become the focus of enterprise competition. Phenomenon 榕 home store layout three or four lines "Fuzhou City's market is getting worse and worse." Recently, a city home store owner complained to reporters, there are more and more home stores in Fuzhou, and seek There are also many large-scale chain stores entering Fuzhou, and the pressure for survival of enterprises is relatively large. According to the reporter's understanding, in addition to the "foreign visitors" such as Red Star Macalline, Xiyingmen, Real Home, B&Q, local people's home, Zuohai furniture, Guangguang furniture, Xiangyuan furniture, Fuhui furniture, Chuanzheng Home, New South Building Materials Market, Shangdu Building Materials Market, etc. all have a certain right to speak in the region. The urban area was originally limited to the building materials business circle around the chemical road. It has spread to the whole city. There are 1~2 large home stores in almost every major residential area. The area of ​​Fuzhou City is small, and you can visit it in one day. The competition is fierce. In the case of the market becoming more and more crowded, many home stores began to sink their weights to surrounding counties or third-tier cities. At present, there are large-scale stores in Quanzhou with fixed word-of-mouth and customer groups in Fuzhou, and large-scale stores in Quanzhou; Zuohai furniture is located in Sanming and Fuzhou Minhou; Chuanzheng home in Jinshan has been deep-rooted for more than ten years in Gutian, Fujian. There are branches in Shunchang, Fujian and Shangrao in Jiangxi; and Qianhong Furniture has branches in Changle Jinfeng, Luoyuan and Quanzhou. Liao Guangdong, head of Zuohai Furniture, said that every enterprise has a desire to expand and expand outward at a certain stage. At present, the market in the first and second tier cities is basically saturated, and the second and third tier cities are the main places in China's next urbanization process. Therefore, the main development is the second and third tier cities. “Those places will have great achievements and the consumption potential is very largeâ€. Consumers in second- and third-tier cities also have considerable purchasing power, and will gradually become the focus of brand enterprises. According to reports, affected by the economic downturn and the regulation of the property market, the sales area and number of dealers of home building materials have doubled in the past three years, but the number of buyers has not increased exponentially, so the number of stores has begun to appear excessive. "In the case of a relatively surplus store, there will be a phenomenon of 'sucking gold'. The service is good, the brand is hard and the popularity of the store is getting more and more popular, while the small and medium-sized stores with weak service and brand are facing great survival. Pressure.†According to an industry insider, the competition in the first and second tier markets is very fierce. The high-end brands of furniture are numerous, the resources are expensive, the market tends to be stable and saturated, and enterprises want to make a difference in such a market, which requires several times of investment. Not only is it facing the increasingly fierce competition in first- and second-tier cities, the original cakes are constantly being eaten, and the market share is difficult to maintain the original level. In addition, the stores that have not yet prepared for electric shock have also been attacked by e-commerce. In the case of front and rear pinch, it is necessary to find a way. "Local stores want to survive, they must learn to play 'guerrilla warfare'." People's home Jiang Yanlong said that small and medium-sized stores must be transformed and upgraded to avoid the "fighting and melee" of home crocodile. Small and medium-sized stores can consider the development of the third- and fourth-line markets, such as home and building supermarkets in districts and counties, to seize the opportunities in one area. The strategic reasons for the third- and fourth-line market space or larger home sales are due to the growing consumption power of third- and fourth-tier cities. In these cities, the increase in consumer income directly drives the growth of consumer power and desire, which enhances the market's appeal to brands. At the same time, the perfect infrastructure has also made it possible for the furniture companies to sink. On the other hand, under urbanization, there are more opportunities in third- and fourth-tier cities. The third- and fourth-tier cities just need to be strong, first of all, driven by the real estate industry. Nature furniture Chen Hangrong believes that the active real estate market has made urban residents' rigid demand for housing unreleased, and a large number of people urgently need to solve the problem of home improvement. The original extensive decoration system in the local area can no longer meet the needs of consumers, which provides the necessary conditions for the home business. Compared with the high rents of first- and second-tier city home stores, the cost of opening a store in third- and fourth-tier cities is obviously much smaller. The development of products should be close to the market demand, as the saying goes, "Do not fight unprepared." Before entering the third- and fourth-tier markets, home stores should carefully study and analyze the target market in order to gain a foothold. At present, the third and fourth line markets have grown rapidly. Local consumer brand awareness has gradually awakened, and the original simple, low-end products can no longer meet people's needs. Consumers have already bid farewell to the consumption concept of low-end miscellaneous products, but the average actual purchasing power is still at a moderately low level. Therefore, in general, products with brand-name, mid-range and high-performance ratio have become the first choice, and the mid-end price-performance products are the winning formula to quickly win the third- and fourth-line markets. According to this situation, furniture companies should make rapid adjustments on the products. It is understood that in the market of the third- and fourth-tier cities or suburban counties, it is still popular with panel furniture, the price is close to the people, and the products are grounded. At this stage, the home market in the third- and fourth-tier cities is not yet mature, and the national brand chain stores have not yet entered, so the local stores occupy an absolute position. Liao Guangdong, head of Zuohai Furniture, said: "Small and medium-sized stores must clearly see where their living space is, identify their own consumer groups, and let their consumer groups see their unique bright spots. According to their own economic strength, Resource status, circulation platform, etc. to determine the positioning and development direction, must not blindly play cards, not to shoot a shot for a shot, long-term transfer of positions, will not be conducive to the long-term development of enterprises."