Second- and third-tier city real estate purchase restrictions have no effect on the sinking of the home industry channel

Abstract: The property market is mainly targeted at real estate speculators, but this group is not too many in the second and third cities; the most important thing affecting the home market is the wait-and-see mood of rigid demand, but these rigid demands are always consumed; the state implements the most restrictive purchase policy. The important purpose is to regulate the real estate market. The goal of China's urbanization development will not change. The second and third tier cities carrying the main tasks of urbanization will have great potential for investment and development in the future. ■ Home advocates hanging on the top of the second- and third-tier cities, the "restricted purchase" sword, when it should be only a matter of time. However, it is not appropriate to use the "mountain rain to wind up the building" to describe the impact of the home industry. After many interviews, I felt that compared with the market in the first-tier cities where the home industry suffered from the “National Eight Articles”, the brand home furnishing enterprises in the second and third-tier markets of the country generally expressed no concern about this restriction. The calm and calm of the home-based enterprises facing the purchase restriction is derived from the red-hot record achieved in the second- and third-tier markets for many years. On the national map of home chain stores, second- and third-tier cities occupy more than half of the country, home improvement enterprises, furniture and building materials enterprises, and the number of stores in second- and third-tier cities is not only leading by absolute advantage, but also the contribution of sales and profits is also occupied by the national total. From 30% to more than 60% to 70%. The calmness and optimism of the home business in the face of the property market's “restriction order” also stems from its rational judgment on the characteristics of the real estate market and household demand in the second and third tier cities. The property market is mainly targeted at real estate speculators, but this group is not too many in the second and third cities; the most important thing affecting the home market is the wait-and-see mood of rigid demand, but these rigid demands are always consumed; the most important purpose of the state's implementation of the purchase restriction policy It is to regulate the real estate market. The goal of China's urbanization development will not change. The second and third tier cities carrying the main tasks of urbanization will have great potential for investment and development in the future. Although there is no worry in the rhetoric, the home furnishing companies are also actively exploring relevant measures to counteract the temporary containment of household demand caused by the wait-and-see attitude of the property market after the purchase restriction. The expansion of the speed of the force, the refinement of the market positioning, the product innovation, and the deep cultivation of multiple sales channels have made people see the maturity of the home furnishing industry. In the face of the gloom of the cloud, there are fewer complaints and more thoughts. "As long as people are alive, they have to eat. If they want to do business, they must find a way." The second- and third-tier cities will soon be released, and whether the sinking channels of home enterprises can withstand the test, the winning tricks explored by enterprises can If it is not effective, it will eventually lead to an answer. Home crocodile continues to lay out the second and third tier markets. Although home furnishing companies almost agree that the purchase of real estate restrictions will not lead to a sharp decline in the market of second and third tier cities. However, for the upcoming market turmoil, whether it is the store, home improvement company or furniture and building materials enterprises, it has not been sloppy. From the number of stores, product innovation, channel optimization, service system and internal management, the corresponding measures will be taken to maximize the Relieve or resist the impact of the expansion of the purchase restriction. "Escape" north to Guangzhou and Shenzhen? After years of development, the first-tier urban home market represented by the North, Guangzhou and Shenzhen, its increasingly fierce competition and rising costs have led many home furnishing companies to turn the ship into a brand-new blue ocean in the second and third tier cities. In fact, a decade ago, home furnishing companies began to sink their channels. Wang Xiaoyu, general manager of the marketing department of Shengxiang Group, said that in 2002, Shengxiang extended its tentacles to the first-tier cities. At present, the marketing channels of the icon have covered all prefecture-level cities and half county-level cities across the country. Yao Gang, deputy general manager of the European company, said that in 2003, the European network reached more than 800 outlets, and it was completed in the county-level cities of the country five or six years ago. Chen Wei, director of Dongpeng Ceramics Business Division, also said that he has been involved in the second and third grade markets since ten years ago and currently has layouts in all cities across the country. Zhang Wei, chairman of the industry's peak decoration, also said that the company began to expand from Beijing at the beginning of its establishment, and developed a development strategy for entering the second and third tier cities. Currently, 90 direct and franchised stores in second- and third-tier cities account for the national total store. 70% of the quantity. For the national chain of brand home stores, the market gap in the first-tier cities is getting narrower and the layout is already perfect. Therefore, the second- and third-tier cities are not only the territory of the current stage of intensive cultivation, but also the focus of the next step. Whether it is the 100-store chain strategy that the Real Home is expected to achieve in 2015, or the Red Star Macalline is expected to open 200 stores in 2020, the second and third-tier cities occupy a pivotal position. Compared with the first-tier cities with limited quantity and full competition, the second- and third-tier markets are not only large in size, but also the home market is relatively late, the brand concentration is low, and the purchasing power of consumers is very strong. . This has provided a more profitable space for the home enterprises that have settled in. Wang Xian, general manager of Bo Yimumen, said that since the company sank the channel in 2008, there are currently more than 150 stores in the country, and the sales performance of the second and third tier cities accounts for 40% to 50% of the national total sales. Yao Gang said that the second and third tier cities are equivalent to two to four grades in the European six-tier market, with sales and profits accounting for about 30% of the total. According to Rongwei, Director of Ou Dian Flooring Market, 600 store sales in the second and third tier cities in the first half of 2011 increased by 26% compared with the same period of last year, which is higher than the 11% increase in the first-tier cities, which has already accounted for 65% of the national total sales. . According to Wen Shiquan, chairman of Yifeng Furniture, the number of stores in second- and third-tier cities accounted for nearly 40% of the national total, and sales accounted for about 30%. Since the regulation of the property market in 2010, the booming momentum of the home market in the second and third tier cities has given the public home enterprises a high hope for their future development. Wang Jianguo, general manager of the Federal Furniture Beijing Company, said that the second and third-line markets, which account for more than 50% of their national sales, will remain the focus of distribution and the main sales areas in the future. Wang Wei, general manager of Hongxing Meikailong Jinghu·Southwest Region, said that the sales of Liuzhou and Guiyang, which are located in the southwest region by Red Star, are good, which proves that the second and third tier cities will still have Great development potential. ■ Market analysis potential purchasing power is still strong Liu Chen, secretary general of the Beijing Branch of the Beijing Market Association, said that with the entry of some well-known enterprises, it has catalyzed and promoted further regulation of the local household industry and broke the inertia of local enterprises. In addition to a benign development environment, the purchasing power of second- and third-tier cities is one of its advantages. Wang Xiaobing, the current executive vice president of decoration, said that consumers in the second and third tier cities have strong purchasing desires and purchasing power. In particular, many prefecture-level urban real estate markets started late, but their purchasing power is strong. Coupled with the acceleration of the current urbanization process, many fourth-tier cities have flooded into second- and third-tier cities, forming a strong potential purchasing power. The development is strong, the competition is not as strong as the frontline, and the ability to resist regulation is stronger. Zhang Jun, chairman of the industry's peak decoration, also believes that the land supply in the second and third tier cities is relatively large, the number of rough houses is large, the population growth rate is fast, the demand is large, and there is still much room for development in the future. The business model is relatively backward. Although the second and third tier cities have certain development potential, at the same time, some factors restricting their development, such as brand concentration, are not very high, and the market order is not very standardized. Zhang Chen, the director of the operation of the actual home, also said that the concept of the brand of home and building materials industry in the second and third tier cities is not as obvious as that of the first-tier cities. The source of consumer information is simpler and more emphasis on quality and cost performance. Wang Xiaobing believes that most of the enterprises in the second and third tier cities have a business development model that is lagging behind the first-tier cities and is not competitive. ■ The industry said that the second and third tier cities can still be the key ● Liu Chen, after the Beijing Stock Market Association Home Branch Secretary's purchase restriction to the second and third tier cities, the impact is far less than the impact of the first-tier cities after the purchase limit. The reason is that mainstream consumer groups generally do not invest in multiple suites in second- and third-tier cities, and local purchases are basically effective. Second and third tier cities are important areas of China's urbanization process, and the demand for rigidity is very large. Therefore, the impact of purchase restrictions is much weaker than that of first-tier cities. Second and third tier cities can still be the focus of strategic development and layout of home furnishing enterprises. The impact of purchase restrictions is weaker than the central city ● Wang Xiaoyu, general manager of the market department of Shengxiang Group, because the real estate in the second and third tier cities is more rigid, so the impact on the downstream home market will not be as significant as the central city. Second- and third-tier cities need more demand for affordable products. After the property market regulation, the brand concentration of the second and third-tier cities in the home market will increase, which will coexist with opportunities and challenges for long-term stable brand enterprises. Restricted purchases can make the funds return ● Zhang Jun, the industry's peak decoration chairman's purchase restriction policy is to wash off some people who buy houses to invest, the actual rigid demand has not decreased. The implementation of the restriction, in addition to the impact of the advantages and disadvantages of the second and third tier cities, will also have an indirect impact on the first-tier cities. A large amount of money has flowed to second-tier and even third-tier cities. After the second- and third-tier cities implement the restriction purchase, the market will be reduced to a certain extent, which will promote some funds to return to the first-tier cities and ease the predicament of the first-tier cities. The purchase restriction is a double-edged sword ● Wang Xiaobing, the current executive vice president's purchase restriction is a double-edged sword. On the one hand, it may bring vibration and adjustment within the industry, making it difficult for some enterprises to survive. On the other hand, enterprises are active. Coping with, adjusting product structure, changing business methods, innovating business models, and expanding markets are also conducive to innovation and progress in the entire industry. ■ Way Out Looking at the store opening speed According to the specific situation, the national chain home store represented by the Real Home, Red Star Macalline and so on has already extended its reach to the second and third tier cities in all major regions of the country. For the next 5 to 10 years, each store has also expressed the development plan of chain stores, and the second and third tier cities are still the protagonists. For the second- and third-tier city home market that is about to encounter restrictions on purchases, the store has not expressed concern, and will not slow down the pace of opening stores. Zhang Chen, director of operations at Real Home, said that once the purchase is restricted, the choice of consumers will be more rational, and the stores with standardized operations will have an advantage. In the future, the proportion of shops opened in second- and third-tier cities will become higher and higher. Will the speed of opening stores after the purchase restriction be slowed down, or it depends on the specific situation. Wang Wei, the general manager of Hongxing Meikailong Jinghu·Southwest Region, also said that the second and third tier cities are the main areas for the task of transforming the rural population into urban population in the process of urbanization in China, and the demand for households is very strong. The occupancy of the store will inject new business ideas into it and upgrade the local service level, which will further activate local purchasing power. The person in charge of the home improvement and positioning of home improvement enterprises said that they will slow down the pace of opening stores and layouts as appropriate, but they believe that in order to cope with market changes, they should undoubtedly identify their own market positioning and segment the market. Wang Xiaobing said that in order to cope with policy and market changes, it is necessary to understand the impact of policies and market changes, either to actively adjust itself, or to find a place that is least affected by the policy, is most suitable for the company's own characteristics and survival, and is deeply cultivated in this market. Intensively, integrate resources, and improve the compatibility of resources with the second and third tier markets. Zhang Jun also believes that market segmentation and accurate positioning are a necessary measure for home improvement enterprises to deal with purchase restrictions. Dedicated to a certain level of consumer groups, it is conducive to deepening the products and services. In addition, home improvement companies need to adjust the characteristics of products and services for the characteristics of second and third tier cities, improve the quality of decoration and service, and improve the cost performance of products and expand their influence through targeted procurement and development of information technology. Furniture increases product targeting Although most furniture companies believe that the impact of second- and third-tier city purchase restrictions will not be great, but the company has also made positive layout and adjustment. Wen Shiquan, chairman of Yifeng Furniture, said that it is fundamental for enterprises to improve their internal strength and improve service and quality. On this basis, they should study the consumption habits and usage habits of local consumers and adjust the structure of products to make them more suitable for second- and third-tier cities. Different needs of consumers' housing size and usage habits. Wang Jianguo, general manager of the Federal Furniture Beijing Company, stressed that in addition to increasing product targeting, it should also strengthen product flexibility.

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