Why home furniture stores lose money

From the world's largest home building materials company, Depot, announced the closure of all its stores in China. In the past few months alone, another giant company in the building materials market, Oriental Home, has also seen news of its bankruptcy. What is more noteworthy is that the trend of the withdrawal or closing of home building materials stores is taking shape. Since 2012, 12 building materials stores in the building materials market have closed in Beijing. Among them, there are many well-known stores such as "Palace Dragon" Lighting City and Xinglong Furniture. At the same time, large-scale building materials markets such as Jimei and Home Furnishings have also closed some of their stores.

The most direct reason for closing the market is naturally the poor operation of the store. There have been reports before that the well-known building materials store Baianju has been losing money for six years. The confusing question is: As an integral part of the daily life of the residents, why does the home building materials store fail?

Deeper reasons are worth thinking about. Since 2012, the transaction volume of the domestic property market has been reduced due to the strict regulation of housing prices, which has largely become an important factor leading to a decline in the prosperity index of the home market. In addition, the blind expansion of investment entities has resulted in a surplus of stores and excessive idle stores, forcing them to recoup their costs by increasing store rentals. As a result, there have been problems such as the decline in the occupancy rate of the stores and difficulties in attracting businesses, and eventually they have fallen into a vicious cycle within the industry. Some dealers have indicated that compared with three years ago, the rent for a store's decoration and shopping mall has been more than 50,000 yuan. It is also worth mentioning that for most consumers, home building materials are different from foods, clothing, and sundries that need to be purchased repeatedly, and are closer to one-off consumption. Therefore, the larger the area of ​​such integrated stores and the more storefronts, the more difficult it is for customers to fully grasp product information, compare product prices, and effectively select them. Potential customers are naturally more likely to be diluted. .

However, if you encounter the pressure of survival, you will have to choose to withdraw the market, reduce the number of stores, or directly declare the closure of the store. This is not the degree of maturity that an industry should have. Then, as a home builder market operator, how can we turn our stores into a down trend in order to achieve evergreen?

In fact, businesses may need to create a small, well-targeted store. Specifically, they can try to integrate and classify products with different characteristics in today's large-scale building materials supermarkets according to the needs of consumers from different strata and in different areas, and then establish special applications such as business offices, high-end villas, and small apartment apartments. Uniform style, corresponding to a private market serving a certain type of consumer groups. At the same time, businesses should also use their brains in product research and development to introduce more distinctive and targeted products that meet the requirements of professionals or special buyers in order to match the characteristics of the stores themselves. Make it more unique. In addition, in today's era of information diversification, businesses can further use the Internet to enhance the store's ability to survive and develop. For example, it is possible to open a network service platform and adopt a two-line sales strategy, and seek cooperation with major well-known portal websites to promote and popularize various information on products. All these things, while bringing more convenience to consumers, will inevitably lead to higher resource utilization and more stable customer sources in the stores.

In the past year, shops that have been “disappeared” and closed shopping malls tell us that the domestic home building materials industry is undergoing a major impact. It is precisely for this reason that the businesses that are still involved in them should think in time - how to change and survive in the tide of rising bankruptcy.