China's floor market imbalanced in the end market

Now some of the high-end brand floor factory, facing two headaches: First, the slow speed of opening a store, only a few more than 10 stores opened in 1 year; Second, after the opening of the store is difficult to sell a large number of products, cash flow tight. At present, some companies are beginning to work hard to adjust existing channels: large enterprises add new production lines and expand production capacity on the basis of existing product lines; small enterprises increase new projects, test water conversion, cross-line marketing; and other companies join in real estate developers. , directly for the project to do supporting services.

The unbalanced end-product market in China's flooring market is overcrowded. Enterprises that develop agents or specialty stores across the country are in an unfavorable situation outside the main market. They belong to “field brands” and are naturally rejected by local factories, husband-and-wife shops, and building materials. Local products have the relative advantages of short delivery time, low price, and wide connections. If they want to share a share with them in the market competition, foreign brands must have better products, quality, prices, and services. , but most dealers do not do in these areas, it is estimated that about 30% of dealers are on the brink of being eliminated.

Cost pressures have increased as prices have risen, inflation has increased, and the cost of raw and auxiliary materials has risen. This has become the predicament faced by the home building materials industry. Companies in many industries are deeply stressed.

One boss revealed that sales volume in 2010 increased by 20%, but profits did not increase but decreased by 30%. This "upside down" phenomenon has caused headaches for practitioners. Another boss said that his factory rent is 700,000 yuan a year, renting a total of 3.5 million yuan in five years, so expensive rent, if the sales volume does not rise sharply for three consecutive months, companies have the pressure to survive, plus business , taxes, firefighting and other expenses, production costs only increase, but painstakingly managed to make no money.

The increase in output, but sales did not improve manufacturers, distributors, stores and other major factors constitute the market structure of the home building materials industry. In order to digest production capacity, many companies continue to develop distributors and agents, leading to an increase in the number of home building materials stores. From the two elements of “inventory” and “incremental”, although the monthly stores, independent stores, and building materials street in most regions of the country all have their dealers removed from the market and changed their businesses, the new amount is still larger than the “exit amount”. ".

Many companies have built new plants and expanded old ones. Due to their flexible goals, investment focus, and investment promotion policies, the flooring industry has emerged as a company that has developed 200 dealers for one year. For example, a factory that the author visited recently was transformed from other industries. In only one year or so, the development speed was rapid, and the antenna was extended to the whole country, but the actual sales volume did not increase.

The state has stepped up efforts to regulate and control the property market, making the market wait and see atmosphere is strong; and the rising production costs, many companies have been blocked, hope to expand production capacity, to reduce costs with large-scale production, resulting in serious imbalance between production and sales, the terminal market is overcrowded.