Affected by real estate regulation last year, the total demand for home furnishing in major cities has been suppressed. Many furniture companies have generally experienced a decline in performance. Many people in the industry believe that the market is difficult to pick up at least before May 1st. The furniture market will be more competitive in the first half of this year. At the same time, due to the shift in the focus of the National Twelfth Five-Year Plan, looking at Beijing and the national market, the furniture demand pattern will also change quietly. For the first-tier cities such as Beijing, Shanghai and Guangzhou, the transaction volume of commercial housing is suppressed, and the demand for affordable housing is temporarily difficult to enter the market; the secondary and tertiary markets will become the main source of future turnover.

Beijing, Shanghai and Guangzhou: Adjust product structure to meet the demand for affordable housing

First of all, in the Beijing market, the area occupied by new houses in 2011 continued to decline on the basis of 2010, and the total residential category was only 76% in 2009. The affordable housing will account for more than 50% of the construction area of ​​Beijing and Shanghai in the future. With reference to the downturn in the market in 2010, more and more furniture companies have adjusted their product mix in accordance with the national regulatory guidelines to meet the demand for affordable housing.

In an interview with reporters, Chen Xiaotai, chairman of Top 100 Furniture, said that because the average size of affordable housing is small, such as the two-room limit is not more than 90 square meters, the top 100 works hard on space and also customizes to meet new markets. Demand, at the same time, provide high-end products to meet 20%-30% of high-end home demand in affordable housing.

Second- and third-tier markets: seize the point of future competition to enhance the training of dealers

During the 11th Five-Year Plan period, the domestic urbanization process has continued to accelerate, and the demand for furniture in the tertiary market has increased significantly. China Furniture Association's "China Furniture Industry Development Report" shows that the domestic market will enter a fierce competition during the "Twelfth Five-Year Plan" period, and the tertiary market will become a strategic place for furniture companies to compete for.

Therefore, more and more furniture companies are planning to shift the main battlefield. A major trend in the furniture industry in 2011 is that companies are trying to seize the second, third, and even fourth-tier markets in the first-tier cities as far as possible to "maintain stability." Adhering to the principle of "first come first" and "first come first served", Peugeot Furniture opened 80 new terminal stores nationwide in 2010. In 2011, Atotech will also focus on developing overseas markets.

Wen Shiquan, chairman of Yifeng, said that cities with average housing prices of around 5,000 are an important market for furniture consumption and a key market for Yifeng. In June last year (2010), Liming Wenyi established the Civil Furniture Business Department. Due to the possible impact of real estate regulation and control, at the beginning of its establishment, “we transferred the battlefield to the outer port, and we adopted the strategy of surrounding the city by the countryside To take advantage of various factors such as low external rents and rising purchasing power, "said Chen Gang, Marketing Director of Civil Furniture Business Department of Liming Wenyi.

Since the secondary and tertiary markets want to do a good job of relying mainly on distributors, another key task in front of furniture companies in 2011 is to further enhance the training of distributors in marketing and service. At present, many furniture companies are considering how to strengthen the construction of terminal channels in third- and fourth-tier cities.

Establish composite channels: Improve the effectiveness of increasingly thin channels through e-commerce

With the escalation of competition and the successful test of Qumei's online shopping mall in 2010, more and more furniture companies are beginning to expand the e-commerce to improve the effect of increasingly thin channels. "Online sales can increase storefronts. The passenger flow can also increase the brand's popularity in the local area. For the enterprise itself, online marketing can also play an advertising role, and it can initially accumulate for the bottom consumer brand. "

It is reported that Elvis Presley's online shopping mall is under construction. It is currently planned to start in Beijing and Shanghai, and then gradually be launched in second- and third-tier cities. The Top 100 also considered the current mainstream consumer group after 80s and put 80Show in the online mall.

Yu Xiusu, vice chairman of Beijing Furniture Association, how to seize more market share in the "New Era of Domestic Demand"? 》 Said in the forum, because the country's real estate regulation policy has a greater impact on the furniture market in first-tier cities, especially in Beijing, Shanghai, and Guangzhou. For secondary and tertiary markets, the impact will be relatively small. With the increasing urbanization process, the future market space will be mainly concentrated in the secondary and tertiary markets. Now that competition is so fierce, this one should be picked up, one is a specialty store, one is e-commerce, and the other is to the secondary and tertiary markets, a variety of channels, so that enterprises can grow bigger.
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