Home industry upgrade is imperative

In the first half of this year, the overall performance of the building materials home industry was not very satisfactory. The nationwide sales of building materials homes above designated size totaled 102.8 billion yuan in June, a decrease of 2.71% from the previous period and a year-on-year decrease of 17%. From January to June, the accumulated sales amounted to 519.6 billion yuan, a year-on-year decrease of 6.19%. According to industry sources, the building materials home industry will enter the decoration season in the second half of the year and the performance of building materials homes will improve, but the expectations are not high. The industry will continue to be a strong, permanent, weaker and weaker state. It will no longer be a good and good situation. The transformation and upgrading of enterprises is imperative.

The four major challenges faced by the industry: The National Building Materials Index (BHI) of the National Building Materials in June was 108.10, which was a quarter-on-quarter decrease of 1.01 points and a decrease of 11.51 points year-on-year.

Industry experts said that in June, BHI declined slightly from the previous month because the concentration of rigid demand for real estate was nearing completion. Although real estate sales continued to grow in June, BHI did not dance with it. On this aspect, localities entered the rainy season, affecting home renovations, and on the other hand, they did not rule out the need for some real estate investment needs, thereby increasing the sales of real estate. The amount and pushing up prices.

With the development of China’s national economy, the people’s living standards have been continuously improved, people’s demands for quality of life have become higher and higher, and the building materials industry has attracted more attention from the community than ever before. The building materials industry has its unique dual Attributes, ie attributes of production data and attributes of living information, play an increasingly important role in the national economy.

Wang Xuqing, deputy director of the Department of Circulation and Development of the Ministry of Commerce, said that the current situation facing the building materials home industry is rather grim. First of all, the continuous deepening and strengthening of the national real estate control policy has made the potential families of real estate "rigid demand" wait and see. The actual purchasing power of building materials homes is relatively declining, and demand cannot maintain sales growth.

Excessive supply of building materials home, has emerged a vicious competition. Due to the rapid development and expansion of the ten years, under the background of real estate regulation, some building materials home stores that only rent on land have been unable to maintain. Some urban building materials home stores have reached half of the population or more. In other words, building materials stores in this city need 1-2 people per square meter to maintain normal operations, which is not sustainable.

In addition, the existing store formats have been unable to adapt to the needs of urbanization, the construction of affordable housing and the construction of refined homes. Our current stores are mainly lease-based, with “one-stop shopping” as the selling point, and the service targets are mainly personal decoration and “guerrilla”-style decoration teams. In the new situation, newly-built houses are mostly "precisely decorated" or "fully renovated", and individual "one-stop shopping" has gradually become less and will be gradually replaced by "supplemental purchasing", "fine decoration" or "full The "decoration" room is mostly for tender procurement or matching supply.

In terms of sales channels, the rise of e-commerce has become overwhelming. With the continuous upgrading of electronic network technology and the continuous improvement of modern logistics and distribution, it will have a greater impact on existing building materials home stores. In addition, various "group purchase" models and over-the-counter transactions that are refurbished have put pressure on this type of rental stores.

Upgrading and transformation is imperative. With regard to the trend of the industry in the second half of the year, Wang Xuanqing told the China Securities Journal that currently companies are digging through the potential of real estate refinishing, gradually abandoning the previous battle for land, blind expansion of the staking, and vicious competition practices. The research on the type of industry needed for new-type urbanization construction has developed new customers with sustainable purchasing power in order to stably experience the painful stage that transformation and upgrading must undergo. Therefore, the overall situation of the building materials home industry this year is consistent with the macroeconomic situation, entering a period of relatively stable and relatively low growth rates.

Wang Xuanqing believes that the industry will continue to be stronger and stronger, and the weak will be in a weaker state. It will no longer be a good situation. A good building materials home store will have a “sucking gold effect”. Customers and merchants will abandon the poor stores to choose a better store. Under the condition that the entire real estate “just needed” is continuously released, there will be good and better, worse. Worse situation. Therefore, the current corporate transformation and upgrading is imperative.

Regarding how to upgrade and transform, Wang Xuanqing said: First, we must innovate, and second, we must improve services. One direction of innovation is to develop e-commerce; the other is to adjust the pattern of supplier cooperation and distribution of benefits. In terms of improving services, it is necessary to increase service to merchants and customers, change the method of rent-seeking and take the initiative to launch various promotions in order to attract more customers.