Explain the pressure of the bathroom hardware dealers "three big"

In 2011, the bathroom hardware industry was hot and cold, and the days passed, so what are the conditions of dealers and agents who are not always concerned about? Many dealers have sent out sad voices, obviously feeling the winter. Under the pressure of survival, then why are the dealers in a difficult situation? The market downturn, high channel costs, pressure from manufacturers and the impact of new channels have cast a shadow over the dealers.

First: the demand shrinks, the market is sluggish, sales performance is worrying

In 2011, real estate control policies were introduced in turn, and restrictions on purchases and limit loans pushed the market to a low point. The sanitary building materials industry in the downstream of real estate was not able to stand alone and be involved in a depressed market environment. In response to the scarcity of passenger traffic in the market, some dealers have issued a sad voice. Some insiders pointed out that real estate regulation and control policies have led to a sharp decline in consumer demand, and dealers are caught in a quagmire of survival. In 2011, a new round of regulation and control of the property market was introduced, which made the already serious situation of the home industry more complicated. Real estate regulation will reduce the volume of housing transactions, resulting in a sluggish demand in the home market. It is understood that there are relatively few new developments in the Beijing Fourth Ring Road. The source of the renovation is now the real estate developers in 2009 and 2010. The second-time housing or the second-time renovation of the old house accounts for a large part. Purchasing power is very low. With the reduction of incremental housing, the coldness of the home building materials market has become inevitable.

The market's indifference is directly reflected in the market traffic. It is very good to have about 10 consumers entering the store every day. Even on weekends, the daily traffic is about 20 to 30 people. A well-known brand in Beijing, the general distributor said frankly. The strong real estate regulation and control policies promulgated by the state have a very serious impact on the property market. To some extent, it has suppressed some of the just-needed demand, which undoubtedly aggravated the consumption wait-and-see mood. In this regard, Bai Hui cabinet Beijing dealer Shen Xiaoxiang agreed, and pointed out that the current monthly turnover through the retail channel has dropped to less than 100,000.

During the visit to the store, it was also found that there was a significant decline in passenger traffic compared with previous years, even during the Golden Week of May 1st and the 11th. The situation of sharpening the shoulders has long since disappeared. Some dealers even said that sometimes No one walked into the store all day, and the phenomenon of withdrawal and layoffs was everywhere. According to industry insiders, at present, more than 80% of dealers operate at a loss. The limited market digestibility has brought tremendous pressure on dealers' sales this year. The market situation of oversupply has made the survival of dealers difficult.

Second: home store expansion, fast rent, high dealers can not afford

In the case of a bad situation, channel costs are still strong. During the visit, the author found that the dealers felt that the most helpless was the high rent of the store. In the coldness of the market, the rent problem has become more and more apparent. Many media have reported that the profit of home building materials products exceeds three floors and is distributed to the store rent. This is also a big burden for dealers with poor performance. Some dealers have given the author an account, except for rent, electricity, water, property management, and labor. In the first ten months of this year, only the only October is profitable, and other months are at a loss. .

The high price of the store rents the dealers to express their feelings. In the previous stage, the well-known domestic home stores invited us to settle at the price of 280 yuan per square meter per month. I was decisively rejected. A well-known brand dealer of Shilihe Xiaolong Ceramics Base told the author that in recent years, the rent of the store can be described as rising. Taking a famous domestic store as an example, from 2007 to now, the rent of the same location rises from 300 yuan per square meter per month. 450 yuan, an increase of up to 50%. Under the tide of rising voices, Ronaldinho chose to operate conservatively and no longer enter the store.

On the other hand, with the sharp decline in market demand and fiercer competition, the expansion of home stores has not slowed down.

It is reported that the more and more stores are opened, the market is diverted, and the market downturn leads to sluggish spending power. Few stores will take over 3000 renminbi to support distributors to promote and do activities.

In fact, the expansion of the store is not a superficial scenery. With the intensification of the phenomenon of withdrawal, the air-rent rate has soared. Many dealers have said that the well-known stores that have always been high-profile have begun to throw their own olive branches, but they are forced tough. In the situation, many dealers chose to refuse like Ronaldinho.

In summary, bathroom hardware can be described as deep in the distribution of mud, dealers are sad, hope that the 2012 Year of the Dragon ushered in good luck, out of the distribution of quagmire.

Global hardware network

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Tags: three major bathroom hardware industry store rent

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