Restrictions on purchases continue to force the home industry or will usher in a major reshuffle

The warm March brought warmth to the home furnishing industry during the cold winter. With the arrival of 3.15, the major home furnishing stores are in full swing with discounts and promotions.

It is sooner or later that the purchase restriction will continue to exert influence

After the promulgation of the 'Guo Ba Tiao', the government has strengthened its control over real estate. As a home furnishing industry closely linked to real estate, this year's impact is mainly psychological, 'the mountain rain is coming and the wind is full of buildings'. Since the houses renovated this spring are generally delivered last year, it seems that the home improvement market has not shrunk. I expect that by the second half of next year, the real estate control measures will only show their impact on the home furnishing market. Zhang Qing, chairman of the Hefei Home Improvement Committee, said.

As for the impact of real estate control measures on the home market, many people in the industry said that it depends on the implementation and continuity of Hefei's local policies. "If the purchase restriction continues to work and the number of houses available for decoration in the market will decrease, by the second half of next year, Hefei's home furnishing industry may usher in a" big reshuffle ". Some small and small home improvement companies with no characteristics and lack of competitiveness will Bankruptcy. "Zhang Qing told reporters.

Although the next year may face a "big shuffle", but this year's situation, most people in the industry are still optimistic about the home market. A person in charge of a home improvement company said that the home decoration industry has always been concerned about the self-housing of families who just need it, and the purchase restriction order hits investment housing. Investment housing has very few decoration needs, so the purchase restriction order Industry's influence is limited. In addition, the emergence of a large number of affordable housing will also become a new growth point for the home improvement industry. Liu Binggen, a manager of a decoration company near the provincial city of Weigang, told reporters: "The home improvement market is indeed in a serious situation, but it is mainly due to the unqualified 'guerrillas' and project managers who are taking private jobs abroad to disrupt the market and cause vicious competition in the industry. The impact of the property market 'restriction of purchase order' has not yet been seen. However, in the long run, the purchase restriction order will definitely have an impact on the home improvement industry. With fewer houses available for decoration, competition will inevitably become more intense. "

Preferential promotions while increasing prices

The rising price of building materials and the increase in labor costs have made "price" a sensitive topic in the home improvement market this spring. Some industry insiders pointed out that due to the impact of the international environment, the prices of cement, yellow sand and wire and tubing have doubled this year compared with last year. Under the pressure of rising costs, many building material manufacturers or decoration companies have issued such a promotional slogan-"3.15 Consumer Rights Day" to maintain the original price, "3.15" will increase the price once. In fact, whether building materials dealers and home improvement companies increase their prices is mainly related to their own cost accounting and profit margins. The level of enterprise development is different, and when and how the price increases are naturally different.

In the fierce competition, some home improvement companies have increased their prices on the one hand, and on the other hand, they have also increased their promotional efforts. In particular, some brand companies have tapped their potential to absorb the pressure caused by rising costs, such as factory assembly, Shorten the construction period to make a fuss, so as to expand market share and hit competitors. The threshold of the home improvement industry is low, and many project managers of decoration companies have started to "single-fly" after grasping a part of the customer source, attracting consumers with relatively low prices. In the case of rising prices, working-class consumers are more sensitive to home improvement prices, and some people will choose unqualified "guerrillas." Therefore, the reasonable profits of many regular decoration companies have been hit. Compared with last year, the cost of building materials has increased by about 15% this year, and the wages of workers have increased by about 10%. However, the price of general decoration companies has increased by about 5% to 10%. That is to say, the decoration company has also sacrificed a certain profit margin. This is because the current competition is so fierce that companies can only increase prices while offering preferential promotions to gain market.

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