Why is the flooring industry no longer?


A few years ago, with the rapid development of real estate, the flooring industry experienced a rapid development. However, the home building materials industry has a high dependence on real estate. When real estate is affected by macroeconomic regulation and control, it is also a bad day for the flooring industry. Looking back a few years ago, China's 70,000 enterprises, 300,000 dealers, ..., 1.5 million shopping guides, 5 million industry employees jointly created the world's first home producing country and the first exporting country's gold sign. Why have the building materials industry, such as flooring, have been plagued by the second half of 2011?

The flooring industry is still in a low-level development stage

Because China's small and medium-sized building materials such as flooring are still in the resource-based, extensive and family-type stage, the products are single, the technology content is low, the liquidity is short, and the ability to resist market risks is relatively poor, which indirectly leads to the problem of low quality products circulating in the store. .

In general, the weakness of the home building materials industry such as flooring is due to the fact that in the process of rapid development, the strength of the company's production technology and technology research and development capabilities have not kept up, and the weak corporate brand awareness and low added value of products have restricted its development. In addition, due to the quality and service problems, the crisis of trust caused by blind follow-up led to vicious competition, which made China's home building materials enterprises and stores finally weak.

"This year, the building materials circulation industry and even the entire building materials industry should seize the opportunity of new urbanization and real estate industry transformation, adjust the format and product structure according to market demand, and seek survival and business opportunities in the transformation and upgrading." Recently, China Building Materials Circulation Association President Qin Zhanxue said in an interview with reporters.

Blind investment leads to overcapacity

A few years ago, many merchants saw that the floor and other home building materials industries were profitable and invested in them. Blind investment brought about a serious product surplus, and the homogenization competition was serious. In addition, the tight control of real estate control policies has affected the downstream building and building materials market to a certain extent.

According to the investigation by the reporter, due to the overcapacity of the upstream and the blind expansion of the stores, the occupancy rate of the major building materials stores in the country has begun to decline, and the investment in new building materials and home stores has encountered certain difficulties. In order to stimulate consumption, building materials and home stores have been performing various price wars.

For the development of building materials and home furnishing enterprises, Qin Zhanxue, vice president of China Building Materials Circulation Association, said that at present, the building materials and home furnishing market is mainly retail-oriented. All building materials and home furnishing enterprises should aim at the market transformation and upgrading according to their own strength, and gradually upgrade from retail to supporting. The contract supply model has changed. Large building materials and home furnishing enterprises should take the lead in transformation and gradually develop into building materials and home furnishing enterprises that integrate retail functions, supporting supply functions and decorative design functions. For some building materials home stores intend to transform to department stores, Qin Zhanxue said that the downturn in the building materials and home furnishing industry reflects the overall economic downturn. Under this circumstance, building materials and home furnishing enterprises will not be too good in any industry, and cross-industry transformation costs. Higher, it is also a great challenge for building materials and home furnishing enterprises, so corporate investment needs to be cautious.

Source: China Floor Network

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