Wardrobe channel sinking need to be cautious

Urbanization is considered by many housing enterprises as the life-saving straw for the real estate industry. However, as China’s aging population grows, it means that the future supply of social labor will not be as abundant as before, and the household savings rate of the entire society will also decline. Caused a decrease in purchasing power. From this point of view, truly realizing the urbanization of people also requires a series of reforms. Over-expansion of the city will lead to more and more houses no one to buy, so there are more and more "ghost towns." In response to this situation, wardrobe companies have to sink their own channels, and must understand market conditions and think twice.

The purchasing power of second- and third-tier cities is questioned, and “ghost towns” frequently appear

Judging from the current wardrobe market, the market of first-tier cities is becoming increasingly saturated, and its market space has long been occupied by a few big brands in the international or domestic market. Therefore, “channel sinking” seems to be the overwhelming majority of domestic companies in the “substantially subsistence line”. The only way out for business. However, as far as the latest industry conditions are concerned, “this road is not accessible” has also been increasingly mentioned by companies. The reporter learned from the market that some brands of developers are running counter to the brand furniture traders and have retreated from the second and third-tier cities to the first-tier cities and some major cities.

At the beginning of this year, the growth rate of China's real estate investment declined. The total investment in real estate was 795.6 billion yuan***, which was 3.5 percentage points lower than the same period of last year. The cumulative sales of commercial housing totaled 100 million square meters, an increase of 49.6 percentage points from the same period last year. The fall of these two sets of data is almost entirely reflected in the second- and third-tier cities where the real estate market is divided, especially in the third and fourth-tier cities. Judging from the latest data, the area of ​​newly-started housing in the country fell by 25.2% year-on-year in the first quarter, and investment in real estate development continued to slow. In terms of sales, many developers have recently stepped up efforts to push the market. Zero slogans and “paid down payment” slogans are also higher than a bang. This also reflects the current dismal property market.

Since the buildings cannot be sold, consumers naturally have no corresponding purchase needs. From this point of view, the “channel sinking” that has been continuously promoted in the past has been either the lack of understanding of the market by enterprises or the lag in information; or the misdirection of the market and the market. Chen Jiayi, a staff member of the Shenzhen Furniture Industry Association, revealed to reporters that although first-tier cities like Shenzhen have had more competition in their brands, they are sinking channels into second-tier and third-tier cities and still have a lot of uncertainty. Most brands Prices are hard to accept in second- and third-tier cities, and local brands cannot afford high promotional fees. As a result, each closet company must re-evaluate the market, whether to stay in the front line or to sink channels, all should think twice before proceeding.

There is a risk of sinking channels, and wardrobe companies recognize the market is not an unusual road

Whether it is the cooling down of the property market or the restrictions on actual purchasing power and purchase demand of consumers, it will reflect that the market space of second- and third-tier cities is not as optimistic as the companies originally thought. The development of wardrobe enterprises also depends on the company's own combination of specific consumer needs and seeks its own way out. No matter whether it is first-tier, second-tier, or third-tier or fourth-tier, products that can really grasp consumer psychology will often fail to find a way out.

From the previous 29th Shenzhen International Furniture Fair, it was also learned that the unique “custom” design is not suitable for second- and third-tier cities. An Italian furniture manufacturer has built a platform for interior designers, developers, and consumers to provide an Italian-style home design space to demonstrate the docking platform. However, most consumers are just keen on watching lively events, and few actually sign contracts. Why the excellent design, in front of the second and third line market, but only "performance of the child," the reason for this, or to prohibit the pulse of consumer psychology. In most offline cities, people's living standards, concepts, and methods are still in the previous concept, and accepting new things also requires a certain amount of buffer time. In addition, the custom closet is relatively expensive compared to the price, and there are some unpredictable risks, so that these "not too much money to risk" consumers are daunting, most of them just look like it is, when you actually want to buy Still will tend to finished wardrobes. This kind of convenient consumption model is also more in line with the living habits of this group of people. They do not have enough experience and time to look at such things as “luxury” like product design and quality of life. The actual function of the product and whether it is affordable It is their most valued.

Therefore, when a wardrobe company wants to “channel sink”, it must first understand the lifestyle habits of the consumer groups that its products are about to face, and implement its own marketing strategy to meet the needs of lifestyle habits. The features and styles. Do not blindly get together, people are in a cloud, just blindly follow the big flow, and finally can go where the company does not have a clear direction and grasp.

In the development of the industry, wardrobe companies are facing market changes in the market. They need to keep abreast of the latest developments in the related markets and industries. While trying hard to produce and work hard at the same time, they will be able to do more with less. Effect.