Wednesday, January 5, 2011

Home industry profit shrink said goodbye to profiteering era yet to time the market upturn

Crazy price customer scarcity

7 March at 9 am, in Liaoyang West Road Home Depot home supermarket, reporters see, almost all household products in discount promotions, the purchase of HK $ 500 $ 500 gift coupons. Even the price is always a strong wood, dexing, jindi etc. brand series of doors and Windows are all straight down 20%, Eagle, Wrigley, part of the price range of bathroom products reached 50%. Press notes that although positive weekend and the weather is also very good, but the home in the supermarket and not many customers.

The reporter then arrived in Shandong road, Interbrew has found that this business is also very cool. Although each shop door are placed at "the House special," "all five fold" and other discounted promotional promotional cards, but customers are few and far between. In Germany, Helmut ban na shop, original price $ 30800 soft bed now only $ 16000 after-sales. The shop of female boss told reporters complain: "a week is not ' open and ' very normal, who will be able to sell a piece of furniture even luck. ”

Industry profits shrank sharply

"Now there is almost no commodity not discount the living space, we now are in stiffness. "Interbrew in upwards of Ms. Sun told reporters that previously they rarely discounted, but now is full 70%, last year this time buying a mid-range of Redwood bench money, now you can buy a sofa. But despite this, the customer still rare, previously at consumption more than big clients shijiwanyuan is now gone.

Qingdao city furniture Association, Vice President and Secretary General of the said single qingchuan 2004, household industry really "profits", the gross profit margin is 30% or more, we all make a lot of money. But now it is very low, the gross profit margin on the whole, less than 10%, of which, the export rate of profit in 3% to 8%, domestic sales of the profit margin of 5% to 10%.

Reporters found that not only a serious decline in sales of furniture products, building materials, sanitary wares, entire furnishings industry business were greatly affected.

The reason, in addition to wood, accessory costs to each of the 15% to 20% range of growth, transport, labor and other costs are rising. "The most important thing is that the end of last year, due to the financial crisis, rising costs and other factors resulted in a substantial reduction in export orders, household product export enterprise can only fight in the domestic market, but the domestic real estate and stock market is sluggish domestic market demand significantly reduced, in order to seize the market, businesses are forced to reluctantly ' cut meat '. "Single qingchuan said, now home industry overall price levels have exceeded 20% of the home market is facing a major industry reshuffle, many small household product export enterprise has closed down or face closure.

Market better next year at the earliest

"Although the 2009 spring has arrived, but for home industries, ' winter ' has just begun, home market downturn hasn't hit bottom. "For the home market of the future trend, single qingchuan stated that the present international economic situation difficult materials, domestic demand and insufficient homes industry when warming very difficult to predict. "Best to wait until the next year there will be a turning point, but also their hopes on the national policies of support. ”

Single qingchuan told reporters that the Association is organizing guided Qingdao household enterprises hold together "heating", strengthening the internal management of product development and to adapt to market demands, reduce costs.

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