The “double differentiation” in the home market, small businesses will face the acquisition situation

Nowadays, due to the influence of the external environment, the market trend of the home market is changing. For home furnishing enterprises, the change of the property market is a direct influencing factor, and some behaviors of goods and goods are also factors that affect the trend of the home industry. Faced with these situations, some insiders said: "The monopoly of monopoly is the inevitable result of economic development. In the future, some small household enterprises will face acquisition."

"Double differentiation" in the home market Small businesses will face acquisitions (Source Network)

The overall downturn in the home market

Originally thought that during the National Day holiday, I was able to change the tired home market. Before the holiday, I encountered the release of the new property market. On September 30th, the three major cities of Beijing, Tianjin and Suzhou successively issued a new policy for the property market. The specific measure is that the first down payment ratio of Beijing is not less than 35%. Tianjin will implement differentiated credit for regionalized purchases in October, and Suzhou will further strengthen the products. Housing price regulation. During the long holiday, the market reaction was not as expected. Some insiders believe that the reason is that consumers have become commonplace in the home market, and they are not necessarily used to buy on holidays.

At the same time, unfavorable news about the home market has also emerged. First, many provinces and municipalities have released a number of batches of results related to children's furniture and adult furniture. The results show that some products still have excessive formaldehyde emission, and the second is home. There has been a phenomenon of cross-selling in the market. The behavior of the goods has affected the normal operation of the home market. Recently, many brands have publicly criticized the behavior of the goods.

"Double differentiation" in the home market

For manufacturers, do not want dealers to dump goods or goods, one is to disrupt their marketing system, the second is to lower the price of the brand and the price of subsequent products, so it will vigorously suppress the string of goods. "There has not yet reached this critical point." Industry insiders said that the end of the year is the traditional peak season of the home market, many families will change homes and decorate the house before the Spring Festival, and home dealers can still spend some time, "but the Spring Festival to '51 'Before the day will be even harder.'

In fact, since the end of last year, the home market has been facing a more serious situation. Some home buyers in Guangdong told reporters that many of their peers are on the verge of “collapse,” and some have already “closed”. This situation is even more serious this year, according to industry sources: "The company has closed down."

Large-scale home furnishing companies in the first half of the year

If you look at the data alone, the large-scale home industry has achieved brilliant results in the first half of the year. In the first half of 2016, the accumulated main business income of enterprises above designated size in the household industry was 380.327 billion yuan, an increase of 8.70% year-on-year. The total accumulated profit was 23.066 billion yuan, a year-on-year increase of 15.06%, and the cumulative output was 3,873,202, an increase of 3.87%. However, the cumulative export volume was 24.749 billion US dollars, down 10.73% year-on-year. SMEs face greater difficulties.

Mr. Fan, who has been in business for many years, told reporters that differentiation is the biggest feature of the home market: “A differentiation is that the traditional home market has completely shrunk, the overall custom home market continues to develop, and the second shrinkage is the custom home market has begun to differentiate. Large enterprises continue to grow, and SMEs are gradually being marginalized or even eliminated. According to his observation, the overall home market is down 20% to 30% compared with previous years. In the past, the customized home market could increase by 30%~50%, but the average growth rate this year is slightly Above 10%, the best companies are only about 20%.

Quality small home business will be acquired

In Mr. Fan's view, giant monopoly is the inevitable result of economic development, and the home industry must follow this law. For SMEs, if they are strong, they may be acquired by large companies. If they have no development potential, they will eventually be eliminated by the market.

“So for some companies, now is a good opportunity for integration and acquisition.” Mr. Fan told reporters that he is also actively pursuing acquisitions of upstream companies to integrate the industrial chain. “When the market is not mature, enterprises can seize the market to “build internal strength” and improve their quality. Only after the market adjustment is completed can they deal with a more orderly and more promising market.” Mr. Fan summarized this.

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