Under the pressure of real estate regulation and control, the home furnishing industry urgently needs transformation

On March 14, Wen Jiabao proposed to the Chinese and foreign reporters during the two sessions that the twelfth five-year plan will use three methods to control the rapid growth of housing prices. It can be seen that the real estate market will still be subject to strict policy control this year. As the downstream industry of real estate, the home furnishing industry has become a hot topic in the industry under the current circumstances, and how the regulation storm will affect the market trend.

Some people in the industry believe that the real estate regulation has hit the home industry hard. As an industry relying on the development of the real estate market, the sales volume of the commercial housing market is also facing a severe winter in the environment of rapid decline in transaction volume.

However, data from the National Bureau of Statistics show that in 2010, enterprises above the designated size in the furniture industry completed a total industrial output value of 448.765 billion yuan, an increase of 32.43% year-on-year. Statistics from the General Administration of Customs show that in 2010, the cumulative export of the furniture industry was US $ 33,732,755,000, a year-on-year increase of 29.95%. Facing the cold winter policy of the property market, the performance of the home furnishing industry was not as pessimistic as expected, but companies in the industry are still looking forward to 2011.

Real estate is not a good thing for home

"Now our passenger traffic has increased!" Li Jiacong, general manager of Shangpin's home delivery, said in an interview with reporters that this year's regulation of the property market is indeed stricter, but this is not a bad thing for the home furnishing industry. Judging from the regulation of the real estate market at the end of last year, the eight new country policies and the purchase tax that were introduced early this year, the targets of the crackdown are all investors and speculators in the real estate market. Li Jiacong believes that this will not have a great impact on the development of the home furnishing industry.

"Investors in the property market have little effect on our home furnishing industry." Li Jiacong said that for the home furnishing industry, it is not just the more people buying houses, the better, but the actual occupancy rate of the property market. In the past few years, the real estate market has developed very prosperously, but there have been more speculation and investors in the market. "Buying a house for these investors just waits for appreciation, and there is no need for living. The proportion of real decoration is very low, which is not a good thing for the home industry." Li Jiacong believes that for the home industry, not only depends on The number of transactions in the property market depends more on the quality of transactions. Too much investment demand will instead occupy market resources, which is not conducive to the development of the home furnishing industry.

This year, even in the 12th Five-Year Plan, the control policy for the property market will remain strict. In Li Jiacong's view, this will definitely help to suppress the excessively rapid increase in house prices, and will also cause real estate transactions to fall sharply in a short period of time. Li Jiacong disagrees that the regulation policy is not conducive to the home industry. He believes that for the industry, the property market regulation policy is good for the home in the short term, and more stable market in the medium and long term. "Under the control of policies, house prices will tend to stabilize. In a short period of time, it will promote the sales of home furnishing companies to improve performance. In the long run, a stable real estate market will also stabilize the home consumer market, but it will be more conducive to the industry. development of."

Catering to first-time home buyers is key

Contrary to investors, first-time home buyers are the largest customer group in the home furnishing industry. According to relevant statistics, first-time home buyers in the real estate market accounted for more than 80% of the total consumer group in the home industry. "This is our main customer base and a major pioneering point in the industry."

Since 2010, the regulation of the property market has been tightened, but whether it is the National Ten or the New National Eight, the first home buyers are the protection targets of the policy focus. This has led to a significant increase in the proportion of first-time home buyers in both the first-hand and second-hand real estate markets this year. For the home furnishing industry, first-time home buyers are not the same as investors. This group of home buyers has a strong rigid demand for self-occupation. They do not prefer to increase prices for their own purchases, but prefer to live. Therefore, the vacancy rate of the house after the purchase is very low. In addition, for the first-time home buyers, the furniture decoration of the house will be considered more, and the cost of buying the home is also greater.

According to Li Jiacong, under the current policy of property market regulation, speculative investment demand has been squeezed out of the residential market this year, and first-time home buyers with rigid housing demand will become the main force in buying homes with policy support. This year, a large number of first-time home buyers will buy a house, which is an opportunity for the home furnishing industry. "Policies have resulted in a large concentration of self-occupied customers. Unlike previous years, the concentration of self-occupied home buyers will greatly promote the consumption of the home decoration market."

For the first time, home buyers can boost home consumption, but they also put forward higher requirements for the development of home furnishing companies. Due to the high housing prices, the area of ​​houses purchased by first-time home buyers is generally small, and the home decoration of small-area houses has become the current mainstream consumer in the home furnishing industry. How to cater to this part of consumer demand has become a major problem for home furnishing companies. It is understood that the personalization requirements of individual consumers in the home market are generally high. "Unique taste design, product DIY combination is the product line that our home furnishing company should take now." Li Jiacong analysis said. In addition, he believes that the current market requires not only diversified product style routes, but also clear levels. Consumers can buy a relatively small amount of space. To meet consumers' needs for home improvement in a small space, they must rely on variable product designs. Li Jiacong revealed that mid- to high-end furniture decorations are the mainstream of the current market.

Environmental pressure Home industry transformation

Although the home furnishing industry remains optimistic about the property market's regulatory policies, changes in the general environment will inevitably affect the overall operation of the home furnishing industry. The overall pressure caused by the slump in the real estate market is still present, and rising raw materials and costs are also issues that the home furnishing industry must face in the new year.

It is understood that in the home furnishing industry, companies that rely on large real estate development projects are not a minority in the market. In the past few years, the boom in real estate has driven a large number of home furnishing companies. They mainly provide large-scale home furnishing for high-end residential projects. However, at present, investment demand is suppressed, and high-end residential projects are facing severe regulatory pressure. This part of the home furnishing companies relying on this will inevitably be affected by policies. In addition, when the first home buyers in the market become the main buyers of homes, these home furnishing companies that used to aim at the group will inevitably face the requirements of a market transition towards personal consumption. At the same time, rising labor costs and rising raw material prices faced by the home furnishing industry have become problems that many companies cannot avoid at present. Some experts in the industry said that the current scale of the domestic home furnishing industry is still small, and changes in the environment are conducive to the transformation of the industry. This is both a challenge and an opportunity. In this process, many weak and slow-developing enterprises will be eliminated, and many enterprises will become bigger and stronger at the right time. "This is a process of scouring the sand. After fierce competition, it will be conducive to the re-integration of the resources of brand enterprises and enlarge the industry."


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