The terminal market is sluggish, home sales, rent increases, industry reshuffle
After years of development in Nanjing building materials market, the number of stores has been blowout. Nowadays, there are more than 20 large and small building materials market in Nanjing.
For the current large-scale environment in Nanjing's terminal consumer market, many merchants have begun to withdraw, which has directly led to the increasingly difficult operation of the store. In addition, the increase in rent in the store has made the building materials market business even worse, and the biggest impact is the traditional lantern store.
In the second half of the year, the Nanjing building materials market will face the fate of shuffling, and Nanjing businesses need to be prepared to respond.
The number of stores is saturated
After years of development, Nanjing building materials market has reached 15 mainstream building materials market, such as: Jiangdongmen Jinsheng International Home, Jinling International Home, Red Star Macalline, Jinhai Market, Jinqiao Market, Runtai Market, Yinqiao Market, Bridge North Red Sun Home, Banqiao Red Sun Decoration City, Maiqiao Red Sun Home, Shilin Home Plaza, Wuzhou Decoration City, Jinbao Market, etc.
Among them, Jiangdongmen Jinsheng International Home, Jinling International Home, and Red Star Macalline are the highest-end building materials stores in Nanjing. Bridge North Red Sun Home, Banqiao Red Sun Decoration City, Maiqiao Red Sun Home are the largest lighting and building materials store in Nanjing. The average operating area of ​​lamps is between 20,000 and 30,000 square meters, and the average number of businesses is 80 to 120. The size of the home is around.
“The entry threshold of the lighting industry is low, the investment is not big, and the business risk is not high. Secondly, the lighting purchase channels are also convenient. Many merchants can directly ship from Changzhou, which is the main reason for the increasing number of lighting merchants in the Nanjing market.†Sun Shuqing, a lighting designer in Nanjing Jinqiao Market, told reporters that although many lighting businesses have closed down every year, in general, the number of lighting merchants is still increasing year by year.
Since the financial crisis in 2008, the domestic economy has been affected to some extent, especially in the real estate and building materials industries. Now the building materials market is not as good as one year in a year. The real estate market is still under the control of the state in the short term, and the demand for the lighting market is getting smaller and smaller. . The market space for lamps and lanterns is near saturation, and the situation of oversupply is very common.
Store operations are getting worse
According to the China Real Estate Research Center (CRRC), in 2010 and 2011, the volume of commercial housing in Nanjing was 43375 sets and 34,065 sets respectively. Compared with the volume in 2010, the volume decreased by 21.5%. Although the decline is very large, but the volume of such a large house, for the building materials market, the traffic should not be so bleak. "There are too many people in real estate speculation. Most people buy houses for investment purposes, causing most of the houses to be vacant and not being renovated. As a result, the passenger traffic in the building and building materials market is declining year by year." A local Nanjing dealer told reporters.
The reporter learned from the Nanjing Jinqiao market that this year's lighting market business is down more than 30% on average.
"We mainly do engineering and wholesale. In recent years, business has been difficult to do year after year. This year can be said to be the most difficult year for us to do business for more than 10 years. The market is chilling." Yin Meiyin, general manager of Meiya Lighting, who has been working in the market for many years, told reporters.
For most distributors of lamps and lanterns, this year's market has no optimistic expectations, and from July reporters visited Nanjing building materials market to understand that the withdrawal of merchants in the building materials market in the first half of this year is very common. The speed of shuffling of various building materials market in Nanjing is much faster than that of other building materials markets in the country.
Table 1: List of major lighting stores in Nanjing
Source: Gaogong LED Industry Research Institute (GLII)
It can be seen from the data in Table 1 that Nanjing Red Sun Home has expanded its market in Nanjing by virtue of the strength of the store, favorable rent, rich market operation experience and high-quality store supporting facilities, etc. A total of nearly 90 households of lamps and lanterns were recruited in 3 branches, with a total operating area of ​​35,000 square meters.
The operation of high-end stores such as Nanjing Jinling International Home and Jinsheng International Home Furnishing has been frustrated, the lighting business is unstable, and even the store will face the problem of re-inviting. Secondly, emerging markets such as Nanjing Xinheyuan have many reasons such as small market size, low rents and poor management, and the competition in these hypermarkets has caused nearly half of these new stores to leave. So far, the store is still empty. Follow-up investment has also become a problem.
The lighting business of Nanjing Jinsheng International Home Jiangdongmen Store told reporters: “The store is increasing rent every year, and people are moving away every year. At present, the store rent is nearly 220 yuan per square meter per month, like a 100 square meter storefront, one year rent. It is as high as 260,000 yuan. The high rent pressure is undoubtedly a huge burden for the business."
A businessman who has been in the market for many years told reporters: "Last year, our rent was about 200 yuan per square meter. In the case of a sluggish market, the store not only did not drop the rent, but in June this year, the rent rose to 220 yuan. Many businesses feel very helpless."
The above-mentioned merchants said that last year, there were about 90 lighting manufacturers in the lighting market where he was located, and there are still about 70 households left. In terms of the store, the vacant storefront was also converted into a business ceiling and other building materials. After the rent increase, the market has about 20 lighting businesses to go to Nanjing Banqiao Red Sun home rental store, and most of the merchants' leases expire in September, it is estimated that many businesses will move to the Red Sun home store.
According to the reporter's rough statistics, there are nearly 20 lighting stores in Nanjing, and there are nearly 800 lamps and lanterns merchants. There are so many lighting stores and merchants, which leads to the homogenization of products in the market and the homogenization of products, which will inevitably bring merchants The lighting industry has launched a fierce competition, and many businesses have been eliminated.
"At present, the price of lamps on the market is too chaotic, and the profits are getting thinner. Some merchants sell a lantern of 200 yuan and earn 10-20 yuan. Because there are many merchants, if you don't sell to consumers, then don't The business will also sell, this business is more and more difficult to do.†Nanjing Jinqiao Market Licai Lighting Sun Shuqing revealed to reporters that in the case of a depressed building materials market, in order to survive in the market, the pursuit of meager Profit. However, behind this meager profit, there are many businesses that are difficult to maintain rents, and eventually they can't hold on and are eliminated.
And some high-end building materials lighting stores are also experiencing the same dilemma.
Nanjing Jinsheng International Home Jiangdong Store, Jinling International Home, and Red Star Meikailong are the most high-end building materials lighting market in Nanjing. The store rent is also a relatively high sales market in Nanjing. The highest price is 220 yuan per square meter, among which there are some big businesses. The annual rent will be nearly 2 million yuan.
High-end stores are mainly based on large-scale lantern shops, and things are relatively expensive to sell. The reporter visited Nanjing Jinling International Home and learned that the market has moved three large-scale lanterns merchants this year, namely Changling Lighting, Chaoming Lighting and Donglai Red Lighting. These large merchants have an average store area of ​​800-1300 square meters. . "There are still two stores that are vacant there, and there are no businesses to enter." The person in charge of Nanjing Jinling International Home told reporters.
According to a merchant from Nanjing Jinsheng International Home Jiangdongmen Store, many large-scale lantern shops are currently in a state of loss, and the high rents make the operation of large-scale lantern shops difficult. For example, a store with a price of 1,000 square meters in Jinsheng has an annual rent of 1.5-2 million yuan. "When the retail business is bleak, the monthly revenue of the merchants is less than 100,000 yuan, and no one in this business can afford to lose."
Faced with the bleak situation of the terminal retail business in the entire lighting industry, it is a fatal blow for large-scale physical lantern stores. The reporter learned from a number of local powerful dealers that in the downturn of the whole industry, the Nanjing building materials market will inevitably lead to shuffling in the second half of the year, especially the traditional retail stores and small and medium-sized businesses are more vulnerable to shocks. Be prepared to deal with the cold snap of the market.
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