In the downturn, Tao Guang keeps a gloomy home improvement company in Shanghai

Affected by the downturn in the property market, orders from home improvement companies collectively declined

The impact of the new housing policy on the property market was immediate. According to the latest research data of China Real Estate Information Group Kerui on July 20, the average daily transaction price of commercial housing in the city fell significantly, with a decrease of 14.1% month-on-month. Shanghai's residential transaction volume continued to decline, compared with the previous cycle's transaction situation, the inner and central chains experienced the largest decline, a decrease of 72.9%. Although the price of the residential market in Shanghai has dropped, consumers are not buying it. They continue to wait and see, and the residential transaction volume continues to be sluggish.

The new property market policy reduced the residential transaction volume in Shanghai throughout the first half of the year to a freezing point, and also shook home improvement companies. The decline in the volume of commercial housing caused a series of serial reactions in the downstream home improvement companies. According to relevant media reports, the leading company in Shanghai's home improvement industry, Jutong Decoration, said that there was a drop of more than 10%, while Commander Decoration said that the most obvious decline in orders this year was that the turnover during the Dragon Boat Festival fell by about 40% year-on-year. Even many small and medium-sized home improvement companies are on the verge of exiting the market.

The changes in the residential market will have a certain lag in the impact on the home improvement industry. During the interview, the reporter found that there are also individual companies that have done enough pre-preparation work. The business volume in the first half of the year did not decline much. The relevant person in charge of Aubon Design told reporters that the business volume in the first half of this year was better than the same period last year. Matsushita said that the performance of the first half of the year was basically the same as last year.

Looking for business opportunities in adversity to seize the renovation market and compete for renovation projects

During the interview, the reporter found that due to changes in the distribution of residential areas, new real estate continues to be marginalized in the city, and more and more consumers will choose second-hand houses in the urban area with complete supporting facilities. Project is doing. Taking advantage of the opportunity of the Shanghai Top 30 Home Furnishing Industry Fair, the Home Decoration Professional Committee of the Shanghai Home Decoration Industry Association officially launched its renovation and decoration branch on the same day. It fully shows that the renovation of old houses has become a growing point of concern for the home improvement industry.

Strengthen the high-end service and divide the villa decoration cake

The scarcity of villas brings value-preserving and value-added functions to villas, and the buyers of general villas have the ability to pay in full, which is not greatly affected by the policy, so that the transaction volume of villas has always been unique in the downturn of the residential market. The latest data shows that from February to May 2010, Shanghai villa transaction volume rose 37.78% month-on-month. In response to this market change, many large home improvement companies in Shanghai have launched high-end design companies aimed at villa decoration needs to seize the villa decoration market.

The market is cold and cruel, the industry structure will not change much in the short term

Everyone knows that the home improvement industry in Shanghai is not as highly integrated as that in Beijing. During the reporter's interview, many home improvement companies said that although the current home improvement market has also experienced a certain degree of volatility, it is unlikely that there will be a substantial integration in the Shanghai home improvement industry. Many home improvement companies say that to cope with market fluctuations, it is not enough to rely only on industry integration. In the case of a certain market share, even if the industry is clustered, uncompetitive companies still cannot cope. What enterprises really need to do is to enhance their competitiveness and service quality. According to the current situation, the large-scale integration of the Shanghai home improvement industry should not occur.

During the interview, the reporter found that many home improvement companies in Shanghai still hope that the industry association can increase its role and raise the industry threshold, thereby enhancing the standardization and competitiveness of the entire industry and raising the standard of the entire home improvement industry. After all, in a situation where the market is becoming more regulated and consumers are increasingly demanding service quality, the home furnishing industry can't cope with market demands or adapt to market quality requirements.

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