Regulations affect downstream depression in home stores

"700 or not, this is the price after playing 20% ​​off." Looking at the pedestrian passage in the hot sun, at a home store in Beijing's South Fourth Ring, the company resigned to a dressing table to reporters to solicit business. "I wouldn't do this after dumping the goods. I can't do business this year. I can't afford to rent my shop."

Since February 16, 2011, the "Beijing 15" and other restrictions on purchase policies have been introduced in the first round, and Beijing's property market prices have fallen. According to the statistics of Yahao Group, in the half-year period as of August 16th, 29809 sets of commercial houses were sold in Beijing, a decrease of 13567 sets compared with the same period of last year, a decrease of about 1/3. Affected by the rapid decline of the real estate sector, Beijing's major home stores have already felt to varying degrees the chill that real estate regulation has brought to the downstream industries.

In many home building materials stores in Beijing, the withdrawal of store tides has begun to appear. Qin Zhanxue, vice president of the China Building Materials Distribution Association, told China Business News: “In July and August, it entered the summer off-season of the home building materials market, and the popularity index, sales ability index, purchasing power index, and employment rate declined.”

Home shop "pain"

Located in the Xiaohongmen area of ​​Beijing, Chengwai Cheng Home Plaza has always been one of the largest home plazas in Beijing. Its official website shows that Chengcheng has an area of ​​200,000 square meters, covering 50,000 kinds of household products such as furniture, building materials, decoration, decoration, lighting, and cloth furnishings.

In 2010, affected by the rising housing prices, Beijing’s major home plazas have rushed around, and outside the city is naturally not far behind. According to the layout of Liu Chenghe, Chairman of Cheng Cheng Cheng, only last year, Cheng Cheng’s business area was An increase of 67,000 square meters was equivalent to recreating a Chengcheng Cheng.

However, at the beginning of 2011, the regulatory policies made these home plazas that judged the “good” property market fall out of sight.

"The sales situation is indeed very poor. I think there is a direct relationship with the regulation of real estate, such as the purchase restriction policy. Nobody buys a house and naturally no one wants to buy furniture." A person close to Chengcheng revealed to this reporter. In the Chengcheng home building materials city outside the city, the reporter browsed in a circle. Perhaps not because of the weekend, hundreds of thousands of square meters of sales hall, only a handful of consumers come to shop. The sales staff in the furniture and building materials exhibition hall is large in number, and most of the sales staff seem to have nothing to do. “The phenomenon of large-scale withdrawal of rent has not yet appeared in the shops. Because the business of other home building materials cities is even worse, many merchants are now feeling very upset and do not know what to do.” The above sources said.

It is reported that in order to attract consumers to come to shop, Cheng Wai has been making every effort to promote various promotional activities in the past six months. In the eye-catching position near the desk of the Furniture Hall, the “Detailed Rules for the promotion of sofas, beds, fabrics and children's furniture outside the city” can be seen everywhere. In addition to the 3 fold discount, the merchant also played double points, signing gifts, cash draws and other promotions. Outside the city Cheng Cheng is a newly opened part of 2010. In front of the entrance hall of the home improvement and building materials trading center, giant banner banners snapped up on Saturday afternoon were hung out. Many merchants also used words such as “fights” and “5.2% off the audience” in front of their own showrooms.

However, these do not seem to gather more popularity outside the city. “In previous years, these promotions were very effective, but this year it seems that none of the activities are effective.” The above-mentioned respondents revealed to reporters that although the business area has doubled, according to internal estimates, Chengcheng Cheng’s sales this year are comparable to last year. At least 150 to 200 million down.

It is difficult to hide the recession scene In addition to the outside of Chengcheng Plaza, Beijing’s Shilihe Home Furnishing Plaza, the House of Actress, the Red Star Macalline, and the Mingguang Plaza have also seen depression in varying degrees.

In 2010, due to the boom in the real estate market, Red Star Macalline, Home Furnishings, Jimei, Eurasia and other big-name home stores have all accelerated at the same time. Taking Beijing as the center, it spreads to the surrounding areas like sparks. Xianghe, Tianjin, Jinan and other places have all been enshrined in these home circulation giants. In 2011, due to the impact of real estate regulation, the home market began to decline.

An industry insider who has done high-end home furnishing revealed that the situation this year has been very bad. Many of Beijing’s home plazas have been withdrawn from the market and withdrawn from the market. In addition to policy controls that have reduced the source of tourists caused by the downturn in the real estate market, rising raw materials as well as manpower and transportation costs, including rental costs, have caused distributors to suffer. These also directly led to the dealers or SMEs can not keep up with liquidity, the phenomenon of a broken file.

In mid-June, Auman Flooring General Manager Lu Bo sighed on Sohu Weibo: “The sales situation in the Beijing market has obviously weakened. We received a phone call from the Mingguang Marketing Department and said that the market had empty booths and asked Auman. If you don't enter, the Shilihe floor home also has booths, and Lize has also left an empty booth. I don’t know which other markets will be in the stalls. However, the market rent is still rising. All the merchants are complaining, the business is light and the costs are still low. When it goes up, the price goes up again.”

Jiang Peng, who has been engaged in the building materials industry for many years, told reporters that from the perspective of the entire industry, the construction materials of middle and low grades have been hit hardest. Because of the reduction of customers, enterprises that take scale efficiency are hard to sustain. The high-end products are relatively less impacted due to individualized demands.

According to data released by the National Bureau of Statistics, the six major indicators of development investment, new start-up area, completed area, sales area, sales, and development companies’ funding sources all decreased year-on-year, and finally brought the national real estate development prosperity index to July 2010. Since the bottom, it is 101.5. The National Building Materials Index (BHI) released by the China Building Materials Distribution Association on August 11 showed that the BHI in July was 109.00, a decrease of 5.69% from the previous period and a decrease of 6.25% from the same period last year. This is in addition to the slight rebound in April this year, the BHI index continued to decline for six months.

Qin Zhanxue believed that: “BHI and the national real estate climate index both fell again and again, indicating that under tight real estate control policies, the expected decline in house prices will increase, and the rigid demand for real estate will also decline, only if there is a large decline in housing prices into the flat period. At this time, the rigid demand for real estate can be effectively released, and it will take time for the building materials home market to pick up."