China's building materials industry forecast this year

In 2013, the overall market scale of China's building materials home industry reached 3,724.29 billion yuan and reached 4,097.9 billion yuan in 2014. According to the “China Building Materials Home Industry Development Report”, the major areas that make up the building materials home industry contribute to this industry. Of the 37,229.29 billion yuan in output value in 2013, the number of building decoration products and materials was 2503.897 billion yuan, and furniture, wood-based panels, substrates, accessories and smart homes were 680 billion yuan, 495.32 billion yuan and 10 billion yuan respectively. Regardless of the scale, influence, or brand tension, the gap in the branding of the building materials home industry is increasing. The integration of new channels brings more vitality and more individualized demands.

Trend I. Excessive capacity in home building materials companies, weak market, intensified supply and demand conflicts

With China's housing market downturn, the sales performance of the home building materials industry is not optimistic. The current situation facing the building materials home industry is rather grim. First of all, the continuous deepening and strengthening of the national real estate control policy has made potential families of “rigid demand” for real estate waiting and watching. The actual purchasing power of building materials homes is relatively declining, and demand cannot maintain sales growth. Home building materials companies face the trend of excess capacity, inventory, and weak markets.

In the first half of the year, cumulative sales of domestic building materials stores above designated size increased slightly, but the overall trend of BHI slowed compared with the same period of last year. In the BHI sub-index, except for the purchasing power index and the occupancy rate index which increased by 0.42 points and 0.16 points respectively from the previous month, the popularity index, manager confidence index, sales ability index, and employment rate index decreased. According to the analysis, its sub-index “purchasing power index” was in negative growth from January to June, and the “Managers’ Confidence Index” remained low in June. The market’s future expectations are still not good.

As of the end of June, the inventory of major cities in the country continued to rise, and the stocks in many places were close to the highest level since 2010. Therefore, the situation of oversupply will cause “de-stocking” to remain the main tone of the market in the second half of the year. Therefore, the real estate market's just-needed trading volume will always exist, and the transformation needs of the existing housing stocks are slowly being released. The building materials home industry will not collapse, but the entire industry is under heavy financial pressure in the second half of the year and the market is in a weak state.

Trend II: Channels in the home improvement building materials industry face new breakthroughs and new transformations

After 30 years of development, the Chinese traditional furniture industry has made some progress. In recent years, with the global economic downturn, the traditional furniture industry is facing a situation of shrinking market and rising costs. In addition, traditional furniture is a labor-intensive industry, and the entry threshold is low. The expansion in previous years has led to excess capacity. The deep-seated contradictions and problems in the industry that have been temporarily covered by the traditional furniture industry during the period of rapid growth began to be exposed. Home improvement building materials industry channel channel is facing new breakthroughs and new transformation.

“In the long run, the urbanization process, the promotion and application of green building materials, and the advent of secondary renovations are all positive for the prospects of the building materials industry.” Some experts analyzed, "But as far as the current situation is concerned, the building materials home industry wants to restore its prosperity. It cannot rely on the adjustment of the property market. The adjustment of the property market will be a cycle. While the building materials industry is cooling down, the industry itself should act first. It is a critical period for transformation and upgrading." How to seize this critical period is crucial.

For example, with the "big home", "home customization" become the current trend of the wardrobe and other home industries, companies from a single brand to integrated home development has become a new trend in the development of the industry, some custom home companies started to enter the relevant product areas to enter. For example, the wardrobe industry of Europa Home Group, the wooden door products of WorldFriends Floor, the appearance of Kohler's cabinets, and the products of Filinger's wading cabinets. Under the fast-growing market environment with customized product demands, the multi-party layout of companies in order to gain market share, brand value and management system have become the key factors for success.

Trend III. The frequency of new O2O models is now becoming more rational and mature.

The O2O model of line inspection, delivery and online transactions is the most promising home building materials industry operating model. The O2O model is based on the online transaction, offline logistics services, experience, delivery, and then return to online reviews, sharing to achieve closed-loop, this model has been empirically verified, with great potential. Jingdong, Suning, Gome's various O2O business models are frequent, and the O2O model of the building materials industry will become more mature in the future.

For home building materials companies, physical stores are a threshold for them to do e-commerce. Consumers need to establish brand awareness and brand trust, complete product experience, and product services through physical stores. The O2O model is currently the only optional e-commerce model for the home building materials industry. Many home building materials companies are exploring O2O models that are suitable for themselves. They have built an O2O platform for professional homes such as Home Furnishings, Red Star Meikailong, and e-commerce platforms such as Tmall and JD.com.

Trend 4, the speed of expansion of home building materials dealers' store expansion from slow to shrink

In the face of the depressing property index, the building materials circulation index showed a trend of downturn. The consumption data in the first half of 2014 can be called mixed. In the context of “weakness”, the industry presents different characteristics, and consumer trends are always changing. In this context, home building materials distributors have also slowed the pace of expansion and reduced the number of stores.

Shen Yaojun, vice president of Jimei Home, said: “From the perspective of the first half of the year, Jimei’s growth was relatively fast, but we learned that some businesses have not grown very well. In the current market environment, shopping malls are competing for marketing and services. Than the brand building, each mall will be based on their own business conditions to develop marketing rhythm. From the overall point of view, the home market can not lack of marketing strategies, the good days of natural growth has passed." From the first half of 2014, The feeling of many brand manufacturers is that “sales growth is slow,” and the pace of dealer expansion has slowed down, and it will further shrink in 2015.

Trend 5: The capital chain breaks, and the pressure of repatriation is high. Companies face the risk of shutting down and failing

In 2014, more than a dozen household companies flocked to IPO gates, showing a strong desire for funds, and the collapse of the capital chain is causing some companies to fall into the edge of losses or even closure. The capital is a double-edged sword that hangs over the head of the enterprise. How to skillfully use it to make it stable and development is worthy of consideration by the home industry. Blind expansion, failure to work properly, and desperation are all possible. For enterprises, once the capital chain breaks down, there may be a huge crisis. In 2014, China's home furnishing industry experienced an incident involving bankruptcy of the capital chain that led to the bankruptcy of the company. Among them, there were many well-known companies such as ultra-comfortable, led show home, and Wenhua Shen.

On the evening of December 12, 2014, the ultra-comfortable international home flagship store in the northeastern corner of Beijing's "Bird's Nest" was looted. The entire five-storey furniture showroom with an area of ​​9,000 square meters was ransacked. This ultra-comfortable hotel created 12 years of imports. The furniture sales platform is therefore facing closure. Sadly, it is not people's thief who robbed the goods, but the creditor who holds the contract, who is too comfortable and unable to repay the huge sum of money, and is credited by the creditor with the goods.

The home industry has already been in a state of shortage of funds. Some well-known companies have been unable to sustain their funds because they have either closed their factories or turned their channels back against the water.

Trend 6, home building materials distributors from the boycott to adapt to adapt to the development trend of e-commerce

In 2014, the Double Eleven Revelry was also a carnival for home building material traders. According to statistics, the total sales of the top 10 ceramic tiles were 0.16 billion, and the total sales of the top 10 floors were 113 million. The top 10 wallpapers had a total sales volume of 0.44 billion. The total sales of the top 10 wooden doors were 076 million. These data indicate that home building material manufacturers are already adapting to the e-commerce sales model and actively developing e-commerce business.

For building materials dealers, to keep up with the pace of e-commerce, and boldly welcome the o2o era, building materials and ordinary consumer goods are not the same, you need offline services. For example, cabinets, this time, the best seller of the Double Eleven is Shibang Cabinet, with a sales volume of RMB 12 million. The sales volume of more than 10 million yuan seems to be very small. The cupboards need complex offline service processes, measurement, and design. Installation, after sales, etc.

Trend 7, the traditional format of home stores is facing a transformation, the integration of traditional and e-commerce increasingly integrated

Home building hypermarkets have once provided a huge stage for the majority of home building materials manufacturers in China, and have played an important role in the rise of many excellent brands of home building materials. In today's weak market, diversified channels, dismal market sentiment, and unsatisfactory market environment, the pressure from sales channels on home furnishings companies has increased, resulting in excess market channels and lower profits. Even if it is a well-known brand, if you stop the large-scale customer interception and promotion outside the store, the sales and profit of the store will also face tremendous pressure.

For home stores, its pressure is even greater. In the sales channel, the rise of e-commerce has become overwhelming. With the continuous upgrading of electronic network technology and the continuous improvement of modern logistics distribution, it will cause greater impact on existing building materials home stores. In addition, various "group purchase" models and over-the-counter transactions that are refurbished have put pressure on this type of rental stores.

According to industry experts, home stores will continue to be strong and strong, and the weak will be in a weaker state. It will no longer be a good situation. The transformation and upgrading of enterprises is imperative. In particular, new stores have started to use modern electronic business platforms. Transformation and upgrading, integration of traditional storefront experiences, services and modern e-commerce platforms have become a trend. Actually at home, while consolidating the brand advantage of the store and enhancing the design concept, it has also made every effort to build China's largest online and offline integrated 020 home service platform. This platform mainly includes two parts. The first is a design service platform, which makes the design simple and transparent. Standardization of construction and construction; the second is an online sales platform that provides dealers and brand companies with integrated online and offline integration services such as promotion, sales, transaction payment, and settlement.

Trend VIII, Gold ** advances to speed up corporate restructuring equity incentives for major companies

In the first half of 2014, the collective IPO of home companies attracted much attention. On February 19, 2014, Dongyi Risheng Home Decoration Group Co., Ltd. was listed on the Shenzhen SME Board and issued 3,121,100 shares at a price of 21.00 per share. A total of 655 million yuan was raised; April 18 to 22 The China Securities Regulatory Commission issued a number of prospectuses for IPO companies, including household appliances such as Sichuan Imperial Sanitary Ware, Jiangsu Yazhen Furniture, Qumei Furniture, etc., and a group of leading enterprises to cultivate core competitiveness. The core team began to implement equity incentives with management, core technology, and key personnel, which is a big step toward the modernization of management and operation of the company. After this, in the IPO company's prospectus issued by the Securities Regulatory Commission on many occasions, many household companies faced them. Including manufacturing and manufacturing enterprises, such as Gujia Household, Haolaike Home, followed by the wholesale and retail giants in the home industry, such as Red Star Macalline and Chengdu Fusenmei Home Furnishing; in addition, electrical appliances manufacturing companies related to the home industry, such as Op Lighting and many favorite home textiles are also among them.

Judging from the published IPO prospectus for companies, regardless of the production companies or home stores, the "expansion project", "construction marketing network" and "upgrading production capacity" have become the common direction in the use of capital. Such recruitment instructions seem to have responded to the question of “marketing for money transfer” in the market, and also let the industry see that in the home industry, even if it is a listed company, the total share occupied by the industry is very small, and the company that can occupy 1% is very Less, after raising funds to expand market share, is the purpose of listing home companies, but also the direction of the development of the industry.

Corresponding to the collective IPO is the surging of capital in the industry. Looking at the layout of the home industry in the first half of the year, the operation of capital has become a big layout in the middle of the company, and will also become the focus of the future industry layout, and more and more professional managers have begun to share the dividends brought by the capital market. Most people in the industry believe that building materials companies need to expand their channels and introduce gold funds to enable them to accelerate their transformation and upgrades. The growth rate of the two major industries of building materials emerging industries and energy-saving and emission reduction will also increase.

Trend IX: Trade Protection Resurrects the Occupied Building Materials Industry

Since the financial crisis swept across the world, trade protection incidents against China’s foreign trade have not stopped, and with the second round of the financial crisis in the European market, trade protection in the foreign trade market has risen again. This time, the home improvement building materials industry has become the protagonist. First of all, one hundred building materials companies in China were charged with astronomical compensation by the US lawsuit, followed by Foshan Ceramics or the EU's largest anti-dumping investigation. Trade protection has once again regained momentum.

Under the financial crisis, global trade protectionism has risen and China has taken the brunt. The report of the “Temporary Trade Barrier Database” monitoring the global trade protection measures issued by the World Bank on May 26 shows that in the first quarter of 2010, the world’s newly launched temporary import restrictions including anti-dumping, countervailing and corruption cases, etc. Relief cases fell by 20% year-on-year, but Chinese exporters continued to be the number one target of trade relief investigations. In the first quarter, 47% of newly initiated trade surveys and 82% of completed trade surveys targeted or involved China.

As an important part of China’s foreign trade exports, the building materials industry has not been spared in China’s protection of trade protection in the foreign trade market. With the increase in the scale of exports, the number of trade investigations has also been increasing. Whether it is the recent European Union’s implementation of the largest anti-dumping measures against China's Foshan Ceramics or the increasingly fierce lawsuits filed by the United States on the export of US gypsum board, the road to export of building materials products has become increasingly difficult, and with the European and American regions. At the bottom of the financial crisis, the road to foreign trade of building materials in China will also be doomed to turmoil.

Ten Trends, Personalized Home Furnishings, Whole House Custom Home Furnishings, and Sales Modes Changed from Ordering to Ordering, and the Home Industry's Intelligentization and Network Integration Formed a Trend

At present, the popularity of most furniture design styles is very different from that of the owner's home in the store's showroom. There are often problems such as the mismatch between furniture size and house space, and mismatch between furniture style and decoration style. Coupled with the current consumer demand for space, color matching, and individual style of furniture, high-end custom furniture has begun to attract more and more people. Personalized and customized furniture can meet the needs of the owners “one to one”. At the same time, customized furniture makes each person’s home “unique”, and uniqueness and originality are important factors to promote personalized customized furniture to the door of “high-end” products. .

From 2013, Xiyingmen attracts high-end brands, pleasant floors, and high-end customized services such as the Yulin Woodworking Workshop, and actually House plans to build high-end positioning stores. The home building materials industry has begun to spur high-end, custom-made winds. For consumers, the whole house customization and overall home improvement can not only achieve one-stop shopping, but also can solve the problem of overall space utilization and stylish appearance. It can also consider integrating smart homes to meet the individual needs of consumers. , And save time and convenience, the most critical is that there is protection after the sale.

The mode of stocktaking by traditional enterprise press dealers and distributors is no longer returned. Instead, consumers place orders according to their needs, and through rapid response through modern technology and e-commerce transaction models, enterprises can produce according to their needs. Fast shipments, "the production of sales" became the mainstream, and the ordering system began to become popular.

Since Google acquired Nest in January 2014, the market for smart homes has been activated, and international giants have begun to work on their layouts, including Intel, Apple, Google Nest, and Qualcomm. Domestic enterprises, such as Alibaba, Baidu Inside, Jingdong Smart Cloud, China Telecom Yueme, Haier U+, Suning private home, Xiaomi Wi-Fi module, and QQ IoT intelligent hardware open platform.

Market research firm Golder Consulting estimates that by 2020, there will be more than 26 billion objects worldwide connected through the Internet, which does not include personal computers, smart phones and tablet computers connected to the Internet.

Smart homes will take on more tasks in people's daily lives. They will collect as much information about users as possible to accurately understand our life needs. The international giants will also use these large sales channels to bring these smart homes to life. Products are brought to every corner of the world. These practices are expected to find new profit points for companies while maintaining the company's ability to innovate. We have reason to believe that the Smart Home industry will bring more surprises to the world in the future.