Three major questions to test whether the e-commerce in the home market can take the lead?

The weather in Beijing is starting to pick up, but the home market is still deserted, but this has long been expected by the heads of various home furnishing companies. Affected by the upstream real estate market, the development prospects of home furnishing companies in 2012 are not optimistic. From the current point of view, there are three major questions that are testing the home market.

Question 1 store, open or closed?

After the Lantern Festival, the Beijing home store will gradually resume its vitality and prepare for the renovation season. Recently, however, a news item about the “East of the Oriental Home Furnishing Plaza Lishuiqiao Store Merchants” has drawn attention in the industry. The reporter visited the Oriental Home Furnishing Plaza in Lishuiqiao South and found that the merchants on the third floor of the store had all been evacuated. Is the store re-planning or the merchants have no choice but to evacuate? The reporter tried to contact Yin Yuxin, deputy general manager of Oriental Home Garden Plaza, but the other party’s phone was never answered. As of now, the Oriental Home Furnishing Plaza has not yet responded to this. The current situation of the store is inevitably reminiscent of the scenes of Home Depot, Leroy Merlin and the Ring of the Rings in 2011.

Three major questions test the home market

In stark contrast, another Oriental home, the Oriental Home Building Materials Supermarket, recently reported the news of the "airborne" CEO. It is reported that Liu Wei, former president of the world and vice president of Home Depot China, has joined Oriental Home and served as CEO. Song Xuedong, vice president of Oriental Homeland, also confirmed to the media that Oriental Group, Pacific Industry Fund and Longbai Hongyi Group have signed a strategic framework agreement, and Longbai Hongyi Group will invest in Oriental Home. Does the “big move” in the opening year of 2012 indicate that the Oriental Home Building Materials Supermarket should accelerate its development?

Two or three years ago, expansion was still the mainstream of home business development, but in 2011, affected by the economic situation and regulatory policies, many companies slowed down the pace of expansion. Wang Linpeng, the president of the Real Home, made it clear that the current opening of stores in Beijing and other first-tier cities will face huge investment pressure, but the real estate market in the second and third-tier cities is generally firm, and even the home market is better.

Is 2012 a low-key contraction or a high-profile expansion? This question tests the home store.

Question 2 Rent, drop or not?

There are fewer customers, the profits are thin, and we have to pay the rent. If we continue to do so, we have to withdraw. When the reporter visited the Lishuiqiao store in the Oriental Home Furnishings Plaza, a dealer complained helplessly.

At the end of 2011, the game between dealers and home stores about the field rent reached its climax, and the game continued into 2012. At a seminar held recently, store rents became the focus of discussion among home furnishing companies. Brand companies and dealers say that more than half of the sales are used to pay rent, the pressure is too great, it is inevitable to withdraw; the home store responds, good stores can integrate resources, promote corporate sales, a shop is hard to find.

For example, Liu Changhe, general manager of Chengwai Chengjia Plaza, and Yin Bo, general manager of Dajingsi Lanjinglijia, have publicly stated that they will reduce rents and ease the pressure on merchants. However, Zhao Jianguo, president of Jimei Home, disagreed. He said that the store rent is determined by the purchasing power and supply and demand relationship in the store. The rent is too high to be general. "A company that sells well will not complain about the high rent."

The rent drop in the home store in 2012 is still not falling, and it is still a question.

Question 3 E-commerce, vase or sword?

“E-commerce” was the favorite word of the home furnishing company in 2011. In 2011, a large number of home brands waded into e-commerce, lest they could not keep up with the times.

Qumei Furniture has made the online shopping mall its own brand features; although the Oriental Yiju.com, which is owned by Oriental Home Building Materials Supermarket, looks somewhat rudimentary and has limited products, it is still a useful supplement to the physical store.

When people in the industry are more and more optimistic about e-commerce, the Taobao home offline store loves the bee boom home experience museum but the news of poor business conditions, the price advantage is not obvious, the after-sales service is not as good as the traditional store and other issues are criticized by consumers. Quality, logistics and after-sales have always been a problem that restricts the development of e-commerce in the home furnishing industry. However, this does not seem to affect the expansion of the bee boom. It is reported that its new experience pavilion in the Chengjiao Plaza outside the city is about to open.

In 2012, e-commerce will become a vase that is not practical, and it is still a sword that helps companies to stand out. It still needs time to verify.

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