The home market has been withdrawn from the tide, and the shuffling has quietly begun.
Affected by real estate regulation and control, the domestic property market continued to slump and the rents were too high and continued to rise. Many dealers were operating bleak. In recent years, rumors of dealers’ withdrawals and bankruptcies have been continually exploded. Although the reason for closing the store cannot be attributed only to these points, it cannot be said that for most home stores, in this case, the current situation of the enterprise is difficult.
In the cold market environment, the home building materials industry is facing a crisis and a huge test. Under the saturated and fierce market competition in the first-tier cities, the home market in the besieged city is in urgent need of transformation.
Cabinet home store is busy
On September 13, 2012, Home Depot, the second largest building materials retailer in the United States, announced the closure of all seven large-scale home building retail stores in China. The company's business focus will shift to professional retail stores and online sales.
When the news came out, the industry was in turmoil. Liu Chen, secretary-general of the Beijing Branch of the Beijing Market Association, said in an interview with the media that “the main reason for the Jiadebao store is that the model of furniture and building materials supermarkets is not suitable for the Chinese market. In terms of attributes, the supermarket format is more suitable for high standardization and lower prices. Commodities, high-end big brands are difficult to enter the supermarket format. In addition, another industry giant, British B&Q, has experienced a decline in performance in China in recent years, reducing the number of stores in China from 60 peaks to 40 peaks. From August 2007 to the beginning of 2012, the area of ​​stores in China decreased by 43%.
According to the parent company's Cuifeng Group's 2012 first-quarter results report, B&Q's sales in China fell 6.8% year-on-year, with a loss of 5 million pounds. Relevant statistics, this is the sixth consecutive year of losses in B&Q China. The latest news is that B&Q Wuhan Hankou will be closed on February 9, 2013.
At the same time, the performance of "foreign giants" in the Chinese market was frequently affected by Waterloo. Local companies such as Red Star Macalline and Real Home were not spared the crisis. In August 2012, Red Star Macalline official website confirmed that it will close the Red Star Macalline Guangzhou's largest flagship store, Pazhou Store, which opened in July 2010. At the end of August 2012, Nanjing Olympic Sports Red Star Store also officially withdrew. In Changzhou, the home base of Red Star Macalline’s “homeâ€, large-scale merchants have left and the vacancy rate of shopping malls has become high.
In July 2011, only eight months after the opening of Hangzhou, the “home of the house†closed its doors. On December 18 of the same year, the actual home Dadong store closed after only two years of opening.
The Oriental Homeland (Community Network Forum) building materials supermarket, which was once the largest domestic chain building supermarket, was hit by the store in 2013. It is reported that the five branches of the Oriental Home Building Materials Supermarket in Beijing, Xisanqi, Laiguangying, Lize, Yuquanying and Lvying are all closed. The latest news shows that the Oriental Home Building Materials Supermarket Headquarters is applying for bankruptcy.
Home industry faces shuffling
Some insiders said that the sluggish operation of building materials and home stores has a certain relationship with the regulation of China's property market, but the blind expansion of enterprises and the diversion of e-commerce are important drivers for the industry.
It is understood that China's home building materials industry has been booming for nearly a decade, and the growth rate has exceeded 30%. Among the well-known companies, Red Star Macalline has the fastest expansion. According to statistics, the number of its stores has grown at an average rate of about 10 per year in the past six years. Currently, there are more than 100 stores in the country. Che Jianxin, chairman of Red Star Macalline, also said that “to achieve 2020, the number of stores nationwide will reach 200, accelerate the group's listing plan, and achieve the goal of being among the top 500 companies in the world.â€
However, the fact is that its aggressive expansion model has put tremendous pressure on its capital chain. According to the report of the China Business Daily, in 2012, the traffic volume and sales of the Red Star Macalline home stores have dropped significantly, and the vacant area of ​​some shopping malls has expanded. According to relevant statistics, in the first three quarters of 2012, Red Star Macalline achieved a net profit of 988 million yuan, a decrease of 9.85% compared with the same period of 2011. Its high growth trend has come to an abrupt end.

Actually, the home has also had a strong offensive in recent years. In 2011, Wang Linpeng, the president of the family, once threw out a “hundred store chain strategyâ€: “In the next 3-5 years, the home of the family plans to open 10-15 chain stores every year. In 2012, the company completed the layout of all provincial capitals, with more than 60 chain stores and annual sales of more than 30 billion yuan. In 2015, it completed the layout of major prefecture-level cities, with more than 100 chain stores and annual sales exceeding 50 billion yuan." In less than two years, at the New Year reception on January 20th, Wang Linpeng announced that he would strive to achieve the 100-store strategic goal ahead of the year, with sales exceeding 50 billion yuan.
According to the Beijing Youth Daily, a furniture manufacturer who has been in business for many years said that “the profit margin of the furniture and building materials market from 2006 to 2008 is very large, and there are many follow-up investors, but the current real estate control policy has affected the downstream of real estate. In the building materials market, while consumers reduce the demand for furniture decoration, the supply side has gone too fast because of market inertia. At present, the market is in the stage of the reinstatement of the survival of the fittest.†According to industry insiders, the expansion in the past few years has been fierce. There are more and more problems exposed in the course of business operations. Many similar enterprises have begun to face dilemmas, and an industry reshuffle has quietly begun.
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