Affordable housing triggers a fierce battle in the furniture market for survival of the fittest
In 2011, a series of real estate market regulation policies significantly reduced the transaction volume of commercial housing and second-hand housing. As the furniture industry downstream of the industrial chain, it also suffered unprecedented impact. At the same time, the state invested 10 million units of affordable housing in 2011, accounting for about 60% of all housing. Even if it is calculated on the basis of 50 square meters per unit, it will generate 500 million square meters of decoration needs. Analysts have roughly estimated that the construction plan of 10 million units and 36 million affordable housing units during the 12th Five-Year Plan period will have a huge boost to the sales of cement, glass, ceramics, paint, flooring, hardware, furniture, lighting and other products. If the average consumption of home improvement and other aspects brought by each suite is 10,000 yuan, then it will drive the consumer market of about 360 billion yuan.
The housing market is huge
Analysts in the industry predict that the supply of affordable housing will be considerable in the future, and the construction of affordable housing completed each year will be comparable to the total transaction volume of first-hand and second-hand commercial housing. Real estate regulation has a negative impact on the downstream furniture industry, but the construction of affordable housing has brought a glimmer of light to the gradually shrinking furniture market. On May 1st, Premier Wen Jiabao of the State Council visited the workers at the affordable housing construction site in Beijing and said again that the central government's determination to maintain real estate prices basically stable and promote the healthy development of the real estate industry is unwavering. The central government's emphasis on the construction of affordable housing has undoubtedly further confirmed the huge market potential of affordable housing. Although the cake is large, how to divide it into one piece or a larger piece is a problem that every furniture company needs to think about.
Fit is the last word
Affordable housing is a rare feast for furniture companies. The consumer market of 360 billion yuan has stimulated furniture companies to enter the affordable housing market. Although the feast is delicious, it is suitable for all companies. The industry has different views. The Green Island furniture for the mainstream population, the existing three series of products are in line with the products of the affordable housing consumers, and the product line is being actively adjusted to meet the characteristics of the affordable housing to meet the new needs of the market. Green Island Furniture Marketing Director Wang Niandong believes, "It is the responsibility of every panel furniture company to research and guarantee the housing type and user needs, and develop products suitable for this group of people. It is also a development direction of panel furniture in the future."
Also holding the same view is Guo Lu, Assistant President of Koda Decoration, who believes that all brand decoration companies in Beijing are suitable to enter the affordable housing market. "Although the income of affordable housing users is lower than the average level, their needs remain unchanged, and they can save money on clothes to improve their living environment." Guo Xun admitted, "Enterprises should adapt to the market if they want to develop rapidly. Changes, the country vigorously strengthens the construction of affordable housing, and the market potential is huge. The affordable housing market will be the main direction of home improvement companies in the next few years. "Zhu Xuejun, general manager of Anxin Floor Beijing Branch, said:" Last year, Anxin adjusted its product line and product coverage. A full range can meet the needs of various consumer groups. Anxin has both high-end products and products suitable for the needs of users of affordable housing. The high energy is high and the low energy is low. It is the characteristics of Anxin products. "
The affordable housing market has huge space, but whether it is suitable to get involved is closely related to the market positioning of the enterprise. Sun Shoujiang, chairman of Peugeot Furniture, admitted frankly that Peugeot enterprises are targeting high- and middle-end groups, and currently there are no products aimed at affordable housing. "Each enterprise's positioning is different. Some home furnishing companies' original positioning is high-end products, which does not match the consumption needs of the owners of affordable housing. If you spend a lot of time, spending a lot of manpower, material and financial resources to invest in affordable housing, it is better to be in the enterprise. More work on internal management. "Similarly, the double-leaf furniture specializing in the production of solid wood furniture did not involve the affordable housing market. Song Xuehui, Director of Shuangye Furniture Market, said: "The market positioning of Shuangye products is not in line with affordable housing consumers. If you are involved in the affordable housing market, you should work harder on the materials, working hours, and design of the furniture. Working hours, reduce some unrealistic design elements, so as to effectively control costs and meet the needs of affordable housing consumers. "
Cheap and good quality
Faced with the vigorous promotion of affordable housing, furniture companies have different views, but in general, as long as the companies involved are working hard to adjust their product lines. Enterprises involved in the affordable housing market must have the ability to resist risks, but also have the ability to adapt to market changes. Only by sticking to the brand route and producing high-quality products can we stand out from the fierce competition. Affordable housing is dominated by small apartments and economic types, and the consumer groups are mainly low- and middle-income people. There are many well-educated white-collar workers, skilled workers, and ordinary working-class workers. Must be "cost-effective" supremacy. However, the low price does not mean that they can sacrifice the quality of their living environment.
Natural selection, survival of the fittest, furniture companies adjust their industrial chain according to market demand, and launch corresponding products according to the characteristics of affordable housing. To attract consumers with high cost-effective quality and non-discounted service quality, seize market share, and increase the company's visibility. In the future development, whether the company can successfully make money in the affordable housing market depends on its own ability.
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