Store rent accounts for more than 30% of furniture selling price
Provincial furniture association chairman exposed reasons for high furniture prices in stores
Morning Post: "The interests of the four parties including producers, sellers, owners, and hypermarkets. If one party does not make money, there will be fraud." Da Vinci's high-priced fake sales event let everyone understand the huge profits behind the high prices in the furniture industry. Yesterday, at the first home furnishing summit of Alibaba, President Jiang Hongyuan of the Zhejiang Furniture Association unveiled the inside story of the industry, saying that the biggest problem existing in the furniture store is the high operating costs, and the rental cost of the store exceeds 30%.
Furniture store rents are higher than the cost
"The Da Vinci incident cast a shadow on the furniture industry." Yesterday morning, Jiang Hongyuan, president of the Zhejiang Furniture Association, who was the guest of the first home furnishing summit of Alibaba, came to power and directly denounced Da Vinci Home Furnishing, which is the industry's most concerned industry. High price selling fakes.
"If you cheat consumers, it is tantamount to digging your own grave." Jiang Hongyuan said that famous brand stores like Da Vinci can fake, and integrity has obviously been forced to the corner. The face-to-face store sales model is likely to buy fakes, sell furniture on the Internet, and how to be honest is worthy of consideration by thousands of e-commerce furniture vendors on the floor.
At present, many furniture brands are entering the furniture store for sale. Jiang Hongyuan believes that in this marketing model, whether the furniture store business is doing well depends on whether the interests of the manufacturers, sellers, owners, and hypermarkets can form a community. If one of the parties does not make money, it is easy for a hammer to buy and sell.
Jiang Hongyuan also pointed out that there has been an imbalance in the interests of the four parties in the furniture store, that is, the operating cost of the furniture store is relatively high. For example, he said that in Beijing, the annual rent for furniture stores is as high as six or seven thousand yuan per square meter. Rental prices for furniture stores in Hangzhou range from 1,500 yuan to 2,000 yuan. "This price is enough for building."
30% of sales are store rents
Jiang Hongyuan said that in European and American countries, the rental cost of furniture stores is 10% to 20%, but the domestic situation is 30% or higher. What about the Hangzhou furniture store? The reporter interviewed some furniture sellers.
Liantianhong (Fujian) Furniture Co., Ltd., which specializes in mahogany furniture, has stores in Hangzhou Ouyada, East China Furniture City, Ningbo Sixth Space and other stores. Huang Ligang, manager of the company's Zhejiang district, told reporters that depending on the location of the store and the floor of the store, the rent of the store may vary. The expensive rent is two to three hundred yuan per square meter per month, generally about 80 yuan, and the location is slightly more than 50 to 60 yuan. Manager Huang revealed that store rents account for a large proportion of their costs, about 50%.
In the new era furniture market in Chengxi, Ms. Pan, a salesperson who runs mattresses, told reporters that her store has 180 square meters and the rent is about 140 yuan per square meter per month. Ms. Pan said that the annual rent accounts for about 30% of a year ’s sales. She said the rent is already very high, and it will continue to rise, which is a big burden. She said rent is a factor that affects furniture prices.
Furniture manufacturers have transformed "touch the net"
According to Jiang Hongyuan, the home market is very large. The furniture manufacturing powers are now China, Germany, Italy and the United States. Among them, China ranks first in production. In China, Guangdong has the largest output of furniture, followed by Zhejiang. At present, domestic furniture sales have reached 870 billion yuan, and this year it is estimated to exceed 1 trillion yuan. China's furniture exports amounted to USD 33.7 billion, of which Zhejiang's furniture exports amounted to USD 7 billion. "In terms of sales, it will take a few years for the home furnishing industry to overtake the automotive industry."
However, high rents, difficult delivery, lack of credibility, and poor service have increasingly troubled the furniture industry under the traditional sales model, and some furniture manufacturers have transformed into "touching the net." At the summit, a new type of furniture e-commerce model made people shine.
Li Lina, a senior expert from Alibaba Research Center, introduced that some companies can now customize furniture through the Internet. Consumers log on to their website, choose the type of their own real estate, and choose furniture on the computer according to their preferences, including style, color, size, material, etc. After that, the manufacturer will produce customized furniture according to the barcode left in the computer, and distribute it to the home for installation.
Industry insiders said that from a hypermarket to an online store, furniture dealers can save the middle links of traditional sales channels, reduce high costs, and increase the transparency of integrity management, which is a new trend in the future development of the furniture industry.
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