Year-on-year rising shop-building costs In many building materials supermarkets, the prices of most building materials such as paints, ceramics, sanitary ware, flooring, doors, and windows have not changed much, and TOTO, Jiumu, Wrigley, Emperor, Oulusha and other bathroom brands, Marco Polo, Nuo Ceramic brands such as Bell, Xinzhongyuan, Shengdebao, and Asia Mins have discounts in varying degrees. According to sales personnel, due to the current high season of decoration, most ceramic and sanitary manufacturers have launched new products, and prices have not changed significantly.

Challenges also include EGGER flooring and flying beauty furniture. According to Ai Geng floor chairman Zhong Hongwen, currently in the home store to open a floor store about 150 square meters, at least 500,000 to 600,000 yuan investment. If you add the cost of advertising and promotion at the time of opening the store, you will need 1 million yuan. “Opening a new store of about 300 square meters in the furniture city, the initial hard cost investment (including entrance fee, store decoration, sample purchase) will need 700,000 yuan!” Zhou Kaijun, general manager of Feimei Furniture, said that the cost of opening stores has been increasing year by year. It is an indisputable fact.

Three factors driving up channel input costs In the eyes of people in the industry, there are three main reasons for pushing up channel costs, including devaluation of store rentals. It is understood that the rental of home stores has risen very rapidly in recent years. A person in charge of an unnamed furniture company said: “Home store is a form of commercial real estate, the cost of the new store itself is rising, and the operating costs of home stores are also increasing year by year, coupled with the strong position of the store , making the store rental increase more than 10% each year."

The continuous increase in operating costs is another reason for the high channel input costs. According to Zhang Zhiliang, vice president of Huanai Lijia, China is now entering the era of high wages. Almost all home-operated companies are substantially increasing their salaries for channel operations, which is also the main reason for the increase in channel operating costs. "Now the market competition is fierce, for the terminal, the excellent clerk is the scarce core resources. In order to retain people, high wages, high commissioning is also something the company has to do." Furniture professional consulting and marketing agency Guo Fu Wang Long chairman Zhao Long It is believed that in the era of high wages, the manpower cost of corporate channel operations will only continue to rise.

“The disorderly expansion of hypermarkets is also a factor that cannot be ignored.” Yang Tao, Chairman of the Board of Directors of professional children's furniture, believes that at present, the volume of home shopping malls in many cities is already close to saturation, and even there is excess. For enterprises, not only is the cost of opening stores increased, but if the stores are not well managed and closed, companies must also bear high losses. According to Zhao Long, Chairman of Guofu Aspect, the over-expansion of home stores, the unreasonable layout in some cities, and the phenomenon of false prosperity in the home market of commercial real estate, and this requires the expansion of home companies to pay for enterprises. The operating costs of the channel rose.

Emerging channels will rise as traditional physical channels have become a double-edged sword for home businesses. “The home industry is highly free-competitive, and it is a fully marketable industry. Therefore, many companies are investing in the construction and management of channels at no cost.” Insiders believe that the home industry is a typical channel. The circulation brand is stronger than the brand. industry. For the average consumer, they often only remember where they bought furniture and building materials. Under such circumstances, relying on the traditional channels of home stores, it will naturally push up the cost of channel operations as store rentals continue to rise. “Coolman Residence Chairman Yang Tao believes that in the existing traditional channels, home-based manufacturing and distribution companies can hardly have the right to speak. In addition, there are too many traditional channels in the furniture industry, regional distributors, provincial-level distributors, and local markets. Acting, county-level agents, after the product has been increased by layers, the price has a huge deviation from the real price, and this will eventually be passed on to consumers to pay.

According to Zhao Long, Chairman of China Fortune International, the current home companies have begun to realize that the original traditional channels are flawed and many companies have begun to diversify channels, including independent stores and network channels besides home stores. It is also an emerging channel that attracts the most attention. It is understood that currently including home appliances such as Qumei, Shengxiang, Nature, Cool Manju, Ruibao Wallpapers, Huanai Lijia, Ximianbao, TATA Wooden Door, etc. in China with considerable scale and brand awareness have begun to test water electronics. Business. Emerging online sales have opened up a huge imagination for the traditional home industry.