Floor market encounters "Waterloo" The second and third-tier brands are near collapse

Under the influence of many factors such as the readjustment of the property market, the floor market continued to slump. The author visited the building materials market on the 14th learned that due to deserted business, many floor stores have plans to withdraw. Zhou Xinglin, deputy secretary-general of the Chongqing Flooring Association, told the author that currently the businesses of the second and third floor brands are almost at a loss, and there is also a tendency to spread to the first-line brands.

Zhang Jie, who has suffered a loss for the second and third line brands for 10 years, told the author that her shop had been playing whiteboard for 10 consecutive days. She had already submitted a withdrawal report to the market authority. “Although there was a time when business was sluggish, But not as bad as this time. Since last year, I have already lost more than 500,000." Zhang Jie said. The author understands that in the building materials market where Zhang Jie is located, there is more than one Zhang Jie who wants to remove the floor. There are more than 40 floors in this store, and more than 80% want to leave the floor. “Now the floor business is not good!” Chen Sheng, the owner of the flooring business, said that floor sales of floor stores he opened this year plummeted, which is at least 60% lower than the same period last year.

Similarly, the bear business owner of the floor business claimed that the floor storefront rent, labor costs, electricity bills, taxes, and other expenses add up. A shop spends about 10,000 yuan per month. “Now only two or three orders are received in a month. Sometimes a single business does not even have a profit of 100 yuan. A store has an average loss of about 6,000 yuan per month.” Bear's boss opened two stores, doing business at a loss. .

Zhou Xinglin, deputy secretary-general of the Chongqing Flooring Association, said that this year, the floor market has faced unprecedented cold, and it has suffered losses from the third-line brands to the second-line brands. If the market continues to be sluggish, front-line brands are not far from losing money. Taking the Nanping-building materials market as an example, 80% of the businesses doing flooring business are losing money. “Because of the market downturn, some businesses couldn’t hold back and withdrew from the market.” Chen Sheng said that he opened eight floor stores and the number of employees was 150-160 for a long time. At present, at least two stores will be withdrawn and the number of employees will be reduced. half.

Suffering from multiple extrusions has made it difficult to do business. "As a result of real estate regulation, the volume of housing transactions has fallen sharply from previous years, affecting the decoration, home furnishing, and building materials industries," said Zhou Xinglin, deputy secretary general of the Chongqing Flooring Association. Chen Sheng, the boss, said that many stores, competition, and market confusion are also the reasons for the poor floor business. According to incomplete statistics, Chongqing's large and small building materials market has exceeded 30. “The threshold for doing business on the floor is not high. A small brand only needs to invest 5 to 60,000, and some manufacturers will use cheap products to hit the market.” Chen Sheng said.

“All kinds of costs are rising, but some floor companies are selling at a reduced price. Floors with a thickness of 12 mm have previously sold at least 80 yuan/m2. Now some businesses are selling at 48 yuan/m2,” said Chen Sheng. Zhou Xinglin said that many businesses are trying to seize the order, and the price has reached the point where you are dead, but the customer does not buy or buy. "In this way, the internal price war wounded himself." Zhou Xinglin said.

Since the beginning of this year, freight, facade rental, storage fees, labor costs and other expenses have all increased. The bear owner took freight as an example. In the past, the waterway freight was 3,800 yuan/20 tons, now 5,800 yuan/20 tons; two years ago, the rail transport was 380 yuan/ton, and now it is 580 tons. Both water and rail freight rates rose by 52%.