The rapid development of the home industry in recent years has also prompted many people to flock to the flooring industry. Compared with big brands with deep brand accumulation and strong technological innovation capabilities, small and medium-sized flooring companies have been stifled in long-term price wars and their profits have been continuously diluted.
This reporter learned that the China Forest Products Industry Association and China Consumers Association jointly issued the "floor ***", will strengthen the floor price cordon positioning 70 yuan, but the market as low as five or sixty yuan products abound. This also led to the results described by Zhang Bo, the general manager of St. Matt's flooring, in the sales performance to eliminate the costs of store decoration, many companies' gross profit margin does not exceed 8%, and pay is not proportional to the benefits.
According to Hu Zhongxin, secretary-general of the China Home Building Materials Decoration Association, there are currently thousands of flooring companies in the country, and less than 30% of them are truly profitable, and many of them have gross profit margins of only about 5%. After the financial crisis, the export orders of floor companies have plummeted, and the US “double reverse†investigation has further blocked floor exports. Under the power of property market regulation, the domestic market demand is also shrinking; at the same time, the prices of raw materials, labor, and channel costs have risen. Stay high. "In such a grim situation, the flooring industry was the first to set off a wave of collapse, which was not expected."
Which industries are in danger outside homes and furniture? “In fact, all companies that are engaged in the real economy are facing risks,†said Fan Wenjian, general manager of WorldFriends Flooring Beijing. The cash flow and profitability of home companies are already extremely low, and many companies are maintaining their survival. Become the victim of the next crash. Hu Zhongxin said that plate furniture companies and home improvement companies have been hit harder, or they will become the next "high-risk group."
At the 2011 China Panel Furniture Development Forum held in the middle of this year, some experts said that the current domestic market for panel furniture has been shrinking. According to statistics from a senior industry professional, the cost of sheet metal accounted for 30% to 40% of the total cost of production and distribution of panel furniture, and the wages of workers accounted for 10% to 20%. In addition, there were operating costs and high field rental costs. Wait. Compared with solid wood and European and American furniture, plate furniture is low in price and profit is thin. Gross profit is about 26%, and net profit is only 7%. If you do not increase selling points and increase new profit items as soon as possible, some panel furniture companies may be unable to escape the fate of converting, transforming or closing.
The home improvement company has undoubtedly become a hard-hit area on the home sandbox in 2011. Hu Zhongxin pointed out that high-end brands with strong ability to withstand risks and extremely low-grade enterprises can win certain markets with their price advantage, while mid-range home-improvement brands will face cruel market tests due to lack of visibility and vague positioning.
1. Insolvency of non-performing loans Some companies consider that the profitability of household products is low, and they cannot reject the temptation of private lending capital, so they use the company entity as a guarantee to conduct microfinance. In this way, when there is a problem in one part of the company's operating chain, the entire capital chain is also randomly broken. The company cannot offset its debt and the owner can only run away. In addition, some companies are engaged in the production or sale of household products, and are also engaged in industries with higher risks, such as agricultural products or real estate, and the poor management has caused the sideline to drag down the main business.
2. The cost of labor and logistics has soared The rising costs of raw materials, labor, and transportation have also become unaffordable for home companies.
It is reported that from the beginning of the year to now, the total cost of the floor companies rose by 25% to 30%, of which the most serious part of the labor and logistics. Regardless of short-distance transport or long-distance transport, the transportation cost equivalent to double floor per square meter doubled compared with previous years, and the wages of factory workers also rose.
Not only the floor, furniture, bathrooms, cabinets and other categories are also facing cost pressures. At the same time, the home-based enterprises that are located in supermarkets and building materials cities also have to bear high construction costs such as rents. Home decoration company's cost is mainly reflected in the manual, even a bricklayer's monthly salary will be higher than the ordinary white-collar workers.
This reporter learned that the China Forest Products Industry Association and China Consumers Association jointly issued the "floor ***", will strengthen the floor price cordon positioning 70 yuan, but the market as low as five or sixty yuan products abound. This also led to the results described by Zhang Bo, the general manager of St. Matt's flooring, in the sales performance to eliminate the costs of store decoration, many companies' gross profit margin does not exceed 8%, and pay is not proportional to the benefits.
According to Hu Zhongxin, secretary-general of the China Home Building Materials Decoration Association, there are currently thousands of flooring companies in the country, and less than 30% of them are truly profitable, and many of them have gross profit margins of only about 5%. After the financial crisis, the export orders of floor companies have plummeted, and the US “double reverse†investigation has further blocked floor exports. Under the power of property market regulation, the domestic market demand is also shrinking; at the same time, the prices of raw materials, labor, and channel costs have risen. Stay high. "In such a grim situation, the flooring industry was the first to set off a wave of collapse, which was not expected."
Which industries are in danger outside homes and furniture? “In fact, all companies that are engaged in the real economy are facing risks,†said Fan Wenjian, general manager of WorldFriends Flooring Beijing. The cash flow and profitability of home companies are already extremely low, and many companies are maintaining their survival. Become the victim of the next crash. Hu Zhongxin said that plate furniture companies and home improvement companies have been hit harder, or they will become the next "high-risk group."
At the 2011 China Panel Furniture Development Forum held in the middle of this year, some experts said that the current domestic market for panel furniture has been shrinking. According to statistics from a senior industry professional, the cost of sheet metal accounted for 30% to 40% of the total cost of production and distribution of panel furniture, and the wages of workers accounted for 10% to 20%. In addition, there were operating costs and high field rental costs. Wait. Compared with solid wood and European and American furniture, plate furniture is low in price and profit is thin. Gross profit is about 26%, and net profit is only 7%. If you do not increase selling points and increase new profit items as soon as possible, some panel furniture companies may be unable to escape the fate of converting, transforming or closing.
The home improvement company has undoubtedly become a hard-hit area on the home sandbox in 2011. Hu Zhongxin pointed out that high-end brands with strong ability to withstand risks and extremely low-grade enterprises can win certain markets with their price advantage, while mid-range home-improvement brands will face cruel market tests due to lack of visibility and vague positioning.
1. Insolvency of non-performing loans Some companies consider that the profitability of household products is low, and they cannot reject the temptation of private lending capital, so they use the company entity as a guarantee to conduct microfinance. In this way, when there is a problem in one part of the company's operating chain, the entire capital chain is also randomly broken. The company cannot offset its debt and the owner can only run away. In addition, some companies are engaged in the production or sale of household products, and are also engaged in industries with higher risks, such as agricultural products or real estate, and the poor management has caused the sideline to drag down the main business.
2. The cost of labor and logistics has soared The rising costs of raw materials, labor, and transportation have also become unaffordable for home companies.
It is reported that from the beginning of the year to now, the total cost of the floor companies rose by 25% to 30%, of which the most serious part of the labor and logistics. Regardless of short-distance transport or long-distance transport, the transportation cost equivalent to double floor per square meter doubled compared with previous years, and the wages of factory workers also rose.
Not only the floor, furniture, bathrooms, cabinets and other categories are also facing cost pressures. At the same time, the home-based enterprises that are located in supermarkets and building materials cities also have to bear high construction costs such as rents. Home decoration company's cost is mainly reflected in the manual, even a bricklayer's monthly salary will be higher than the ordinary white-collar workers.
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